Accounting Basics

Posted by: Rod Kurtz on May 12, 2006

Accounting — often called the language of business — is the process of recording, classifying, reporting, and analyzing financial data. And while the accounting requirements of every business vary, all organizations need a way to keep track of their money. Unfortunately, there’s very little that’s intuitive about accounting. Many small businesses hire accountants to set up and keep their books. Other companies use accounting software like QuickBooks, CheckMark Multi-Ledger, and M.Y.O.B. Accounting and keep their accounting functions in house.

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Reader Comments

Roger Gins

May 29, 2007 4:32 PM

One of the most overlooked items in small businesses is the timely and systematic communication with their customers about late payments. Not staying on top of the account receivables saps the liquidity out of any company.

This is particularly true in light of the fact that after 3 months, 27% of the late accounts become uncollectable and after 6 months, the uncollectable rate goes up to 43%.

A/R Connect has come out with a system that automatically sends notification out via the telephone, e-mail, or letter upon the subscriber uploading their account receivable aging report.

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