The financial world is full of terms which are the combination of accounts, taxation, business methodology and statistics. Nowadays, financial experts come with a different method to help the company accountant for the payment. Payment payable or receivable can be seen in accounts of the firm.
Here with the help of part payment of the bill homework answers, we will understand one such terminology, responsible for a type of payment. There are several types of payment available nowadays in a firm or small institution. For example, prepayment, post payment, partial payment, payment with the card, payment with points, payment with cash and much more.
Here we will understand and elaborate the term part payment which is common is manufacturing firms and service providers.
When a bill is generated for goods, services or human resources and so on, it is then represented to a customer for payment with a due date mentioned in it. The bill has to be honoured within the timeframe. But, due to some financial problems, if the person is not able to pay the whole amount of bill he may be given an option to pay a number of some percentages of the bill. The amount of payment is in part. So, it is considered part payment of the bill.
This scenario is common nowadays as the majority of the companies believe in this type of payment method. Below some scenarios are given that will help you understand part payment of the bill homework answers in detail.
Information technology firm
Information Technology services are popular with the increasing trend of techno-savvy gadgets nowadays. Business people are going online for seeking customer from the global environment. With the increased trend of technology, people want to build their websites, buy software to ease their processes and purchase customised gadgets for their firm.
When someone approaches IT company for getting their business online, it is unlikely that person will pay the full amount in advance to the IT team. Due to the nature of the business, the payment is made in part as the deliverables come to the customer according to specifications and data. This is also one kind of part payment.
A detailed idea of this whole system can be obtained by checking manuals as part payment of the bill homework answers. These manuals give a proper insight into basic concepts of this subject.
Laser treatment therapy
Another example of part payment acceptance is Laser therapy centre. A centre which helps people to enhance beauty and body features by removing scars, extra hair and acne. In the emerging era, people are going crazy to get the perfect body. So, Laser centres are increased around the world.
When people decide to take the Laser therapy, it cannot be done at once. It requires some numbers of treatment over the year. It is possible to pay the whole amount at once at the majority of the time. But, for some people, it is hard to pay for next six months treatment. So, part payment is an option for people who want to pay as they go.
These two are examples which accept the payment in parts. But, it is not necessary for all the firms to have part payment as their option. So, it can only be done when someone is failing to pay the amount due to financial consequences in the firm. After examining all the factors carefully, part payment option is given to people.
Part payment collection requires an expert to collect all the receivable payment. Because, there are few limitations attached with part payment of the bill.
What are the issues that a firm can face?
It is likely that the whole payment will not be made over the time. Sometimes, the firm cannot follow up the drawee due to several issues says part payment of the bill homework answers.
- Drawee cannot be connected because lack of money
When people do not want to pay money, they disappear with the services or goods they have got and refused to connect back to the service provider for the payment.
- Collection cost becomes high due to time and human resource wastage
When a firm approves part payment, it has to increase the time limit for the drawee in order to receive the full payment. Suppose, if 20% of the payment in one month is approved, then it takes five months to get total payment.
The methods of collecting the whole amount become difficult, time-consuming and unprofitable in the worst case scenarios. In such case, payee does not try to collect the receivable payments.
- Impact on finances of company because of not getting receivable payments
When receivable payments get delayed, the accounts of a company get in loss because the outcome cannot be stopped and income is delayed.
How these manuals can be helpful?
According to part payment of the bill homework answers, it affects the daily operations of the company as it has to struggle with low finances. It becomes difficult when a company has to pay for another service. The financial reputation of the firm gets spoiled with this.
Part payment of the bill homework answers suggests that part payment option serves the best for some businesses due to the nature of their business. Transactions have to be made in parts for the betterment of customers and for earning their trust.
Although it is necessity for some firms, the decision of accepting part payment of the bill should be done with care. A business should always take consequences in account for sustaining finances of self. Otherwise, the best payment option for some firms can be the worst payment option.