Creditor Assessment Template
This Creditor Assessment template will help you to assess your creditors and to see which ones offer you the best terms and who is the most beneficial for you to develop your relationship with.
As a manager, you will usually be expected to understand basic accounting concepts and communicate effectively with financial people in your own organization. You may also be asked to contribute financial data about your own business unit. The basic principles of accounting are best understood by considering some simple businesses and how they might document their financial activities.
Accrual accounting is considered to be the standard accounting practice for most organizations, and is mandated for organizations of any real size. It provides a more accurate financial picture, but is more difficult to administer. Terms like 'revenue,' 'expenses,' 'gross profit,' 'depreciation,' 'bad debt,' and 'fixed assets' have precise definitions when used in business accounting. You will also need to understand exactly what is meant by accounting terms like these.
As a manager, you will want to explore all possible options for your creditors as a way of getting input costs as low as possible. Having options is always a good thing, and you will be able to show those above you the logic behind using the creditors that you have chosen. Fine tune all of the creditors that you use to find the best terms available to your business and another piece of the management puzzle will be locked into place.
