{"id":7347,"date":"2025-01-08T04:47:08","date_gmt":"2025-01-08T04:47:08","guid":{"rendered":"https:\/\/fareezbiz.com\/crm\/?page_id=7347"},"modified":"2025-05-06T06:53:51","modified_gmt":"2025-05-06T06:53:51","slug":"understanding-business-investments","status":"publish","type":"page","link":"https:\/\/fareezbiz.com\/crm\/financial-management-for-your-business\/understanding-business-investments\/","title":{"rendered":"Understanding Business Investments"},"content":{"rendered":"\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-social-links has-small-icon-size has-icon-color is-style-default is-content-justification-left is-layout-flex wp-container-core-social-links-is-layout-b192c3d7 wp-block-social-links-is-layout-flex\"><li style=\"color:var(--ast-global-color-5)\" class=\"wp-social-link wp-social-link-facebook has-ast-global-color-5-color wp-block-social-link\"><a href=\"https:\/\/www.facebook.com\/fareezlaw\" class=\"wp-block-social-link-anchor\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M12 2C6.5 2 2 6.5 2 12c0 5 3.7 9.1 8.4 9.9v-7H7.9V12h2.5V9.8c0-2.5 1.5-3.9 3.8-3.9 1.1 0 2.2.2 2.2.2v2.5h-1.3c-1.2 0-1.6.8-1.6 1.6V12h2.8l-.4 2.9h-2.3v7C18.3 21.1 22 17 22 12c0-5.5-4.5-10-10-10z\"><\/path><\/svg><span class=\"wp-block-social-link-label screen-reader-text\">Facebook<\/span><\/a><\/li>\n\n<li style=\"color:var(--ast-global-color-5)\" class=\"wp-social-link wp-social-link-linkedin has-ast-global-color-5-color wp-block-social-link\"><a href=\"https:\/\/my.linkedin.com\/company\/fareezlaw\" class=\"wp-block-social-link-anchor\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M19.7,3H4.3C3.582,3,3,3.582,3,4.3v15.4C3,20.418,3.582,21,4.3,21h15.4c0.718,0,1.3-0.582,1.3-1.3V4.3 C21,3.582,20.418,3,19.7,3z M8.339,18.338H5.667v-8.59h2.672V18.338z M7.004,8.574c-0.857,0-1.549-0.694-1.549-1.548 c0-0.855,0.691-1.548,1.549-1.548c0.854,0,1.547,0.694,1.547,1.548C8.551,7.881,7.858,8.574,7.004,8.574z M18.339,18.338h-2.669 v-4.177c0-0.996-0.017-2.278-1.387-2.278c-1.389,0-1.601,1.086-1.601,2.206v4.249h-2.667v-8.59h2.559v1.174h0.037 c0.356-0.675,1.227-1.387,2.526-1.387c2.703,0,3.203,1.779,3.203,4.092V18.338z\"><\/path><\/svg><span class=\"wp-block-social-link-label screen-reader-text\">LinkedIn<\/span><\/a><\/li>\n\n<li style=\"color:var(--ast-global-color-5)\" class=\"wp-social-link wp-social-link-instagram has-ast-global-color-5-color wp-block-social-link\"><a href=\"https:\/\/www.instagram.com\/fareezlaw_\" class=\"wp-block-social-link-anchor\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\"><path d=\"M12,4.622c2.403,0,2.688,0.009,3.637,0.052c0.877,0.04,1.354,0.187,1.671,0.31c0.42,0.163,0.72,0.358,1.035,0.673 c0.315,0.315,0.51,0.615,0.673,1.035c0.123,0.317,0.27,0.794,0.31,1.671c0.043,0.949,0.052,1.234,0.052,3.637 s-0.009,2.688-0.052,3.637c-0.04,0.877-0.187,1.354-0.31,1.671c-0.163,0.42-0.358,0.72-0.673,1.035 c-0.315,0.315-0.615,0.51-1.035,0.673c-0.317,0.123-0.794,0.27-1.671,0.31c-0.949,0.043-1.233,0.052-3.637,0.052 s-2.688-0.009-3.637-0.052c-0.877-0.04-1.354-0.187-1.671-0.31c-0.42-0.163-0.72-0.358-1.035-0.673 c-0.315-0.315-0.51-0.615-0.673-1.035c-0.123-0.317-0.27-0.794-0.31-1.671C4.631,14.688,4.622,14.403,4.622,12 s0.009-2.688,0.052-3.637c0.04-0.877,0.187-1.354,0.31-1.671c0.163-0.42,0.358-0.72,0.673-1.035 c0.315-0.315,0.615-0.51,1.035-0.673c0.317-0.123,0.794-0.27,1.671-0.31C9.312,4.631,9.597,4.622,12,4.622 M12,3 C9.556,3,9.249,3.01,8.289,3.054C7.331,3.098,6.677,3.25,6.105,3.472C5.513,3.702,5.011,4.01,4.511,4.511 c-0.5,0.5-0.808,1.002-1.038,1.594C3.25,6.677,3.098,7.331,3.054,8.289C3.01,9.249,3,9.556,3,12c0,2.444,0.01,2.751,0.054,3.711 c0.044,0.958,0.196,1.612,0.418,2.185c0.23,0.592,0.538,1.094,1.038,1.594c0.5,0.5,1.002,0.808,1.594,1.038 c0.572,0.222,1.227,0.375,2.185,0.418C9.249,20.99,9.556,21,12,21s2.751-0.01,3.711-0.054c0.958-0.044,1.612-0.196,2.185-0.418 c0.592-0.23,1.094-0.538,1.594-1.038c0.5-0.5,0.808-1.002,1.038-1.594c0.222-0.572,0.375-1.227,0.418-2.185 C20.99,14.751,21,14.444,21,12s-0.01-2.751-0.054-3.711c-0.044-0.958-0.196-1.612-0.418-2.185c-0.23-0.592-0.538-1.094-1.038-1.594 c-0.5-0.5-1.002-0.808-1.594-1.038c-0.572-0.222-1.227-0.375-2.185-0.418C14.751,3.01,14.444,3,12,3L12,3z M12,7.378 c-2.552,0-4.622,2.069-4.622,4.622S9.448,16.622,12,16.622s4.622-2.069,4.622-4.622S14.552,7.378,12,7.378z M12,15 c-1.657,0-3-1.343-3-3s1.343-3,3-3s3,1.343,3,3S13.657,15,12,15z M16.804,6.116c-0.596,0-1.08,0.484-1.08,1.08 s0.484,1.08,1.08,1.08c0.596,0,1.08-0.484,1.08-1.08S17.401,6.116,16.804,6.116z\"><\/path><\/svg><span class=\"wp-block-social-link-label