Accounting
Discussion on Accounting Treatment of Accounts Receivable Recorded at Month-End and Bank Deposits Received the Following Month
In practice, companies may post receipts to accounts receivable at month-end, but the funds only reach the bank account in the following month. To maintain the aging of accounts receivable and the balance of the general ledger, it is necessary to consider month-end adjusting entries and reverse them in the following month. This article explores whether an interim account (such as DIT) should be set up, and whether footnote disclosure is acceptable if no adjustment is made.
Handling SEP IRA Balances in QuickBooks: Accounting and Tax Considerations After Converting from Sole Proprietorship to S-Corp
A former sole proprietor, after converting to an S-Corp, has questions about handling SEP IRA balances: Should the SEP IRA held in their personal name be transferred to the company books? How should debits/credits be recorded? Should the account name be changed? Based on current rules, this article analyzes the classification of assets/liabilities, the accounting treatment of year-end accrued unpaid contributions, and points out that personal retirement assets typically should not appear on the company's financial statements.
Clean up old credit balances long outstanding in accounts receivable
The company has approximately $24,000 in old credit balances in accounts receivable, aged over 120 days, originating from a legacy accounting system migration 3-4 years ago, and now untraceable. This article explores the best course of action to clean up these balances.
Accounting Concerns at a New Car Dealer's Parts Department: Purchase Discounts Debited May Lead to Understated Inventory and Inflated Profits
A recent accounting graduate working as a staff accountant at a new car dealer noticed that the parts department debited purchase discounts to inflate inventory. This practice could lead to understated parts inventory values and overstated departmental revenue, resulting in undeserved bonuses for management and the company paying income taxes on profits not actually earned. The employee seeks to confirm understanding and advice before reporting to the CFO.
Cloud-Hosted QuickBooks Desktop: Practices and Recommendations for Canadian Accounting Firms
An IT technician is tasked with migrating QuickBooks Desktop data to the cloud for a Canadian accounting firm that serves over 100 companies, with existing on-premises server storage running out. The user has tried migrating old company files to SharePoint Online but hopes to find a more specialized hosting platform and asks about experiences with commercial hosting services under Intuit's hosting plan.
How to Determine Your Job Title: The Career Confusion of an Administrative and Accounting Assistant
An employee at a startup accounting firm, gradually transitioning from an administrative/accounting assistant to an office general management role, faces the dilemma of an unclear job title. The article analyzes the scope of responsibilities and offers suggestions on how to choose an appropriate job title.
Under IFRS 15, can construction and operation obligations be combined into a single performance obligation?
In factory-type contracts, if both construction and operation services are included, it is usually necessary to distinguish between two performance obligations. However, given the high complexity of factory facilities, it is almost impractical to find a separate operation contractor. This article proposes an approach to combine the two obligations and seeks professional advice.
From PeopleSoft to the Cloud: Senior Consultant Helps Micro-Enterprises Move to Cloud ERP
A senior PeopleSoft FSCM consultant (20 years of experience) is assisting very small enterprises (e.g., 3-person teams with $500K annual revenue) in designing affordable cloud ERP solutions to meet their needs for procure-to-pay, customer orders, inventory management, and basic reporting, and wishes to understand approximate implementation, hosting, and licensing costs.
Discussion on GAAP Accounting Entries for Employee Benefit Prepayments
The company fully prepays employee legal shield and supplemental life insurance premiums, then recovers these amounts from employee wages within the same month. How should such transactions be recorded under GAAP? This article uses specific examples to point out the erroneous practice of directly expensing the prepayment and reversing it, and provides standardized entry recommendations based on receivables/prepayments.
Seeking English Accounting Terminology: Annual Balancing Items of Non-Cash Transactions
A translator seeks English terminology suggestions for a specific concept in the accounting documents of a French transportation company. The concept refers to income or expense items that have no impact on cash, do not generate receipts or payments, are recognized within the same year, and are mutually balanced. The client suggests using 'non real expenses/revenue', but the translator hopes to find a more standard term.