Valuation account

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 13:57:00 PDT 2018

A valuation account is paired with an asset or liability account, and is used to offset the value of the assets or liabilities recorded in the account with which it is paired. The result of this account pairing is a net balance, which is the carrying amount of the underlying asset or liability. The "valuation account" term is a less-used phrase that has the same meaning as the contra account concept.

Examples of valuation accounts are:

• Allowance for doubtful accounts (paired with the trade accounts receivable account)
• Allowance for obsolete inventory (paired with the inventory account)
• Accumulated depreciation (paired with the various fixed asset accounts)
• Discount on bonds payable (paired with the bonds payable account)
• Premium on bonds payable (paired with the bonds payable account)

The valuation account concept is useful for estimating any possible reductions in the values of assets or liabilities prior to a more definitive transaction that firmly establishes a reduction.

Valuation accounts are only used in accrual basis accounting. They are not used in cash basis accounting.

Similar Terms

A valuation account is also known as a valuation reserve or contra account.

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5 Ways HR Can Build a Culture of Employee Trust

by Rachel Bolsu @ Namely: Blog

Thu Mar 08 01:30:00 PST 2018

Do your employees feel comfortable coming to you with problems?

Great Money Resolutions for the New Year

by Carolyn Pittman @ Service Credit Union

Wed Dec 27 08:00:39 PST 2017

It’s that time of year again, recovering from the indulgences of the holidays, looking over the past year, breaking out the new calendar, and planning to do better in all aspects of life in the coming year. One of the most popular resolutions is to be better with money. The challenge, of course, is sticking […]

Schedule a Check-up for Your Financial Life

by rapid! PayCard @ rapid! PayCard

Fri May 05 09:13:33 PDT 2017

Most of us are diligent about maintaining the various aspects of our life. We swap out the batteries on our smoke detectors with regularity; we schedule annual physicals, and get our car’s oil changed based on the manufacturer’s mileage recommendation. Still, many of us tend to take better care of our cars than we do our financial life. The irony being, an un-tended financial life can break down just as assuredly as an under-serviced automobile. It can run out of gas, but it can also seize up and need a roadside tow. In short, a well-examined financial life is worth exploring. 1. Schedule. Set a recurring point in time for... Read More

The Problem with Overdraft Fees

by Paul Sisolak @ Chime Banking

Tue Mar 20 02:52:00 PDT 2018

“Overdraft” is not a word we like to hear. Why? It generally means you’ll be dinged with a fee you don’t want to pay. To clarify, an overdraft fee occurs when you don’t have enough money in your bank account to pay for a purchase. When this happens, your bank will pay for the transaction […]

The post The Problem with Overdraft Fees appeared first on Chime Banking.

We Don’t Want You to Wait – Ways to Avoid Being On Hold

by Carolyn Pittman @ Service Credit Union

Tue Nov 28 10:55:02 PST 2017

(And Our 10 Favorite Hold On Songs) Sitting and waiting on the phone for support probably tops most people’s lists of things they would rather not do. Thankfully, the Contact Center at Service Credit Union has invested in a wide variety of options that not only in many cases allow you to avoid picking up […]

rapid! PayCard Green Dot Announcement

by rapid! PayCard @ rapid! PayCard

Tue Jan 31 14:03:14 PST 2017

Green Dot to Acquire UniRush, LLC, Operating Company for RushCard and Rapid! PayCard Transaction Expected to Generate Significant Strategic and Financial Synergies PASADENA, Calif.–(BUSINESS WIRE)–Green Dot Corporation (NYSE:GDOT) today announced that it has entered into an agreement to acquire UniRush, LLC, and its operating businesses RushCard, a leading online direct-to-consumer general purpose reloadable prepaid card provider, and Rapid! PayCard, a leading corporate payroll card provider. The acquisition, which maps to “Step Five” of Green Dot’s “Six Step Plan” to enhance shareholder value, materially expands Green Dot’s scale with the addition of the RushCard and Rapid! PayCard installed customer bases, while establishing Green Dot as a formidable player in the growing... Read More

