Accounting
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Accounts Payable Automation Process
Has anyone recently implemented an accounts payable automation system at their company? Did it go smoothly, what software/company did you engage and are you happy with what you have? Any tips or suggestions as I review different solutions? My two main goals are to streamline accounts payable to bec…
12
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New Lease Accounting Standard to Bring Pain to Many Companies
A new article on AccountingWeb.com discusses the joy which is recieving the new Lease Standards. Jason Branwell writes "Forty-two percent say implementation will be either “pretty painful” or “extremely painful,” while 3 percent think it will be more painful than root canal surgery." I'd say that t…
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Excess and Obsolete Raw Material for Manufacturing
Hi, anyone have a policy to share on how their companies provide for the above for a manufacturing company of low end (technology has not change much) semi conductor testing consumables. Thank you.
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Revenue recognised or prepaid for future services?
Hi, Our customer must complete a monthly minimum spend (eg: $2m). In month 1 they achieve $1.5m, they must pay an additional $500k (we invoice $2m). In month 2 they achieve $2.5m, we invoice them only $2m (ie: offsetting the $500k). Have we earned the $2m in month 1 as they have not achieved target…
3
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Calculating ROI for a development project with a return out 5-10 years
We are considering a rather large R&D investment for our company in which the return is not until years 6 through 16. There would be a number of intangible or "goodwill benefits as well as eventual profits and I am not sure the best way to factor those in along with the "cost of money" between …
2
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Freight Income
If a company who sells goods charge freight to the customer on its invoice, I think it's recognized as freight revenue and then expense shipping cost under SGA. My question is that when do you recognize the freight revenue and cost? Assumption here is that the company is "not" in the freight busine…
2
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Alibaba's Problems May Go Beyond SEC Investigation
Mike Ozanian of Forbes claims in his recent article that Alibaba's operating cash flow doesn't jive with earnings. What ratios do you use to determine possible fraud? http://www.forbes.com/sites/mikeozanian/2016/05/26/alibabas-problems-may-go-beyond-sec-investigation
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SEC Views on Carried Interest Revenue Cause Uncertainty
An article on Bloomberg discusses disagreement between the SEC and Financial Accounting Standards Board on how carried interest should be reported. Besides the merits and weaknesses in both arguments, one wonders if the utter complexity of either method, revised or not, serves any real purpose. Wha…
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Accounting For Slow Accounting
In a case where lots of entries are falling in GL and currently take 2-3 months to identify if these are to be expensed off or to be capitalized- in that situation, should some sort of accrual be made for expenses that did not hit the p&l or depreciation?
4
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AP Departments - What is the biggest pain point in Accounts Payable?
What makes you crazy about the Accounts Payable process in your organization? What are your blue sky ideas for improving AP and accounts payable software.
9
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How to record long term compensation
Our company starts a long term incentive plan that works over 5 years. Is there any GAAP that we can refer how to record a long term incentive plan? Can anyone point me how we can start to accrue from year 1 to 5? Many Thanks,
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How do you account for using inventory to build your own asset?
We are a manufacturing company that uses our own product during the construction of our assets. In QuickBooks, how do you account for the use of our product for an asset?
2
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Relocation costs of equipment
We have a primary business of leasing and renting equipment. If equipment was originally purchased to be used in one state, but later determined to bring better utilization in another state. Can we capitalize the transportation costs to move the equipment to the new state? Yes or no and why?
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Selling fixed assets -- top line revenue or gain/loss "Other income"
Hypothetical #1 -- say a company is in the business of making auto wheel rims and uses lathes in the manufacturing process. If they sell off a used lathe, then I have always considered that as a sale of fixed assets, and the difference between sale proceeds and the FA NBV is a gain/loss on sale of…
7
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Modified Cash / Accrual Accounting
I recall from my audit days that most law firms use a modified accrual basis of accounting. This still permitted? I think there were some recent moves to force professional service companies onto pure accrual based accounting but have not followed it closely.
4
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Capitalization of Software Costs
I see that there has been questions asked on this topic in the past but this is my dilemma. We developed a software and customized it for a third party, however the company will also use the same system internally and the idea is that we will market it to other customers. The company received compe…
2
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Accounting For Vendor Rebates Received Via Percent Complete Rev Rec
Our construction company has recently enhanced our supply chain efforts and will begin receiving sizable vendor rebates in the upcoming months/years, but we're unsure as to whether the income from those rebates can be recognized right away upon receipt or whether they must be recognized under the p…
1
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Capitalizing vs Expensing Assets
Would love to get an insight on fixed asset policy you have seen out there in your companies or with your clients. More specifically, what determins whether you expense or capitalize an asset? I'm re-writing our policy right now, and trying to decide what it should be going forward. By way of bac…
17
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Calculating the optimal residual value on a lease as a Lessor...
Dear Proformative Community: I consult for a small/mid-size bio/pharma lab equipment VAR and distributor. We market both wet and dry pharma equipment most which is a mix of commodity and some semi-custom lab/production equipment. The CEO and board are exploring the creation of lab equipment leasing…
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Reconciling Merchant Bank Deposits to the GL
I am looking for some best practice processes in reconciling merchant bank deposits for Visa/MC/Amex payments from customers on our e-commerce site. The process to reconcile the merchant bank payments to our GL / AR accounts is VERY difficult and takes about 2 days a month at our current volume …
11
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Benchmark Data On Travel & Entertainment Expenses
Appreciate it, if someone could share benchmarking data on Travel & Entertainment expenses for companies based on revenue and/or employee population and/or market capitalization. Thank you
6
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Accounting for UTC Time?
Hello, We are a subscription e-commerce company and have heavy daily credit card volume. Our internal database & analytics tools are reported in UTC time and our merchant bank processes the transactions & transfers funds to us in local time. From a cutoff/reporting standpoint, will all of t…
1
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SEC is signaling it's looking at non-GAAP reporting
In an article on FEI, the author is sending out a warning the the SEC is starting to target those companies that use non-GAAP standards for financial reporting purposes. (http://daily.financialexecutives.org/mind-non-gaap-sec-elevates-attention-non-gaap-measures/) While some of the examples given a…
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