Balance Sheet

The balance sheet is a financial statement that provides information about company’s Assets, Liabilities, and shareholder equity, as of a specific date. The balance sheet gives the idea to the investors what the company owns and owes.  The information which is required to complete the balance sheet finds on the Company’s General Ledger.

Balance Sheet Formula

Total Assets = Total Liabilities + Shareholders’ Equity

In a balance sheet, the total sum of Assets must equal to the total sum of Liabilities and owner’s equity.  The assets account represent company own assets. While liabilities shows company’s all debts, and owner equity show company’s owner investment and past earnings. (more…)

Account Receivable

An account receivable is an amount which a debtor has to pay to the company within time against receiving the products or services from the company.  An account receivable is also called trade receivable.  Monitoring of account receivable is also very important for a company for follow up from those clients who have not paid their amount due.

Example

ERP Gold sells its software to his client and allowed him to pay within 30 days. Until that time when a company will receive the whole amount, it will be recorded as an account receivable.  An account receivable is treated as the current asset on a company balance sheet. (more…)

Concentrate on your Core Product

Giving more attention and research on a product can make your product and service more valuable in front of your clients. It is most important for small businesses to separate themselves by focusing on the exclusive potential and core products they bring to prospects.

Target the Right Customer

It is important to understand your potential market and target customer, your product may not have the same value for everyone.  For example, the interest of 18-year-old person will be different from 60-year-old man, you can select target market after defining key attributes.  (more…)

Emails are Not a Perfect Solution                                                                                           

Email may seem like a complete solution to manage your contacts and communication with your numbers of business clients. However, eventually, email reaches its limits in terms of analysis and automation. CRM keep all significant information in one central location where you can easily change, add, or edit customer information.

It Exposes Potential

Customers that have purchased from your company are more likely to do so again. CRM’s have features like automatic reminders and opt-in lists so you can follow up on valuable existing leads. (more…)

Accounts

A record of transactions including debit and credit entries throughout the fiscal year relating to a particular item or exacting person or concern.

For example, a firm has a Cash account in which every transaction involves cash. Each transaction involving cash will be entered and recorded in the cash account. If the company sells the software product for cash, the Cash account will be debited and the Sales account will be credited. (more…)