LJM Bookkeeping Ltd’s Post

Mixing personal and business expenses? Separate your bank accounts to avoid confusion and make bookkeeping more manageable. Need assistance with bookkeeping and bank reconciliation? Get in touch with us! https://lnkd.in/erE6cfu #BookkeepingBasics #BookkeepingExperts #Bookkeeping #bookkeepinghelp #SeparateFinances

Multiple sources estimate the cost of processing accounts payable anywhere from $8-$12 per invoice. Cha-ching, cha-ching. Depending on how many vendors you use, that can add up quickly each month. We talk a lot about how your bookkeeping is your financial foundation. It might seem like your AP process is a straightforward part of your finances, but if you streamline that process, it gives you a solid foundation to grow from. Do you follow and optimize each of these stages? Learn more about each one and how to streamline your accounts payable process: https://lnkd.in/g5QuEr7N #accountspayable #APProcess #outsourcedbookkeeping

Mixing personal and business expenses? Separate your bank accounts to avoid confusion and make bookkeeping more manageable. Need assistance with bookkeeping and bank reconciliation? Get in touch with us! https://lnkd.in/e-F4K55 #BookkeepingBasics #BookkeepingExperts #Bookkeeping #bookkeepinghelp #SeparateFinances

📢 New Blog Post Alert! At Adfin, we know how vital cash flow management is for accountants and bookkeepers. Check out our latest blog post for top strategies to streamline your accounts receivable process and boost cash flow! 💸 🔗 Read the full blog post here: https://lnkd.in/dEUYCbWK #Accounting #Bookkeeping #CashFlow #AccountsReceivable #Adfin #getpaid

Keeping on top of your small business' financial transactions is essential for maintaining accurate records and ensuring that your business is running smoothly. In this article, we take you through how to track your business' finances and the different types of transactions you need to be aware of. The team at ADM Accountancy would be happy to talk you through our accounting packages. Simply call us on 01242 679767. #glosbiz #growinggloucestershire #bookkeeping #makingtaxdigital #accountancy #xero #cashflow #adm #financialadvice #businessgrowth #xerogoldpartner #bishopscleeve

Accounts Payable vs Accounts Receivable Post by: Josh Aharonoff, CPA Stay connected with him! 2 BIG areas of Finance & Accounting… and many organizations have entire departments dedicated to these 2 functions. They are the yin and yang of the money you OWE and the money you’re OWED Each have their own quirks, and ways to analyze Let’s get into it ➡️ What do they mean? Accounts Payable → Money you owe to suppliers for goods or services purchased Accounts Receivable → Money customers owe you for sales generated but not yet paid ➡️ Where do they show up on your financial statements? They are both part of your working capital, and appear on your balance sheet Accounts Payable → Current Liabilities Accounts Receivable → Current Assets The movements in these accounts get shown on your statement of cash flows in your Cash from Operating Activities ➡️ What are the journal entries? Accounts payable → Goes up with a credit, and down with a debit Accounts receivable → Goes up with a debit, down with a credit ➡️ Why are they important? These 2 accounts can cause wild swings in your cash flows Accounts Payable → the more favorable your credit terms with suppliers, the stronger your cash position Accounts Receivable → the quicker you collect your cash, the less bad debt, and the more favorable your cash position ➡️ What are some formulas around these? 1️⃣ Accounts Payable Formulas: Accounts Payable Turnover → this measures how many times a company pays off its accounts payable balance in a specific period Formula = Purchases on credit / avg accounts Payable Days Payable Outstanding (DPO) → Represents the average number of days it takes a company to pay its suppliers Formula = Accounts Payable / Purchases on Credit * number of days 2️⃣ Accounts Receivable Formulas: Accounts Receivable Turnover → this measures how many times a company can convert its accounts receivable balance into cash in a given period Formula = Net Credit Sales / Avg AR balance Days Sales Outstanding (DSO) → this measures how long it takes on average to collect again your receivables Formula = Accounts Receivable / Net Credit Sales * Number of Days Bad Debt Expense ratio → This show you how much you can expect to have in bad debt for each dollar in AR Formula = Bad debt expense / Total Credit Sales That’s my take on AP & AR Got anything to add? Let us know by joining in on the discussion in the comments below Follow Long Term Mindset for more content like this. *** P.S. Want to master the basics of accounting (for free)? I created a 5-day, email-based course that explains the Balance Sheet, Income Statement, and Cash Flow Statement in plain English. Check it out here (It's free) → https://lnkd.in/eKbRV7g6 If you found this post useful, please repost ♻️ to share with your audience

