You’re required most likely by your local accounting policies to assess the collectability of your receivable balances. Normally it’s expected you make the assessment for individual balances based on conditions and indications present. Such assessment should be made for each balance based on what you know of the client, the economic situation in general, of […]
It is one thing to write down specific receivables, but what if you also have a considerable amount of smaller receivables (both the balance in total and the quantity of balances it comprises of)? You’re expected to assess each individual receivable balance when considering their collectability, but it’s not feasible that you go over each […]
Balances such some “leftovers” on prepayment accounts for an example or some accruals may at a certain point remain as such that you don’t know what’s behind them no longer. They’re remains of entries once made and usually relate to either rounding up or down or some currency differences for an example. Be the reasons […]
Say you’re making your accounting entries daily, once in a few days or more irregular and over a longer period of time. Regardless and even more so, the less often you make the entries; make sure you’ve got one thing always happening. Always have an order in performing the entries, accounting for them. What I […]
In your everyday accounting there are bound to be some expenses on which you need to pay taxes according to your local legislation. Be them taxes on special benefits or VAT on general purchases, it’s important nonetheless to have an overview of the amounts the tax should be calculated on. If the tax is on […]
Something to note in your everyday accounting is that your inventory should always be accounting it’s lower or either cost or net realisable value. I know that you may have already known that, but are you really accounting your inventory accordingly? If you’re adding some expenses to your cost of inventory you’re treating it most […]
