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"Money Owed By You"

  1. Your creditors' age analysis report will list each supplier's invoices and payments in a separate account. Always make sure you can find the invoice from the information recorded on the supplier's page.

  2. Agree the report total to the customer control account in the balance sheet section of the trial balance.

  3. Agree the individual supplier balances to the statements received from the supplier and make a note the reasons for any differences on the supplier statement (for example if you have paid an amount which does not appear on the supplier statement yet or a credit note that you still need to record).

  4. Some reports include a "supplier turnover" total. By comparing month on month and year on year, suppliers with increasing activity can be identified. If your business provides significant support to the total turnover of one of your suppliers, you should be able to arrange favourable repayment terms with your supplier to boost your own cash position.

  5. Use your supplier summary to make sure you pay on time and secure your credit for the future.

  6. Boost your cash position by making full use of all interest free credit periods (for example 30 days before you have to pay your accounts).

Spot checks

  1. Scan through the money owed totals and ensure they seem reasonable.

  2. Compare to other documents such as statements and letters from suppliers.

  3. Look for duplicated invoices.

  4. Agree the total money owed to the supplier control account in the trial balance

 

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gas  - Very useful post   |82.137.200.xxx |2010-12-11 19:29:54
Thank you for such information, I will keep this in my mind.

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