Enjoyed this video? Then please subscribe to the channel, and dive deeper into accounts receivable by watching my video on bad debt accounting ua-cam.com/video/q7Whr_A4drE/v-deo.html and deeper into accounts payable by watching my video on purchase order matching ua-cam.com/video/vL0XEHIZkxk/v-deo.html
Thanks for the great video. I'm currently learning this now, and while I think I got the jist of it, you're video really help fill in a lot of the blanks. Thank you.
That's great to hear! Thank you. Good to know I am on the right track. Maybe my video on "How to generate more cash in your business" could be good for you to watch as well: ua-cam.com/video/pyhZn4Kng0U/v-deo.html
Thank you very much for the kind words!!! As follow-up, you might also enjoy my video on DSO Days Sales Outstanding of Accounts Receivable, that includes some real world anecdotes: ua-cam.com/video/duN0BAY9Q8s/v-deo.html
Thank you for the feedback! Glad you enjoyed it. Perhaps the related video on working capital might also be useful for you: ua-cam.com/video/XvHAlui-Bno/v-deo.html
Thank you for watching and commenting, Caleb! As follow-up, my video on working capital management ua-cam.com/video/c5iigcEppZw/v-deo.html might be interesting for you as well.
Glad it was helpful, Matt! I think you might enjoy the related video on current assets and current liabilities as well: ua-cam.com/video/Jw4TaiP42P4/v-deo.html
No better place to start than with a sold grasp of key accounting concepts in my Accounting 101 playlist ua-cam.com/video/OYql7Y9NnBg/v-deo.html and an understanding of the "big picture" by reviewing real life finance case studies of well-known companies ua-cam.com/video/PI9X5Ybek_E/v-deo.html Enjoy!!!
Wishing you lots of success in the interview! The sequel to this video might also be interesting for you to watch: bad debt accounting ua-cam.com/video/q7Whr_A4drE/v-deo.html
Hello Natalia! I am not sure I understand the difference. Can you describe more clearly what you are looking for? Can be in Russian too, my friend can translate for me. :-) In the meantime, here is my video on debits and credits that might help you: ua-cam.com/video/n-lCd3TZA8M/v-deo.html
Most of the videos apply to both. In the case of A/R and A/P, the differences between countries is mostly linguistic. Brits would use "debtors", Americans "receivables" or "accounts receivable". Same for "creditors" versus "payables" or "accounts payable". Many of my case studies of financial statements of real world companies relate to companies that use US GAAP: ua-cam.com/video/J_1F8GoLOI8/v-deo.html&pp=gAQBiAQB
Hello Ibrahim! I have no idea what SOCI is. Trade receivables are in current assets on the balance sheet, while trade payables are in current liabilities: ua-cam.com/video/Jw4TaiP42P4/v-deo.html
Their is a job in congnizant now related accounts payable and receivable process should i for account job but i have no practical experience in accounting
I can't decide that for you, but it might be a good entry job into accounting. If you have good attention to detail and a logical mind then it could be a good match. A main part of the role is likely to involve purchase order matching: ua-cam.com/video/vL0XEHIZkxk/v-deo.html
@@TheFinanceStoryteller we were never taught abt inventory a.c..,but always refer to purchase n sales a.c...when comes to transaction involves stock/inventory...maybe differences of American accounting n British accounting.hope u can explain
Hello again! I did some more thinking and reading on this. I am used to companies that apply perpetual inventory accounting, whereas using the purchase account is part of applying the period inventory accounting method. Do a search on those terms "perpetual vs period inventory accounting" and you will find videos/articles from other channels explaining it.
Nope, but I do have more than 200 videos in total on my channel that could help you! And I tend to reply fairly quickly to questions that are posted on a specific video.
Please I received a payment but it's relate to last year and the books from last year are closed. The debtor applied credit note which reduced to total receivable. Since last year is closed am not able to directly reconcile. Which journal entries can I make now to clear the balance? Thanks as always I will be expecting your input
03:06 "An example of working capital management" Why do you say that? I know that working capital is like current assets minus current liabilitie, but I don't understand what you said it, is it because tha acc payables go up?
