Best Accountants in Ormond Beach, FL

Many small business owners don’t understand basic accounting terms and principles that are vital to running a healthy business. It’s easy to overlook these basics when you’re so busy focusing on your clients, the services you offer, and the many demands of owning and operating a business. At Seward Accounting and Tax, we wanted to take a few minutes to help you understand some key terms and why they matter for your business.  This month we’re looking at Accounts Payable and Accounts Receivable. ACCOUNTS PAYABLE tracks money your business owes to creditors. Accounts payable belong to a larger class of accounting entries known as liabilities. This could be money owed for supplies, rent on your office space, or the money you owe your employees for the work they’ve done. ACCOUNTS RECEIVABLE tracks money owed to a person or business by their debtors, or more plainly the money your business is owed for services or products delivered. Accountants track accounts receivable money as assets.  Tracking both accounts payable and accounts receivable can help you understand the financial success of your business. Knowing what you owe, as well as what is owed to you, is vital to ensuring a healthy cash flow. For instance if you need to run payroll, but don’t have the appropriate funds in your accounts receivable, you may not be able to pay your employees on time.  Many small business owners struggle with overdue invoices and therefore lack the funds they’re owed when they’re needed....