Archive / 1.10 Accruals

RSS feed for this section

Month closing is before month end – what to do?

In situations where the month closing has to be done before the month itself has actually ended, it is very difficult to make sure you have accounted for all expenses and even revenue. This is more complicated as in fact you do have to estimate the revenue as well and not just expenses. Normally those […]

What’s the use of purchase orders (POs)?

In case you don’t know what exactly a purchase order or PO is, it’s a document and procedure done just before actually acquiring an asset or making an expense. With this a person responsible lets accountants and management know he or she is planning that kind of purchase and if built in, also asks for […]

Accruals – why do we need them?

As you no doubt may already know, accounting in most countries and companies is accruals based. The other method of choice is to recognize everything based on cash movement, but this usually applies to self-employed people and is very strictly regulated in most countries. Anyhow, as most of us need to use the accruals based […]