First and foremost it’s important to understand the definition of a period. A reporting or an accounting period is not just a year, it’s not just a quarter, but usually the shortest period measured is a month.   Continue reading →

It’s crucial to every accounting and accountant to be up-to-date with all the relevant regulations and obviously the changes thereto as well.  Continue reading →

Question often asked and more than often faced is whether to restate financial statements because of an error or transaction not recognized in its proper period or not to do it. Usually there’s this tendency to restate financial statements and I have to admit, it’s not so much a judgment call but also understanding what exactly is the essence of this restatement.  Continue reading →

Essentially when you’re doing your accounting, you have had to opt for an accounting framework. An accounting framework is a set of guidelines based upon which you’re recognizing your transactions within your “books” or set of financial statements.  Continue reading →

Taxes in most countries are a normal part of every business, your sales are taxed, you have to pay certain fees for certain activities (i.e. point of sale, waste producing etc.) or your profits are taxed. Remember, it could be you’re subject to all of those taxes and more. In most countries you’d also be liable for withholding and paying taxes on payroll expenses. In short some could say that each and every step can be taxed. Whether they are, is part of a countries own legislation and political judgments, but matter of fact is that when doing business, you’re subject to some kind of tax.  Continue reading →

Indeed, why would you? One could also ask, why make entries at all in each month and why not just do your accounting and bookkeeping once a year.

The answer to this question should depend on your need really. It’s about what information you’d like to have about your company’s performance regularly. Is it important to you to regularly monitor and have an overview of how your company is performing or is it okay to once a year calculate and add up all your income, your expenses and then see if you earned a profit or a loss. Even excluding some expenses or revenues from your regular accounting routines and just doing them once a year means you may end up with an unexpected result at period end. It is really up to you if you want it or not.  Continue reading →