What does accounts receivable mean and how does it work?

Accounts receivable (AR) is a fundamental concept in accounting and finance, especially for businesses that extend credit to their customers. Understanding AR is crucial for new business owners, as it can have significant impacts on cash flow and your company’s overall financial health. How It Works AR represents money owed to a business by its READ MORE

Are accounts receivables assets or liabilities?

Understanding the nature of accounts receivable is pivotal for your company’s success. At its core, an “accounts receivable” represents the amount of money owed to a business by its customers after goods or services have been delivered but not yet paid for. Essentially, it’s a promise from the customer to pay the business a specified READ MORE

Balancing the Books: How to Record Equipment Purchases

Are you looking to maximize year-end tax savings? Equipment purchases are often a safe bet. According to the IRS, “For tax years beginning in 2023, the maximum section 179 expense deduction is $1,160,000.” Where do you record equipment purchases? Some business owners think equipment purchases are recorded on the income statement. However, that is incorrect. READ MORE

The Evolution of Bookkeeping Technology

Beyond Basic Security and Toward Efficient Business Operations The realm of bookkeeping has come a long way from handwritten ledgers and manual calculations. In today’s digital age, technology has ushered in transformative changes that make bookkeeping more efficient, secure, and conducive to better business decision-making. “Modern bookkeeping technology is more than just an organizational tool,” READ MORE

8 Steps for Smarter AP: Unlocking Efficiency through Automation

Accounts Payable (AP) is a crucial department in any business. It is responsible for handling invoices, managing payments, and maintaining relationships with vendors. Traditional AP processes can be time-consuming, error-prone, and require extensive manual labor. However, in today’s fast-paced digital landscape, businesses can unlock unprecedented efficiency by automating their AP processes. “In today’s digital age, READ MORE