Handling Customer Credit – Accounting for Accounts Receivable Transactions When it comes to accounts receivable, there are three basic transactions: two that you’ll see a lot of, and one that (ideally) you won’t. The two every- day transactions are recording credit sales and collecting on-account payments. The third involves writing off bad debts. Credit sales … Read more
Handling Customer Credit – Dealing with Collections Sometimes customers just do not pay their bills. Your business, however, has a legal right to collect any money that they owe you. That doesn’t mean you show up on their doorstep the very day an invoice becomes past due. It does mean, though, that you have to … Read more
Handling Customer Credit – Creating Invoices and Account Statements In order for customers to pay you, they have to know how much they owe. Before writing a check, your customers, especially if they are businesses, will want a lot more information than just the amount due. Your company also has its own bookkeeping to consider. … Read more
Handling Customer Credit – Don’t Give Credit to Just Anyone Sure, letting people or companies buy from you on credit will increase your sales. If they don’t pay you, though, the sale will not count, and you’ll be out whatever they got (whether it’s a physical product or a service you provided). New business and … Read more
Handling Customer Credit – Establish Your Credit Policies The first guideline for setting up your company’s credit policies is to take a look at other businesses just like yours. If you work in an industry that has pretty standard customs, you have a solid starting point from which to build your own credit rules. For … Read more
Handling Customer Credit – Why Sell on Credit? Most small-business owners do not want to deal with all the expected hassles that come with offering credit to customers. Most of them also realize that in today’s highly competitive markets, extending credit (at least to some customers) can be essential to success. Many drag their feet, … Read more
Always Know Your Cash -What to Do When Cash Runs Low If your cash supplies seem to be dwindling, don’t panic. There are plenty of steps you can take to improve your cash situation, both immediately and for the long haul. For quick infusions, you (and your co-owners) may have to dip into personal funds … Read more
Always Know Your Cash – Reconcile Your Bank Statement If you’ve ever had any kind of bank account for which you received periodic statements, you know that the balance you think you have doesn’t always match up exactly to the balance the bank thinks you have. In fact, as explained in before post, it would … Read more
Always Know Your Cash -Recording Your Outgoing Cash Whenever you pay out cash (even if you do it by writing a check), you record that transaction in your cash disbursements journal. This special journal helps you track your outgoing cash as simply as possible by including special columns for the accounts you use most. The … Read more
Always Know Your Cash -Tracking Your Incoming Cash When money comes into your company, it’s called cash receipts. When you do your bookkeeping, you record that incoming money in your cash receipts journal. This special journal is set up to make your job as easy as possible and to keep you from writing the same … Read more
