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They are also responsible for keeping these records up-to-date and ensuring that invoices get paid by the payment date. A manufacturing company needs raw material, power, and fuel to complete the process of manufacturing and production. So, these items consumed in large quantities cannot be purchased in cash and hence are bought on credit with

Before getting a business loan or meeting with potential investors, a company has to provide an up-to-date balance sheet. A potential investor or loan provider wants to see that the company is able to keep payments on time. Liabilities and equity make up the right side of the balance sheet and cover the financial side