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5 Things You Will Be Studying in Financial Accounting

If you have recently been accepted into any institution for an accounting course, chances are that one of the very first courses you will have to take is on financial accounting. The term ‘financial accounting’ sounds very impressive, but it gives no clues on what it is all about. And it is from such a background that you could find yourself getting online, and looking for information as to what financial accounting is all about. It is exactly that type of information that we now proceed to give you. That we do not by simply telling you what financial accounting is (different authorities posit different definitions); but by going with you on a journey in which we will explore some of the things you will be studying in the financial accounting module.

Now one of the things you will definitely be learning in financial-accounting is the double-entry accounting concept. This can be confusing at first, but you will soon get a hang of it, and actually get to love it, because it feels like a game once you understand the rules. In this area, you will be taught about the idea of a ‘credit’ and ‘debit’ in accounting, and you will come to learn that in the accounting system, every transaction generates a debit (or a set of debits) in some account(s), and that every transaction also generates a credit (or a series of credits) in some account(s). It seems complex when explained in this way, but when your instructors show you by way of example, you will find it all very easy.

Top Qualities Of A Business Finance Manager

Finance Management

Finance Management

There is no business that does not want to make a lot of money, in as little time as possible, and still have a little left over after all expenses have been paid. It is the work the finance manager in any company to put in place strategies that will ensure the business does well financially.

The term finance manager is usually a general term for all the other individuals who deal in different financial matters. There are financial controllers, treasure, credit managers and also risk insurance managers. All these deal with matters that are still financial but different in more than one certain ways. However, the qualities to look out for are still the same. To have a good financial manager he/she has to be a people person. Since most of the time these individuals work with a team he/she will have to have good communication skills. This will help them interact well with the other managers. Furthermore, their managerial role means that they are supervisors therefore, with good interpersonal skills they can be able to lead others.

Credit Management Services

Credit Management

Credit Management

There are two types of credit management services – one for businesses and one for individuals. Let us find out what each type means.

Credit management services for companies and business owners

Some companies need credit management services to effectively collect payables from clients. A lot of credit management companies offer discreet and courteous cash flow management and collection of your overdue and current accounts. These companies are trained not only to collect, but also to maintain healthy relationships between businesses and their customers.

Aside from increasing a business’ receivables, credit management companies also proactively prevent bad debts by instituting rules so that customers and clients pay on time. They also help improve a business’ customer service, so that it can collect its own receivables in the future.

What Is Credit Management

Credit Management

Credit Management

Credit management is an important function in every organization. Experts defined it as a balancing act between maximizing business revenue against minimizing credit loss.

All big and lucrative business deals involve some levels of credit risks. On the other hand companies cannot advance or function without credit. Therefore in order ensure a company enjoy the benefits of big and lucrative business deals and function properly, it has to management its credit well and efficiently.

Investing in receivables involves credit risk. It is impossible to eliminate credit loss totally. However it is possible keep credit loss to minimal through controls. Practicing and executing efficient credit management will ensure the company makes good decision investing in quality receivables with calculated credit loss.

Credit Management Design a System and Work the System

Credit Management

Credit Management

How well does your company do at collecting past due accounts? The answer will vary widely depending on your discipline, your tenacity and perhaps even your region of the country.

Fortunately, few regions of the country use credit as a tool for any other purpose than customer convenience. However, some regions do use credit as a marketing tool. And in others, sometimes dozens of years ago, companies began to allow customers to use them like most professional customers use a bank. And a long history of practices like these are always difficult to eliminate.

Among the ways credit management is generally measured:

o Average accounts receivable collection days.

o Bad debt expense as a percentage of sales.

o Recoveries as a percentage of outstanding balances.

o Turn around time for processing credit applications.

o Service charges collected.