Accounts Payable / Receivable
Accounts Payable is money which a company owes to others for products and services purchased on credit. Accounts payable appears on the company's balance sheet as a current liability as opposed to accounts receivable which appears on the company's balance sheet as an asset. Accounts receivable refers to the outstanding invoices a company has or the money the company is owed from its clients.
An internal audit is the examination, monitoring and analysis of activities related to a company's operations, including its business structure, employee behavior and information systems. Audits general take place daily, weekly, monthly or annually to assess the effectiveness of a company’s internal control system and helps uncover evidence of fraud, waste or abuse.
Financial controls are the policies and procedures put into place by a business or organization to track, manage and report its financial resources and transactions. Financial controls include, but are not limited to, income statements, cash flow statements, budget sheets, accounting systems and operating ratios.
Revenue and Expense Recording
Revenue recognition is an accounting principle that determines the specific conditions and timing in which revenue is recognized or accounted for. In accounting, an expense has a very specific meaning. It is an outflow of cash or other valuable assets from a company to another person or company.Technically, an expense is an event in which an asset is used up or a liability is incurred.