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What is a Credit Note? A credit note (also known as a credit memo) is a document issued by a seller to a buyer, letting them know that they’ve been credited a certain amount on their account. Think of it as the reverse of an invoice — it reduces the amount the buyer owes. Let’s… Continue reading What is a Credit Note? How to Create One?

What is GAAP in Accounting? Generally Accepted Accounting Principles is an abbreviation for GAAP. GAAP Accounting Principles (GAAP) are a set of long-evolved accounting principles and are widespread practice within the industry. Organizations use it to track their money systematically by keeping accounting records, summarising those data in financial statements, and making certain supporting information… Continue reading Understanding Generally Accepted Accounting Principles (GAAP)

Top 14 Accounting Trends to Consider for Every Business 1. Adoption of AI and a Hike in Automation By 2026, about 90% of financial functions will utilize at least one AI-enabled technology solution. As a young professional, you need to understand that manual processes are no longer necessary. AI and machine learning are key replacements… Continue reading Accounting Trends in 2026: Future of the Accounting Industry

📌 Key Takeaways An invoice approval process helps catch errors and make sure a company only pays for what it actually ordered and received—it’s a critical step before payments go out. Manual invoice approvals are slow and risky, especially as the number of invoices grows. They can lead to mistakes, delays, and even fraud. Automation… Continue reading The Complete Guide to Invoice Approval Process

What is Invoice Verification? Invoice verification, also known as invoice validation, is the process of reviewing invoice details before payment. In other words, one validates the invoice by reviewing the details to ensure payment aligns with the delivered product or service and the agreed-upon terms. It also includes verifying the invoice with the Purchase Order… Continue reading What is an Invoice Verification? Key Steps in Checking Invoices

Accounts Payable Vs Accounts Receivable Accounts payable and accounts receivable are two separate financial ledgers for invoicing recording, and knowing the difference between accounts payable and accounts receivable is essential to comprehending the invoicing process. Therefore, let’s separate the two and understand how journal entry for an invoice happens. Accounts Payable Accounts Receivable Simply put,… Continue reading How to Record Invoices in Accounting and Journal Entry?

What Are Recurring Invoices? Recurring invoices refer to invoices that business professionals send to their clients for fixed service consumption or when buying a product. These invoices are sent at regular intervals, referred to as billing cycles, which can be weekly, biweekly, monthly, or annually. Recurring invoices are sent to the same client for the… Continue reading Recurring Invoice – What Is It & How to Schedule It?

What is Invoice Processing? Invoice processing is the act of validating and managing invoices received from suppliers or vendors. It comprises verifying the accuracy of the invoice details and ensuring they match purchase orders. Upon validation, an invoice can be approved for payment. After the payment is made, the details are recorded in a ledger,… Continue reading What is Invoice Processing? Definition & How it Works?

💡Do You Know?In the USA🗽, the average credit card late fee is $30.50, with a maximum fee of $41. What Is a Late Payment Fee on an Invoice? Late fees on invoices are additional charges that businesses impose when clients fail to make payment by the due date. The major purpose of late fees is… Continue reading What Are Late Payment Fees and Why Do They Matter?