Spreading the bonus expense over a period

We have discussed accounting for bonuses – whether to recognize them in the first place, making the estimate and so on. However, what we haven’t discussed is how to be smart about them. Recognizing bonuses in general includes making estimates based on the performance indicators the bonus is calculated on, i.e. profit margins, units produced […]

Planning for the stock count

When planning for a stock count, it’s important to agree on the timing with the needs of the business and accounting. It’s also crucial to agree on items which are to be counted, teams counting and other relevant procedures, i.e. how exactly this counting should be performed.  (more…)

Stock count

Why would you perform a stock count procedure? There are two reasons you might and should do it. Remember that stock count is not just for the ‘checkmark’, but for actually providing the company’s accounting and management with relevant information – accurate positions in stock and understanding whether there’s anything missing (that is there haven’t […]