Apple Pay Cash is Now Live — How Does it Work?

by rapid! PayCard @ rapid! PayCard

Tue Feb 13 15:11:25 PST 2018

Learn everything you need to know about the new Apple P2P payment system That one friend, the one who still hasn’t repaid you for pizza because he “doesn’t have the right app,” is in trouble. Today, iPhone users can access what experts in the tech industry are calling “the Venmo Killer”: Apple Pay Cash. Apple Pay cash is a P2P payment service which allows users to send and receive payment through iMessage The days of P2P fragmentation are over. Thanks to Apple Pay Cash, all money transfers can take place through a central, default iOS application, and ultimately unify all P2P transactions under one secure, and intuitive, system. How to... Read More

Price to book ratio

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 04:53:00 PDT 2018

The price to book ratio compares the current market price of a company's stock to its aggregate book value. When the ratio is excessively high, it can indicate that a company's shares are over-priced, especially when the ratio is high in comparison to the same calculation for other companies in the same industry. The calculation is:

Closing price of the stock ÷ (Total assets - Intangible assets - Liabilities)

Investors like to use the price to book ratio to search for undervalued companies, and invest in their stock in hopes of having the share price return to a more normal level over time. However, there are a number of issues with the ratio to be aware of, including the following:

• The ratio could be low because the company has been mismanaged, in which case there can be no expectation that the ratio will improve over time.
• The ratio could skewed too high because the company is using accelerated depreciation to write down the value of its fixed assets at an accelerated rate.
• The company may have valuable intellectual property that does not appear on its balance sheet at all, but which is being recognized by investors through a high market price for its stock.
• The company may be investing a large amount in research and development costs, which must be charged to expense as incurred, rather than capitalized. This tends to result in a comparatively low book value for the business.
• The ratio is not overly useful when evaluating services firms and technology companies, since these entities have comparatively fewer fixed assets on their balance sheets.

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Correcting Employment Taxes: What to Do If You Withhold the Wrong Amount

by Rachel Gray @ Payroll Tips, Training, and News

Wed Feb 28 05:10:52 PST 2018

It’s easy to make mistakes, especially when you have a million and one things on your plate. One error you could make is deducting the wrong amount from employee wages. Correcting employment taxes is necessary if you withhold too much or too little from your employees’ paychecks. This article provides an overview of employment taxes […]

The post Correcting Employment Taxes: What to Do If You Withhold the Wrong Amount appeared first on Payroll Tips, Training, and News.

Should Businesses Stop Accepting Cash?

by rapid! PayCard @ rapid! PayCard

Fri Aug 18 12:08:23 PDT 2017

Visa is paying out a jackpot to vendors willing to bet against old money, and roll the dice on cashless transactions. Visa will give $10,000 to 50 restaurants that pledge to go cashless. The new initiative, what Visa executive Jack Forestall calls “a journey to go cashless,” will incentivize vendors to rip off the bandaid of paper transactions and progress to a cashless system. The money can be used for marketing and updating point of sale technology to focus payment exclusively on credit and debit cards and electronic payment. Visa will select participating merchants in August. Cash remains the predominate method of payment, according to the Federal Reserve. A report... Read More

Cookie jar accounting

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 11:09:00 PDT 2018

Cookie jar accounting occurs when a business sets up excessive reserves in profitable periods and draws down these reserves during lower-profit periods. The intent is to give the impression that the organization generates more consistent results than is really the case. When investors believe that a firm is able to consistently meet its earnings targets, they tend to place a higher value on its stock. There is a greater temptation to use cookie jar accounting among publicly held businesses, since doing so can mislead analysts into issuing more favorable reports about them to the investment community. This approach to reporting earnings does not reflect actual results, and so can be considered fraudulent reporting.

