Or any other contract from which you provide services and at doing so also subcontract another party arises from routines being different. The thing I encounter often is at least one party being slow or lazy in delivering not the service, but the invoice for it. Continue reading
Author Archives: Karl
Presenting financial statements when merging with a business
You would think that merging businesses is something big corporations do is not for you; however in practice it is very much so that small businesses merge just as often.
Whilst merging a company with another one is subject to all kinds or regulations, legal actions and so on, in terms of accounting there are a few things to remember as well. Continue reading
Lease agreement with minimum payments close to or exceeding assets value
When considering whether a lease is a finance lease or an operating lease, there’s one condition that’s often enough ignored. People mostly focus on either the option to buy the asset with very low value or the actual transfer of ownership at the end of the term which is considered a definite ‘yes’ for considering the lease as a finance lease (that is the asset and the respective liability are recognized on the balance sheet as opposed to just showing the rental charges as period’s expense. Continue reading
Property, plant and equipment that’s not in use
First and foremost it’s important you go about and actually investigate into your property, plant and equipment items to identify all assets which don’t find any usage within your business, your production. Often enough I see that it’s not done and assets are carried on the balance sheet even if they’re fully depreciated and in reality not existing. There’s just clutter on your balance sheet that you should get rid of. Continue reading
Recognizing credit invoices from suppliers
There are times when your suppliers make mistakes with their invoices, i.e. the amounts are wrong, the prices are misstated or there are inaccurate discounts given and so on. In such situations your suppliers issue credit invoices (obviously this is subject to you informing them of the mistake most of the times). Continue reading
Overtime
Working overtime is something that’s not always well looked at and there are various reasons for it, both economical and physical. Continue reading
Work by the piece
Administrating your payroll in a way that you pay for each piece produced (that is you pay to your workers say 1 CU for each item that they’ve produced during the period they get paid for, i.e. a week if you apply a weekly wage) means first off that you have people doing manual labor, that is, you have employees who produce goods. There’s nothing wrong with that, but more of stating the fact here. Continue reading