Update: I watched your Working Capital and Working Capital Management video, and the way you define WC there makes sense to me and I'm less confused now So is it safe to say that Coca cola used their WC to maximize profitability?
Hi Surya! Love it when you answer your own questions! 😉 Profitability is revenue minus expenses. Changes in working capital have an effect on the cash flow of a company, not directly on its profitability. Retailers like Amazon and Walmart have a low return on sales, and a very high assets turnover (due to their excellent working capital management). See also my example on Return On Assets: ua-cam.com/video/2j8bfR8KqJ0/v-deo.html
although the message is clear ..... some info are wrong .. you put equity under liabilities ;that is completely wrong 0:57 please change it . you made doubt me my knowledge
Thanks for the feedback, Fares! It is a problem in the English language. Sometimes the word "liabilities" is used to indicate the whole right-hand side of the balance sheet (the "broad" use), at other times it is used to only indicate money owed to creditors (banks, suppliers, etc. - the "narrow" use). You are correct that in the "narrow" sense of the word, the accounting equation states that assets = liabilities + equity. As far as I know, there is no separate word in English for the right-hand side of the balance sheet. In French, for example, the left-hand side is called "les actives" and the right-hand side "les passives", there is no equivalent for that in English. In subsequent videos, I have kept a clearer distinction, for example in this review of the balance sheet: ua-cam.com/video/eIjCaeNm-Vk/v-deo.html
Enjoyed this video? Then please subscribe to the channel, and dive deeper into accounts receivable by watching my video on bad debt accounting ua-cam.com/video/q7Whr_A4drE/v-deo.html and deeper into accounts payable by watching my video on purchase order matching ua-cam.com/video/vL0XEHIZkxk/v-deo.html
You have explained the process in the best way possible!
Thanks for the compliment, Magdalena! Very happy to hear that.
You taught me all of this faster and better than my accounting teacher
Happy to help!!! More accounting 101 videos in this playlist: ua-cam.com/video/b93KBmcXanI/v-deo.html
Oh man this is the best and shortest explanation of these two concepts! Thank you ^_^
Thank you, Oleksandr! Glad it was helpful! 😎
Well I've been through alot of videos today... Im glad i found this one😥😅
I am very glad you did too!!!!! 😎
Thanks for the great video. I'm currently learning this now, and while I think I got the jist of it, you're video really help fill in a lot of the blanks. Thank you.
Happy to help, Steve! Take a look at the video on working capital as well, that might help connect the dots: ua-cam.com/video/XvHAlui-Bno/v-deo.html
@@TheFinanceStoryteller I will. Thank you.
This is a time saving explanation. Good for me .
Thank you!
Thanks for the explanation, I'm a job process interview and a need to know these kind of vocabulary
Wishing you lots of success for the interview!
Awesome discription clear the topic in brief
Thanks a lot, Rishabh!
EXTREMELY HELPFUL. Thanks
Glad to hear it!
so touching for an excellent video
I like this explanation.... and plz can u give more this like example of vedios....
That's great to hear! Thank you. Good to know I am on the right track. Maybe my video on "How to generate more cash in your business" could be good for you to watch as well: ua-cam.com/video/pyhZn4Kng0U/v-deo.html
Weldone u explained very easily.
Nice to hear that! Thank you for watching and commenting.
Sir thank q u r so simple and perfect in ur lecture. U method of explain can easily trigger anybodies mind . Once again thank q.
You're welcome! Nice to hear that. Happy to help.
Exactly what i was looking for. Thank you very much!
You are welcome, Keith! Please subscribe, and spread the word.
Simple but excellent
Thanks a lot 😊
Marvelous 👌 thanks
Most welcome 😊
I like the way you explained that. I suggest to add some real cases. Overall it was great
Thank you very much for the kind words!!! As follow-up, you might also enjoy my video on DSO Days Sales Outstanding of Accounts Receivable, that includes some real world anecdotes: ua-cam.com/video/duN0BAY9Q8s/v-deo.html
Thank you for the explanation. Helped ALOT!
Glad to hear it! Hope you find many more videos that can be useful for you. Maybe this playlist has some: ua-cam.com/video/b93KBmcXanI/v-deo.html
Thanksm i finally understand. Thank you very much
Great to hear that! 🙂
Thank you, keep the examples going, they are extremely helpful
Glad you like them, Leon!
