Category: Bookkeeping

A petty cash account is an account a company uses to pay for small expenses. A company creates a voucher each time the petty cash account is used. The find transposition errors before they turn into a bigger issue account is an essential tool for businesses to monitor and track any discrepancies in cash handling. […]

The accounts payable turnover ratio indicates to creditors the short-term liquidity and, to that extent, the creditworthiness of the company. A high ratio indicates prompt payment is being made to suppliers for purchases on credit. Accounts receivable turnover shows how quickly a company gets paid by its customers while the accounts payable turnover ratio shows […]