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The problem with construction contracts

Or any other contract from which you provide services and at doing so also subcontract another party arises from routines being different. The thing I encounter often is at least one party being slow or lazy in delivering not the service, but the invoice for it.  (more…)

Comparing sales orders against shipments

Why would you monitor your sales? Do know that they indeed happened to put it in short. Sales are not just about making accounting entries, but also ensuring that your customers are getting what they ordered. If you think about it, in a case where the sale hasn’t in fact taken place (that is the […]

Stage of completion method – using subcontractors

There’s nothing wrong with using subcontractors when providing service for a customer – whether it’s because you don’t have all the skills, materials or simply lack the time. As I’ve said before, be the reasons what they are, it’s all about proper accounting treatment. For almost all the transactions out there there’s an accounting treatment […]

Accruing for sales bonuses regularly

Sales bonuses are something not everyone is giving to their customers, but when you do, there are a few considerations to be kept in mind. For one, do you issue credit invoices or does the customer itself issue invoices to you? Why is it important? Besides the obvious, defining obligations, it’s also a question of […]

You know your revenues; you don’t know your expenses

How such a situation may arise is when you know what you’ve delivered and you recognize revenue based on that, however, not all invoices from your suppliers, subcontractors etc. have reached you. What to do in such a situation?  (more…)

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 […]