Once the measurable amounts are determined and have been agreed with the team, it’s one thing to know them and understand them, but another to ensure that they are met and correctly measured. Routines confirming the measurable amounts, time spent on certain activities is as essential as merely identifying and agreeing on something.   Continue reading →

A most regular type of salary being paid to employees is a monthly salary. Such interval, a month, is most commonly used, however there are countries where it’s expected that the salary for work done is paid each week. I would suggest you consult your local legislation and what’s customary in your country.   Continue reading →

Why would you want controls over your payroll expense? This would depend on the number of employees you have, the work they carry out and the complexity of your payroll application.   Continue reading →

Are people just working for you or do you know if they’re working for a goal? Working for a cause is always more meaningful obviously, but also more efficient when it comes to measuring people’s performance.  Continue reading →

When it comes to showing your payroll expenses and why not all expenses relating to personnel, i.e. taxes paid, benefit plans, fringe benefits and so on, the question arising is how to show those expenses on the statement of cash flows.  Continue reading →

We have discussed accounting for bonuses – whether to recognize them in the first place, making the estimate and so on. However, what we haven’t discussed is how to be smart about them.

Recognizing bonuses in general includes making estimates based on the performance indicators the bonus is calculated on, i.e. profit margins, units produced etc. If the bonus is paid monthly, the expense as such is also recognized each month the conditions are met. There’s no measuring and estimating in that sense.  Continue reading →

An advance payment to your employee is something you can make, however, I would keep them rather rare than a regular thing. You wouldn’t want to pay too much in advance for something you at the end of the day may not receive.  Continue reading →