screen-reader-text\">Instagram<\/span><\/a><\/li><\/ul>\n\n\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"understanding-business-investments\">Understanding Business Investments<\/h3>\n\n<h5 class=\"wp-block-heading has-text-align-center\" id=\"potential-sources-of-funding-for-your-business\">Potential Sources of Funding for Your Business<\/h5>\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-99cffb00\" class=\"wp-block-themeisle-blocks-advanced-columns has-1-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-equal-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-da5c7ad5\" class=\"wp-block-themeisle-blocks-advanced-column\">\n<div id=\"wp-block-themeisle-blocks-advanced-columns-685552cd\" class=\"wp-block-themeisle-blocks-advanced-columns has-1-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-collapsedRows-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-ad9927f7\" class=\"wp-block-themeisle-blocks-advanced-column\"><h5 class=\"wp-block-heading has-text-align-left\" id=\"potential-sources-of-funding-for-your-business\"><strong>Potential Sources of Funding for Your Business<\/strong><\/h5>\n\n\n<p class=\"ticss-07e7b7fb wp-block-paragraph\" style=\"font-size:15px\">With the calculated total business investment cost, entrepreneurs must identify and evaluate the most viable ways to secure funding for their startup. Choosing the right funding source is crucial for establishing a strong financial foundation. Below are some potential sources of funds that entrepreneurs can explore to meet their startup\u2019s needs.<\/p>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-851cc75c\" class=\"wp-block-themeisle-blocks-advanced-columns has-2-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-collapsedRows-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-14c6d9e8\" class=\"wp-block-themeisle-blocks-advanced-column\"><h6 class=\"wp-block-heading has-ast-global-color-1-background-color has-background\" style=\"border-radius:5px\" id=\"internal\">Internal<\/h6>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Sole Proprietorship<\/strong> &#8211; owner&#8217;s money<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Partnership<\/strong> &#8211; partners capital contribution<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Company<\/strong> &#8211; paid-up share capital by shareholders<\/p>\n<\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-column-a308967e\" class=\"wp-block-themeisle-blocks-advanced-column\"><h6 class=\"wp-block-heading has-ast-global-color-1-background-color has-background\" style=\"border-radius:5px\" id=\"external\">EXTERNAL<\/h6>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Bank Business Loan<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Entrepreneurs Loan Scheme<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Suppliers&#8217; Credit<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Family and Friends<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Angel Investors<\/strong><\/p>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"ticss-07e7b7fb wp-block-paragraph\" style=\"font-size:15px\">Funding a business through personal savings offers the advantage of retaining full control without the need to involve external parties. However, relying solely on personal savings may not provide enough capital to sustain the business over the long term, making it essential to explore additional funding options.<\/p>\n\n\n\n<p class=\"ticss-07e7b7fb wp-block-paragraph\" style=\"font-size:15px\">Loans can be a practical solution for businesses requiring significant startup costs. Entrepreneurs must establish a solid repayment plan when borrowing from external sources. Alternatively, securing funds from investors can provide the necessary capital but may require the business owner to relinquish partial ownership or control, potentially affecting decision-making authority.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n\n<h5 class=\"wp-block-heading\" id=\"the-5cs-criteria-for-lending\">The 5Cs Criteria for Lending<\/h5>\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:15px\"><strong>Credit History<br><\/strong>Evaluates the borrower\u2019s reputation and track record in repaying past debts, providing insight into their financial reliability.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:15px\"><strong>Capacity<br><\/strong>Assesses the borrower\u2019s ability to repay the loan by analyzing income, expenses, and existing financial obligations.