Accounting / July 19, 2018 / Collins Barber
In the world of investments, the letters PE stand for PriceEarnings. The priceearnings ratio is a measure of the current share price of a company as compared to per-share earnings (market value per share divided by earnings per share). The higher the ratio, the greater the amount that an investor is willing to pay for $1 of current earnings. So a stock with a high PE is generally expected to increase in value. A stock with a low PE may already be doing well, or it may simply be undervalued.
Managing AP and AR can be a bit of a juggling act. Staying on top of these accounts means the difference between properly tracking your purchases and potentially overpaying or not being paid for goods and services (oh no!), which makes their proper management more important than ever. Here’s how many successful firms achieve that goal.
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