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Purchasing

Purchasing is an important process within an entity’s business. Effectively you’re purchasing everything you need – your supplies, your services, your employees’ time and so on. When we talk about purchasing, we’re talking about things you’re buying for your company for your business.  (more…)

Payable for expenses

There are two things one can buy from a supplier – an item of inventory or an item of expense (be it service or an item charged directly to expenses). Whilst items of inventory are a topic on their own, with this post we’ll focus on expenses.    (more…)

Writing down a receivable

Should the event arise that you consider a receivable uncollectable in full or in part, that is you consider that your customer considering the circumstances wont be able to pay what they owe, you either decide to write the receivable down in value to the amount they will be able to pay (that is you’re […]

Revenue and receivables

Revenue and receivables are your primary process when it comes to earning profits, earning resources to spend, to invest. Something to note is that revenue is just this one stream on your income statement, it’s the stream of your income for the defined period and it arises from the sale of goods or services (whatever […]

Is it an accounting estimate or an accounting principle that’s being changed?

The thing with changes is that whilst they’re allowed under certain circumstances, it’s always the question of whether something really counts for a change in principle or it’s just a change in an estimate. An accounting estimate also results in a change sort of, either an impairment, a new model for calculating an allowance etc. […]

Everyday accounting principles to your routines

Your everyday accounting routines are essentially driven from your locally accepted accounting policies. Your local accounting policies lay the framework on which you base your reporting, your policy choices and how things ought to be.  (more…)