By now you no doubt have realized that accounting is not a one-off thing but a continuous process one must do on regular basis – normally more than once a day. Continue reading
Author Archives: Karl
What is accounting?
Accounting is keeping record of all your financial transactions – purchases and sales, expenses and investments made for the business. Accounting is the process of rules used to reach results for your business – your assets, liabilities and profit or loss for the period. Continue reading
I just want to earn profits, what’s with everything else?
Obviously. Everyone wants to earn profits when they set up their business. I could ask metaphorically “What’s profit?” but I wont. Instead I’ll tell you a story. Continue reading
What to watch out for when preparing an Annual Report?
An Annual Report is a considerable document both content and component wise. There are various sections, lots of information and the importance of it all is at all times on the background. Continue reading
Expenses on the income statement
No doubt your income statement includes many accounts which if all disclosed separately on the income statement in the Annual Report would make the statement longer than usually expected (i.e. 2 pages or even more). Those accounts should in fact be structured into groups – either by nature of them or the function. Continue reading
Comparatives in the statements
It happens so often in practice – you prepare the main statements with current and prior year figures, but when you get to the notes and the text part, it’s often neglected that those figures also need comparatives. Continue reading
Going concern basis
Financial statements you’re preparing, unless you’re planning to close down the business and are liquidating, should be prepared on a going concern basis. If the situation is that you’re not able to continue trading and are going into bankruptcy, the requirement is moot of course, however normally it’s expected that a company is able to continue doing business. Continue reading