Bank Reconciliation: Definition, Example, and Process
Accurate cash flow is essential for keeping a business running smoothly, so it’s important to be aware of all incoming and outgoing cash. A bank reconciliation is the process by which a company compares its internal financial statements to its bank statements to catch any discrepancies and gain a clear picture of its real cash […]
3 Ways to Calculate Debt Service Payments
Consider a company that’s been renting its warehouse but recently exercised an option to purchase the building. This company’s historical income statements show “rent expense,” but that expense will no longer exist once it owns the building. Some businesses require constant reinvestment in order to remain competitive. Where do I find the amount of my […]
10 Best Practices to Manage Small Businesses Cash Flow
Over the 12-month period, the cash flow projection should be updated to reflect developments in expenses and income. A business can’t get a full picture of its cash flow without accurate and updated financial statements. Real-time access to financial statements can help business owners spot potential issues and be proactive about preventing a cash flow […]
Accounting for Small Businesses: A Comprehensive Guide to Financial Management
Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over 35 […]
Advance From Customer Meaning, Journal Entry, Examples
During the initial recording of an advance customer payment, the unearned revenue or customer advances account is credited for the amount received by the company in cash or bank account. However, while the related revenue is recognized, the customer advances account is debited for the amount transferred to the revenue account. However, in the event […]
