As a business owner, invoices are sent to customers who are not paying immediately after a job has been completed or a service was provided. Customers will be paying at a later time and an invoice is sent to break down the cost owed to you.
A bill is money owed to a vendor from the business owner. Therefore, they are sending an invoice to the business owner and the owner receives that invoice as a bill.
A statement is the status of the customer’s account at a particular point in time. All transactions are include in a customer’s statement including their payments, debts etc. Statements do not offer details regarding the transactions but usually show the breakdown of what is owed and what has been received. Statements can be sent to customers monthly, quarterly etc to keep them on track with payments.
Why do I need a CFO?
You didn’t start your business or become the head of an organization because you are a financial expert. You are there to grow and succeed. The accounting, bookkeeping and financial aspects of your business are important to how you run your company, but it is time consuming and if not done properly, can lead to more headaches down the road.
Keeping track of your bookkeeping, invoices, and your financial statements is time consuming and difficult to manage. But most frustrating is understanding and interpreting your financial picture from reports. CFOs are responsible for timely and accurate presentations and financial reports in order to capitalize on your growth.
What Does an Outsourced CFO Do?
Top 6 Reasons to Outsource your Bookkeeping