Cookie jar reserves can be created either by over-estimating the more common reserves (such as for bad debts) or by taking large one-time charges for expected losses from one-time events, such as acquisitions or downsizings.

The term comes from the practice of using a “cookie jar” of reserves whenever needed.

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Throughput definition

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 15:19:00 PDT 2018

Throughput is the number of units that pass through a process during a period of time. This general definition can be refined into the following two variations, which are:

• Operational perspective. Throughput is the number of units that can be produced by a production process within a certain period of time. For example, if 800 units can be produced during an eight-hour shift, then the production process generates throughput of 100 units per hour.
• Financial perspective. Throughput is the revenues generated by a production process, minus all completely variable expenses incurred by that process. In most cases, the only completely variable expenses are direct materials and sales commissions. Given the small number of expenses, throughput tends to be quite high, except for those situations in which prices are set only slightly higher than variable expenses.

For operations, throughput can be increased by enhancing the productivity of the bottleneck operation that is constraining production. For example, an additional machine can be purchased, or overtime can be authorized in order to run a machine for an extra shift. The key point is to focus attention on the productivity of the bottleneck operation. If other operations are improved, the overall throughput of the system will not increase, since the bottleneck operation has not been enhanced. This means that the key focus of investment in the production area should be on the bottleneck, not other operations.

For financial analysis, throughput can be increased by altering the mix of products being produced, to increase the priority on those products that have the highest throughput per minute of time required at the constrained resource. If a product has a smaller amount of throughput per minute, it can instead be routed to a third party for processing, rather than interfering with the bottleneck operation. As long as some positive throughput is gained by outsourcing, the result is an increased overall level of the throughput for the company as a whole.

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Continuing professional education

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 04:53:00 PDT 2018

Continuing professional education (CPE) is ongoing training that is required in order to remain certified as a professional in certain fields. The intent behind requiring this training is to force professionals to continue to update their knowledge of pertinent information that can improve their ability to serve their clients. In the accounting field, the state boards of accountancy all require a significant amount of CPE for certified public accountants (CPAs). Though the exact training requirements vary by state, the general requirements are:

• To take 40 hours of training per year, with some minimum number of hours spent on accounting or auditing subjects; and
• To take an ethics course every other year, which in some cases must pertain to the specific ethics requirements of the relevant state board of public accountancy.

If a CPA does not meet the CPE requirements of the governing state board of public accountancy, there is usually a requirement to make up the missing training time. If this does not happen within a reasonable period of time, then the person's CPA certificate is revoked.

There are a number of ways to fulfill the CPE requirement. A person may take classes from a CPE provider that is registered with the National Association of State Boards of Accountancy, or which is registered with the applicable state board of public accountancy. These classes can take the form of online self-study training, online webinars, in-person training, and so forth. A recent change in the rules is nano learning, where extremely short courses are offered that grant fractions of a credit hour for course completion. Some proportion of a person's CPE hours can also be earned by teaching classes or writing relevant professional articles or books.

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SCU AVP Donnelly receives Young Professional Award

by Lori Holmes @ Service Credit Union

Wed Nov 01 14:03:44 PDT 2017

Portsmouth, NH – The Cooperative Credit Union Association (CCUA) recently presented Service Credit Union Assistant Vice President of the Contact Center Dennis Donnelly with the Young Professionals Award of Excellence. The award signifies a young professional who best demonstrates a commitment to the values and principles defining the credit union’s mission. Donnelly was one of […]

Types of financial analysis

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 14:44:00 PDT 2018

Financial analysis involves the review of an organization's financial information in order to arrive at business decisions. This analysis can take several forms, with each one intended for a different use. The types of financial analysis are:

