Blog

November 9, 2015

Setting Up An Inventory Control System

Inventory control systems keep costs down. Inventory is the most valuable asset in a large number of small businesses, and it can also be one of the most difficult assets to keep under control. Theft, administrative errors, physical damage and obsolescence all eat away at inventory, squeezing profit margins and damaging bottom lines. Setting up an inventory control system can help you to maximize the value of your inventory by keeping costs under control. Step 1 Implement policies to limit the amount of people with access to your inventory, and keep a record of who has access to secure areas at specific times throughout each day. Managers often underestimate the effect of theft on their inventory costs. Consider installing […]

November 2, 2015

Good Business Management

Here at Melbourne Accountant, you don’t have to be a fortune 500 (or even a fortune 500,000) company to take advantage of these tips for good business practice. In fact, some of the best small businesses have evolved and succeeded by implementing some of these principles. Hire the Right People If you are technically proficient in your field but lack marketing knowledge and expertise for example, then be prepared to hire the right people to fill in the blanks. This will start the trend of people beating a path to your door. The next trick is to keep them coming back and referring their friends. Know-How is Not Enough Just because you’re an expert in your field doesn’t mean that […]

October 26, 2015

Boost Your Super

The Federal Budget made dramatic changes to the superannuation rules. The overall effect will be to make super even more attractive than it already is. It is now more important for working people to take advantage of the opportunities available before June 30. The biggest change is that super payouts will be tax free for those over sixty years from July 2007 on. This includes both lump sum withdrawals and retirement income streams. Already income streams are quite tax sheltered with the earnings within the pension fund tax free. Part of the payments to the retiree are also usually tax free, the balance is taxable but with a 15 per cent tax credit attached. Now all the income will be […]

October 20, 2015

Royalties in Accounting

When a business owns a life insurance policy (BOLI) for a key officer, it pays the premiums itself and names the actual business as the beneficiary should the officer die while the policy is in place. These premiums are considered standard business expenses, with a debit to an insurance expense account and a credit to cash or a payable. There’s one additional facet of BOLI accounting to consider – the FASB has determined that the value of the policy on the financial statement date should be included as a balance sheet asset. That value refers to the cash surrender value, NOT the possible benefit paid should the officer die in the future. If the cash surrender value changes during the […]