Most businesses offer their customers the option to pay on credit — often called “trade credit” — to provide added flexibility and convenience. When a customer purchases a product or service on credit ...

Cash is queen in a business, and you need a cash management system. One of the most critical components of cash flow involves managing your accounts receivable. However, managing accounts receivables ...

As a business owner, you know that accounts receivable (AR) is money owed to a business by its customers. When you extend credit to a customer for the purchase of goods or services, the balance owed ...

Accounts receivable is defined as an asset that reflects a future payment. In actuality, an accounts receivable is a debt. How your business deals with the debt obligation, and the terms of the debt, ...

In contrast to cash basis accounting, accrual basis accounting permits businesses to record sales made on credit as revenue as long as they meet certain conditions. First, the transaction that ...