What is the Formula for Cash Collection?

Understanding the components of the formula can better equip you with the knowledge needed to control your own cash flow. Now, you must multiply your collection rate for each bucket with the receivables balance from each bucket. To calculate cash collections from...

What Is a Cash Book? How Cash Books Work, With Examples

Let’s say, for example, you have a retail business that sells t-shirts called BigT. The following are business transactions and how cash receipt journal entry they would be posted into the cash receipts journal. Journals are the foundation and an important part...