Debit and credit in accounting: recording sales on the card

sanjoykumar196

The increase in the availability of equipment for card sales also has an impact on the accountant’s work. After all, your client often has doubts about recording debit and credit transactions in the company's accounting records. Are you ready to help him and gain from it?


Advancement in card sales
Against numbers, it's very difficult to have good arguments, isn't it? Some of them have reinforced the growth in card sales and, consequently, the need to record debit and credit operations in accounting. Check out:

In 2016, the increase in these transactions reached 6.3%, compared to the previous year;
In the first quarter of 2017, growth was 5.9%;
It is estimated that 95% of customers who have a credit card use it every month.
Data are from the Brazilian Association of Credit Card and Services Companies (Abecs) and show progress at a higher pace than that of the Brazilian economy, including.

In part, such growth is due to the proliferation of machines to offer this Buy Email List means of payment. Models that work wirelessly, connected to cell phones and without monthly fees have made card sales accessible even to small businesses.

But what does all this have to do with your office? An attentive accountant, who never misses a good growth opportunity , already knows. After all, greater use of the tool implies an increased need for support. In other words, new and old customers need you to correctly record debit and credit transactions in the ledger.



For many of them, this is an unknown topic. In addition to the incidence of interest, there is the particularity that deadlines for receipts are different from sales. All of this raises a series of questions, and a good accountant must provide assistance and be present to answer them.

Debit and credit in accounting: cash or accrual?
As we've just seen, there are good reasons for you to pay attention to this topic. After all, many of your customers may sell with the card today and, in the future, many others will sell.

This is a subject that an accountant masters with ease, but not his client. Realize that you can approach opportunities by acting almost like a translator. You need to be didactic, because by helping the client, your office gains important points.

How to help the customer make records
Once the stage of defining the regime for recording accounting entries has been completed , it is time to go into the details of the operation. As you well know, this type of transaction usually has fees that vary widely. There are different discounts for debit and credit and dates and deadlines that change depending on the machine used.

If your client is already the type of entrepreneur who runs away from numbers and calculations, this is a very thorny subject. But remember the tip we just gave: be didactic.

Your strategy here should be to gain the customer's trust. By being by your side as a solution provider, you gain more than respect, as it encourages the building of a long-term relationship.

Characterize as installment sale
Cash sales operations are not restricted to cash, right? In fact, from the consumer's point of view, this rule is correct. But from the perspective of accounting, whenever a card is used as a means of payment, the debit and credit record in the accounting account counts as a credit sale.

The reason is simple and already addressed: the sale never generates immediate income at the cash register. In the best case scenario, the money from it will be available within 1 business day. At worst, almost 1 month later.