Business Tools Blog

I saw a “Post It” thumb tacked to the wall of a cube … right next to another “Post It” that had Tim Gentry’s - Zayo’s Controller’s - phone number on it.

Debits and credits are exciting! Just ask Manpower.  They are offering an Exciting Accounts Receivable Clerk Opportunity

Duties include but are not limited to: identifying problems in administrative processes and recommend improvements or changes thereof; requesting client code set-up and changes; perform and assist in inventory count reconciliation; ensure that all dispatched jobs are accounted for and are invoiced; verify 3rd party cost vs. reimbursable revenue; verify existence of blocked billing documents; verify existence of Billing Due List and Delivery Due List; request offset clearing of accounts receivable debits and credits; and verify a Net Revenue Billing Report for abnormal PCPR ratio’s.

You may not be qualified for Manpower’s opportunity,  but understanding accounting basics is important to creating value.  Bonuses are based on Revenue, Operating Cash Flow and/or EBITDA targets.  It’s easier to impact these numbers if you understand how they come together.  Over the next few days, I will post blogs that explain how Income Statement, Balance Sheet and Cash Flow statement work.

And … in case you ever need to know:

• A debit is a an increase in assets or a decrease in liabilities.
• A credit is a decrease in assets or an increase in liabilities.

Just like the Post It said, when a customer payment is received you increase or debit the cash asset and decrease or credit A/R (Accounts Receivable) asset.  Since both Cash and A/R are assets, the change to Net Assets is $0.