Benadine Nonye’s Post

#Accounting terms that all #entrepreneurs should know... Accounts payable: The money a company owes to its suppliers or vendors for goods or services purchased on credit, listed as liabilities on the balance sheet.

🔍 Invoice vs Receipt: What’s the Difference? Invoice: Requests payment. Receipt: Confirms payment. Learn more in our article. 📑✨ https://lnkd.in/gnZekAAB #BusinessTips #FinancialManagement #InvoiceVsReceipt

💼 Understanding Debtors and Creditors in Business In the world of finance and accounting, debtors and creditors are key terms that every business professional should understand. Here’s a simple breakdown: 📌 Debtors: • Who are they? Debtors are individuals or entities that owe money to your business. • When does this happen? When your business sells goods or services on credit, the customers who owe you payment become your debtors. • Accounting treatment: Debtors are considered assets on your balance sheet, as they represent future cash inflows. 📝 Example: If a customer buys products on credit, they are recorded as a debtor in your books until payment is made. 📌 Creditors: • Who are they? Creditors are individuals or entities to whom your business owes money. • When does this happen? When your business buys goods or services on credit, the suppliers or vendors you owe payment to become your creditors. • Accounting treatment: Creditors are considered liabilities on your balance sheet, representing future cash outflows. 📝 Example: If your business purchases raw materials on credit, the supplier is recorded as a creditor until payment is made. Understanding the roles of debtors and creditors is crucial for managing cash flow, maintaining healthy financial relationships, and ensuring a strong financial position! 📊 #Accounting #DebtorsAndCreditors #CashFlowManagement #FinancialHealth #BusinessEssentials

It can be challenging following up on payment of invoices when the economy has been down, but it is important to keep cash flowing into your business. As with all business dealings right now, there are tactics you can use to help. #CashIsKing #Collections #BellPartnersTamworth

Accounting Tip Friday 5/13 - Invoices serve as a formal request for payment, detailing the cost of goods or services before the transaction. Meanwhile, a receipt is issued post-payment, confirming that the payment has been received and provides a summary of the completed transaction.

🌟 Pro tip: It's important to document all of the money that flows in and out of your company. Cash receipts are used to create an official record of cash-based transactions and are also used when payments are made via check or store credit. Bottom line, accurate and complete accounting records not only benefit your business, but are required by law to have an accurate tax return every year. If your business uses cash, cash receipts are not optional! 💸💰

It can be challenging following up on payment of invoices when the economy has been down, but it is important to keep cash flowing into your business. As with all business dealings right now, there are tactics you can use to help. #CashIsKing #Collections #BellPartnersTamworth

Accounts payable in accounting refers to the short-term debts a company owes to its vendors or suppliers for goods or services purchased on credit. It is a current liability that needs to be paid off within a year or one operating cycle. This financial obligation is recorded on the balance sheet under "current liabilities" and is crucial for assessing a company's liquidity and cash cycle. #Accounting Knowledge.

Question of the day. Should I follow up with unpaid invoices? Do you like money? The sale is not complete until your client pays. #accounting #business #cashflow #problemsolving

Debtors (accounts receivable) are individuals or entities that owe money to your business for goods or services you have provided. Conversely, creditors (accounts payable) are those to whom your business owes money. In this latest News post, we explain the importance of keeping your debtors and creditors up-to-date.... https://lnkd.in/gRUu2C9u