Accounts receivable and accounts payable are two of the most important things for business owners to understand. The simple reason why? Well, these two elements are what dictate the money you bring in! In short, it’s easy to think of them as complete opposites. However, it’s important to ensure that you have a full understanding of the difference between the two in order to efficiently manage your business.
Any good business-owner knows that tightly-managed accounts receivable are important for the efficient day-to-day operation of your company.
Many small businesses struggle with one very important component daily -cash flow.
What is cash flow and why is it so important? It’s actually pretty straightforward:
QuickBooks is essential for any small business owner, freelancer, or accountant. But if we’re beyond honest, without any background knowledge in bookkeeping, it can be rather difficult to set up your books on your own. This is where Quickbooks comes in to help. The software is set up to help your business “save 37 hours per month” thanks to its one-click synchronization with all your accounting data. And, you don’t even need to know a thing about accounting to be able to learn to navigate Quickbooks.
An accounts receivable aging report is an important document for business owners to understand. It’s essential to know the importance behind an AR aging report, how to read one, and how to prepare one. Let’s find out all of this and more in this article.
Business owners have an obligation not only to their customers, but to themselves, to develop literacy with the financial instruments they will use every day. When it comes to invoices vs. bills, it can get a bit tricky to understand what the difference is between the two documents and when to use either one. After all, a misunderstanding can lead to disaster as it can cause you anything from a mere headache to major financial loss.
Managing accounts receivable is one of the biggest pains in any business, let alone managing the AR turnover. But despite it’s difficulty, it is also an extremely important part of managing any business and keeping cash flow headed in the right direction. Continue reading to find out how you can calculate and manage accounts receivable turnover ratios.
There are many small details new business owners should be aware of. Even though they might be small, it could still be essential. One question that business owners, both new and old, might ask is:
Once you gather your courage and your resources to start your own business, it's easy to get in the groove and lose sight of the Big Picture. To make sure you protect your investment and keep your business on the right track, you need to pay attention to KPIs.
According to some studies, about one-fifth of small businesses still don’t use an Accounting Software Program. They are relying on spreadsheets or paper and pencil to track income and expenses the “old fashioned way.” While this can certainly work - it did for centuries - it’s not the best use of anyone’s resources. Just because you can do something doesn’t mean you should.
Time to turn the calendar not only to a new year but a new decade. What a wonderful time to take stock of how things are and make plans for the best possible years ahead. Here are some of the very best accounting tips for small business in 2020.
When you start your own business, there are a lot of things to think about. You’re concentrating on that thing that you do best and may not even consider some of the accounting tasks that need to be done. Invoicing could be one of them.
The total in Accounts Receivable on your balance sheet is a great number to have. It means you sold some widgets or services, and someone is going to pay you for them. It’s a clear look at your future. A nice amount of money is coming your way. That’s great! But wouldn’t it be even nicer to have that money in your bank account now instead of in your future? While you will probably get that money eventually, how can you shorten the time it takes?
Research has shown that 62% of invoices take 60 days or more to be paid. Unless you’re up for having to deal with the long and expensive legal process of retrieving what you’re owed, it’s best to work with your clients beforehand to prevent late payments from occurring.