2007-08-01 17:12:27 · 2 answers · asked by Brumby 1 in Business & Finance ➔ Other - Business & Finance
You need to identify debtors so you know who owes you money and for how long, in order to facilitate collection procedures and to note who is always a bad paymaster. This will affect his future credit terms or you might decide not to sell him your goods anymore.
You need to identify creditors so you know who you owe money to and whether to pay now or later to take advantage of cash discounts. You also don't want to delay payment to important creditors too long in case they decide to stop supplying you in future. This may affect your production process, you'll have to source for another supplier, and you run the risk of having a bad name in the industry.
2007-08-01 18:48:52 · answer #1 · answered by Sandy 7 · 1⤊ 0⤋
You wouldn't want to accidentally make it look like you owe someone more money than you actually do. Right?
2007-08-01 17:20:40 · answer #2 · answered by Metal693 2 · 0⤊ 0⤋