Contra means to offset. It’s common in small businesses to offset the outstanding balance between receivables and payables when the customer is also your supplier. If you use QuickBooks Online (QBO), you could use a journal method to reconcile the balances.

Software: MoneyWorks accounting software When your customer is also your supplier, in small business, you usually prefer to contra off the amount instead of exchanging cheque. In accounting point of view, contra is a simple process; you just need to debit your Accounts Payable with the Accounts Receivable for the amount owing and follow by […]