June 02, 2016
Charles Lutwidge
Bills vs. invoices: what is the difference?
The words “bill” and “invoice” are often used interchangeably, but their meanings differ subtly. All invoices are bills, but not all bills are invoices. What is a bill? A bill is a document that indicates how much a buyer owes to a seller....
Delegate your financial records to a highly qualified bookkeeper and forget about bookkeeping stress forever.
March 28, 2016
Charles Lutwidge
What does “accounts receivable” mean?
Accounts receivable definition: “Accounts receivable” refers to money owed to you by your customers for goods or services that you have already provided to them. Your customers might be individuals, corporations, governments, or any other entity. If you’ve made a sale but haven’t gotten paid for...
March 16, 2016
Charles Lutwidge
A short primer on accounts payable
Accounts payable definition: Accounts payable are your company’s short-term debts. Short-term debts are those that must be paid off within 1 year. The definition above is the one I’ll use in this article. However, “accounts payable” (abbreviated “AP”) is also frequently used to refer to the department...
February 17, 2016
Charles Lutwidge
What is cash flow
Keeping track of cash flow is critical for every business owner in every industry. What is it? The basic concept is easy to understand. A cash flow is a movement of cash into or out of your business. Net cash...
January 21, 2016
Charles Lutwidge
Bank reconciliation: a simple explanation
What is it? A bank reconcilation is a process in which a company checks that both its records and the bank’s records are correct. Discrepancies between bank records and company records concerning cash transactions are very common and can result from errors...
