Best Invoice Types For You If You're Self-Employed |
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A bill of exchange is typically a written order which is used primarily in international trade that tends to bind one party for paying a fixed sum of money to another party on their demand, or at a previously determined date. A bill of exchange is generally transferable by endorsements. The difference between a bill of exchange and a promissory note is the fact that the former is transferable and can also bind one party to pay a third party which was not involved in the deal. There are three parties which are generally involved in a bill of exchange transaction, which are as follows:
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In simple terms, an expense report is a report that tracks the expenses which are incurred during the course of performing crucial job functions. Examples for the same include charges for gas, parking, meals or lodging. If your employees tend to spend a lot of money on cash basis, you need to make sure that you have them make a list of these expenses on the expense report form. Also, make them attach the receipts to the back of the form, so that you can double check the entries on the form against the actual receipt. Your book-keeper or yourself would then add in the expense codes, and write them as a check for the purpose of reimbursement of the expenses. Further, the expense report form is a form completed by the employees in order to itemise the expenditures for which they are requesting reimbursement. Offering memorandum is simply a legal document that states the objectives, terms and risks of an investment which are involved with a private placement. This document also includes items such as the financial statements of a company, management biographies, a thorough description of the business operations and much more. An offering memo also serves in order to provide the buyers with information on the offering as well as to protect the sellers from the liability dealing with the sales of unregistered securities. In the simplest words, a debit memo is nothing but an opposite of a credit memo. Also known as a debit invoice, a debit memo is issued by a seller to a buyer, and also shows an increase in the monetary value of the debit that the buyer owes their seller. It is generally a document given to an account holder, mentioning that their account balance has been reduced due to certain factors other than a cash withdrawal or a written cheque being cashed in. A debit memorandum can arise as a result of a bank charging extra services or if there are cheque bouncing fees due by an account holder. A debit memo is also typically sent out to customers of the concerned bank along with their monthly bank statements. Moreover, there is an adjustment procedure that follows a business’s valid complaint against their competing businesses. For instance, if there is a company A sending defective merchandise to a Company B, a debt memo will be issued for adjusting the accounting statements in terms of debits and credits. A credit memo is a contraction of the term "credit memorandum," which is a document issued by the seller of goods or services to the buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice. The credit memo usually includes details of exactly why the amount stated on the memo has been issued, which can be used later to aggregate information about credit memos to determine why the seller is issuing them. A credit memo may be issued because the buyer returned goods to the seller, or there is a pricing dispute, or a marketing allowance, or other reasons under which the buyer will not pay the seller the full amount of the invoice. The seller records the credit memo as a reduction of its accounts receivable balance, while the buyer records it as a reduction in its accounts payable balance. |
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