If your company routinely takes all purchase discounts, you can simplify your record-keeping by recording all purchases at the net rather than gross amount. Record missed discounts in a Purchase Discounts Lost account using the net-price method, as follows:
Your company receives an invoice for $10,000 with credit terms of 2/10, n/30. Under the net price method, the following entry is recorded:
To record receipt of invoice:
To record payment:
If, for any reason, the bill is not paid on time, the entry is:
Purchase Discounts Lost
The Purchase Discounts Lost account does more than simplify bookkeeping—it brings attention to money-saving discounts that your firm may be missing.
For more information or to hire a professional bookkeeper please contact us – firstname.lastname@example.org
Summer is right around the corner and you know what that means? Employees are going to be distracted. For the productivity of your company, why not consider a flex schedule? Many companies keep summer hours, whether it's an early out on Friday afternoon or a late start on Monday.
Who wouldn't want to sneak out early to spend a few hours at the beach, while others are wondering what their kids are up to at home on summer
vacation. Many businesses find that offering alternative summer work
schedules help energize and rejuvenate their employees to be more productive, not to mention it's a fabulous morale booster. If your type of business isn't
schedule-restrictive and you haven't considered offering a
flex schedule this summer, it's not too late. Your employees
will surely thank you!
A consolidated work week option is a common summer schedule to offer, from working four 10-hour days with one day off to 9 hour
days with a half day off or 9 hour days with a day off every two weeks.
In some companies employees are allowed to choose which of these options works
better for their schedules.
Many companies allow working from home year round, while other
companies permit it more during the summer. Employees with children off from school for the
summer will find this especially helpful since they may have to provide transportation to daycare or camp.
As you design the plan that works for your company, think about your daily and weekly business demands. And will this plan work for all aspects of your company?
Be sure to advise your staff there may be times when all employees, or just a few, will need to forego their summer hours.
Inform employees upon implementation, that the program
will be evaluated and may be changed at any time due to business
The benefits to a summer hours program can be enormous, but should be
carefully thought out prior to implementation. Summer is the time
many employees want to have fun, but you can't afford the needs of the business to
Do you keep summer hours? What does your company do for summer? Let us know...