Accounting Tools

JUNE 20, 2023

Related Courses Business Ratios Guidebook Credit and Collection Guidebook The Interpretation of Financial Statements What is Accounts Receivable Analysis? Accounts receivable are the amounts owed to a business by its customers , and are comprised of a potentially large number of invoiced amounts.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

DECEMBER 10, 2023

What is the Accounts Receivable Turnover Ratio? Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable. The accounts receivable turnover ratio can be used in the analysis of a prospective acquiree.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

OCTOBER 9, 2023

Related Courses Closing the Books The Soft Close The Year-End Close How to Prepare Financial Statements The preparation of financial statements involves the process of aggregating accounting information into a standardized set of financials. Accrue the expense for any invoices that have not been received.

Financial Statements 75

Financial Statements General Ledger Bank Reconciliation Invoicing 75

Accounting Tools

MARCH 24, 2023

Related Courses Bookkeeping Guidebook Credit and Collection Guidebook How to Audit Receivables What is the Accounts Receivable Ledger? The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables General Ledger 40

Nanonets

MAY 8, 2023

Try Nanonets accounting automation software to streamline all your accounting receivable processes. Start your free trial Accounts receivable (AR) is an asset on a company's balance sheet. In other words, accounts receivable is the money a company expects to receive in the future from its customers.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables AR 52

Accounting Tools

JUNE 20, 2023

Related Courses Credit and Collection Guidebook The Balance Sheet The Interpretation of Financial Statements The average accounts receivable figure is needed in certain situations to avoid measurement problems. Conversely, the average receivable reported for a declining business would be overstated.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Gaviti

FEBRUARY 20, 2023

An accounts receivable balance refers to a company’s outstanding invoices that customers have not yet settled. In other words, it is the amount of money owed to a business by its customers for goods or services provided but for which it has not received payment.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Reconciling 52

Accounting Tools

JUNE 12, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is a Financial Statement Audit? A financial statement audit is the examination of an entity's financial statements and accompanying disclosures by an independent auditor.

Financial Statements 76

Financial Statements Auditing General Ledger Bank Reconciliation 76

Accounting Tools

JUNE 18, 2023

Related Courses Business Ratios Guidebook Credit and Collection Guidebook The Interpretation of Financial Statements What is the Accounts Receivable Collection Period? The accounts receivable collection period compares the outstanding receivables of a business to its total sales.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Collections 40

Accounting Tools

APRIL 24, 2024

It is calculated as follows: (Cash + Cash equivalents) ÷ Current liabilities = Cash ratio Quick Ratio The quick ratio is the same as the cash ratio, but includes accounts receivable as an asset. This ratio explicitly avoids inventory, which may be difficult to convert into cash.

Financial Analysis 75

Financial Analysis Accounts Receivable Accounts Receivable Account Receivables 75

Accounting Tools

MAY 13, 2024

Related AccountingTools Courses Business Ratios Guidebook Key Performance Indicators The Interpretation of Financial Statements Accounts Receivable Turnover Ratio The accounts receivable turnover ratio measures the time it takes to collect an average amount of accounts receivable.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

APRIL 6, 2024

The master budget is the aggregation of all lower-level budgets produced by a company's various functional areas, and also includes budgeted financial statements , a cash forecast, and a financing plan. This is not the case for the master budget, which looks very much like a standard set of financial statements.

Budgeting 74

Budgeting Accounts Receivable Accounts Receivable Account Receivables 74

Accounting Tools

MAY 15, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is the Allowance for Doubtful Accounts? The allowance for doubtful accounts is paired with and offsets accounts receivable. Actual results may vary from management’s expectations for accounts receivable collections.

Accounting 75

Accounting Accounting Accounts Receivable Accounts Receivable 75

Nolan Accounting Center

FEBRUARY 15, 2024

As renowned investor Warren Buffet has stated, “Accounting is the language of business.” That includes properly and accurately recording, reporting, and acting on an organization’s financial statements, including a focus on assets and liabilities, including contingent liabilities. These must be recorded on financial statements.

Financial Statements 88

Financial Statements Tax Payroll Accounts Receivable 88

Accounting Tools

JULY 24, 2023

An account is a separate, detailed record about a specific item, such as expenditures for office supplies, or accounts receivable, or accounts payable. There can be many accounts, of which the most common are: Cash. This is the current balance of cash held by a business, usually in checking or savings accounts.

Financial Accounting 75

Financial Accounting General Ledger Accounting Accounting 75

Accounting Tools

OCTOBER 27, 2023

Window dressing is actions taken to improve the appearance of a company's financial statements. If a business is closely held, the owners are usually better informed about company results, so there is no reason for anyone to apply window dressing to the financial statements.

Accounting 75

Accounting Accounting Financial Statements Accounts Receivable 75

Accounting Tools

MAY 10, 2024

Related AccountingTools Courses Business Ratios Guidebook The Interpretation of Financial Statements Problems with the Asset Turnover Ratio There are several problems with the asset turnover ratio. They are as follows: Skewed by industry requirements.

Financial Statements 73

Financial Statements Accounts Receivable Accounts Receivable Account Receivables 73

Accounting Tools

MARCH 29, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is an Accounting Transaction? An accounting transaction is a business event having a monetary impact on the financial statements of a business. It is recorded in the accounting records of the business.

Accounting 75

Accounting Accounting Financial Statements Accounting Software 75

Accounting Tools

SEPTEMBER 28, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Average Net Receivables? Average net receivables is the multi-period average of accounts receivable ending balances, netted against the average allowance for doubtful accounts for the same periods.

