You cannot say “surely”, because most likely some form of fraud is in fact taking place in your company just as it takes place in most places. You may only hope that it isn’t affecting your company too much, but making it sure is another matter. Continue reading
Category Archives: 3 Controls
Cash flow management when you have longer agreements
Yes, you who has signed a longer term service agreements, you need to consider how you manage your cash flows before you sign off the agreement.
It should be obvious without saying, but as it happens, it’s not done often enough and not with careful enough consideration. Just to give an example: Continue reading
Completion method versus cash flow management
You provide a service over a longer period of time and as it is, you’ve set out a payment schedule in your agreement. Now, in your accounting you use the completion method for determining receivables, sales and payables. We’ve talked about completion method and accounting that’s related to it separately, but what I want to focus on now is the payment schedule you agree on and the actual cash need you may have. Continue reading
Inspection of physical assets
The same as you count your inventory; you should also count your fixed assets. I know it may seem odd, they are all there you may say and you can see them, but imagine if you have assets all around your premises and some even in the custody of your employees. How would you then ensure they are all there? Continue reading
If you get services – make sure you’ve got an agreement in place
You get services from someone and you pay them for it. You have a mutual understanding you once agreed in word and it worked out wonderful. You get what you need and your provider gets paid for it. No harm done. Continue reading
Subaccounts – what you need to know about them?
You may find yourself using subaccounts in your accounting – for an example, all goods coming to stock are first accounted for using a specific account still under inventories and there’s the opposing entry that’s also under inventories decreasing inventories at the same time. You’d use this entry until you haven’t yet received the invoice, the invoice is being confirmed or you’re checking the quality etc. and don’t want to show the purchase as a part of your inventory yet. Continue reading
Repetitive entries
In accounting some entries are repetitive – either by their nature, i.e. sales invoices coming in multiple times per day for an example, or by their function, i.e. prepaid expenses charged into expenses in their proper period on regular basis.
There’s nothing wrong with having repetitive entries, but as always there are a few things we’d like to point out which you should keep in mind when dealing with them. Generally speaking, when something is repetitive, it’s potentially attracting errors or an oversight in its essence. Continue reading