Question

Customers and suppliers are the foundation of the data that will be processed in your accounting system. Identify and discuss at least three (3) things you can do to ensure that processing customer and supplier transactions are handled efficiently and effectively in QuickBooks.

Briefly describe the difference between a supplier and a vendor.

Answer 1

Various steps which can be taken to ensure that processing customer and supplier transactions are handled efficiently and effectively in QuickBooks.

1. Keeping the customer and supplier profiles updated in order to ensure timely receiving and delivery of stock, and a check on the balance due.

2. Setting daily/monthly goals and assigning individual responsibilities to achieve the same.

3. Reconciliation of account balances of a person in our books with the account balances in the books of that person.

Differences between a supplier and a vendor

1. Vendor: Person or a company that supply goods to the end consumers. Vendors receive their products from third parties known as suppliers. They come at last in the supply chain link. The transactions are B2C. The products are meant for final use by the customers

2. Supplier: Responsible for providing products to the vendor. It accounts for the first and foremost link of the supply chain process. The transactions are generally B2B. The products are meant for re-sale