Accounting
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Do New Rev Rec Rules Help Sales?
"In Topic 606 revenue recognition is there any move away from restrictions around Side Letters and verbal contracts, or does it actually become easier to fall into such contracts and have to account for them?" This question was asked at a recent webinar, now available on-demand: "Revenue Recognit…
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Accounting for lease purchases
We are considering entering into a lease that has a bargain-purchase option. How should we handle accounting for this lease?
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How do I manually enter taxes in payables and receivable. Also how do I manually enter accounts in Sales invoices in Quick books
I am trying to enter a miscellaneous charge that I want to post directly to an account, but seems to only want me to enter product. Also I am trying to enter bills that some portions are taxed and other not, how to I manually enter the taxes. This should not be rock science as I use Simply and othe…
1
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Topic 606 Effective Date
"What's the current effective date of the new rev rec Topic 606 rules?" This question was asked at a recent webinar, now available on-demand: "Revenue Recognition in the New Subscription Economy" Please add your thoughts about it below. Thanks!
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How to Account for Collection Doubt
"When there are collectability issues in a revenue recognition sense in the subscription business, is the collectability risk evaluated customer by customer or evaluated on a company overall experience basis? And does that factor into my transaction allocation at all?" This question was asked at …
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Guidance on Recognizing Professional Services Revenue on a Monthly Basis?
The short version of my issue is that I would like to modify our revenue recognition policy for our professional services so that we can recognize on a monthly basis based on the number of hours delivered, versus at the end of the delivery period when we receive a signed Proof of Completion “POC” f…
3
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Revenue Recognition for Hardware Integrated with SaaS and Installation.
Vendor provides an integrated solution which requires a SaaS application, hardware, and installation service in order to provide functionality. The SaaS application does not provide functionality without the hardware and the Installation. The hardware is also sold alone by third party vendors. How…
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How do I review a tax provision provided for audit?
My company is undergoing our first year audit, and our tax professionals have provided us with our tax provision for those years. I did provide the PBC to them, but could someone give some pointers in what to look for in reviewing the tax provision before I give it to our auditors? Thanks!
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Revenue vs. NRE (contra R&D)
What are the criterias used to define if the money comming from customer is revenue or NRE for a semiconductor company?
5
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Classification of Warranty Expense
I wanted to see if folks are booking warranty expense to COGS or SG&A. It seems we might have some leeway in regards to this, however, it seems that Dell, Apple and H&P book it to COGS (Ie as they discuss it impacting margin). I lean toward COGS making the most sense, however, curious to se…
1
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What can be included in Landed Cost of Inventory
The situation: a company distributes a product. It either drop ships it from its suppliers to its customers, or it stores it in rented storage (esp. seasonally) until customer orders product. There is no value added process to the product- it is simply purchased and sold. A senior non financial com…
3
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Are credit/purchasing card payments treated as trade receivables?
So if I pay my suppliers with a purchasing card (Visa/MC/AMEX) how is that payment treated? Meaning if it is considered a “trade receivable” and millions of dollars are paid to suppliers, wouldn’t the account treatment have the net effect of helping to clean-up my balance sheet??? Is there a benefi…
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Who owns the data?
In another recent question, the conversation started to digress, hence this question. Who owns the data? And we'll narrow down the question for simplicity sake. So, who owns the accounting data? Is it the Accounting/Finance departments, with the CFO as the "owner"? Is it the IT department, with the…
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U.S. Withholding For Outsourced Foreign Workers
If we outsource some of our bookkeeping function to an individual in India, who is not a US citizen or resident, and all the work is done in India via remote to our computer here in the USA, do we have to withhold taxes? Individual will sign W-8BEN form
6
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Accounting for Fee Paid to Leasing Company
Our customers have the option to enter into a 3 year 0% interest lease with a 3rd party. The leasing company pays us full value of deal up front, however, they charge us a 11% cost (ie the assumed interest). Would this be a reduction of revenue, COGS, a selling expense, interest expense or other? H…
3
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So many accounting software providers, do I need a spreadsheet to figure this out?
"Where do we start looking for accounting financial software providers" This question was asked at a recent webinar, now available on-demand: "The CFO's Guide to the Cloud - Choosing the Right Cloud-Based Core Financials" Please add your thoughts about it below. Thanks!
1
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unlimited PTO
If my company replaces earned vacation with an unlimited PTO policy, will there be any income statement impact? We won't be accruing any vacation expense and we won't have to pay out unused accrued vacation in the future when employees leave. Does the elimination of the vacation expense (debit) and…
20
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DPO Calculation
Wonder what is your company’s best practices and methods for calculating DPO? Currently, our company uses below calculation for monthly DPO. The numerator is the outstanding unpaid invoices and denominator is sum of one year of the cost of goods sold plus operation expenses divided by 365. Is this …
5
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How to compute for Performance Bonus of employees
The Company is engaged in events management. So for every event the Company will set aside 5% from the Gross Profit for the employee incentive. So, how do I go about in drafting a policy and can someone show me an example in the computation of performance bonus for exceptional performance employee …
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The Audit Environment - Big 4
Soooo has the audit environment escalated recently in your opinion? I have a client who runs a report out of a MS Access system that they use to create a journal entry to which they attach the report. The auditors are requiring the the report generate in a secure file folder so that the original fi…
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How To Get Ahead In Accounting
"What is the path for a standard accounting career background to move to a more strategic finance position? What skills should one attain and how can they be obtained?" This question was asked at a recent webinar, now available on-demand: "How ‘Modern Modelers’ Will Take Over the World of Financ…
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Accounting for Partnership Distributions (including Tax)
Does accrual of partner's (LLC-member) min tax distributions (not guaranteed payments like salaries) make sense and is a better alternative in some specific cases to a common practice of recording distributions as it occurs? I.e. if partners received a distribution in January to pay off tax liabili…
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How do you book pledges that the donor has cancelled?
We had a capital campaign drive. Employee who pledged an amount has resigned and rescinded their pledge.
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ERP software that manages inventory by length
If you can recommend ERP software that specifically manages inventory using length units of measure (in addition to other units of measure), please let me know. This would be relevant to companies that distribute product (like rope, cable, piping, wire, etc.) that may be made/ stocked/ sold in stan…
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