A low DSO means that customers are paying promptly after receiving their invoices and that your team is quickly processing the payments. This correlates to good cash flow and lower amounts of bad debt write-offs. The Accounts Receivable cycle includes steps from order placement and approval to invoicing and collection, finishing with payment processing and … Read more
With the right processes and technology however, companies can accelerate customer payments by more intelligently targeting dunning. Using an execution management system (EMS), organizations can engage customers through data-driven prioritization, more effectively resolve disputes and impose late payment penalties for non-strategic customers. We have profound experience in maintaining accounts receivable processes for a number of … Read more
Revenue appears at the top line of the income statement, showing the total amount of money earned from sales or other business activities. It reflects the company’s ability to generate income from its core operations, indicating its financial health and growth potential. As mentioned above, equity is one of the so-called balance sheet accounts, as … Read more
If your budget is low, you don’t need all the features of a full accounting program and you want more avenues for support, you may be better off choosing a QuickBooks competitor. Zoho Invoice makes it easy for small businesses to go from estimate to project to invoice to payment without having to pay for … Read more
By recognizing revenue and expenses differently, you can affect cash flow, profitability assessments, and investment decisions. Timing differences in accounting also play a role in financial decision-making. The recognition of revenue and expenses can affect cash flow and profitability assessments. Accruals involve tracking transactions over time and determining when revenue should be recognized or expenses … Read more
Or you can spot someone who hasn’t paid their invoice on time and gently suggest that you can’t do anymore work until you’re all square. And because each time you add a new supplier to the system you’ll be making note of their full contact details, you don’t have to worry about keeping an address … Read more
In the United States, certification requirements for accountants vary from state to state. But one requirement is universal—the passing of the Uniform Certified Public Accountant Examination. This exam is written and graded by the American Institute of Certified Public Accountants (AICPA). For most accounting and auditing professions, you’ll need at least a bachelor’s degree in … Read more
If the balance in the petty cash account is supposed to be $75, then the petty cash box should contain $45 in signed receipts and $30 in cash. Assume that when the box is counted, there are $45 in receipts and $25 in cash. This creates a $5 shortage that needs to be replaced from … Read more