Have you ever wondered how the accountants in an accounting firm in Johor Bahru record all kinds of business transactions? When a transaction occurs, there are various methods the accountants can use to record it in the books of a company. The most basic way of recording transaction is by using the journal entries. The […]
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Understanding Write-offs
Have you ever heard of write-offs? Write-offs refer to the reduction of an item’s recognised value. In accounting, write-offs are crucial as the companies should reflect the reduction in the assets they own in their financial statements. This is for the investors to know the prospects and performance of the company. Thus, do not hesitate […]
Disposal of Fixed Asset in a Company
Throughout the useful life of an asset, you may sell it out at any point within that period. Hence, when this happens, you have to recognise the gain or loss the sale of that asset (disposal) has brought to the business if there is any in your profit and loss statement. Also, you need to […]
Ways to Conduct an Accounts Payable Audit
In an internal audit (Also see Types of Audit – Eligibility Audits), the accounts payable audit can be the only focus or a significant portion of the full audit. Generally, the audit strategies for accounts payable audit has not much difference compared to other audits. However, the reasons for having an accounts payable audit have […]
An Overview of Reversing Entries
In an accounting period, the accountants may create some reversing entries. These are the journal entries that will reverse certain entries they have made in the last period. Usually, the reversing entries will appear when a new accounting period starts. The accountants will use them when they have accrued some revenues or expenses in the […]
What is Allowance for Doubtful Accounts?
Usually, allowance for doubtful accounts will pair with accounts receivable, and it will offset the latter. The allowance is the best estimation the management has made on the amount of accounts receivable that their client will be unable to pay the company (Also see Understanding Write-offs). After subtracting the amount of allowance from the accounts […]
What are the Current Audit Files and Permanent Audit Files?
For audit firms in Johor Bahru, the quality management of the firm may include their efficiency of filing audit documents. Classifying current audit files and permanent audit files can be crucial as this ease the process of auditing since the auditors could find the documents they need quickly. Current Audit Files A firm will keep […]
Understanding Cost of Goods Sold
Cost of goods sold (COGS) refers to the total amount of cost that a company has spent in creating a product or a service that it has sold. Business owners should divide these costs into a few sub-categories, which are materials, direct labour, as well as overhead. For a company that offer services, the business […]
Introduction to Journal Entries
In accounting cycles, journal entries are the first thing you need to do (Also see How do Accountants Record Transactions?). These entries are the records of the transactions your company has made in an accounting system. When there are transactions and other relevant activities in the accounting period, you need to record those journal entries […]
Introduction to Audit
Basically, audit refers to a test on financial reports or other reports by an independent individual or organisation where they will express their opinion according to the facts of their review. The auditors from the audit firms in Johor Bahru can provide the companies with different types of audit and levels of assurance. For instance, […]