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:15px\"><strong>Capital<br><\/strong>Reflects the borrower\u2019s level of commitment through their own financial contribution towards the investment, demonstrating seriousness and financial stability.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:15px\"><strong>Collateral<br><\/strong>Provides the lender with security by identifying assets the borrower can pledge to ensure loan repayment.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"ticss-eeb08220\" style=\"font-size:15px\"><strong>Conditions<br><\/strong>Considers external factors like interest rates, loan terms, and economic conditions that may influence the lender&#8217;s decision to approve the loan.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\">Now, using the same Business Investment Cost table formatting, add another column for&nbsp;<strong>\u201cSources of Fund\u201d<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img decoding=\"async\" width=\"894\" height=\"1024\" src=\"https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/Gojo-01-894x1024.jpg\" alt=\"\" class=\"wp-image-7349\" style=\"width:508px;height:auto\" srcset=\"https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/Gojo-01-894x1024.jpg 894w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/Gojo-01-262x300.jpg 262w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/Gojo-01-768x880.jpg 768w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/Gojo-01-1341x1536.jpg 1341w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/Gojo-01-1788x2048.jpg 1788w\" sizes=\"(max-width: 894px) 100vw, 894px\" \/><\/figure>\n\n\n\n<p class=\"ticss-032d742a wp-block-paragraph\" style=\"font-size:15px\">Based on the table, the total business investment cost is RM60,712. Out of this amount, RM13,520 will be contributed by the owner as personal funding, demonstrating their commitment to the business. The remaining balance of RM47,192 will be sourced through third-party lending, ensuring sufficient capital to cover all necessary expenses and facilitate the startup&#8217;s operations.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-7abffdf8\" class=\"wp-block-themeisle-blocks-advanced-columns has-3-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-collapsedRows-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-69d16e35\" class=\"wp-block-themeisle-blocks-advanced-column\"><h5 class=\"wp-block-heading\" id=\"understanding-gross-profit-margin\">Understanding Gross Profit Margin<\/h5>\n\n\n<p class=\"ticss-e802caa1 wp-block-paragraph\" style=\"font-size:15px\">Gross Profit Margin is the difference between revenue and the cost of goods sold, which includes raw materials, packaging, and production costs. It is calculated by dividing Gross Profit by Revenue and expressing the result as a percentage. The purpose of the gross profit margin is to determine the value of incremental sales, and to guide decisions regarding pricing and promotions.<\/p>\n<\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-column-ed618d65\" class=\"wp-block-themeisle-blocks-advanced-column\"><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-column-e5a7acd2\" class=\"wp-block-themeisle-blocks-advanced-column\"><h2 class=\"wp-block-heading ticss-e802caa1\" style=\"font-size:17px\" id=\"breakeven-revenue-calculation-for-malaysian-businesses\"><strong>Break-Even Revenue Calculation for Malaysian Businesses<\/strong><\/h2>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Gross Profit Margin<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\">= Gross Profit \/ Revenue<br>= RM76,500 \/ RM165,000<br>= 0.46364<br>= 46%<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><strong>Break Even for Revenue<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\">= (Total Operating Expenses &#8211; Depreciation) \/<br>    Gross Profit Margin<br>= (RM85,839 &#8211; RM3,645) \/ 46 %<br>= RM82,194 \/ 46 %<br>= RM178,682<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\"><\/p>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<h6 class=\"wp-block-heading\" id=\"what-is-revenue-breakeven-point\">What Is Revenue Break-Even Point?<\/h6>\n\n\n<p class=\"ticss-e37ea0a7 wp-block-paragraph\" style=\"font-size:15px\">The break-even point is crucial for business owners to understand because it helps them set realistic sales targets and pricing strategies. It shows the minimum sales needed to avoid a loss, and anything beyond this point contributes directly to profit.