Category: Bookkeeping

Understanding Trade Receivables and Other Receivables in Balance Sheet

If a company relies on borrowed funds to cover operational expenses while waiting for receivables to be collected, it may incur interest costs. This can add a financial burden, particularly if the interest rates are high. The credit approval process generates valuable data on customers’ creditworthiness. This information can be leveraged for informed decision-making regarding […]

Statement of Owners Equity Definition + Example

Most small business owners started their companies because they were experts in providing a good or a service — not at balancing a book. In addition, small business and startup accounting can be difficult and multi-faceted. However, it can also be tedious, complicated, and time-consuming — especially for those who own smaller businesses or sole […]