SYNERGY BETWEEN ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE 4
Accounts receivable and accounts payable are reciprocal accounts. Your business’ accounts receivable are the accounts payable of the community you serve and your accounts payable are the accounts receivable of the community (e.g., suppliers).
Specially for small businesses, it is best if the relationships are not just cold impersonal exchanges of goods and dollars. Beyond the trust that underlies business transactions, there should be some concern and consideration flowing into / from both ends of the transaction. Even huge multinationals see this and spend a lot of public relations dollars in creating an image of concern and consideration for their customers.
A previous b5media post in Home Biz Notes (of Mary Emma Allen & Yvonne Russel) brings home this point more dramatically. The post (http://www.homebiznotes.com/my-mother-the-country-grocersuccess-isnt-always-what-you-think/) was written by Mary Allen and cited in http://www.accountingsolver.com/the-one-must-read-post/.
image from Microsoft Clipart
Tags: accounts payable, accounts reveivable, concern & consideration in business, reciprocal accounts, small businessesRelated Stories
POSTED IN: Accounting Concepts, Accounting for NonAccountants, Accounts Payable, Accounts Receivable, Best Business Practices, Small Business Finance
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