• Horizontal analysis. This involves the side-by-side comparison of the financial results of an organization for a number of consecutive reporting periods. The intent is to discern any spikes or declines in the data that could be used as the basis for a more detailed examination of financial results.
• Vertical analysis. This is a proportional analysis of the various expenses on the income statement, measured as a percentage of net sales. The same analysis can be used for the balance sheet. These proportions should be consistent over time; if not, one can investigate further into the reasons for a percentage change.
• Short term analysis. This is a detailed review of working capital, involving the calculation of turnover rates for accounts receivable, inventory, and accounts payable. Any differences from the long-term average turnover rate are worth investigating further, since working capital is a key user of cash.
• Multi-company comparison. This involves the calculation and comparison of the key financial ratios of two organizations, usually within the same industry. The intent is to determine the comparative financial strengths and weaknesses of the two firms, based on their financial statements.
• Industry comparison. This is similar to the multi-company comparison, except that the comparison is between the results of a specific business and the average results of an entire industry. The intent is to see if there are any unusual results in comparison to the average method of doing business.

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What You Need to Know About a Qualifying Life Event

by Rachel Gray @ Payroll Tips, Training, and News

Mon Mar 12 05:10:40 PDT 2018

Employees have a window of time each year to sign up for certain types of employer-sponsored insurance. Although this open enrollment period takes place at the end of each year for all employees, an employee can add or remove coverage at any time of the year if they have a qualifying life event. What is […]

The post What You Need to Know About a Qualifying Life Event appeared first on Payroll Tips, Training, and News.

Your Guide to Direct Deposit During the Holidays

by rapid! PayCard @ rapid! PayCard

Thu Nov 16 05:07:27 PST 2017

The holiday season is around the corner, which for some means eggnog and lights on display, but for others it means payroll delays. Automated payment through direct deposit is proven to be more efficient, secure and cost-effective than paper checks. Still, there are a few considerations to keep in mind when switching over to electronic payment — especially around the holidays. The holiday season is a double-edged sword: it’s likely the most expensive time of the year, but is also full of banking holidays which can affect the timeliness of direct deposit. Here’s why. What is the ACH and why does it matter? The Automated Clearing House is an electronic... Read More

The difference between an invoice and a statement

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 16:21:00 PDT 2018

A customer may receive an invoice and a statement from a supplier. What is the difference between these two documents? When a seller issues an invoice to a buyer, the invoice is related to a specific sale transaction where goods or services were provided to the buyer. Since the invoice relates to a specific sale transaction, it itemizes all of the information the buyer needs to know in order to pay the seller, including:

• Invoice number
• Invoice date
• Item description
• Item price
• Shipping and handling charges
• Sales tax
• Total amount payable
• Remit to address
• Payment terms and early payment discount terms (if any)

The intent of an invoice is either to collect payment from the buyer, or to create evidence of the sale (if payment was made in advance or in cash). If payment was made at the time of sale, the invoice is stamped "Paid" before issuing it to the buyer.

When a seller issues a statement, the document itemizes all invoices that have not yet been paid by the buyer, as well as partial payments. In this case, the intent is to remind the buyer that it has an obligation to pay the seller. Since the statement is more aggregated than an invoice, it provides less detailed information at the invoice level. It typically includes the following items:

• Statement date
• Invoice numbers
• Invoice dates
• Invoice totals

A more sophisticated statement will aggregate invoice totals by time bucket, so that overdue invoices are clearly shown.

Invoices are issued whenever a sale has been completed, so they may be issued every day and in significant quantities. However, statements are usually only issued at regular intervals, such as once a month, as part of a company's collection activities.

From the perspective of the buyer, the receipt of an invoice triggers an accounting transaction, which is an account payable. Conversely, the receipt of a statement is strictly informational - it does not trigger the creation of an accounting transaction.

It can be unwise to treat a statement as an invoice and pay items listed on the statement, since it is possible that the buyer already paid for those items, but the payment has not yet been reflected in the seller's accounting system. A better alternative for the buyer is to make inquiries about any invoices that are listed on the statement, and obtain more detailed information before issuing a payment.

