Category: Bookkeeping

Essentially, a “credit balance” refers to an amount that a business owes to a customer. It’s when a customer has paid you more than the current invoice stipulates. You can locate credit balances on the right side of a subsidiary ledger account or a general ledger account. When you place an amount on the normal…

Accounts Receivable is an asset account and is increased with a debit; Service Revenues is increased with a credit. For this reason the account balance for items on the left hand side of the equation is normally a debit and the account balance for items on the right side of the equation is normally a…

The Quick Ratio, also known as the Acid-test or Liquidity ratio, measures the ability temporary and permanent accounts of a business to pay its short-term liabilities by having assets that are readily convertible into cash. These assets are, namely, cash, marketable securities, and accounts receivable. These assets are known as “quick” assets since they can quickly…

It does not take into account factors such as long-term debt and depreciation which can also affect a company’s liquidity position. It measures the ability of a company to meet its short-term financial obligations with quick assets. Finally, note that a company’s liquid securities are an element of its short-term assets. The quick ratio formula…

For vendors, offering a net 30 account can widen the startup’s customer base, provide a competitive advantage, and potentially save on credit card fees. For buyers, a net 30 account provides a way to make purchases with delayed payment as well as improve their business credit if the net 30 vendor reports to business credit…

Common law liability includes negligence, fraud, and breach of contract, while statutory law includes any state or federal securities laws. Take our free career test to find out if accountant is one of your top career matches. They perform various business functions such as the preparation of financial reports, payroll and cash management. An accountant in…

However, you can also choose whatever net terms work best for your business. Landscaping companies, for example, usually request payment within seven days. Signing up is done online and their underwriters respond quickly to net 30 applications, usually within 24 hours. The great thing about Office Garner is that you can make a formal request for a…

Hiring an accountant can be expensive, especially for small businesses or startups operating on a tight budget. Forensic accountants investigate financial crimes such as embezzlement, fraud, and other complex financial disputes. An accountant is a critical cog in the financial machinery of any business, small or large. Accountants work with companies, governments, and non-profits, or…