Accounting Tools

MAY 13, 2024

In most cases, a high asset turnover ratio is considered good, since it implies that receivables are collected quickly, fixed assets are heavily utilized, and little excess inventory is kept on hand. The concept is useful for determining the efficiency with which a business utilizes its assets. Examples of turnover ratios are noted below.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

APRIL 25, 2024

A change in working capital is the difference in the net working capital amount from one accounting period to the next. Businesses commonly loosen their credit policies during expanding economic conditions, and tighten their policies during contractionary periods. A less aggressive collection policy has the reverse effect.

Collections 40

Collections Accounts Payable Accounts Payable Accounts Receivable 40

oAppsNet

MAY 16, 2024

This article explores comprehensive approaches for handling past due invoices, emphasizing practical strategies, communication tips, and legal considerations to recover owed funds while maintaining positive customer relations. Incorporating automation and technology can enhance the efficiency of the collection process.

Invoicing 52

Invoicing Collections Deposits Billing 52

Accounting Tools

MAY 12, 2024

Related AccountingTools Courses Bookkeeper Education Bundle Bookkeeping Guidebook Sales Cycle In the sales cycle, a company receives an order from a customer , examines the order for creditworthiness , ships goods or provides services to the customer, issues an invoice , and collects payment.

Petty cash 75

Petty cash Revenue Cycle Purchase Order Accounting 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. The formula for the collection ratio is to divide total receivables by average daily sales.

Collections 40

Collections Financial Statements Accounts Receivable Accounts Receivable 40

Accounting Tools

FEBRUARY 13, 2024

Days' sales uncollected is a liquidity ratio that is used to estimate the number of days before receivables will be collected. It can also be used by management to estimate the effectiveness of its credit and collection activities. This information is used by creditors and lenders to determine the short-term liquidity of a company.

Collections 40

Collections Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

NOVEMBER 7, 2023

The company is then liable to pay the collected sales taxes to the government. In this case, the initial collection of sales taxes creates a credit to the sales taxes payable account, and a debit to the cash account. It charges the sales tax to expense in the current period, along with the cost of the items purchased.

Tax 75

Tax Collections Accounting Accounting 75

Accounting Tools

APRIL 6, 2024

This contains a calculation of the direct labor costs to be incurred during the budget period, based on estimates of which products will be manufactured and what labor rates will be paid. This contains a calculation of the direct material costs to be incurred during the budget period. Direct materials budget. Production budget.

Budgeting 74

Budgeting Accounts Receivable Accounts Receivable Account Receivables 74

Accounting Tools

JUNE 15, 2023

Related Courses Credit and Collection Guidebook Effective Collections Essentials of Collection Law What is a Dunning Letter? The credit department staff may periodically change the timing or content of these automatically-generated letters, if they feel that some variation will improve the rate of collection.

Collections 75

Collections Invoicing Accounts Receivable Accounts Receivable 75

Accounting Tools

MAY 10, 2024

Bad debt expense is the amount of an account receivable that cannot be collected. In the latter case, revenues and related expenses appear in the same time period, so one can see the full impact of all sales on profits within the same accounting period. Related Articles Accounts Written Off Bad Debt Forecast

Collections 40

Collections Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

OCTOBER 11, 2023

This is the amount of assets consumed during the measurement period. Requires the collection of time worked information from employees , which is then used to produce gross wage information, tax deductions, and other deductions, resulting in net pay to employees. Examples are rent expense and wages expense. Pay employees.

Accounting 75

Accounting Accounting Record Keeping Purchase Order 75

Accounting Tools

OCTOBER 12, 2023

Related Courses Bookkeeping Guidebook Credit and Collection Guidebook How to Audit Receivables What is a Bad Debt? The allowance method has the advantage of matching expected bad debts to revenues in the period when the revenues are recognized , even if you don't know exactly which accounts receivable will not be collectible.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accruals 75

Accounting Tools

JULY 30, 2023

Related Courses Credit and Collection Guidebook Effective Collections Essentials of Collection Law What is Delinquency in Accounting? A delinquent condition typically triggers collection activities by the seller, though it may not trigger a late fee.

