Accounting
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Salaries in the Cost Of Goods Sold (COGS)
Hi There! Maybe you saw the post that my client is moving to a new payroll system. I was talking to the vendor about account set up and he made a comment about salaries in the COGS that made me curious. He said that some of his clients include salaries for sales people in the GOGS. I was wonderin…
5
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Employee Mileage Expense Reimbursement
My company utilizes sales reps that drive to prospective customers and charge in their mileage. I'm looking for a procedure in which we can properly reimburse the employees for their out of pocket expense while curbing abusive charges. We asked them to provide print out from a mapping program of th…
5
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How do you treat a bank reconciliation variance for foreign currency accounts against USD GL accounts?
In my previous experience if a company had a bank account in foreign currency they also had a matching checkbook AND GL in that currency due to having an operation in a country that has that functional currency. My current employer has a US company that accepts several different foreign currency pa…
5
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What does it mean to be World Class related to Inventory Turns?
In the past I have always strived for a percentage improvement over the prior year or prior rolling three years. It's difficult to determine how much improvement is good enough other than ones own past experience. Does anyone know of any publications or other resources that I can reference to det…
5
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Best practice for accruing invoices that haven't received.
How to deal with vendors that send out invoices late, past month end. We also can't accrue for the expenses because the statement they normally send out at the end of the month doesn't show all the purchases we purchased for the month. However, in the following month, we sometimes get an invoice ou…
12
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Anyone have suggestions for resources on establishing controls over the Master Vendor File?
I was looking for some accounts payable best practices ideas about setting stronger controls over our AP vendor files and found the table of contents to BNA's 2006 publication "Master Vendor File Maintenance, Audit & Control, Best Practices". It looked great but is no longer in print. Does a…
4
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LLC Tax Distributions
I work for an LLC that is looking to make partnerhip distributions to it's members to cover their tax liability from the LLC's income (this is okay per the Operating Agreement). How should this transaction be accounted for? Out of equity or as an expense?
14
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Increasing DPO (Days Payable Outstanding)
I want to increase our DPO and was curious if anyone has ideas on best practices. Our A/P systems are set to pay based on due date and we cut checks/ACH's three times a week. I don't want to just hold all A/P at the end of a month or quarter as I will probably pay for this in price or unearned d…
9
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Fixed Asset Depreciation Method in US GAAP
As per the company policy assets are depreciated using the straightline method and depreciated in service date. However, in the JDE system we used straightline but have two depreciation method calculation being used by the system which is "I" inception to date and "R" remaining life. Base on the po…
2
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Accruing Payroll Taxes
When accruing bonuses, sales commissions, vacations and other forms of employee compensation, is it customary to accrue at the same time the related employer payroll taxes? Often I see the compensation accrued, but not any associated payroll taxes.
12
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Accounting For Security Deposit Forfeiture
I have a quick question I'm hoping someone can assist me with. We had paid a security deposit to our landlord many years ago. This was booked on the balance sheet under other assets. We have asked to be released from our lease, the space was just too large, and as a result have forfeited the sec…
1
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I am trying to find an appropriate title for a talented accountant with 4 years experience in the mortgage industry
Any suggestions other than senior accountant or staff accountant?
8
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State Payroll Taxes for Employees who work in multiple states
Has anyone dealt with the problem of employees who travel and work in multiple states, even in the same pay period. Think - consultants, professional athletes (remember Alex Rodriguez), or even truck drivers. I believe the states claim personal income tax jurisdiction for any work done in the stat…
4
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Capitalizing software development?
We have been paying a company to add new custom features to our business process system. Do we have to capitalize it all? Can we expense some of it? Any suggestions would be helpful.
2
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For DSO calculation formula, should you use gross or net AR?
Its not uncommon in healthcare that you bill at a submitted charge but receive an allowed amount then contractually adjust the difference. Therefore the AR is gross but only can be netted down at payment. We use the gross AR to determine DSO should we be using Net (again because its open AR don't h…
9
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SaaS Revenue Recognition
I just joined a software-as-a-service company in the finance department (small company, very small finance department). I do not have previous SAAS experience as I was previously in a different industry. The company's former auditors (they reviewed, not audited, the financials) approved the rev…
10
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What are appropriate goals for an accounting clerk?
I am working on a performance appraisal for the AR clerk and I have to come up with goals for her position. She is in her late 50's and has little to no ambition to improve her position. She is responsible for our invoicing, which is very complex and requires a lot of TLC. She does a decent job wit…
7
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Does your Accounting close take longer than 5 days?
During the past week I have heard about three privately-held companies which are experiencing 60+ day closes. Two are in the process of being converted from cash/tax-basis to accrual-basis. Neither had any meaningful debt (so no covenant requirements) and no one was waiting around for the numbers t…
30
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ASC 350-40: What to do with significant post-"Go Live" expenses?
How do you account for significant post-implementation expenses designed to increase functionality? Had these expenses been incurred during the development phase, they certainly would have qualified for capitalization. Can we create a new asset and depreciate it alongside the original asset (i/e/, …
2
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Revenue recognition on pass-thru vendor services vs. subcontractor transactions
Is there any guidance available with criteria needed to recognize revenue on transactions that could qualify as either pass-thru vendor services or subcontrator arrangements?
4
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Using POC Accounting, What is the Best Way to Evaluate Working Capital Requirements?
Valuation of balance sheet accounts when preparing foa an asset purchase presents unusual dynamics under percentage of completion accounting for long term projects.
4
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Revenue Recognition Accounting
I am looking for help in how to recognize the revenue in the following transaction. Company A lands an order for $2.5 million dollars of proprietary design hardware from Company B. Company A locates a substantial third party C with manufacturing facilities and negotiates that they will build enough…
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