There can be some confusion between the invoice and statement terms when dealing with credit card providers, since they issue a "statement" that is actually an invoice.

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What Should HR Do When a Manager is Dating a Direct Report?

by Rachel Bolsu @ Namely: Blog

Thu Mar 08 01:30:00 PST 2018

8 HR pros weigh in on how they would handle this case of love at work.

What Is an FEIN?

by Mike Kappel @ Payroll Tips, Training, and News

Mon Feb 26 05:10:00 PST 2018

When you run a business, you must meet many IRS requirements. You might need an FEIN to identify your business on documents like payroll tax forms. What does FEIN mean? What is an FEIN? FEIN is an acronym for Federal Employer Identification Number, also known as an EIN. This unique, nine-digit number is used by […]

The post What Is an FEIN? appeared first on Payroll Tips, Training, and News.

Payroll records

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 12:00:00 PDT 2018

Payroll records contain information about the compensation paid to employees and any deductions from their pay. These records are needed by the payroll staff to calculate gross pay and net pay for employees. Payroll records typically include information about the following items:

• Bereavement pay
• Bonuses
• Commissions
• Deductions for pensions, benefits, charitable contributions, stock purchase plans, and so forth
• Direct deposit information
• Gross wages
• Hours worked
• Manual check payments
• Net wages paid
• Salary rates
• Vacation and/or sick pay

The information in payroll records have traditionally been stored on paper documents, but can also be recorded as electronic documents.

Payroll records can be considered a subset of the information stored in human resources records, which can contain considerably more information than items pertaining to just employee pay and deductions.

The time period over which payroll records must be retained will depend upon government requirements. The Internal Revenue Service typically states a required retention period in each document it issues dealing with payroll issues. In general, wage calculations should be retained for two years, while collective bargaining agreements should be retained for three years.

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SCU to offer assistance for those affected by a government shutdown

by Lori Holmes @ Service Credit Union

Sat Jan 20 05:00:06 PST 2018

Service Credit Union is committed to helping its members who are affected during the government shutdown. For those with direct deposit, Service Credit Union will post credits to members based on the postings nearest to January 1, 2018. The credit of that amount will take place on or before February 1, 2018. This will apply […]

Cook the books

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 04:57:00 PDT 2018

To cook the books means that the managers of a business are deliberately falsifying certain aspects of its financial statements to give investors a false impression of the true state of the business. Alternatively, they engage in business practices to enhance financial results that are technically legal, but which will have a negative impact on the business over the long term. A number of techniques can be used to cook the books, such as the following:

Falsification activities

• Leaving the books open past the end of the month to record additional sales within the prior reporting period.
• Not recording expenses in the reporting period, even though they clearly reflect resource consumption in the period.
• Altering the terms of leasing arrangements so that the liability appears to be held by a third party, thereby keeping the liability off the entity's balance sheet.
• Falsely recording pension liabilities lower than is really the case.
• Setting up expense reserves, such as the allowance for doubtful accounts, that do not reflect the actual loss rate.
• Recording consignment sales as though they are actual sales.
• Taking a one-time charge that is set up as a "cookie jar," which can be used in subsequent periods to write off expenses and artificially inflate profits.

Business practices

• Engage in channel stuffing to sell more goods to customers than they can realistically use.
• Grant much higher credit levels to customers in order to boost sales, even though the customers may not be able to pay off the receivables.

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Organic growth

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 12:42:00 PDT 2018

Organic growth is the increase in sales of a business generated by those of its operations that were in existence at the beginning of the measurement period. The concept is used to differentiate between sales generated from existing operations and those operations that were acquired during the measurement period. In particular, organic growth is used to determine whether existing operations are in a state of decline, neutral growth, or expansion. It is entirely possible that organic "growth" will actually be negative.

For example, a company may report 100% growth during a period, but further analysis may reveal that 95% of the growth was from sales attributable to an acquisition and 5% to existing operations.