Collections 40

Collections Invoicing Accounting Accounting 40

Accounting Tools

JULY 24, 2023

Related Courses Credit and Collection Guidebook Effective Collections Essentials of Collection Law What is the Cash Collection Cycle? The cash collection cycle is the number of days it takes to collect accounts receivable. In addition, an older invoice may not be acceptable as collateral for a loan.

Cash Collection 75

Cash Collection Collections Accounts Receivable Accounts Receivable 75

Accounting Tools

JUNE 19, 2023

List on the daily reconciliation form all cash collected, which may be broken down by individual type of bill and coin. Cash Reconciliation Form Money Collected by Type Sales Recorded by Type Difference + (over) / - (short) Cash collected $515.00 Checks collected 84.50 Credit cards collected 308.20

Bank Reconciliation 75

Bank Reconciliation Cash Collection Reconciling Collections 75

Accounting Tools

MAY 10, 2024

A post balance sheet event is something that occurs after a reporting period , but before the financial statements for that period have been issued or are available to be issued. What are Post Balance Sheet Events? An event provides new information about conditions that did not exist as of the balance sheet date.

Financial Statements 40

Financial Statements Collections Invoicing Accounting 40

Accounting Tools

OCTOBER 5, 2023

Related Courses Credit and Collection Guidebook Essentials of Collection Law The Interpretation of Financial Statements A credit manager is responsible for the entire credit granting process. Be willing to periodically travel to customer sites. Have considerable experience with customer negotiations.

Corporate Finance 40

Corporate Finance Collections Financial Statements Accounting 40

Accounting Tools

NOVEMBER 26, 2023

Trend analysis involves the collection of information from multiple time periods and plotting the information on a horizontal line for further review. For example, a sudden spike in expense in one period followed by a sharp decline in the next period can indicate that an expense was booked twice in the first month.

Financial Analysis 75

Financial Analysis Financial Statements Expense Reports Budgeting 75

Accounting Tools

OCTOBER 19, 2023

Use the following steps to calculate the liquidity index: Multiply the ending trade receivables balance by the average collection period. Multiply the ending inventory balance by the average inventory liquidation period. This includes the average days to sell inventory and to collect the resulting receivables.

Collections 40

Collections Billing 40

Accounting Tools

OCTOBER 23, 2023

The bookkeeper also makes collection calls to customers whose invoices are overdue for payment. Payroll The bookkeeper collects timesheet information from employees and pay rate information from the human resources department, and uses these inputs to prepare a periodic payroll.

Bookkeeping 75

Bookkeeping Financial Statements Payroll Deposits 75

Counto

FEBRUARY 3, 2024

However, not all customers adhere to payment timelines, leading to the need for accounts receivable collections, a process aimed at ensuring timely payments for products or services provided. It reflects the credit extension policies and collection procedures in place.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Accounting 52

Accounting Tools

OCTOBER 11, 2023

Related Courses Credit and Collection Guidebook Effective Collections What are Invoice Payment Terms? The use of these terms allows a business to forecast when cash payments will arrive, as well as when to start collection activities against customers who have not yet paid.

Invoicing 40

Invoicing Collections Billing 40

Accounting Tools

MAY 10, 2024

Related AccountingTools Courses Credit and Collection Guidebook Effective Collections Credit Policy Main Body The main body of the policy can include a number of statements regarding credit policy, along with more detailed application information. Related Articles Credit Analysis Credit Granting Procedure Five Cs of Credit

Collections 40

Collections Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

NOVEMBER 1, 2023

Notify Employees Tell employees to complete their timesheets by the close of business on the last day of the payroll period. Collect Timesheets Obtain timesheets from all employees. Enter Hours Worked Enter this information if the hours worked information is collected manually. Otherwise, it may already be in the system.

Payroll 75

Payroll Accruals Collections Tax 75

Accounting Tools

OCTOBER 28, 2023

A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of identified property, plant, and equipment for a stated period of time in exchange for one or more payments. The lessor will probably collect the lease payments, as well as any additional amount needed to satisfy the residual value guarantee.

