Your everyday accounting may likely include balances that you’re essentially required to settle in some foreign currency (that is different currency than you’re using in your everyday accounting). Continue reading
Author Archives: Karl
Transactions in foreign currencies
Transactions take place in foreign currencies, there’s nothing wrong about it. There’s in fact nothing uncommon about it. It is just about knowing what to do and when to do it. Continue reading
Payroll accounting
Payroll accounting and understanding the basic accounting entries is a crucial part of accounting and not just accounting in itself, also for your business. Continue reading
Supplier confirmations based on volumes
There are times when you’d want to confirm your supplier balances, but you’re not sure from which to base the selection from. There’s the balance and there are transactions during a determined period – two measurable amounts to base the selection from but which to choose. Continue reading
Supplier confirmations based on balances
The simplest way to form a selection of suppliers to confirm balances with is to confirm them all. It’s timeconsuming most probably due to the amount of confirmations you would have to perform, however there’s no thought process involved as to which to confirm and which to leave unconfirmed. There’s no doubt either whether those left unconfirmed are in fact existing and so on. Continue reading
Accruals basis of accounting
Accounting in most countries and for most companies is based on subject matter of the transaction and not actual cash movement. Yes, there are certain forms of business which are allowed to still record transactions as the money is received or paid, however there are just a few of them. Continue reading
Cash and cash equivalents
What is defined as cash and cash equivalents?
Cash is cash and it’s easily understood – it’s the funds you have available to be used right away, whether they’re actual cash amounts you have physically available or bank accounts, which in this sense would classify as ‘equivalents’. Continue reading