Perfect explanation.
Glad you liked it, Jahandar!!!
Clear and straightforward. Thank you.
Thank you for the feedback! Glad you enjoyed it. Perhaps the related video on working capital might also be useful for you: ua-cam.com/video/XvHAlui-Bno/v-deo.html
Its good explaination realy
Happy to hear that!!!! Thank you for watching and commenting.
The video sound is pretty good, beyond my imagination
Nice to hear that! 😉
Thanks, big help.
You're welcome!
Very good and funny videos bring a great sense of entertainment!
Thank you. Happy to hear you enjoy them.
Thanks! Good job.
Thank you for watching and commenting, Caleb! As follow-up, my video on working capital management ua-cam.com/video/c5iigcEppZw/v-deo.html might be interesting for you as well.
I found it. Thanks.
Excellent
Thank you! 🙂
many thanks!
You're welcome!
I am from Kurdistan Region. i did understand with your video. Thanks a lot.
You're welcome! Greetings from The Netherlands. Thank you for watching! :-)
Amazing as always. Thank you!
very good explanation, thank you very much.
Glad it was helpful, Matt! I think you might enjoy the related video on current assets and current liabilities as well: ua-cam.com/video/Jw4TaiP42P4/v-deo.html
@@TheFinanceStoryteller I will check it out! Only yesterday I realized a career in finance would be a great option, and I am diving in headfirst💪
No better place to start than with a sold grasp of key accounting concepts in my Accounting 101 playlist ua-cam.com/video/OYql7Y9NnBg/v-deo.html and an understanding of the "big picture" by reviewing real life finance case studies of well-known companies ua-cam.com/video/PI9X5Ybek_E/v-deo.html Enjoy!!!
Wonderful
Thank you, Ujwal!
Very easy to understand. Great video 👍
Thank you! Very nice to hear that. :-)
This will be a great help for interview tomorrow. Thank you. 😊❤
Wishing you lots of success in the interview! The sequel to this video might also be interesting for you to watch: bad debt accounting ua-cam.com/video/q7Whr_A4drE/v-deo.html
really understandable good video
Glad it helped! 🙂
Good Explanation Sir
Thank you!!!!
great information
Thank you, Artisa! :-)
Great video 👌
Thanks 👍
So helpful!
Nice to hear that, Eliza! Thank you.
I liked this video, short and right on point :D
Happy to hear that, Marija! Thank you for watching and commenting.
Thanks sir
You're welcome, Colleen!!!
so basically A/P: wat u owe
A/R: wat u own(or someone owe u)
A/P: usually creditor
A/R: usually debtor
aite now i got it
Correct!
West Virginia, Cool.
Can you please do a video on Account Journal entries and regular journal entries
Hello Natalia! I am not sure I understand the difference. Can you describe more clearly what you are looking for? Can be in Russian too, my friend can translate for me. :-) In the meantime, here is my video on debits and credits that might help you: ua-cam.com/video/n-lCd3TZA8M/v-deo.html
Can you be able to guide me a simple video on hw to do book keeping in payroll side for entry into payroll, as well on taxing files yearly.thanks alot
Great suggestion, but I have no experience in that area.....
❤❤❤
are the videos based on IFRS or the US standard?
Most of the videos apply to both. In the case of A/R and A/P, the differences between countries is mostly linguistic. Brits would use "debtors", Americans "receivables" or "accounts receivable". Same for "creditors" versus "payables" or "accounts payable". Many of my case studies of financial statements of real world companies relate to companies that use US GAAP: ua-cam.com/video/J_1F8GoLOI8/v-deo.html&pp=gAQBiAQB
Hello sir, can i ask , is trade receivable under revenue in SOCI? , how about trade payable is it under current liability?
Hello Ibrahim! I have no idea what SOCI is. Trade receivables are in current assets on the balance sheet, while trade payables are in current liabilities: ua-cam.com/video/Jw4TaiP42P4/v-deo.html
Accounts receivable factoring, please!
Discussed in my working capital management video 😎: ua-cam.com/video/c5iigcEppZw/v-deo.html
@@TheFinanceStoryteller thanks for you!