Accounting 75

Accounting Accounting Collections 75

Accounting Tools

OCTOBER 12, 2023

Related Courses Credit & Collection Guidebook Effective Collections How to Audit Receivables What is a Billing Statement? A billing statement is a listing of the transactions impacting an account during a specific period of time. Related Articles The Difference Between an Invoice and a Statement

Billing 40

Billing Collections Invoicing Auditing 40

Accounting Tools

JULY 29, 2023

Related Courses Optimal Accounting for Payroll Payroll Management The payroll clerk position is accountable for collecting timekeeping information, incorporating a variety of deductions into a periodic payroll , and issuing pay and pay-related information to employees. Associates degree in business preferred. Must be detail oriented.

Payroll 40

Payroll Deposits Collections Tax 40

Accounting Tools

APRIL 25, 2024

In effect, Grouch has paid $250 in exchange for the use of $4,000 for a period of 30 days. However, giving the borrower control over receivables makes it less likely that the lender can collect on the receivables in the event of a default by the borrower. This approach reduces the risk of non-payment for the lender.

Invoicing 40

Invoicing Accounts Receivable Accounts Receivable Account Receivables 40

finout

APRIL 20, 2023

5 Ways to Reduce Logging Costs in GCP Reducing Cloud Logging Costs On the Google Cloud Platform (GCP), Cloud Logging is a dedicated service that collects, organizes, analyzes, and monitors your log data, making it easier to troubleshoot and monitor applications, infrastructure, and services.

Collections 52

Collections FinOps FinOps 52

Accounting Tools

SEPTEMBER 6, 2023

Related Courses Credit and Collection Guidebook Effective Collections How to Forecast Bad Debt It is quite difficult to derive a forecast of bad debts , since a number of variables impact the ability of a customer to pay an invoice , and those variables are difficult to anticipate. 103,000 Medium high 4,605,000 2.9%

Collections 40

Collections Invoicing Accounts Receivable Accounts Receivable 40

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. What is Days Sales Outstanding?

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Collections 40

Accounting Tools

JANUARY 30, 2024

Related AccountingTools Courses Credit and Collection Guidebook Effective Collections Arbitration Clause Both parties agree to arbitration of any payment disputes. It is not likely that the fees will actually be collected, but it may be worthwhile to insert the clause just to provide the company with extra collection leverage.

Collections 40

Collections Invoicing Accounting Accounting 40

Accounting Tools

NOVEMBER 8, 2023

Transaction Tracking A separate procedure is needed to collect information about each type of business transaction. For example, separate systems are needed to process customer orders, bill customers, and collect cash from customers. Transaction tracking occupies the bulk of the time of the accountant.

Record Keeping 40

Record Keeping Accounting Accounting Financial Statements 40

Accounting Tools

SEPTEMBER 11, 2023

Related Courses Bankruptcy Tax Guide Essentials of Corporate Bankruptcy Essentials of Collection Law What is a Foreclosure? Related Articles Financial Distress Liquidation Voluntary Bankruptcy The lender evicts the homeowner and sells the property in order to earn back the unpaid balance of the mortgage.

Collections 40

Collections Tax 40

Accounting Tools

JULY 16, 2023

Analytical procedures involve comparisons of different sets of financial and operational information, to see if historical relationships are continuing forward into the period under review. Review the current ratio over several reporting periods. Related Articles Alternative Procedures Audit Procedures Substantive Procedures

Auditing 75

Auditing Financial Records Accounts Payable Accounts Payable 75

Accounting Tools

APRIL 8, 2024

You will have problems collecting accounts receivable if an order is shipped to a customer with a bad credit rating. Have the internal audit staff periodically trace a selection of cash receipts to customer invoices to verify proper cash application. The outcomes of these calls are documented in the collections software.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

oAppsNet

MAY 9, 2024

This article aims to demystify the accounts receivable process, elucidating its significance, operational mechanisms, challenges, and optimization strategies. The company must meticulously track these invoices and payments throughout this period, ensuring accurate financial records and timely follow-up on outstanding receivables.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40