Nacha Operating Rules define roles for financial institutions that are Nacha Direct Members and guidance for third-party ACH network participants for electronic bank transfer transactions through the Automated Clearing House network, governed by the Nacha organization. Besides Nacha, payment association Direct Members of Nacha contribute to creating Nacha Operating Rules.
Accrued revenue is an asset account that could be accounts receivable to record revenue that’s earned before cash is received, under the generally accepted accounting principles (GAAP) accrual basis of accounting. GAAP accounting standards, including ASC 606 for revenue recognition in corporate finance, are based on the revenue recognition principle that defines when revenue is earned.
An ABA number is the three sets of numbers on the bottom of paper checks, from left to right, that identify (1) the financial institution via a nine-digit routing number from the American Bankers Association, (2) bank account number, and (3) check number. The fractional routing number on the top of the check is a backup ABA number.
Wire transfer fees are the cost of the payer sending and the payee successfully receiving a wire transfer. The costs of receiving a wire transfer may include primary and intermediary bank fees, costs of investigating a wire transfer not received, a reversal fee for sending a wire transfer to the wrong account, foreign currency conversion fees, and miscellaneous fees.
Account reconciliation is the process of comparing general ledger accounts for the balance sheet with supporting documents like bank statements, sub-ledgers, and other underlying transaction details. If the ending balances don’t match, accountants investigate the cause of the discrepancies and make adjusting entries required to resolve differences from errors or missing transactions.
eSourcing is a series of automated pre-procurement processes using an Internet-based software system to identify, evaluate, compare, and select vendors for purchases. eSourcing handles the collection and storage of quotations, proposals, bids, order negotiation, contract management, and online collaboration through a portal. eSourcing software performs spend management and analysis.
Cost control has importance because it lets businesses reduce costs and expenses during the year through analysis and monitoring variances at each budget control level. Managers are accountable for results. Companies that control costs well through optimization practices and cost control tools have a competitive advantage.
A cash flow statement is a financial statement required by US GAAP (generally accepted accounting principles). It shows beginning and ending cash balance, cash flows from operating activities, investing activities, and financing activities, plus some non-cash disclosures on the face of the statement. A cash flow statement may be prepared using the direct or indirect method.
Expense management is a system of business processes ranging from establishing company policies, having employees submit electronic receipts, issuing corporate credit cards to employees for routine purchases, generating exceptions reports, routing expense payment requests to approvers, controlling expenditures, and making payments to reimburse employees for approved expenses.
Working capital management is managing the cash conversion cycle (CCC) from inventory purchases to the collection of accounts receivable to paying vendors’ accounts payable balances, employee payroll, other accrued liabilities, and short-term debt obligations on a timely basis with adequate financial resources for liquidity.
Table of Contents Overview of Single Euro Payments Area (SEPA) What is SEPA Payment Method? SEPA Payment Processing Schemes Benefits of SEPA Payments What Countries Can Use SEPA How Do You Set Up SEPA Payments? FAQs Electronic SEPA payments are used in SEPA participating countries across Europe to make cashless payments in euro at the
Form 1099-NEC is a new form issued by the IRS beginning with the tax year 2020. In a prior year, non-employee compensation was reported on Form 1099-MISC. IRS Form 1099-MISC was redesigned to remove non-employee compensation but is still used to report other Miscellaneous Information, certain miscellaneous income payments, and any backup withholding of federal income tax.