Organic growth can be caused by any of the following:

• An increase in prices
• An increase in units sold of existing products
• Sales of new products from existing operations
• Sales to new customers for products from existing operations
• Sales generated by new distribution channels
• Sales generated in new sales regions

Organic growth nearly always refers to changes in revenue, but can be used in reference to changes in profitability or cash flows.

The organic growth concept is a solid growth strategy for many businesses. This approach depends on internally-generated growth, rather than through acquisitions, and is a particularly viable option for a business that does not have sufficient cash to acquire other entities. However, this type of growth tends to be rather slow, especially when compared to the massive sales gains that can be achieved through an acquisition strategy. Also, organic growth could be in a sales segment that does not generate much cash flow, whereas an acquisition could generate sales in a more profitable segment of the market.

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What Does Pay Frequency Mean?

by Michele Bossart @ Payroll Tips, Training, and News

Wed Feb 21 05:10:38 PST 2018

When you have employees, you need to run payroll so they can receive their wages. Before paying employees, you need to decide on a pay frequency. Your industry, the number of employees you have working for you, the type of workers you have, and legal requirements determine your pay frequency. But first, what does pay […]

The post What Does Pay Frequency Mean? appeared first on Payroll Tips, Training, and News.

Inventory change

by Steven Bragg @ Articles - AccountingTools

Tue Mar 27 13:22:00 PDT 2018

Inventory change is the difference between the inventory totals for the last reporting period and the current reporting period. The concept is used in calculating the cost of goods sold, and in the materials management department as the starting point for reviewing how well inventory is being managed. It is also used in budgeting to estimate future cash requirements. If a business only issues financial statements on an annual basis, then the calculation of the inventory change will span a one-year time period. More commonly, the inventory change is calculated over only one month or a quarter, which is indicative of the more normal frequency with which financial statements are issued.

For example, if the ending inventory at the end of February was $400,000 and the ending inventory at the end of March was $500,000, then the inventory change was +$100,000.

The inventory change calculation is applicable to the following areas:

• Accounting. Inventory change is part of the formula used to calculate the cost of goods sold for a reporting period. The full formula is: Beginning inventory + Purchases - Ending inventory = Cost of goods sold. The inventory change figure can be substituted into this formula, so that the replacement formula is: Purchases + Inventory decrease  - Inventory increase = Cost of goods sold. Thus, it can be used to slightly compress the calculation of the cost of goods sold.
• Inventory management. The materials management staff uses the inventory change concept to determine how its purchasing and materials usage policies have altered the company's net investment in inventory. They typically drill down from the inventory change figure and review changes for each type of inventory (e.g., raw materials, work in process, and finished goods), and then drill down further to see where changes arose at the level of each stock keeping unit. The result of this analysis may include changes in ordering policies, the correction of faulty bills of material, and alterations to the production schedule.
• Cash budgeting. The budgeting staff estimates the inventory change in each future period. Doing so impacts the amount of cash needed in each of these periods, since a reduction in inventory generates cash for other purposes, while an increase in inventory will require the use of cash.

The concept is also used in a general sense to keep track of the overall investment in inventory, which management may monitor to see if working capital levels are increasing at too rapid a pace.

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Service Credit Union to offer assistance for those affected by a Government Shutdown

by Lori Holmes @ Service Credit Union

Wed Dec 06 08:39:27 PST 2017

Service Credit Union is committed to helping its members in the event of a government shutdown by covering the December mid-month payroll and offering a 0% loan. If the shutdown occurs and the Defense Finances and Accounting Services (DFAS) does not pay mid-month payrolls, Service Credit Union will post credits to members based on the […]

