Accounting and cash flow

Organize accounting and cash flow

Reconcile commercial documents, payments and accounts to read financial movements.

Understanding perimeters

An invoice describes a commercial transaction. A payment describes a movement of money. Accounting uses accounts and entries to represent operations: these three readings must remain comparable.

Prepare the accounts

Review the chart of accounts and assignments before processing transactions. For cash, distinguish between bank accounts, cash and other means of payment.

Control movements

Reconcile an entry with its document and its payment. If there is a discrepancy, check dates, returns and assignments before making a correction. Prepare the requested exports with your accountant.

Why are sales and collections not equal?

A sale can be paid for later or in installments. Conversely, a monthly payment can pay an invoice from the previous month. Compare invoice and payment dates before interpreting a difference between business activity and cash flow.

What to prepare to reconcile a bank transaction?

Find the date, amount, payment reference and the document concerned. Check the account used and any partial payments. This information makes it possible to identify the movement without being limited to the name of the customer or supplier.