http://www.brisbanetimes.com.au/queensland/payroll-problems-improve-20100421-swho.html
Summary
Tens of thousands of health workers were underpaid, overpaid, or not paid at all since the new computerised payroll system was introduced last month. One simple program error can cause chaos among these people. "These errors are going to continue to repeat until they're fixed, and they're still not fixed," spokeswoman Julie Bignell said. Some employees already turns to charity for help. And they will continue to suffer until the error is fixed
Connection
Payroll could be very complicated. For example, a full-time worker could easily get more than 6 different kinds of detuction. In the past, we rely upon our accounting clerks to calculate UI, CPP, etc. Mistakes are easy to make. We invented calculators, computers, and softwares to help us to deal with the complicated payroll. However, mistakes these things make could cause much bigger consequences. That is one of the reasons why payroll department is one of three biggest departiments in the accounting system.
Reflection
In my weak in the accounting firm, I did some payroll journalsd for a company. What surprises me is that the emloyees have different detuctions than what the software calculated. Nevertheless, softwares like Simply Accounting help us a lot in the accounting process. However, learning how to use these softwares is critical. I know more than 10 different accounting and tax softwares, and I only know how to use two of them. Knowing how to do the payroll journals is not enough anymore.
Monday, April 26, 2010
Thursday, April 8, 2010
Chapter 15 Analyzing Financial Statement
http://www.businessinsider.com/mba-mondays-analyzing-financial-statements-2010-4
Summary
This article is very useful in terms of analyzing financial statement in a insiders' point of view for small business owners. The superficial numbers could be misleading. In order to find some deeper casues of the performance of a company, the writter suggest we do a monthly average. Companies can try to bury ongoing expenses in one-time charges and inflate their earnings. For example, you’ll see that in the first year of their presentation on Google's income statement, Google made a one-time contribution to the Google Foundation. The obvious numbers showed on the financial statement are not enough, we need to dig deeper.
Connection
We did a presentation about analyzing financial statement. If we use some of the techniques in the article, we can get a higher mark. Numbers on a financial statement can be very nice. Howerer, it can also hide its financial problem. Sometimes we also need to do our own comparisons. For example, a company with a net earning of $3 billion isn't always better that another company with a net earning of $300 million. Don't overlood the obvious.
Inflection
Leaning to analyze financial statement is helpful in many ways. It helps if a person wants to open his own pracise such as a doctor or a lawyer. If we want to invest in the stock market, analyzing financial statement helps us to find the best investment. I 'm glad I take both Accounting and Financial Accounting. I can see the process in both ways. I've been doing some stock market investments recently. It's not easy to choose the best company. The techniques in the article can give me some help. I hope my investment can earn me some money.
Summary
This article is very useful in terms of analyzing financial statement in a insiders' point of view for small business owners. The superficial numbers could be misleading. In order to find some deeper casues of the performance of a company, the writter suggest we do a monthly average. Companies can try to bury ongoing expenses in one-time charges and inflate their earnings. For example, you’ll see that in the first year of their presentation on Google's income statement, Google made a one-time contribution to the Google Foundation. The obvious numbers showed on the financial statement are not enough, we need to dig deeper.
Connection
We did a presentation about analyzing financial statement. If we use some of the techniques in the article, we can get a higher mark. Numbers on a financial statement can be very nice. Howerer, it can also hide its financial problem. Sometimes we also need to do our own comparisons. For example, a company with a net earning of $3 billion isn't always better that another company with a net earning of $300 million. Don't overlood the obvious.
Inflection
Leaning to analyze financial statement is helpful in many ways. It helps if a person wants to open his own pracise such as a doctor or a lawyer. If we want to invest in the stock market, analyzing financial statement helps us to find the best investment. I 'm glad I take both Accounting and Financial Accounting. I can see the process in both ways. I've been doing some stock market investments recently. It's not easy to choose the best company. The techniques in the article can give me some help. I hope my investment can earn me some money.
