What’s the difference between policies and procedures? We talk about policies and procedures all the time, but you may be wondering what is a policy and how does it differ from a procedure? Continue reading What’s the Difference Between Policies and Procedures?
Working Capital is a common measure of the health of your business operations. Knowing how to manage working capital is a crucial aspect of financial procedures. Working capital refers to the funds required to operate your firm on a daily, weekly, and monthly basis. It is the money used to pay your suppliers for materials, as well as the money needed to pay for the items and services (such as inventory and payroll) that you have utilized while waiting for your customers to pay you. Continue reading Working Capital? | Definition
The proper identification and acceptance of all sales are an important element of accounting internal control for a company’s income statement. It represents the primary source of most companies operational cash flow and therefore needs to be protected, managed and monitored using financial internal controls. The following Accounting Revenue Cycle Procedures should be utilized to account for and recognize all sales income of the company. What is the revenue cycle in accounting? Continue reading What is the Revenue Cycle in Accounting?
Writing a good company policy is similar to writing a good business procedure, but there are a few differences between a policy and a procedure. A business policy consists of either company rules, typically about ethics or relationships, or process outcomes defining expected results, kind of like a mission statement. So how exactly do you write a good business policy? Continue reading How Do You Write a Good Business Policy?
One important topic on finance processes is knowing how to manage working capital. Working capital is the money it takes to run your business on a daily, weekly, and monthly basis. It is the money used to pay your suppliers for materials and the money needed to pay for the goods and services (i.e. inventory and payroll) you have used while you wait for your customers to pay you. Continue reading How to Manage Working Capital
Cash is everything to a business and you certainly would not want to burn up your cash. Learning to Write Accounts Receivable Procedure will help you to control your cash flow; now, let’s look for $250,000 from accounts receivable procedures. Continue reading How to Write Accounts Receivable Procedures
When you deliver goods or services and you extend a business customer credit by accepting a promise to pay (accounts receivable) later through an invoice, then in a sense you are loaning your customers cash. During the whole process of acquiring loans, the first question every person must think about is whether the loan is essential at that moment or not. Does your credit policy protect your business cash?
Continue reading Does Your Credit Policy Protect Your Business Cash?