Category: Accounting

If you have a professional license, you may as well wear a sign that says “Please Sue Me.” The general belief of the public is that a profession is very wealthy and highly insured, which leads to an easy payday if they can make a claim that you did something wrong or that the result…

Most private equity firms give at least lip service to some version of a 100-Day Plan upon closing the investment transaction in a new portfolio company. Given the laundry list of post-close action items, the effort makes sense. Even so, does the 100-Day Plan actually create value? Not likely. However, the 100-Day Plan mitigates risk,…

The mutual funds in India finally had a good month, in July, mirroring the trend in the broader markets. During July, the Sensex rose to 14,355 from 12,961 after a very bad June. When you compare mutual different fund categories, the equity mutual funds had a good run, particularly the banking-focused funds on the back…

One of the first questions I ask our Warehouse Management students is, “Do you know your operating costs?”, and our Production Planning Management students, “Do you know the cost to produce one of your items?” After five years of training, I can count on one hand how many students were able to answer these questions,…

Direct transfer designations, like POD’s (payable on death designations) and TOD’s (transfer on death designations), and simple beneficiary designations, are mechanisms by which an account or other asset is transferred or paid upon the death of the account holder or asset owner to a beneficiary. They are often recommended by the administrator of the account,…

If you are maintaining a checking account with a bank, I guess you are familiar with bank reconciliation. You always receive a bank statement with attachments, didn’t you? All checks you issued and paid by the bank are attached with stamped canceled. You will also find attached thereto, debit and credit memos that have affected…

The balance for the capital account will always be a brought forward credit entry in the partnership accounts, because the capital contributed by proprietors is a liability of the business. When a partnership is formed, each partner puts in some capital to the business. These initial capital contributions are recorded in a series of capital…

I always thought about starting a college fund. I even set up a small savings account when they were born. Now they are in high school, time is running out and I am starting to panic. What can I do? Where should I start? Are they going to hate me? I really wish I had…