Recent Articles

Labor

Salaries and wages paid to employees to provide services or manufacture products.

Three Primary Characteristics of Successful Businesses

11/11/2014

Well, this is my 200th article in two years.  So I’m going back to the very first article I wrote and essentially rewriting that piece.  When I reviewed it, I thought how poorly written and formatted the piece is and therefore I wanted to make [...]

Accrued Payroll – An Explanation

04/01/2013

Accrued payroll is a current liability comprised of four sections.  The first is the amount of payroll earned by staff and not yet processed or paid.  The second is the dollar value of personal time off accumulated for each employee aggregated [...]

Controlling Food Costs in the Restaurant Industry

01/08/2013

The top two costs associated with owning a restaurant is labor and food.  Controlling these prime costs in effect is the bottom line in your business.  So how do you control food costs?  First identify the correct quantity and quality of food you [...]

The True Cost of Labor

01/01/2013

I laugh at the definition of labor costs because in my opinion the so called experts only have it half right.  Labor costs are more than just gross wages and benefits.  It should include the costs of insurance, employer taxation, human resources [...]

Form 941 – The Basics

12/26/2012

Form 941 is the employer’s quarterly federal tax return.  It reports how much federal income taxes were withheld; Social Security taxes and Medicare taxes that are due and how much was paid in deposits to the Internal Revenue Service.  The [...]

What is ‘Cost of Goods Sold’?

12/20/2012

Simply put, ‘cost of goods sold’ equals the direct costs of materials, human resources, and equipment needed to produce the item sold.  However, this can be confusing because there are many marginal cost items that affect the real cost of [...]

A Story About Great Production

12/12/2012

When I started out in accounting I had a job as a controller at a restoration contractor.  They would provide emergency mitigation for water damage jobs, mostly residential damage.  Every now and then we would get a call for a larger commercial [...]

Service Equals Timeliness and Accuracy

11/29/2012

In the world of accounting, we stand on two principles; timely and accurate information for the client.  Without either, the client can’t make good decisions.  As accountants our job is to record economic transactions and report this information [...]