The lifecycle of an invoice.

Although many business owners do not wish to understand the intricacies of double entry bookkeeping, they are interested in invoices.  By understanding how an  invoice is processed through the books you will gain understanding of the bookkeeping process but also how your accounts can be used to assess how your business is doing.

A businesses books are made up of a set of accounts or (nominal accounts) with transactions debiting and crediting these accounts such that the sum of the balances of these accounts is always zero.  There are also accounts for customers and suppliers – although these do not form part of the businesses financial position.

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