When you’re in the business of selling goods, the number one thing you must always watch out for is if you’re shipping / giving to the client on spot the actual right goods. Continue reading
Author Archives: Karl
My balance sheet does not equal
You may think that you did everything right and if you’re using an accounting software, such a situation should not even arise. However, presuming here that you haven’t bought an accounting software and are still doing your accounts either on paper or in Excel or some other form of method, situations like “my balance sheet does not equal” are bound to happen. Continue reading
Decision to be made – to lease or to buy?
Effectively there are two ways of “owning” an asset – leasing it or buying it. Yes, leasing refers to renting it and actually buying the asset means you can get a hold of the factual ownership, however, most importantly, with both forms you can use the asset and that’s what we’re on about at the moment. Continue reading
What happens if you lost all your documents for transactions and balances for this period?
Stuff happens and as it happens, there’s no reason to think why and how bad it is, but rather just move on. Obviously you should (if needed and possible for the situation) come up with actions to take so this doesn’t happen again, but more importantly, you now need to sort out your statements for the period! Continue reading
A sale was credited, what happens with related expenses made into “cost of sales”?
It depends. Everything depends, I know, but in a situation like this, the answer depends on why the sale was credited: Continue reading
I provide services. What’s part of my “cost of sales”?
With selling goods, your “cost of sales” is the expense you made to initially buy the goods. First off they’re in inventory on the balance sheet and as you sell them, they’re taken off from the inventory and shown on the income statement as an expense made to make a sale. Now with services, there are usually no goods. Continue reading
Help! What shall I do with my excess money?
You sure it’s excess? By definition “excess” means there’s something more than needed and when you think about it, think hard when it comes to running a business, surely you can think of something that requires money. Continue reading