Monday, March 29, 2010
Lax Cash Control Leads to Theft
http://www.timesunion.com/AspStories/story.asp?storyID=905547
Summary
This article criticizes the failing money-tracking measures of the trash bag sales of the Public Works Department in Saratoga Springs. The accounts clerk Joy Karam was arrested for stealing nearly $45,000 from the operation. The department was slow to remit sales receipts to the Finance Department, and did not track the number of bags it had for sale after the City Council enacted new control measures for the department in December 2008. Joy Karam later pleaded guilty and returned the money and was sentenced to five years' probation.
Connection
It is amazing that a government department fails to do its cash control. All businesses, especially retail stores should have strict policies to deal with everyday cash income. In the accounting book, the methods are little bit too old. Except for supermarkets, most of the retail stores are using point-of-sale terminals which save them a lot of works. Even that, businesses should do a sales summary on daily bases. The other big problem is spending. Some businesses don't even notice that there are short on cash until the end of the month. As accountants, they should check their bank accounts on a weekly or even a daily bases.
Reflection
I worked on an accounting firm last week. Most of its customers are small businesses or individuals who have lots of financial activities. There is a company that does bank reconciliation statement twice a year. I feel sorry for the owner. He might not know that his business is in serious trouble since last September. They should be more responsible as businesses owners, especially when their businesses are based on cash transactions.Friday, January 8, 2010
Chatper 12 Fast cash? More than one way
http://www.greenbaypressgazette.com/article/20091231/GPG0703/912310535/1247/GPG03/SCORE-column--Getting-fast-cash-for-businesses
Summary
The article is about to teach small businesses to get cash faster. There are five ways to increase cash flow. They are getting cash upfront, collecting payment, trying factoring, slowing payments, and borrowing from alternative souces. Getting cash upfront means to give a cash discount to customers for paying the debt early, so we can get cash back fast and safely. Collecting payments means to set up some policies related to collection. The business should and must follow the policies no matter who the customer is. Trying factoring means that a business could sell its Accounts Receiables at a discount to factoring company if the business needs the cash desperate. That way the business could get some cash and give the risk away. Slowing payments is a way that most of businesses know. Borrowing money from other sources is not a safe way unless the business has a good asset control.
Connection
Chapter 12 teaches us about cash discount. Giving customers a cash discount is the most common way that business collects its payments. Cash flow is a great way to measure the performance of a business. Therefore, a business must have some ways to ensure to get their payments. Without enough cash, the business could go into deep trouble or worse, bankrupt. Keeping specialized journals will help business owners or accountants to realize the risk or trouble before the business couldn't get worse.
Reflection
Being a junior accountant is like a nightmare. Let's think about how many invoices or check copies they need to process, not to mention they have to check for cash discount. Some of us will become accountants after college or university. Without experience, jobs are hard to find. Knowing what to do is not enough. We must have done it. Being an accountant is not easier than being a doctor or lawyer. Experiencing how to be an accountant will help us to have some career options when we need it.
Summary
The article is about to teach small businesses to get cash faster. There are five ways to increase cash flow. They are getting cash upfront, collecting payment, trying factoring, slowing payments, and borrowing from alternative souces. Getting cash upfront means to give a cash discount to customers for paying the debt early, so we can get cash back fast and safely. Collecting payments means to set up some policies related to collection. The business should and must follow the policies no matter who the customer is. Trying factoring means that a business could sell its Accounts Receiables at a discount to factoring company if the business needs the cash desperate. That way the business could get some cash and give the risk away. Slowing payments is a way that most of businesses know. Borrowing money from other sources is not a safe way unless the business has a good asset control.
Connection
Chapter 12 teaches us about cash discount. Giving customers a cash discount is the most common way that business collects its payments. Cash flow is a great way to measure the performance of a business. Therefore, a business must have some ways to ensure to get their payments. Without enough cash, the business could go into deep trouble or worse, bankrupt. Keeping specialized journals will help business owners or accountants to realize the risk or trouble before the business couldn't get worse.
Reflection
Being a junior accountant is like a nightmare. Let's think about how many invoices or check copies they need to process, not to mention they have to check for cash discount. Some of us will become accountants after college or university. Without experience, jobs are hard to find. Knowing what to do is not enough. We must have done it. Being an accountant is not easier than being a doctor or lawyer. Experiencing how to be an accountant will help us to have some career options when we need it.
Subscribe to:
Posts (Atom)