oboloo Glossary

Credit Cash Accounting

oboloo Glossary

Credit Cash Accounting

Credit Cash Accounting is a business term used to describe the recording and accounting of funds that are due to the company, but have not yet been received. It involves anticipating the amount of money that should be expected in the future based on customer invoices and other cash receipts. When credit cash is recorded, it appears on the company’s balance sheet as an asset until it is received, or until it is written off as bad debt. Credit Cash Accounting helps businesses manage their finances more accurately and plan ahead for potential cash flow disruptions. By getting ahead of the curve and receiving regular updates, companies can make informed decisions about the best way to leverage their resources and increase profitability.