Recent Articles

The True Cost of Labor

Labor costs are more than just gross wages and benefits. It should include the costs of insurance, employer taxation, human resources management and incentives. All of the costs associated with delivering the human element of service should be included.

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 [...]

Operate Within Your Range of Production

02/13/2013

One of the basic business concepts is range of production.  It means maximizing the capacity (range) of the assets in your operation.  When the business operation goes beyond the maximum production range, costs associated with the marginal [...]

The Different Forms of Compensation

01/21/2013

There are two forms of compensation provided to employees; direct and indirect.  Direct forms of compensation have a multitude of types or methods, from salaries to bonuses.  Indirect compensation is primarily the various types of benefits and [...]

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 [...]

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 [...]