Author Archives: Karl

Settlements – why have them?

What does someone settle? Debts usually, right?

In everyday business you’d settle receivables with payables if you have them with the same party. There’s no real point in you paying the company B a certain sum and then the company B paying you effectively the same money back. It’s a wasted time, bank charges etc. Instead, agree on a settlement – settle both party’s balances and see where the net result ends up, who has to pay to who.  Continue reading →

How to identify fraud in the first place?

Identifying fraud isn’t easy, people get clever, people have more and more playing room etc. For someone who doesn’t even think about fraud happening it’s considerably difficult to imagine schemes some might undertake to first off make fraud and then cover it up. Nonetheless there are some things you can do to identify fraud (or at least possibilities fraud taking place or places where potential fraud may occur (that is flaws in your processes):  Continue reading →

How would you make sure there’s no fraud in your company?

To some extent you can do that of course, but not 100%. Fraud takes place regardless what you think happens or doesn’t happen, but what you can do it, is ensure you’ve got essential controls in place to mitigate the risk. If you think about it, there are some very easy controls you may implement to avoid fraud happening on low levels of the company’s structure.  Continue reading →

Are sales bonuses an expense or decrease in revenue?

I can understand why this question may arise. On some cases you’re actually paying and on some cases you decrease outstanding balances for an example.

Either way, sales bonuses you pay to your customers, they’re always, always decreasing your revenue. On the other hand bonuses you get from your suppliers decrease your expenses. It’s always about decreasing the item you got a bonus for or paid a bonus.  Continue reading →