<\/p>\n\n\n\n<p class=\"ticss-6774652c wp-block-paragraph\" style=\"font-size:15px\">To calculate the break-even point, fixed costs (costs that do not change with production levels) are divided by the contribution margin per unit (selling price per unit minus variable costs per unit). This calculation provides insight into how much needs to be sold to cover all costs and start generating a profit.<\/p>\n\n\n\n<p class=\"ticss-e37ea0a7 wp-block-paragraph\" style=\"font-size:15px\">Understanding the break-even point helps businesses manage risks, optimize pricing, and plan for growth.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\">Make an appointment with&nbsp;<mark>Company Secretary<\/mark> or Our Lawyer for advice and consultation<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/fareezlaw.typeform.com\/to\/VCpHja#source=businessinvesment\">contact us now<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-d63241d3\" class=\"wp-block-themeisle-blocks-advanced-columns has-1-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-collapsedRows-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-3d3d0578\" class=\"wp-block-themeisle-blocks-advanced-column\"><h6 class=\"wp-block-heading\" style=\"border-radius:5px\" id=\"what-is\"><strong>WHAT IS?<\/strong><\/h6>\n\n<h6 class=\"wp-block-heading\" id=\"what-is-cost-of-product-sold\"><strong>What is Cost of Product Sold?<\/strong><\/h6>\n\n\n<p class=\"ticss-908f6204 wp-block-paragraph\" style=\"font-size:15px\">It is the Purchase Price of your products sold within an accounting period.<br>Example: First Stock (+) Purchase (=) Product Cost to be Sold<br>(-) Final Stock (=) Cost of Product Sold<\/p>\n\n\n<h6 class=\"wp-block-heading\" id=\"what-is-gross-profit\"><strong>What is Gross Profit?<\/strong><\/h6>\n\n\n<p class=\"ticss-908f6204 wp-block-paragraph\" style=\"font-size:15px\">It is the difference between Income and Cost of Product Sold<br>Example : Income &#8211; Cost of Product Sold = Gross Profit<\/p>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<h6 class=\"wp-block-heading\" id=\"overview-of-the-statement-of-financial-position-balance-sheet\">Overview of the Statement of Financial Position (Balance Sheet)<\/h6>\n\n\n<p class=\"ticss-e3650b36 wp-block-paragraph\" style=\"font-size:15px\">A statement of financial position, also referred to as a balance sheet, is a critical financial document that reflects the overall financial health of a business at a specific moment in time. It details the company\u2019s total assets\u2014resources owned that have value\u2014its liabilities, which are obligations to lenders, suppliers, or other creditors, and the owner\u2019s equity, which represents the residual interest in the company after liabilities are deducted.<\/p>\n\n\n\n<p class=\"ticss-cecef9cf wp-block-paragraph\" style=\"font-size:15px\">The statement follows the accounting principle that <strong>Total Assets = Total Liabilities + Owner\u2019s Equity<\/strong>, ensuring that the two sides of the balance sheet are always in equilibrium. This balance demonstrates that every resource acquired by the business is funded either through borrowing (liabilities) or through the owner&#8217;s investments and retained earnings (equity).<\/p>\n\n\n\n<p class=\"ticss-d8317fe1 wp-block-paragraph\" style=\"font-size:15px\">By providing a clear and concise view of a company\u2019s financial structure, the balance sheet enables stakeholders, including investors, creditors, and management, to assess the business\u2019s ability to meet its financial obligations, its funding sources, and its overall financial stability.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img decoding=\"async\" width=\"905\" height=\"1024\" src=\"https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/04-01-905x1024.jpg\" alt=\"\" class=\"wp-image-7353\" style=\"width:587px;height:auto\" srcset=\"https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/04-01-905x1024.jpg 905w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/04-01-265x300.jpg 265w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/04-01-768x869.jpg 768w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/04-01-1357x1536.jpg 1357w, https:\/\/fareezbiz.com\/crm\/wp-content\/uploads\/2025\/01\/04-01-1810x2048.jpg 1810w\" sizes=\"(max-width: 905px) 100vw, 905px\" \/><\/figure>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-95ec236d\" class=\"wp-block-themeisle-blocks-advanced-columns has-1-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-collapsedRows-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-5bb49df4\" class=\"wp-block-themeisle-blocks-advanced-column\"><h6 class=\"wp-block-heading\" id=\"understanding-account-aging\"><strong>Understanding Account Aging<\/strong><\/h6>\n\n\n<p class=\"ticss-da545be2 wp-block-paragraph\" style=\"font-size:15px\">An accounts receivable aging report provides a detailed list of unpaid customer invoices that are past due. It is commonly used by collections teams as a primary tool for managing overdue payments.