Great article; having the right management information to run your business is critical. Like all reporting it needs good foundations which starts with the bookkeeping. #bookkeeping #scruttonbland

Debunk the Invoice Mystery: Accounts Payable vs. Accrued Expenses Ever wondered what happens to those "owe you" situations in your business? Accounts payable and accrued expenses are the accounting superheroes keeping track of it all, but they have distinct capes! Invoice? It Matters! Accounts Payable: You've got the invoice - a bill for goods or services you already received. This amount sits in "accounts payable" until you settle the debt. Accrued Expenses: Invoice MIA? No problem. You know you owe money (like salaries or rent) even without a formal bill. Time Flies When You're Owed Money Accounts Payable: These are usually short-term debts, due within a few weeks or months. Think of them as friendly reminders! Accrued Expenses: They can be short or long-term, depending on the expense. Some debts take more time to settle than others. When to Take Note Accounts Payable: You create the record when you receive the goods or services. It's like acknowledging, "Yep, we got this!" Accrued Expenses: Think of them as estimates. They're recorded at the end of accounting periods to ensure your financial picture is accurate. The Bottom Line: Specificity is Key! Accounts Payable: A specific type of accrued expense - money owed to a supplier for something you already have. Accrued Expenses: The broader category for any expense incurred but not yet paid, invoice or not. Stay tuned for future posts where we delve deeper into the exciting world of business finances! This reformulated version uses: Punchier language: Instead of technical terms, it uses clear and concise explanations. Analogy: The "superhero" theme makes the content more engaging. Bullet points: Key information is presented in an easily digestible format. Call to action: Encourages readers to stay interested in future content.

Ways to set up payments and invoices to ensure you can easily collect your customers' money! #accounting #accountreceivables #smallbusiness #finance #bookkeeping https://lnkd.in/gbArH53c

Month-End Bookkeeping Checklist for Small Businesses 1. Reconcile Bank Accounts:   - Match Transactions: Compare your bank statements with your internal records to ensure every transaction is accounted for and accurately recorded.   - Identify Discrepancies: Investigate and resolve any discrepancies between your records and the bank statements. 2. Reconcile Credit Card Statements:   - Match Credit Card Transactions: Ensure all credit card transactions are recorded in your books.   - Categorize Expenses: Verify that each expense is correctly categorized. 3. Review Accounts Receivable:   - Check Outstanding Invoices: Review any unpaid invoices and follow up with clients on overdue payments.   - Record Payments Received: Ensure all payments received have been recorded in the correct accounts. 4. Review Accounts Payable:   - List Outstanding Bills: Compile a list of all unpaid bills and their due dates to avoid late fees.   - Schedule Payments: Plan payments to ensure timely settlement of your liabilities. 5. Record and Review Expenses:   - Categorize Expenses: Ensure all expenses are properly categorized for accurate financial reporting.   - Check for Missing Receipts: Make sure all business-related expenses have corresponding receipts. 6. Review Financial Statements: - Profit and Loss Statement: Review your income and expenses to ensure accuracy and understand your business’s performance. - Balance Sheet: Check your assets, liabilities, and equity to ensure everything is balanced. - Cash Flow Statement: Analyze your cash flow to ensure you have enough liquidity for the coming month. 7. Pay Yourself!!! Completing this month-end checklist ensures that your financial records are accurate, up-to-date, and ready for any decisions or reports that may be required. This routine also helps in maintaining financial health and being prepared for tax obligations.