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#Accounting terms that all #entrepreneurs should know... Accounts receivable: The money owed to a company by its customers for goods or services sold on credit, considered assets on the balance sheet until payment is received.

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.

#KeyTermsofAccounting 1. Accounts Receivable: The amount owed to a business by its customers for goods or services delivered. 2. Accounts Payable: The amount a business owes to its suppliers or creditors for goods and services received. 3. Accrual Basis Accounting: An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash transactions occur. 4. Amortization: The process of gradually writing off the initial cost of an intangible asset over its useful life.

Prompt payment is crucial for small businesses! 🕒 Waiting on unpaid invoices can be costly, especially when you've already fronted costs for materials and labour. Here are some tips to ensure everything gets paid on time: 🔹 Act fast: Send invoices immediately while details are fresh in your client's mind. 🔹 Be clear: Ensure your invoice includes essential info like the amount due, bank details, and due date. 🔹 Stay organised: Maintain clear records and contact info for easy follow-up. 🔹 Follow up: Check in before the due date to keep your invoice top of mind. Remember, you can always reach out to us at Munro Benge for expert advice and support. 📞 +64 4 472 7465 ✉️ munrobenge@munrobenge.co.nz Book a call: https://lnkd.in/guxax7Rh #MunroBenge #AccountingServices #BusinessAdvisory #CharteredAccountants #ProfessionalServices #BusinessTips #FinancialAdvice #ClientSuccess #BackEnd

Accounts payable refers to the short-term debts or obligations a business owes to its suppliers, vendors, or creditors for goods or services received but not yet paid for. These payables appear as current liabilities on the company's balance sheet. Efficient accounts payable management is a cornerstone of financial health and operational success for any business. __ Are you confident in your business's accounts payable processes, or do you need to reassess your approach? Follow ProfitHunt for Learnings #accountspayable #financeandaccounting #business,#RecordtoReport,#GeneralLedger

💼 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

💼💸 **Here’s the deal:** Accounts Payable is the cash you owe your suppliers for the stuff you bought on credit. You take the goods now, but the bill’s gotta get paid later. Stay on top of it—let it slip, and things can get messy. Keep it tight, keep it right. 💪 Pay up, stay sharp, and keep your business running like a boss. #BusinessHustle #PayYourBills #FinanceBoss #SmallBusinessMoves #AccountsPayable #BusinessFinance #CashFlowManagement #SupplierRelations #BusinessEssentials #FinancialLiteracy #SMBFinance #BusinessTips #EntrepreneurMindset #FinanceForBusiness

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

The preparation of different books of accounts including the subsidiary books by an accountant relies on some known and widely accepted documents that are exchanged between two or more parties in the conduct of business transactions. These documents that buyers and sellers exchanged with each other which are binding on both parties are called source documents in accounting. #Business

Accounts payable refers to the money a business owes to its suppliers or vendors in exchange for goods or services purchased. To maintain accurate financial records, businesses must collect and retain documentation as proof of these expenses. This documentation is also valuable during tax season. By doing so, businesses can ensure that their accounts payable accurately reflect their financial obligations and avoid any discrepancies that may arise during audits or tax filings. Therefore, it is recommended that businesses keep records of their: 🔹bills 🔹receipts 🔹bank statements 🔹credit card statements 🔹proof of payment 🔹any other documentary evidence #LinkedInTips #ProfessionalDevelopment #Networking #PersonalBranding #Professionalism #BusinessNetworking #Bookkeeping #Accounting #AccountsPayable #GrowYourBusiness