<\/p>\n\n\n\n<p class=\"ticss-da545be2 wp-block-paragraph\" style=\"font-size:15px\">Similarly, an accounts payable aging report outlines outstanding invoices owed to suppliers that have exceeded their due dates. These reports are typically categorized by specific time periods, as illustrated in the following example:<\/p>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<h6 class=\"wp-block-heading editorskit-no-mobile\" id=\"receivable-aging-report\">Receivable Aging Report<\/h6>\n\n\n<figure class=\"wp-block-table is-style-stripes editorskit-no-mobile\" style=\"font-size:15px\"><table class=\"has-fixed-layout\"><thead><tr><th>Customer Name<\/th><th class=\"has-text-align-center\" data-align=\"center\">Total Receivable<\/th><th class=\"has-text-align-center\" data-align=\"center\">30 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">60 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days<\/th><\/tr><\/thead><tbody><tr><td>Micronest Enterprise<\/td><td class=\"has-text-align-center\" data-align=\"center\">8,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">3,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Boon Siew Sdn Bhd<\/td><td class=\"has-text-align-center\" data-align=\"center\">15,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">3,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Milliter Sdn Bhd<\/td><td class=\"has-text-align-center\" data-align=\"center\">23,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">10,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">8,000<\/td><\/tr><tr><td>Se Corp<\/td><td class=\"has-text-align-center\" data-align=\"center\">3,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">10,000<\/td><\/tr><tr><td>TOTAL<\/td><td class=\"has-text-align-center\" data-align=\"center\">59,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">15,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<h6 class=\"wp-block-heading editorskit-no-mobile\" id=\"payable-aging-report\">Payable Aging Report<\/h6>\n\n\n<figure class=\"wp-block-table is-style-stripes editorskit-no-mobile\" style=\"font-size:15px\"><table class=\"has-fixed-layout\"><thead><tr><th>Suplier Name<\/th><th class=\"has-text-align-center\" data-align=\"center\">Total Payable<br>(RM)<\/th><th class=\"has-text-align-center\" data-align=\"center\">30 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">60 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days +<\/th><\/tr><\/thead><tbody><tr><td>Digital Care Tech<\/td><td class=\"has-text-align-center\" data-align=\"center\">2,450<\/td><td class=\"has-text-align-center\" data-align=\"center\">2,450<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>MD Amin Sdn Bhd<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Abu Garci Reno<\/td><td class=\"has-text-align-center\" data-align=\"center\">6,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">6,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Beycut Machine<\/td><td class=\"has-text-align-center\" data-align=\"center\">10,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>TOTAL<\/td><td class=\"has-text-align-center\" data-align=\"center\">23,450<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,450<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<h6 class=\"wp-block-heading editorskit-no-desktop editorskit-no-tablet\" id=\"receivable-aging-report\">Receivable Aging Report<\/h6>\n\n\n<figure class=\"wp-block-table is-style-stripes editorskit-no-desktop editorskit-no-tablet\" style=\"font-size:10px\"><table class=\"has-fixed-layout\"><thead><tr><th>Customer Name<\/th><th class=\"has-text-align-center\" data-align=\"center\">Total Receivable<\/th><th class=\"has-text-align-center\" data-align=\"center\">30 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">60 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days<\/th><\/tr><\/thead><tbody><tr><td>Micronest Enterprise<\/td><td class=\"has-text-align-center\" data-align=\"center\">8,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">3,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Boon Siew Sdn Bhd<\/td><td