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 →

Salaries are what you pay to your employees as they have done their work. There are companies who pay in advance for the job performed in the next period, but as those are rare, we are not focusing on those occasions right now.  Continue reading →