Why every business should consider switching to electronic payroll

by rapid! PayCard @ rapid! PayCard

Thu Oct 05 05:37:57 PDT 2017

Due to advancements in technology, utilizing payroll checks is becoming an outdated form of payment. Automated payment through direct deposit saves time and money, enhances security1, 2 and can make payday easy for employers and employees. Yet, resistance to modern banking solutions like direct deposit and paycards prevent many businesses from progressing in the 21st century. Paycard technology is growing in popularity, and as the benefits of switching to electronic payroll compound,  it becomes more difficult for businesses to avoid trying out alternative payment methods such as the rapid! PayCard. Still not convinced? Here are 3 reasons why paycheck holdouts are making the switch to a more convenient, modern, and... Read More

How to Build an Office Seating Plan That Scales

by Rachel Bolsu @ Namely: Blog

Thu Mar 22 09:00:42 PDT 2018

As your workforce grows, keep these office planning do’s and don’ts in mind.

Nonprofit accounting

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 04:55:00 PDT 2018

Nonprofit accounting refers to the unique system of recordation and reporting that is applied to the business transactions engaged in by a nonprofit organization. A nonprofit entity is one that has no ownership interests, has an operating purpose other than to earn a profit, and which receives significant contributions from third parties that do not expect to receive a return. Nonprofit accounting employs the following concepts that differ from the accounting by a for-profit entity:

• Net assets. Net assets take the place of equity in the balance sheet, since there are no investors to take an equity position in a nonprofit.
• Donor restrictions. Net assets are classified as being either with donor restrictions or without donor restrictions. Assets with donor restrictions can only be used in certain ways, frequently being assigned only to specific programs. Assets without donor restrictions can be used for any purpose.
• Programs. A nonprofit exists in order to provide some kind of service, which is called a program. A nonprofit may operate a number of different programs, each of which is accounted for separately. By doing so, one can view the revenues and expenses associated with each program.
• Management and administration. Costs may be assigned to the management and administration classification, which refers to the general overhead structure of a nonprofit. Donors want this figure to be as low as possible, which implies that the bulk of their contributions are going straight to programs.
• Fund raising. Costs may be assigned to the fund raising classification, which refers to the sales and marketing activities of a nonprofit, such as solicitations, fund raising events, and writing grant proposals.
• Financial statements. The financial statements produced by a nonprofit entity differ in several respects from those issued by a for-profit entity. For example, the statement of activities replaces the income statement, while the statement of financial position replaces the balance sheet. Both for-profit and nonprofit entities issue a statement of cash flows. Finally, there is no nonprofit equivalent for the statement of stockholders' equity, since a nonprofit has no equity.

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Service Credit Union donates to the N.H. Food Bank

by Lori Holmes @ Service Credit Union

Fri Dec 22 08:49:58 PST 2017

Service Credit Union donated $10,000 and 1,326 pounds of food to the New Hampshire Food Bank, a program of Catholic Charites NH, in order to help the citizens of New Hampshire. Service Credit Union President/CEO David Van Rossum recently presented the check to New Hampshire Food Bank Executive Director Eileen Groll Liponis to help keep […]

Service Credit Union named top CU Direct auto lender

by Lori Holmes @ Service Credit Union

Fri Feb 23 08:19:49 PST 2018

Service Credit Union (SCU) was named the top auto lender in the New England/New York region and 10th nationally for 2017 by CU Direct. CU Direct works with auto dealers and credit unions throughout the U.S. to streamline the auto buying process. Last year, the credit union funded more than 21,000 auto loans at approximately […]

10 HR Mantras to Inspire Your Practice

by Rachel Bolsu @ Namely: Blog

Thu Mar 15 06:36:29 PDT 2018

When times get tough, here are the words of wisdom that keep HR people resilient.

How to Prepare for an Interview When You’re Self-Employed

by Due.com @ Chime Banking

Tue Mar 27 13:03:23 PDT 2018

There are many myths about self-employment that people may start to mistake for fact. Working for yourself can be a great thing, but it doesn’t always mean you’ll be 100% in control of your career and the day-to-day operations. Often times, you’ll still have to work with others and may even have to please clients if you’re […]

The post How to Prepare for an Interview When You’re Self-Employed appeared first on Chime Banking.

