Tag: accounts receivable

Can Factoring Be Better Than A Bank Loan?

See Also: What is Factoring Receivables The Dreaded “F” word Accounting For Factored Receivables Journal Entries For Factored Receivables Working Capital Preparing a Loan Package Can Factoring Be Better Than A Bank Loan? What I have found is that normally a business owner who needs financing for the growth of their business start their financing

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Another Way To Look At Factoring

See Also: What is Factoring Receivables 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 Factoring is Not for My Company The What, When, and Where About Factoring Another Way To Look At Factoring While talking to

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Allowance for Uncollectible Accounts Explained

See also: Does Your Management Team Understand the Financials? General Ledger Reconciliation and Analysis Allowance for Uncollectible Accounts Allowance for Uncollectible Accounts Explained When companies sell products to customers on credit, the customer receives the product and agrees to pay later. The customer’s obligation to pay later is recorded in accounts receivable on the balance

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Accrual Based Accounting GAAP Rules

See Also: Accrual Based Accounting Accrual Based Accounting GAAP Rules Revenue Recognition Principle — GAAP The revenue recognition principle states that revenue is recognized when earned. In other words, collect the money for services rendered. Revenue is considered earned when the company has fulfilled its obligation to the customer. For example, if a customer orders

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Accounts Receivable Turnover Example

Accounts Receivable Turnover Example To emphasize it’s importance we will provide an accounts receivable turnover example. Many companies live and die by collections. These rates are essential to having the necessary cash to cover expenses like inventory, payroll, warehousing, distribution, and more. Accounts Receivable Turnover Example: Manufactco Manufactco is a company that manufactures widgets. Manufactco’s

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Accounts Receivable Turnover Analysis

See Also: Accounts Receivable Turnover Example Financial Ratios Collecting Accounts Receivable Accounts Payable Turnover Analysis Inventory Turnover Ratio Analysis Daily Sales Outstanding Formula Accounts Receivable Turnover Definition Accounts receivable turnover analysis can be used to determine if a company is having difficulties collecting sales made on credit. The higher the turnover, the faster the business

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Accounts Receivable Collection Letter

See Also: Collect accounts receivable Why Use a 13-Week Cash Flow Report as a Management Tool? Unlock Cash in Your Business Accounts Receivable Collection Letter Always send reminder and collection letters. Letters combined with calls can help speed up your collections! Trigger points for letters may be as follows: Balance at 30 days receives a

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Accounts Receivable

See Also: Accounts Receivable Turnover Collect Accounts Receivable Calculate Daily Sales Outstanding Time Saving Tip for Filing Vendor Invoices Accounts Payable Notes Receivable Imprest Account Accounts Receivable Definition The accounts receivable definition is a current asset account on the balance sheet. Accounts receivable (A/R) is a mainstay concept in business. It also represents money owed to

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Accounting Asset Definition

See Also: Generally Accepted Accounting Principles Financial Accounting Standards Board International Financial Reporting Standards Depreciation Financial Assets Accounting Asset Definition In accounting, an asset has two criteria: a company must own or control it, and it must be expected to generate future benefit for that company. Assets on Balance Sheet A company records the value

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2/10 Net 30 Example

See Also: 2/10 net 30 2/10 Net 30 Example Mary has started a processing plant for natural vegan snacks. In her business, equipment does all of the heavy lifting that human resources can not. Mary has purchased many pieces of equipment. One of these is a large oven to bake her healthy snacks in. She

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