😭😭😭❤️❤️❤️❤️❤️❤️❤️ Thanks
Hope the video was helpful!
Their is a job in congnizant now related accounts payable and receivable process should i for account job but i have no practical experience in accounting
I can't decide that for you, but it might be a good entry job into accounting. If you have good attention to detail and a logical mind then it could be a good match. A main part of the role is likely to involve purchase order matching: ua-cam.com/video/vL0XEHIZkxk/v-deo.html
Hello Sir, Thank you for such wonderful video on AP & AR. Could you please also make video on P2P process and it's journal entries.
Thank you, Chinmay! Maybe my video on purchase order matching can help you: ua-cam.com/video/vL0XEHIZkxk/v-deo.html
with regards to account inventory,can we replace it with purchase account instead
Hi! I don't understand your question. Can you rephrase it?
@@TheFinanceStoryteller we were never taught abt inventory a.c..,but always refer to purchase n sales a.c...when comes to transaction involves stock/inventory...maybe differences of American accounting n British accounting.hope u can explain
Nope, I can't. Even though I am from the Netherlands, I have worked mostly with American companies, so am used to that terminology.
@@TheFinanceStoryteller it's ok then,tq
Hello again! I did some more thinking and reading on this. I am used to companies that apply perpetual inventory accounting, whereas using the purchase account is part of applying the period inventory accounting method. Do a search on those terms "perpetual vs period inventory accounting" and you will find videos/articles from other channels explaining it.
Iam from India..here we write assets on right side and liabilities on left side of the balancesheet....
Thank you, Arun! I was not aware of that, very interesting!
Are u also giving coaching for CPA?
Nope, but I do have more than 200 videos in total on my channel that could help you! And I tend to reply fairly quickly to questions that are posted on a specific video.
Accounts received? But it’s not what you think
Yep! The nuance is important. Received (collected) is not the same as receivable (to be received).
Please I received a payment but it's relate to last year and the books from last year are closed. The debtor applied credit note which reduced to total receivable. Since last year is closed am not able to directly reconcile. Which journal entries can I make now to clear the balance? Thanks as always I will be expecting your input
If you receive a payment, I would suggest to debit cash and credit accounts receivable in the current period.
@@TheFinanceStoryteller thank you very much😊👍🏾
03:06 "An example of working capital management" Why do you say that?
I know that working capital is like current assets minus current liabilitie, but I don't understand what you said it, is it because tha acc payables go up?
Update: I watched your Working Capital and Working Capital Management video, and the way you define WC there makes sense to me and I'm less confused now
So is it safe to say that Coca cola used their WC to maximize profitability?
Hi Surya! Love it when you answer your own questions! 😉 Profitability is revenue minus expenses. Changes in working capital have an effect on the cash flow of a company, not directly on its profitability. Retailers like Amazon and Walmart have a low return on sales, and a very high assets turnover (due to their excellent working capital management). See also my example on Return On Assets: ua-cam.com/video/2j8bfR8KqJ0/v-deo.html
Some segments in the video are stamped not adjacent to each other
Thanks for highlighting that.
although the message is clear ..... some info are wrong .. you put equity under liabilities ;that is completely wrong 0:57
please change it . you made doubt me my knowledge
Thanks for the feedback, Fares! It is a problem in the English language. Sometimes the word "liabilities" is used to indicate the whole right-hand side of the balance sheet (the "broad" use), at other times it is used to only indicate money owed to creditors (banks, suppliers, etc. - the "narrow" use). You are correct that in the "narrow" sense of the word, the accounting equation states that assets = liabilities + equity. As far as I know, there is no separate word in English for the right-hand side of the balance sheet. In French, for example, the left-hand side is called "les actives" and the right-hand side "les passives", there is no equivalent for that in English. In subsequent videos, I have kept a clearer distinction, for example in this review of the balance sheet: ua-cam.com/video/eIjCaeNm-Vk/v-deo.html
🙌🙌🙌
Not sure what the emoticons mean, but I hope you enjoyed it!
@@TheFinanceStoryteller haha, to me those mean praise! Great work as always!
hi
Hello.
The video sound is pretty good, beyond my imagination
Nice. Did you like the content as well?