Accounting Equation

What Is Accounting Equation?

The accounting equation is a fundamental concept in accounting that represents the relationship between a company’s assets, liabilities, and owner’s equity. It is expressed as follows:

Assets = Liabilities + Owner’s Equity

This equation shows that a company’s assets must equal the sum of its liabilities and owner’s equity. In other words, everything the company owns must be financed by either debt or equity.

Get HighRadius’ Autonomous Accounting Software if you are looking to automate your end-to-end accounting processes.

HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.

Improve your efficiency with our order-to-cash templates such as - A/R Aging Report, DSO calculation excel template, A/R Dashboard excel template, credit scoring model for new customers, 21 Credit-collections email template, and Our Ebooks.

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