Nowadays, you can hardly find a company with cancelled paper cheques and handwritten ledgers. The auditors in audit firms in Johor Bahru examine, inspect and rely on the financial trails when they perform audits and now, electronic data and digital records may make up those trails partially or entirely (Also see Safety Tips to Safeguard […]
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What Do Market Value and Book Value Mean?
An asset’s market value shows its actual market price, where people would trade it at that price at the marketplace. On the other hand, an asset’s book value indicates its accounting value, which is calculated by subtracting accumulated depreciation or amortisation (Also see What is Goodwill Amortisation?) from the asset’s historical cost. This means that […]
An Overview of Bank Reconciliation
The bank reconciliation refers to the process of matching up the information on a company’s bank statement with the corresponding balances in its accounting records for cash accounts. This process aims to find out the differences between them and record the changes to the company’s accounting records (Also see How Do Accountants Record Transactions?). On […]
What is Goodwill Amortisation?
Goodwill amortisation is the systematic and gradual reduction of the value of a company’s goodwill asset. A company may calculate the reduction by recording amortisation charge regularly. Based on the accounting standards, companies may choose to conduct the amortisation over ten years on a straight-line basis (Also see Straight-line Depreciation and Accelerated Depreciation). If a […]
Procedures of Field Audit for Inventory Audits
In an inventory audit, a visual inspection can be crucial for all companies regardless of the field of their business. The expenses for inventory may make a significant contribution to the operating expenses of a company (Also see Should You Include Cost of Goods Sold (COGS) as Expenses?). Therefore, it has to ensure that it […]
How to Plan for Internal Audits Schedule Based on the Risks?
Besides having a financial audit that an audit firm in Johor Bahru will conduct for the companies, business owners should also schedule internal audits for their business. Big and complex companies may have an internal audit department. Internal audits are crucial in tracking the efficiency of the internal processes and controls of a company. When […]
Differences Between Period Costs and Product Costs
Period costs are the costs that you are unable to capitalise into fixed assets, inventories or prepaid expenses. On the other hand, product costs are the costs that you have spent on manufacturing a product. You probably have heard of these terms, and you may wonder what their differences are, and you may mix them […]
Understanding Product Costs and Period Costs
What type of cost would you include when calculating the expenses that your company has spent? The costs that you should consider are the product costs as well as period costs. The former is the cost that you have spent on producing a product. In contrast, the latter refers to any costs that you are […]
Periodic Inventory System and Perpetual Inventory System
If you are running a manufacturing business, inventories are what you always need to handle. Doing accounting tasks about inventories are challenging, especially if you are unfamiliar with accounting. Hence, if you are not sure how you should do it and you do not want to hire an in-house accountant in your company, outsourcing your […]
How Can You Collect Payments for Overdue Invoices?
An overdue invoice refers to billing that a company has not paid at its due date. If your company extends credit to your clients, there is a high possibility where you need to collect payments for overdue invoices. Other than hiring an accounting firm in Johor Bahru to keep proper accounting records, collecting payments for […]