The Equifax Hack Was Worse Than Expected. What to Do Next

by Jeanine Skowronski @ Chime Banking

Thu Mar 15 15:59:14 PDT 2018

Looks like that worst-ever Equifax data breach was … actually worse. In late 2017, the credit reporting agency divulged a systems breach exposed the personal information of 145.5 millions Americans, including names, Social Security numbers, birth dates, addresses, dispute documents, as well as some credit card account and driver’s license numbers. But the hackers also obtained […]

The post The Equifax Hack Was Worse Than Expected. What to Do Next appeared first on Chime Banking.

National Teach Children to Save Day

by rapid! PayCard @ rapid! PayCard

Mon Apr 24 07:00:35 PDT 2017

Like any company that provides technology to make life easier, we examine the millennial demographic. They are the population sector interested in options – from ways to communicate, to ways to bank. In their April 2016, article, Pew Research Center cited estimates by the U.S. Census Bureau that millennials have now “surpassed Baby Boomers as the nation’s largest living generation”. A powerful consumer force, the members of this group are working “real jobs” and building careers. They are open to alternatives. They also need them as they don’t typically comply with traditional banking methods. Per rapid! PayCard’s October 2016 article about banking options for millennials and the flexibility of getting... Read More

Consult This Employee Termination Checklist to Keep Things Running Smoothly

by Rachel Gray @ Payroll Tips, Training, and News

Wed Mar 07 05:10:00 PST 2018

Employees leave companies every day to pursue growth opportunities, accommodate personal lives, or experience change. As an employer, you hope employees won’t leave your business, but you know this is wishful thinking. When an employee resigns, you need to know what to do. The average annual overall turnover rate is 19%, according to SHRM. If […]

The post Consult This Employee Termination Checklist to Keep Things Running Smoothly appeared first on Payroll Tips, Training, and News.

Human resource accounting

by Steven Bragg @ Articles - AccountingTools

Wed Mar 28 16:21:00 PDT 2018

Human resource accounting involves the tracking of all costs related to employees in a separate report. These costs may include the following:

• Employee compensation
• Employee payroll taxes
• Employee benefits
• Employee training

Such an accounting system can be used to determine where human resources costs are especially heavy or light in an organization. This information can be used to redirect employees toward those activities to which they can bring the most value. Conversely, the report can be used to identify those areas in which employee costs are too high, which may lead to a reduction in force or a reallocation of staff away from those areas.

A more comprehensive human resource accounting system goes beyond the simple tracking of employee-related costs, and addresses the following two additional areas:

• Budgeting. An organization's annual budget includes a component, in which is concentrated all employee costs being incurred from across the organization. By concentrating cost information by its nature, management can more clearly see the total impact of human resource costs on the entity.
• Employee valuation. Rather than looking at employees as costs, the system is redirected toward viewing them as assets. This can involve the assignment of values to employees based on their experience, education, innovativeness, leadership, and so forth. This can be a difficult area in which to achieve a verifiable level of quantification, and so may have limited value from a management perspective.

From an accounting perspective, the expense-based view of human resources is quite easy - employee costs from the various departments are simply aggregated into a report. The employee valuation approach is not a tenable concept for the accountant, since this is an internally-generated intangible asset, and so cannot be recorded in the accounting system.

Related Courses

Human Resources Guidebook 
Payroll Management 

How to Save Money on Your Utility Bills

by Melanie Lockert @ Chime Banking

Mon Mar 26 11:21:00 PDT 2018

Do you cringe each month when you get your utility bills? When you see a super high bill, do you wonder what happened? We’ve all been there, and high bills for gas, electricity and cable can certainly put a dent in your bank account. But all is not lost. If you want to keep your […]

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