A balance sheet is a summary of the financial balances of an individual or organization. It is one of the crucial financial statement when it comes to managing your business.

Here are some basic bookkeeping concepts and definitions that you should know. They’re central to the methods and processes that a bookkeeper follows to create accurate accounts.

Online invoicing is a great replacement for outdated invoicing methods. Xero is a brilliant option to explore since it can efficiently handle all your invoicing operations, saving your company both time and money.

As a SME business owner, sometimes you may be confused on some accounting documents and what they are. Every day, numerous business transactions occur in an entity and these transactions are recorded and controlled by several sources of documentation.

Xero allows you to manage your purchasing process on the cloud. You can issue purchase order and email directly to your suppliers and convert it easily into supplier bills when the goods/services are received and bills given to you.

Accounting is the practice of documenting and tracking financial transactions. Accounting principles are used by individuals and corporations to measure their financial health and performance. Accounting may also help individuals and businesses meet their tax requirements.

Fixed assets refer to long-term assets bought by a business and used to create its goods and services to gain profit. They are non current assets, which means they will be useful for longer than one year such as a property that own by the company.

Inventory is a raw material used to produce goods that are available for sale and generating profit. Inventory is the major assets of a company because the turnover of inventory represents the main source of profit generate and the income for the company’s shareholders.

Explore our comprehensive guide to understanding the distinctions between these crucial financial concepts. Gain insights into managing potential credit risks and safeguarding your business's financial health. Delve into the article for a clearer financial perspective.