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How should I treat spare parts for machinery in use?

Say you’re using machinery for which you occasionally need spare parts to keep the equipment up and running. It is one thing if you buy the spare parts as they’re needed (they’re expensed in such a situation as they’re bought), however what if you have stocked on some of the parts since they’re either harder […]

Writing down group of receivables

It is one thing to write down specific receivables, but what if you also have a considerable amount of smaller receivables (both the balance in total and the quantity of balances it comprises of)? You’re expected to assess each individual receivable balance when considering their collectability, but it’s not feasible that you go over each […]

What should I do when there’s a balance that’s very small but I don’t know what it relates to anymore?

Balances such some “leftovers” on prepayment accounts for an example or some accruals may at a certain point remain as such that you don’t know what’s behind them no longer. They’re remains of entries once made and usually relate to either rounding up or down or some currency differences for an example. Be the reasons […]