class=\"has-text-align-center\" data-align=\"center\">15,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">3,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Milliter Sdn Bhd<\/td><td class=\"has-text-align-center\" data-align=\"center\">23,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">10,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">8,000<\/td><\/tr><tr><td>Se Corp<\/td><td class=\"has-text-align-center\" data-align=\"center\">3,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">10,000<\/td><\/tr><tr><td>TOTAL<\/td><td class=\"has-text-align-center\" data-align=\"center\">59,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">15,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<h6 class=\"wp-block-heading editorskit-no-desktop editorskit-no-tablet\" id=\"payable-aging-report\">Payable Aging Report<\/h6>\n\n\n<figure class=\"wp-block-table is-style-stripes editorskit-no-desktop editorskit-no-tablet\" style=\"font-size:10px\"><table class=\"has-fixed-layout\"><thead><tr><th>Suplier Name<\/th><th class=\"has-text-align-center\" data-align=\"center\">Total Payable<br>(RM)<\/th><th class=\"has-text-align-center\" data-align=\"center\">30 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">60 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days<\/th><th class=\"has-text-align-center\" data-align=\"center\">90 Days +<\/th><\/tr><\/thead><tbody><tr><td>Digital Care Tech<\/td><td class=\"has-text-align-center\" data-align=\"center\">2,450<\/td><td class=\"has-text-align-center\" data-align=\"center\">2,450<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>MD Amin Sdn Bhd<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Abu Garci Reno<\/td><td class=\"has-text-align-center\" data-align=\"center\">6,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">6,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>Beycut Machine<\/td><td class=\"has-text-align-center\" data-align=\"center\">10,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><tr><td>TOTAL<\/td><td class=\"has-text-align-center\" data-align=\"center\">23,450<\/td><td class=\"has-text-align-center\" data-align=\"center\">18,450<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">5,000<\/td><td class=\"has-text-align-center\" data-align=\"center\"><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-columns-6ad7a73d\" class=\"wp-block-themeisle-blocks-advanced-columns has-2-columns has-desktop-equal-layout has-tablet-equal-layout has-mobile-equal-layout has-vertical-unset\"><div class=\"wp-block-themeisle-blocks-advanced-columns-overlay\"><\/div><div class=\"innerblocks-wrap\">\n<div id=\"wp-block-themeisle-blocks-advanced-column-ca79a6ec\" class=\"wp-block-themeisle-blocks-advanced-column\">\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/fareezbiz.com\/crm\/financial-management-for-your-business\/mastering-bookkeeping\/\">Mastering Bookkeeping<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div id=\"wp-block-themeisle-blocks-advanced-column-b036c3df\" class=\"wp-block-themeisle-blocks-advanced-column\">\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/fareezbiz.com\/crm\/financial-management-for-your-business\/malaysia-tax\/\">Malaysia Tax<\/a><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:15px\">Make an appointment with&nbsp;<mark>Company Secretary<\/mark> or Our Lawyer for advice and consultation<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/fareezlaw.typeform.com\/to\/VCpHja#source=businessinvestment\">contact us now<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Understanding Business Investments Potential Sources of Funding for Your Business The 5Cs Criteria for Lending Now, using the same Business [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":7274,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_seopress_robots_primary_cat":"","_editorskit_title_hidden":true,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"class_list":["post-7347","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/pages\/7347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/comments?post=7347"}],"version-history":[{"count":11,"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/pages\/7347\/revisions"}],"predecessor-version":[{"id":7785,"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/pages\/7347\/revisions\/7785"}],"up":[{"embeddable":true,"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/pages\/7274"}],"wp:attachment":[{"href":"https:\/\/fareezbiz.com\/crm\/wp-json\/wp\/v2\/media?parent=7347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}