Some companies find that offering incentives to credit customers can help encourage early payments, increasing cash flow and reducing the risk of bad debt. A sales discount is one incentive that many ...

If your company gives your customers 30, 60, 90 days or longer to pay for purchases, you are creating accounts receivable, which goes in the asset side of your balance sheet. When you package your ...

When it comes to building out a balance sheet, an organization’s accounts payable come into play. As you work through a balance sheet, you’ll need to determine whether accounts payable are an asset or ...

Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...

Every business has some dead accounts receivable on its books. Reviving them might not be worth the effort but managing them might be. Any business that lets past-due accounts receivable accumulate is ...

Explore trade credit, a cost-effective business tool, to learn its benefits, drawbacks, and accounting implications for managing cash flow efficiently.