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Creditor Schedule Preparation

Preparation of Creditor Schedules: Discover the Basics

What Is a Creditor?

A creditor can be represented by a state-owned or private company or an individual that provides credit to a company. Such credits are registered in the balance sheet under liabilities. There are two categories of creditors: secured and unsecured. A secured creditor is an individual or an entity that has a claim against the debtor’s assets – a mortgage, pledge, charge, lien on the property. An unsecured creditor is a person or company that doesn’t have a direct claim against the debtor. There are three types of unsecured creditors: preferred, deferred and ordinary.

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How Andika Prepare Creditor Schedules?

Creditor schedules are drafted for accounts payable and accounts receivable to help the company keep track of its payments to clients/ creditors and if its clients are paying their debts towards the company on time. Creditor schedules are used to evaluate a company’s operational and financial performance. They are split into current accounts (under 30 days), 1-30 days past due date, 30-60 days past due date and 60-90 days past due date. By studying the creditor schedules, our account managers can check what accounts are overdue and which clients need to be followed-up to settle their debts.

Creditor Schedule Preparation

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Creditor Schedule Preparation

It’s very important to have well-structured creditor schedules in place to facilitate cash flow projections based on overdue liabilities calculated by the due date and anticipated income. These reports can also be used to evaluate whether a company should be granted a credit facility or to assess the value of a company’s receivables. Specialists or accounting firms should be hired to prepare creditor schedules because of financial implications and the impact they have on a company’s good order of business. A company should invest and engage in maintaining professional creditor schedules to obtain a clear view of the business’s progress.

Need help reconciling your business bank accounts?

Use Andika's professional bookkeeping services today.
Call us 01823 444682


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Andika Accounting Services,
Equity House,
Blackbrook Business Park,
Taunton,
TA1 2PX

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