Do You Know What is Accounts Receivable? Some people may feel that the relationship between accounts payables and accounts receivables is so confusing. For us to understand the situation better, let us imagine that we own an automobile factory. One day, our company has bought some raw materials from XYZ Corporation on credit. This means …
Does Your Company Prepare Accounts Receivable Aging Report? As we know, cash flow is of the utmost importance to the operations of a business as a company needs cash for it to continue running. Even though a company has been quite profitable, it may be insolvent if it failed to manage its cash flow efficiently. …
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Facts About Books of Account When it comes to entrepreneurship, the first idea that comes into most people’s mind would be they would have the freedom to make financial decisions on their own and being able to earn (Also see Understanding Definition of Retained Earnings) a lot of money by starting their own business. Many …
The Advantages and Disadvantages of Single-entry Bookkeeping Apart from the double-entry bookkeeping method that most business would use, there is another method that business owners can use to trace the finances of their business, that is, the single-entry bookkeeping system. For companies that choose to use this method, they will only need to record one …
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Can You Differentiate Debt and Liability? When you run a business, you need to carry out various activities and transactions, and you need to record them in the financial statements of your company. You may hire an in-house accountant or bookkeeping firm in Singapore to let the experts help you with this if you are …
Guide to Marginal Cost Marginal cost refers to the change in the sum of costs which arise when the number of units produced increase by one. In simple words, it is the cost incurred to produce one more unit of that product. By calculating the marginal costs, you will be able to know whether it …
Understanding Current Liabilities The term “liabilities” probably sounds quite familiar to most business owners, and this term can sometimes be intimidating. There are two main categorisations of liabilities, which are current liabilities and non-current liabilities. Current liabilities are the financial obligation that the company should pay in a year, while non-current liabilities refer to those …
Understanding Direct Write Off Method When companies are accounting (Also see How an Accounting Firm Can Help Your Business Turnover) for the debts that it can no longer collect from the customers, one of the methods that they can use is the direct write off method. That amount of debt is known as bad debt, …
Understanding Closing Entries At the end of an accounting period, the bookkeeping firm in Singapore will make some closing entries when they are closing the books of accounts of a company. In accounting, closing entries are the entries that the accountant would make when an accounting period has come to an end. The purpose of …
Components in Balance Sheet As an entrepreneur who is new to the world of business, do you know that you need to generate financial statements for every accounting period? The balance sheet, profit and loss statement, cash flow statement (Also see Why Do We Need Cash Flow Statement?) and the statement of changes in equity …
