The Matching Principle and Accounts Receivable – Managing Bad Debt

The Matching Principle and Accounts Receivable - Managing Bad Debt

The matching principle plays a key role in helping accountants develop a clear and consistent income statement. The overall goal of the matching principle is to ensure an accurate calculation of the revenues in the period in which the revenues were earned. The expenses then are followed by the revenues, meaning an accurate calculation must be done for this portion of the income statement as well. Read more

Must-Have Accounting Forecasting Tips – Seasonal Firms

Must-Have Accounting Forecasting Tips - Seasonal Firms

    What Are Seasonal Firms?

      There are seasonal companies and even seasonal areas such as ski or sun destinations. Some products are seasonal, meaning your company could offer many products for sale but will inevitably have some that only sell during certain times of the year.

    Understanding how accounting forecasting for seasonal firms works is key in ensuring you have the operating capital and cash flow to ensure you wont be scrambling for funds during off-season or down times.

    Image Credit – MorgueFile/KLK13

    Plan, Plan, and Plan Some More

    Sales forecasting isnt usually the favorite of any entrepreneur or accounting controller, but if you dont develop a plan with realistic datayour seasonal company, tourism trade, or seasonal products wont be enough to hold you throughout the yearor even keep you doors open.

    While some tourism trades such as ski areas may close down totally for the season, they still must plan for maintenance, personnel needs , utilities, and rent. Read more

Ways To Save Money By Changing The Way You Think About Money

Have you ever thought you may have a certain attitude toward money that keeps you from getting ahead financially? We have all been influenced throughout our lives by family members, friends, and the media about the way we think about making, saving, and more importantly, spending money. The aim of this article is to make you question your spending history, identify your spending habits, and provide some simple ways to save money.

Answer these questions to help you gain a better understanding of your attitude toward money:

• What motivates you to spend money?

• What kinds of things do you buy?

• Are there certain instances in the week, day, month or year when you spend more money?

• How do you pay for your purchases, with cash, debit card, or credit?

The reason for asking yourself these questions is to get your mind wondering if you are spending too much money or if you spend money unnecessarily. Read more