Cash flow forecasting is a cash flow projection that includes beginning cash balance, cash inflows and cash outflows by type, and ending cash balance. A cash flow forecast shows if estimated future cash balances will be sufficient or if actions should be taken to add cash through optimal cash flow management or financing.
The full accounting cycle is a step process for recording transactions, preparing financial statements, and making closing entries for the monthly or annual accounting period. At year-end, closing entries include transferring net income or loss to the retained earnings account and resetting income and expense accounts to zero for the next accounting period.
Payment reconciliation may be a time-consuming process for accounting teams that slows down the monthly financial close. As businesses grow, the time required to reconcile payments and perform bookkeeping expands unless your business automates the payment reconciliation process with a real-time software solution.
EDMS (electronic document management system) is a software platform for centralized records management, electronic document sending, storage, versioning, and retrieval for businesses and organizations. EDMS is used internally as an electronic document repository. Finance uses EDMS for electronic document exchange between the company and its vendors and document storage.
The difference between IRS Form 1099-NEC and Form 1099-MISC information returns is that Form 1099-NEC is used by payers to report nonemployee compensation and follow backup withholding rules. Form 1099-MISC is used by payers to report information on other types of miscellaneous nonemployee payments.
For accounts payable and accounts receivable, invoice settlement means that an invoice balance was possibly partially paid, and the balance due was adjusted to zero. The adjustment may be a credit memo or debit memo. Invoice adjustments are from crediting returned goods, correcting invoicing or overpayment errors, resolving a dispute between the business customer and vendor, and write-offs.
GDPR is a strict EU data privacy law, with penalties, that requires compliance to protect personal data processed by companies in non-EU locations that do business with European Union Member States residents. Financial services companies, including financial institutions, and payment service providers (PSPs), must also comply with GDPR. GDPR is General Data Protection Regulation.
Strongly consider updating your manufacturing ERP system with new technology to handle manufacturing operations and business processes. Select a software solution that matches your manufacturing business size, offers scalability for growth, provides features to improve decision-making and profitability, and fits your budget.
EDI (electronic data interchange) is cost-saving business process automation used by trading partners to send and receive validated electronic documents data exchange from computer system to computer system in standard formats without human intervention. EDI documents include purchase orders, invoices, payment documents, bills of lading, inventory documents, customs documents, and ship notices.
AHC payments allow businesses to make electronic payments to vendors for products and services. This type of payment can occur as a single entry, or it can be set up on a recurring basis. For example: You can authorize your utility company to electronically debit funds from a checking or savings account to pay for an electricity bill each month. You will then provide permission as to which account you want the funds to be deducted from.
ACH payment processing is electronically making a bank transfer between the payer’s and the payee’s bank accounts through the Automated Clearing House network of U.S. financial institutions, regulated by Nacha. ACH payment processing is used for recurring payments and one-time payments instead of paper check, wire transfer, credit card, or debit card payment methods.
Odoo ERP is a popular platform and there are many Odoo alternatives that are just as good. The open-source ERP model of Odoo allows a business to leverage thousands of developers and works best for small to mid-sized companies. Larger enterprises and startups may want to consider some of the following alternatives:
Choosing the best Microsoft ERP solution depends on your budget, company size, industry, business application or module selection, and other business needs. New users will find a modern cloud-based solution with either Microsoft Dynamics 365 or Microsoft Dynamics Business Central. Microsoft Dynamics GP and Dynamics SL are still sold as standalone products which are on-premises with hosting options.
A company should go public when it qualifies under one of the listing standards and meets other qualifications for initial listing of operating company shares on a stock exchange, and its SEC registration statement is effective. A company should have significant growth potential to achieve an acceptable valuation for IPO pricing and make the investment attractive to future investors.
The IPO process will take enormous amounts of time, distract attention from running the business, possibly create conflicts, disclose company information publicly, and cost money. For a management team going through a first-time IPO, the learning curve is high. A company must be diligent, even zealous, about its commitment to the IPO process.
Spend analysis is the repetitive process of grouping and reviewing procurement data and processes, vendors in the supply chain, and purchases by category to find cost reduction and operational improvement. Spend analysis improves strategic sourcing, vendor selection, supplier management, contract pricing, payment terms, spend management, financial results, and cash flow.