LearningCat: Basics of Accounts Payable & Receivable
Accrual Accounting vs. Cash Accounting: Which is Right for Your Business?
Picking a suitable accounting method is a complex task. For tracking financial transactions, accrual and cash accounting are the two main ways. Each method carries merits and demerits. It depends on you whether to take accrual or cash according to your business needs. This blog will be a guide to clearly distinguishing between those two […]
Accounts Payable vs. Accounts Receivable: What’s the Big Difference?
In the realm of business, it is imperative to comprehend the manner in which money is transferred in and out. Accounts payable (AP) and accounts receivable (AR) are two critical terms that facilitate the monitoring of this flow. These are fundamental concepts in finance and accounting, and regardless of the size of your business, mastering […]
Double Entry System
In modern financial management, the double entry system is considered the anchor in the accounting world. It offers a resilient setup to record and analyze transactions. We acquired this system because of its accuracy and stability. In India, understanding this system is very important for any business and financial professional to retain transparency and clear-cut […]
Importance & Role of Accounts Payable
Accounts payable (AP) are the amounts a business owes to its vendors for goods and services purchased on credit. Good AP management will maintain the company’s good health in financial terms, develop good vendor relations, and provide uninterrupted operations. It is also paramount to cash flow, reporting, and staying within the bounds of the law. […]
The Role and Importance of Accounts Receivable
Accounts receivable are definitely an integral part of today’s business world. AR simply ensures that companies get paid for what they produce, and it keeps financial waters running smoothly. With the aid of newer technologies like data analytics and automation, tracking, invoicing, and money collection have become child’s play. It improves the financial situation and […]
Understanding the Profit and Loss Statement
The profit and loss statement is a financial document indicating revenues, costs, and expenses incurred during a specified period. Profit and loss statements and income statements mean exactly the same thing concerning companies. This is where you find a company’s important insights, efficiency, and profitability. What is a Profit and Loss Statement? The profit and […]
Payment Terms of Accounts Payable and Receivable in India
For managing cash flow in an effective manner, it is important to know about payment terms first. This leads to smooth business operations and retaining cordial relationships between buyers and suppliers. In a country like India, knowing the payment terms is vital, whether you are a small business owner or a large one. This blog […]
Recognition of Payables and Receivables: What You Need to Know
Managing cash flow is the backbone of any business. And at the heart of it all are payables and receivables—basically, who you owe money to and who owes you. If you don’t understand how and when to recognize them, your entire business can go sideways. Whether you’re just getting into commerce or training to become […]
Invoice, Bill, and Statement of Account: What’s the Difference?
You’ve seen the terms “statement of account,” “bill,” and “invoice” if you own a business. Even though they look alike, they are not the same because they are used for different things. When it comes to money, deals, and taxes, they are very important. What’s an Invoice? An invoice is a formal document that a […]
Credit Terms in India: Decoding Net 30, Net 60, and More
One thing about company is certain: your ability to manage money can make or ruin you. Credit conditions come into play here. In business-to-business (B2B) negotiations, you’ve undoubtedly heard phrases like “Net 30” and “Net 60” bandied about. However, what do they really mean? What’s more, how do they affect Indian businesses? What Exactly Are […]