I was asked just recently if there’s a point in presenting a financial ratio if it’s so much out of what’s normally expected, i.e. ROA is say o.002% representing this the return on assets close to zero, or an accounts receivable turnover ratio is say 1 since all the company’s sales are still as outstanding receivables and nothing has been collected. Continue reading
Author Archives: Karl
Year-end procedures
Considering there are things you do each day and / or regularly each month, there’s really nothing much more you need to do at year end and shortly after.
Procedures you’d carry out each month
Procedures that are required to be carried out more often than as indications arise or at least once in a year are those that you essentially perform at least once a month. We’re going to disregard those procedures you carry out each day since they’re more process based routines.
Weekly wages
When we discuss weekly wages, we mean two things: (1) salaries being paid once a week, and (2) salaries calculated by weeks. Continue reading
Hourly wages – what about them?
There are lines of work where employees are paid by the hours they put into their work effort. Of the top of my head, it can be guards for instance or people marketing goods within supermarket alleys etc. It depends on the best practices within your country, within your line of business. Continue reading
Things to consider in your business when employing people
When employing people – a huge step in the sense that there’s no longer you who needs to have the ends meet with your business, but someone or possibly even more than just one someone, who require that they get paid on a regular basis and within sufficient range, – it’s crucial to keep a cool head in the sense of how much and how often you’re paying them.
Other reserves you may have within your equity
What are those other reserves there sometimes are on the statement of changes in owner’s equity? Besides share capital, retained earnings and share premium it’s possible an entity also has an account labeled as Other reserves. What’s that about? Continue reading