Accounting and Invoice


Release Time:

2022-11-03

Small and medium-sized enterprises are usually small in scale, relatively simple in business model, and lack professional accounting knowledge. Moreover, many owners and managers of small and medium-sized enterprises are personally involved in accounting. It's hard for us to imagine how a company that can't even manage its accounts can do a good job!

In fact, the "accounting" of small and medium-sized enterprises mainly refers to managing money (money flow account) and managing goods (logistics account). Many small and medium-sized business owners have this kind of experience—often they can’t figure out the accounts, they only know the total number: they are busy with purchasing, warehousing, sales and other businesses every day, and they come down every year/month to carry out inventory checks, but they only know the total amount. How many goods are left, but I don’t know when they came in, and how these goods flow through; how much money is in the account at the beginning of the year/beginning of the year, and how much money is still in the account now, but I don’t know where the money came from? Which ones are received in cash and which ones are receivables, and I don't know how much I have earned and how much I have lost!

For the same 1 million capital, in the same period of time, one turn is a 1 million business, and two turns is a 2 million business. Do it bigger. Therefore, funds are actually just like goods, and there will also be bad debts. If the purchase of products is unreasonable, the goods will not be able to get out of the warehouse, and the funds will not only cause losses to the company, but also increase the opportunity cost of business operations.


Therefore, whoever controls the logistics and money flow well will have the competitiveness. The operation of an enterprise seems to be a business competition, but in fact it reflects the level of management ability everywhere.