Accounting
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Proper use & journal entry for accounting for retained earnings?
My Townhome Association is trying to show additional revenue for the budget by taking Retained Earnings. We don't have stockholders. This is not income, as it was income in the past. So, can they do this? You can use Retained Earnings to hire new employees, buy inventory, etc. Can you use it to red…
11
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Transition to Banking Industry but Remain in Internal Audit
I find it quite challenging to move from internal auditing in one industry to internal auditing in another industry. The feedback is usually a requirement in experience/skills for that particular industry. So my question is - how would one gain industry experience if they are not allowed to work…
3
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Credit/P-Card Payments for A/R transactions
We're seeing an increase in Credit/P-Card payments for B2B transactions. Some are P-cards intended for rather immediate payment following the typical PO -> Order Confo -> Order Fulfillment/Shipping -> Invoice. These are used at very large Fortune 500 companies. Other payment transactions a…
3
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Cell phone early termination penalty as contingent liability
GAAP Geek question: Have company with contract for 1000+ phones used as rental devices (i.e. generating revenue.) Contract has no cost on phone (normally a $700+ smartphone) but $350 early termination. I'm thinking I need to capitalize the 2 year agreement (PV of monthly payments) and allocate port…
2
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When would production and mailing costs of bank statements be expensed
For a financial institution, when would the cost of producing and mailing the statements be expensed? Would it be in the month the statement is for (e.g., Dec's statement cost would be accrued in Dec), OR would it be in the month the work is performed (e.g., the statement vendor produces and mails …
3
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Working with suppliers when cash flow is tight.
I have lived through this predicament before, but any time I encounter this I am always frustrated. The byproduct of fast growth has resulted in a cash flow issue - not uncommon in many companies. My predicament is the way we choose to pay suppliers, or I should say my boss chooses. Instead of choo…
14
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Accounting for Goodwill Impairment ASC 350-20 and the Sept. 2011 ASU
How many of you have recently had to assess for impairment, and how many after the first year of acquisition, faced a possible impairment write-off? Were you able to avoid a first year write off arguing the first year being a transition year, is not representative and would be premature for an imp…
1
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Is an intercompany lease required?
If you have 1 subsidiary lending revenue generating equipment to a different subsidiary, doesn't GAAP require you to have an intercompany lease for some consideration as if this was an arms length transaction with an unaffiliated company? If so, can you point me to the rule that states this?
4
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Accounting & Finance Staff Cost
I am working in a company with the businesses majoring in trading and maufacturing of building material. I am wondering how much (%) the Accounting staff (including financial transactions & management reporting) cost it should be to the sales dollar amount. Could someone give me some insights…
12
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If we acquire inventory to support an outsourced supply chain contract using a capital lease, do we need to recognize depreciation on the inventory like we would if the asset was a machine
We own the inventory and have it on our books. Each time a part sells we relive the inventory through COGS and replenish that part from the sale proceeds, effectively tuning the inventory six times a year while keeping the balance stable. (Approx $5MM) .
7
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Expense or Capitalize SaaS customization expenses?
I have SAAS client who has asked if the expenses they incur for client customization projects should be expensed or capitalized and amortized over the contract revenue life?
1
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Accounts Payable: Looking for a Robust Document Imaging Software
I am looking for a robust document imaging software system that can handle storage, retrieval and search capabilities for at a minimum accounts payable, contracts and legal documents. The software would set on a server and would be accessable from multiple locations both within the US as well as o…
7
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Accounting For Free Equipment
I have a multiple element question where our customers buy our service and we provide equipment at no additional cost. The agreement states that we have a right to the equipment if the contract is cancelled within 3 years of the signed date; after 3 years, the equipment becomes the property of the …
8
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Need advice on how to start a cpa firm successfully
I'm not a CPA, but do plan to obtain certification. I'm actually asking about this because I have a part time job with a CPA who wants to leave the firm he's with and go out on his own (taking me with him). So we're looking for advice on how to start a successful cpa firm. What should we consider …
5
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Accounting Structure for Separate Legal Entities
At my new company, each location is a separate LLC for legal liability reasons. Currently, each location is a separate company in our accounting system for which we file a consolidated tax return. This accounting structure necessitates excessive labor. Could we restructure and set-up each location …
3
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Quickbooks Summary Aging Question
I have been asked to provide a summary look at our total AP, what is due in 25 days, and what is due in 45 days. In other software I would create an aging with an 'As Of' date that matched the 25 and 45 days letting me drop in the totals when produced. However, when I tried that with the program to…
5
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Is recording accumulated amortization standard?
Over the years I've worked with several companies that record an accumulated amortization account. While under US GAAP amortization is supposed to reduce the asset, internally the companies accumulated it in a contra-account similar to depreciation. I wanted to ask the group for their opinion on ho…
4
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Order To Cash Process Automation And Speeding Up The Cycle Tips
I’d like to learn more about creative and effective processes, tips, principles, workflows, software, technology, management style and ideas of all kinds that may speed up the order to cash cycle and make it more efficient. Practical examples and results much appreciated. We’re in the software bus…
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