Accounting Guide: Accounts Payables and Accounts Receivables

Accounts Receivable and Accounts Payables

A modern growing business will require an ERP that supports the Accounts Receivables (AR) and Accounts Payables (AP) Workflows i.e Procurement to payment and the Order to Cash cycles.

Previously businesses followed a very hands-on approach to day-to-day accounting. But as companies grew in scale, they also outgrew manual accounting.

One of the main business functions that outgrew the expansion is cash management. Businesses while starting out could manage to sign off every outgoing check and follow up with customers for payments. But, as more and more customers and suppliers it’s impossible to follow up on every single transaction. Added to that a customer payment can be delayed and a supplier invoice may be incorrect, or they may be a return of merchandise, return of damaged goods, issue of credit, or applying for credit.

This may increase the complexity of managing the cash flow in the business.

How does a business define Accounts Payables and Accounts Receivables

Accounts Payables: Accounts payable is money that is owed by a business to its suppliers for the goods and services supplied to the business. It is shown as a liability on a company’s balance sheet.

Accounts Receivables: Accounts receivable are money that is owed to the business by its customers for the goods to services provided by the business. It is shown as an asset on the company’s balance sheet.

Versa Cloud ERP and Lendica

Versa Cloud ERP is partnering with Lendica to make the accounts receivable and accounts payables functions work to your advantage.

Now you can extend payment terms to your customers — but get paid fast. Plus you can purchase materials and goods from suppliers — but pay later. We’re embedding this business–changing capabilities directly into Versa to help our customers strengthen their cash position.

Lendica is an embedded finance platform that changes how SMBs access capital. Today, SMBs seeking funding must rely on inefficient non-bank lenders or expensive captive programs. Our software captures and standardizes SMB profiles (tokens), including granular banking, accounting, and operations data, to promote instant funding decisions for merchants.

For Versa users, you can join the beta list and learn more

You can also talk to our business consultants and learn more about integration with Lendica and many other applications

 

Effectively manage your financials, inventory, production, accounts payables, and accounts receivables workflows with our award-winning ERP.

Let Versa Cloud Erp’s do the heavy lifting for you.

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Make your businesses hassle-free and cut the heavyweights sign up for the Versa Cloud ERP today!!

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