Company Operations
A company handover needs a list of contracts that renew automatically
Include automatic-renewal contracts in a company handover, with verified notice deadlines, responsible owners and access to the governing documents.
MODELS · PROCESS · PEOPLE
Journal
Company Operations
An Authorised Signatory Still Needs a Clear Spending Limit
Separate permission to sign a document from internal approval of its cost, scope and ongoing commitments in a company’s purchasing workflow.
Understanding Companies
Operating Profit and EBITDA Leave Different Costs in View
Compare operating profit and EBITDA by reading the company’s definitions and reconciliation, rather than assuming they measure the same costs or cash generation.
Business Records
Read an Accounts Receivable Ageing Report From the Due Date
Check the ageing basis and report date before treating a receivable as overdue, then reconcile payments, credits and disputes before following up.
Understanding Companies
A Subsidiary and an Associate Sit Differently in Group Accounts
Read group-company relationships through control and significant influence, and distinguish consolidated subsidiaries from associates in IFRS reporting.
Reading Company Accounts
A Provision Records an Uncertain Obligation, Not a Spare Cash Account
An accounting provision recognises an uncertain liability. It does not necessarily mean the company has placed an equal amount of cash in a separate account.
Company Accounts
Depreciation Spreads an Asset’s Cost Across Accounting Periods
Depreciation allocates an asset’s depreciable cost over its useful life. A simple example separates accounting expense from the original cash payment.
How Companies Work
A Matrix Organisation Needs Clear Decisions Alongside Its Reporting Lines
Read a matrix organisation chart by asking who sets priorities, reviews work and resolves conflicts between reporting lines.
Company Fundamentals
A Trading Name Does Not Tell You Which Legal Entity You Are Dealing With
A public-facing trading name can differ from the legal entity on a contract. Check the registered identity before recording a supplier or customer.