What is a Remittance Advice?
A remittance advice is a document issued by one accounting team to another when they pay an invoice. Here you’ll find out what they look like and how they’re used.
Learn Accounting
Want to learn accounting for free? Make sense of accounting with these jargon-free guides for accounting students and bookkeepers. Understand the accounting process, a series of 6 steps taken to gather, summarise and present the financial information of a business:
- Source Records
- Books of Prime Entry
- Ledger Accounts
- Trial Balance
- Journal Entries
- Financial Statements
What is a Purchase Order?
A purchase order is a legal document issued by a customer confirming details of what they are buying. Here’s an example of a PO with the information they usually contain.
What is a Quotation in Business?
Quotations are used in business to give a customer an idea of the cost of a product or service before they buy. Read this guide to check what normally gets included on quotations.
Source Records in Accounting
Everything has a starting point and when it comes to accounting, source records are it. Read this guide, to learn about the different types of source records in accounting, find out what each one means and discover how they are used in the accounting process.
What are the Steps in the Accounting Process?
The accounting process (or accounting cycle as it is also known) is the series of steps bookkeepers and accountants take to gather, summarise and present the financial information of a business. How Many Steps are there in the Accounting Process? There are 6 steps in the accounting cycle that starts with gathering financial information, followed … Read more
What are Trade Creditors?
Find out what trade creditors mean, how they appear on the balance sheet and how to account for trade creditors in double-entry bookkeeping.
What is a Liability in Accounting?
Searching for the definition of a Liability in Accounting? Here you’ll understand what a liability is in accounting, see examples of liabilities and understand how they are classified in the trial balance and balance sheet.
What is a Current Liability?
Understand current liabilities (also called ‘short term liabilities’), how they appear on the balance sheet and see some common examples of the types of balances that fall into the category of current liabilities.
How to Calculate UK Depreciation and Depreciation Rates
Understand how to calculate UK depreciation, depreciation rates (straight-line and reducing balance methods) and the double-entry bookkeeping entries used in accounting.
What is a Fixed Asset?
Confused by the concept of fixed assets in accounting? Then read on! In this guide, you’ll understand what a fixed asset is, how they are classified and appear on the balance sheet along with examples of fixed assets.