Reconciliation is an essential accounting process that ensures two different financial records are correctly matched up. This is especially important to ensure that your accounts are all in order.
When it comes to the financial aspects of your business, knowing invoicing and estimation terms and understanding the differences between them is crucial to stay organized and on top of things.
In this article, we’ll break down invoice vs. estimate, two terms that may get mixed up every once in a while.
If you’re running a business, you probably understand the pain of chasing down customers who haven’t paid their invoices.
In an ideal world you will get paid as soon as you’ve delivered your product or service to your client. Unfortunately, it can take days or weeks before you see the cash in your account. Days sales outstanding, also known as DSO, is a way of measuring the average number of days it takes for you to get paid when you bill or invoice a client.
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.