A key thing to remember with payment terms to your customers is that don’t ask less than what you yourself are given. If your suppliers ask for 10 days to pay up, so should you. Or at least consider it before opting for longer payment terms with your customers. Continue reading
Category Archives: 1 Basic Accounting
Bonuses paid to customers
Bonuses paid to customers are in some industries more common than in others. For instance where it’s often seen is with wholesale merchants and manufacturers. They drive on quantities since it gives them efficiency when we talk about manufacturing and better deals when we talk about companies who buy items in bulk to wholesale them further to stores for an example. In some industries it’s important to give your customers bonuses based on some predetermined conditions to keep your own business flourishing. Continue reading
Non-monetary assets and foreign currencies
Say that you acquired an asset, a printer for an example and the price was paid in foreign currency as opposed to your functional currency. It is perfectly normal for such transactions to take place and as a matter of fact there’s nothing complicated about it. Continue reading
Monetary balances nominated in foreign currencies
Your everyday accounting may likely include balances that you’re essentially required to settle in some foreign currency (that is different currency than you’re using in your everyday accounting). Continue reading
Transactions in foreign currencies
Transactions take place in foreign currencies, there’s nothing wrong about it. There’s in fact nothing uncommon about it. It is just about knowing what to do and when to do it. Continue reading
Payroll accounting
Payroll accounting and understanding the basic accounting entries is a crucial part of accounting and not just accounting in itself, also for your business. Continue reading
Cash and cash equivalents
What is defined as cash and cash equivalents?
Cash is cash and it’s easily understood – it’s the funds you have available to be used right away, whether they’re actual cash amounts you have physically available or bank accounts, which in this sense would classify as ‘equivalents’. Continue reading