add share buttons


Cartoline Storiche

This content shows Simple View

accounting bookk

Credit Memo Know What it is and When to Use One

Sydney, NSW accounting services

If you have already issued a credit memo, you might be well aware of what it means. There might be business owners who didn’t need it even once. Or you might be losing opportunities by not knowing what it means and when to use it. So here, you will learn about the basics of a credit memo, the types, and its application.

Credit Memo – An Introduction

A credit memo is a note that a seller issues to the buyer as proof of reduction in sales. The memo gets an entry into the sales return journal and refers to the invoiced amount not paid (or received). It is of two types, one that a buyer gets from a seller and the other is issued by a bank. The seller-buyer memo marks an adjustment for the invoice. The one that comes from a bank is also termed a memorandum.

When to Use a Credit Memo?

Seller issues a credit memo to a buyer when the latter receives a different quantity or quality than the invoiced order. For instance, imagine restaurant orders fresh tomatoes for $500 to cover a day’s requirement. While the seller promises fresh produce, the transportation causes 10% damage. While the buyer receives only 90%, it also impacts the restaurant sales.

Here, the seller offers a $100 discount for the loss of produce and sales and issues a memo. The seller uses a seller’s credit memo as a credit to “Accounts Receivable” & “Sales Returns and Allowances” for $100. Similarly, the restaurant creates a $100 buyer’s credit memo as a debit to the Accounts Payable and inventory credit.

While things can be financially confusing, professional accounting services from Sydney, NSW can help ensure you issue the right amount and credit memos when needed.

Guide to Business Automation – Key Areas to Consider

accounting services in Sydney Forensic

Automation is everywhere. If you think this is for established, large, or high-volume task businesses only, you might be underestimating it. It is quickly becoming an essential practice for streamlining operations across startups and small businesses. Its primary benefit is that it is less expensive and doesn’t need much investment of effort, infrastructure, and time. If you are wondering what all you can automate, take a look at these areas for streamlined operations and productivity.

  • Reporting and Analytics: Reports carry data and information together in a cohesive and consolidated manner. This organized data is free from any duplication and also leads to great decision-making business. You can find automation software that allows creating a report with data visualization abilities.
  • Financial and Accounting Processes: Business accounting is another area you can automate for benefits. Consider important bookkeeping functions of recording processes and transactions like payments, invoices, and tracking bills. Automating these makes sure you indulge in timely payment settlements without any income loss.
  • Digital and Offline Marketing: While technology forms the basis of digital marketing techniques, automation tends to deliver benefits here. It helps with crucial operations like inbound marketing and lead capture efforts. You can automate your efforts to complement existing infrastructure and resources or creating a new setup.
  • Business Operations and Management: Certain business operations and tasks require regular follow-ups. If you are using human resources for the same, automation can help save time and money while improving accuracy. For instance, you can consider tasks like scheduling, data entry, staff tracking, monitoring, etc.

Although automation lets you cut down on extra expenses, you still need a professional to manage them. Forensic accounting services in Sydney can help in this matter with a professional record of experience and expertise.