It’s one thing to make the sales happening, i.e. having something to sell, having customers and so on, but it’s another thing to manage it all properly. If payments are done on spot, there’s no issues really in terms of invoices, however, if you’re using invoices, i.e. your customers can pay at a later date, the question is, what will the “later date” be.  Continue reading →

No doubt your aim is to make profit. Essentially what a profit is is a net result from your revenue when you’ve deducted all expenses incurred during the same period. It’s what you earned at the very bottom; it’s your net profit after all expenses.  Continue reading →

When you’re in the business of selling goods, the number one thing you must always watch out for is if you’re shipping / giving to the client on spot the actual right goods.  Continue reading →

First off let me explain what each option means. When we’re talking about writing down something, say receivables, what we mean is that you create an allowance account with an opposite sign onto the balance sheet so that it decreases the receivable account. Now as to writing balances off means that they’re taken off from the balance sheet completely. Note that the opposite entry for both is an expense entry on the income statement. It’s just all about what’s left or not left onto the balance sheet.  Continue reading →

In the case something goes bad with your receivable balances, some or just one balance, they’re to be written down at least. I say “at least” because one of the options is to also write them off, meaning taking them off the balance sheet entirely. This can be done after they’re written down just as well, but let it be said that writing something down means you consider there’s still some hope whilst writing the balances off means you don’t see any collection there to be made.  Continue reading →

Every so often in running a business you end up with customers who don’t pay their debt either on time, which isn’t all that bad since they’re eventually paying still, or those who go into bankruptcy or just decide to not pay their suppliers. This one supplier may be you.  Continue reading →

As you set about your business, one of the things you must consider are the details you put on invoices when it comes to specifying what you’re charging the customer for. It’s always nice to follow consistency and still be thinking about the client, what they want to see on the invoice and what would benefit them.  Continue reading →