Reconciling 40

Reconciling Accounts Receivable Accounts Receivable Account Receivables 40

Outsourced Bookeeping

MAY 14, 2024

Small Business Accounting: Knowing the Workflow Maintaining small business accounting involves tracking your business account to see how you save and spend your business funds and summarizing them into financial statements that can be reviewed and used to improve the business.

Small Business Accounting 52

Small Business Accounting Outsourced Bookkeeping Accounts Payable Accounts Payable 52

Accounting Tools

APRIL 24, 2024

Faithful representation is the concept that financial statements be produced that accurately reflect the condition of a business. For example, if a company reports in its balance sheet that it had $1,200,000 of accounts receivable as of the end of June, then that amount should indeed have been present on that date.

Financial Statements 40

Financial Statements Financial Reporting Bookkeeping Accounts Receivable 40

Accounting Tools

MAY 14, 2023

Related Courses The Balance Sheet The Interpretation of Financial Statements What is the Order of Liquidity? Thus, cash is always presented first, followed by marketable securities , then accounts receivable , then inventory , and then fixed assets. Accounts receivable. No conversion is needed.

Financial Statements 75

Financial Statements Accounts Receivable Accounts Receivable Account Receivables 75

Accounting Tools

MAY 4, 2024

What are Accounting Ratios? Accounting ratios are those ratio comparisons that can be derived solely from the financial statements. The essential accounting ratios are noted below. It excludes inventory (which is included in the current ratio) and accounts receivable (which is included in the quick ratio).

Accounting 40

Accounting Accounting Financial Statements Accounts Receivable 40

Accounting Tools

OCTOBER 24, 2023

Related Courses Business Ratios Guidebook Key Performance Indicators The Interpretation of Financial Statements What are Efficiency Ratios? The following are considered to be efficiency ratios: Accounts Receivable Turnover Accounts receivable turnover is calculated as credit sales divided by average accounts receivable.

Accounts Payable 75

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 75

Accounting Tools

JULY 8, 2023

Auditors want to see an account reconciliation for larger accounts, though reconciliations should be performed even in the absence of an auditor request, since this is a good accounting practice that leads to more accurate financial statements.

Reconciling 75

Reconciling Account Reconciliation General Ledger Accounting 75

Billing Platform

FEBRUARY 1, 2024

The Importance of Unbilled Revenue As unbilled receivables represent revenue that will eventually be recognized, its importance can be stressed enough with respect to financial reporting and analysis. Record the invoice: Using a journal entry, debit the unbilled receivables account and credit the accounts receivable account.

Billing 52

Billing Accounts Receivable Accounts Receivable Account Receivables 52

Accounting Tools

DECEMBER 19, 2023

The general ledger consists of a number of accounts , each of which stores information about a particular type of transaction, such as product sales , depreciation expense , accounts receivable , debt , and so on.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

JULY 27, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Collection Ratio? The collection ratio is the average period of time that an organization’s trade accounts receivable are outstanding.

Collections 40

Collections Financial Statements Accounts Receivable Accounts Receivable 40

Accounting Tools

NOVEMBER 3, 2023

If an expense has been accrued because there is no supplier invoice for it, remove it from the financial statements. The easiest source of this information is the accrued liabilities account in the balance sheet. Be sure to first examine the contents of this account to ensure that it is correct.

Accruals 75

Accruals Accounting Accounting Accounts Payable 75

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook New Controller Guidebook An accountant is a person who records business transactions on behalf of an organization, reports on company performance to management, and issues financial statements. Management reports are issued to the management team.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

JUNE 16, 2023

An adjusted trial balance is a listing of the ending balances in all accounts after adjusting entries have been prepared. The second application of the adjusted trial balance has fallen into disuse, since computerized accounting systems automatically construct financial statements.

General Ledger 74

General Ledger Financial Statements Accruals Bookkeeping 74

Accounting Tools

MARCH 2, 2024

Operating cash flow can be a more reliable indicator of financial health than the reported net income of a business, since net income can be altered by non-cash revenue and expense transactions. It is presented within the first section of the statement of cash flows , which is part of the financial statements.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

JULY 31, 2023

Related Courses Bookkeeping Guidebook Credit and Collection Guidebook The Interpretation of Financial Statements What are Net Receivables? Net receivables is the amount of money owed by customers that a business expects them to actually pay.

Collections 40

Collections Accounts Receivable Accounts Receivable Account Receivables 40

Nanonets

APRIL 12, 2024

Companies maintain various internal records to track their financial activities accurately and ensure compliance with accounting standards. This process helps prevent overdrafts, ensures the company has sufficient funds for operations, and minimizes the risk of financial errors or fraud.

Bank Reconciliation 52

Bank Reconciliation General Ledger Reconciling Deposits 52

Accounting Tools

OCTOBER 14, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Operating Assets Ratio? Both accounts receivable and inventory should be included in the calculation. Problems with the Operating Assets Ratio There are several issues to be aware of when using the operating assets ratio.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 40

Accounting Tools

JULY 14, 2023

If the loss is material, you may want to segregate it in a separate loss account, which more easily draws the attention of a reader of a company's financial statements. This net amount represents the amount of cash that management expects to realize once it collects all outstanding accounts receivable.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 75

Nanonets

SEPTEMBER 21, 2023

By implementing the right strategies and utilizing modern technologies, businesses can overcome these accounting hurdles and ensure a smoother  financial flow. Let's explore some common accounting problems and their solutions. One of the major problems faced by businesses is material errors in financial statements.

Outsourced Bookkeeping 52

Outsourced Bookkeeping Accounting Accounting Financial Reporting 52