Financial management - accounting in enterprises is divided into many different departments with specific titles. In which, accounting for debts is the work of receivables from customers who have not yet paid for services to the business. Accounts payable is an accountant in charge of the work related to the payment of goods and services, recording and keeping information about the transactions. Debt accountants secure a company's revenue by verifying receipts and resolving discrepancies. But what exactly is debt accounting? What work do they do? Let's answer these questions together in the following sharing!
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1. What is debt accounting?
Debt accountants are responsible for collecting payments to the business. They use their skills in project management, organization and communication to reach out to customers, then collect payments. In addition, accounts payable accurately track the company's payments and bank deposits, reporting profit/loss periodically.
What is debt accounting?
Debt accounting has a role to help businesses analyze revenue and based on receivable periods will help measure the average collection time for the business's revenues. At the same time, this is also a measure to help businesses fulfill their obligations to balance receivables and payables. From there, measure actual revenue after each accounting period to ensure balance.
Tracking Objects
Receivables – Account 131: Receivables from customers.
Liabilities – Account 331: Liabilities to suppliers.
Advance/Refund of advance – Account 141: Internal enterprise.
Other receivables – Account 138
Other payables and payables – Account 338
Account 136 and Account 336: Internal between branches and companies.
2. Work of a Debt Accountant
Accounts receivable accountants must collect and manage incoming payments, properly track them, and enter them into the system to maintain accurate bookkeeping records. The job description of a accounts payable accountant will typically include the following key tasks:
The job of a Debt Accountant
Prepare invoice
In most transactions, the seller issues an invoice to the buyer to record the payment and when it was paid. The accountant's responsibility is to issue invoices that provide information on the quantity and cost of products sold to a particular customer, the amount of tax payable, and the method of payment.
For example, if your business wants to receive payments via bank deposit, the accounts payable accountant must provide the customer with bank account details. When customers call or visit the business to inquire about unclear or incorrect invoices, the accounts payable accountant is also the one to respond to complaints and clarify discrepancies.
Record transaction
After receiving payment for goods and services, accountants must record books according to the enterprise's accounting policies and procedures.
For example, a accounts receivable accountant working in a wholesale store might collect all payment receipts, check sales receipts and credit card transactions, and then record them in the general ledger. software common. specialized accounting. Businesses will use this information to calculate total revenue generated on a daily, weekly or monthly basis.
Debt accountants will also monitor accounting systems to ensure they are operating optimally, reporting problems or errors to IT professionals.
Send money
When a business receives a cash or check payment, the accounts receivable accountant is responsible for depositing the money into the company's bank account and returning the receipt. If the check bounces, the accounts payable accountant must contact the customer to notify the situation and arrange a replacement check. In addition, the debt accountant can also contact the bank to verify the electronic fund transfer and credit card payment.
Prepare a debt report
The liability accountant coordinates with other accountants to prepare financial documents, including balance sheets, cash flows, and profit/loss statements. This will usually include a monthly accounts receivable summary report to determine the total amount owed by the business and its customers.
3. Reasons for debt arising
When it comes to debt problems, there are many reasons, such as:
Reason for debt
Customers who buy but cannot afford to pay can take the goods and owe and will pay after a certain time.
Or the problem is with the seller, who wants to sell goods in large quantities, so he does not need to pay immediately and still get the goods. This is the seller's business-promoting behavior.
Upon completion of the commercial activities, the buyer will pay. These are costly causes for buyers and low capital can still do business easily.
Low interest debt, usury is an advantage for buyers.
Unpaid when there is not enough money to make a transaction for profit.
The liability also creates disadvantages for the business such as:
Causing risk and inability to collect debt.
Loss of cost and management, tracking takes a long time.
Debt collection takes a long time and directly affects the business process.
4. Notes when determining liabilities
Debt accountants, in addition to accounting for debts, must also clearly define payables. More specifically, in the process of controlling and urging debts, accountants must have important notes about debts as follows:
Notes when determining debt
For accounts receivable
Debt accountants must clearly record each item, each debtor, each time when a debt is incurred, and pay attention to the payment appointment time of the customer to call or fax to remind the customer to pay.
Papers, invoices and debt vouchers, showing debts between the company and customers must be preserved and kept carefully for comparison when the two parties pay each other's debts.
In case there is an overdue debt or a customer refuses to pay, the accountant must report it to the Board of Directors for a timely settlement plan.
For liabilities
Although there are not as many difficulties as receivables, payables and debts also need to be proactively resolved to ensure the reputation of the company and your business.
Clear and detailed accounting of each object and debt, paying attention to the payment due date to partners, suppliers of enterprises and companies
Debts payable to the state and employees should be paid on time and in accordance with labor laws
Pay attention to the payables without invoices, the debt accountant must closely monitor and immediately add invoices to the books when available.
5. Essential skills for accounts payable
The tasks of debt accountants revolve around determining debt accounts, paying debts on time to partner businesses, urging debt collection from customers... but that's not why the employer doesn't require it. skills from accountants.
Essential skills for accounts payable
To be able to do a good job as a liability accountant, an accountant should have the following qualities:
Having background expertise: No professional experience is required, but that does not mean that a debt accountant is inexperienced. When having professional background knowledge, accountants will know how to account for debts, how to account for debts, etc.
Responsible for work: High working spirit, responsible for work is an extremely important element of debt accounting. Because without passion, without responsibility, it is difficult for you to stay with the profession when you go to collect debt without success.
Honesty, Careful and Meticulous: Since accountants work directly with money, honesty is something that every employer puts on top. If you are not honest, who dares to assign you to collect money, if you are not careful and meticulous, who dares to assign you to manage debts, manage invoices, debts ....
In short, what is debt accounting? The debt accountant is the person who "collects debt" and monitors the company's debts. From this article, Giaiphapdonggoi.net hopes that you have had initial experience when starting to work as a debt accountant. Good luck!
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