Tag: accounts receivable

History of Factoring

History of Factoring Factoring is a word often incorrectly used synonymously with accounts receivable financing. In Europe, the term “factoring” has become the term for accounts receivable financing in general; but in the U.S., this term refers to a specialized form of financing that involves the actual transfer of the ownership of the receivable to the lender, more

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Factoring is Not for my Company

See Also: Another Way To Look At Factoring Accounting for Factored Receivables Journal Entries for Factored Receivables Can Factoring Be Better Than a Bank Loan? History of Factoring How Factoring Can Make or Save Money What is Factoring Receivables The What, When, and Where About Factoring Factoring is Not for my Company I normally talk

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Debit Memorandum (memo)

See Also: Credit Memorandum (memo) Account Reconciliation Credit Sales Chart of Accounts (COA) Accounting Principles Account Reconcilement Definition Debit Memorandum (Memo) Definition A debit memorandum or memo is a form or document, sometimes called a debit memo invoice, that informs a buyer that the seller is debiting or increasing its amount in the accounts receivable,

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Days Payable Outstanding

See Also: Accounts Payable Accounts Payable Turnover Days Sales Outstanding (DSO) Days Inventory Outstanding (DIO) How to Create Dynamic Cash Flow Projections Days Payable Outstanding Definition Days payable outstanding (DPO), defined also as days purchase outstanding, indicates how many days on average a company pay off its accounts payables during an accounting period. A useful tool

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Daily Sales Outstanding Formula

See Also: Daily Sales Outstanding (DSO) Daily Sales Outstanding Calculation Problem With Days Sales Outstanding Example CEI vs DSO Days Inventory Outstanding Operating Cycle Analysis Days Payable Outstanding Unlock Cash in Your Business Daily Sales Outstanding Formula The DSO formula is the basic way to calculate daily sales outstanding. In application a very valuable performance

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Daily Sales Outstanding Calculation

See Also: DSO – Daily Sales Outstanding Daily Sales Outstanding Formula Daily Sales Outstanding Calculation The daily sales outstanding calculation requires little more than a basic understanding of mathematics. Maintaining proper financials allows this and other essential calculations to be performed. The days sales outstanding formula, ultimately, leads to monitoring the health and wealth of

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Daily Sales Outstanding (DSO)

See also: Daily Sales Outstanding Formula Daily Sales Outstanding Calculation Accounts Receivable Turnover Analysis Credit Sales Financial Ratios Daily Sales Outstanding (DSO) Definition Daily Sales Outstanding (DSO) is a useful formula to measure the average age of accounts receivable. As a management tool, it can be used to measure as well as motivate employee performance. Though

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Discount Payback Period (DPP)

See Also: Discount Rate Discounted Cash Flow Analysis Discounted Cash Flow vs IRR Discount Payment Period (DPP) Definition The Discount Payment Period (DPP) refers to the period of time in which a payment on a purchase can be made for a discount incentive. A DDP can lead to advantages for both sides of the transaction.

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Cost Recovery Method

See Also: Accounting Principles Point of Sale Method (POS) Installment Method Percentage of Completion Method Completed Contract Method Cost Recovery Method Definition Also known as the collection method, cost recovery method accounting is a way of recognizing revenue under the revenue principle. The method is commonly used in conjunction with companies who do not believe

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Credit Memorandum Definition

See Also: Debit Memorandum (memo) Credit Sales Account Reconciliation Chart of Accounts (COA) Transaction Exposure General Ledger Reconciliation and Analysis Debt Compliance 101: Keeping Your Banker Happy Credit Memorandum Definition The credit memorandum definition or memo is a form or document, sometimes called a credit memo invoice, that informs a buyer that the seller will be

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Cash is in Your Business

See Also: Cash Flow After Tax Cash Cycle Financing A Startup Company How to Collect Accounts Receivable Monetize How to Develop A Daily Cash Report Cash Flow Statement Cash is in Your Business I received a call from a desperate prospect, Sue. As always, I started asking questions about the business. To begin, I asked

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