IntraScope Accounting Solutions, LLC

 

 

September 2002 Edition

_______________________________________________________

 

 

MANAGEMENT

 

In a recent article in the Rocky Mountain News, it was reported that more than 2/3 of workers use the internet during office hours.  It is a good idea to have a written policy to control computer use.  Prohibiting employees from playing games, e-mailing friends and family or accessing unacceptable web sites are common items addressed in e-mail policies.  A basic computer policy that outlines what is and is not acceptable use will help keep your employees productive and provide you with documentation in case of employee abuse of the internet.  It is a good idea to have your employees sign that they have received and read the policy.

 

TAX TIP

 

The ability to deduct charitable donations that are unusual in nature can be confusing.  The value of a service rendered to a charitable organization is never deductible.  However, an unreimbursed out-of-pocket expense can be deductible.  For instance, food purchased for a church meeting or uniforms or equipment needed to render a service would qualify for a deduction.  Travel expenses incurred in the performance of services away from home on behalf of a charitable organization may also qualify unless there is a significant element of personal pleasure.  Mileage is deductible at the rate of 14 cents per mile.  The payment for a ticket or charity event is only deductible to the extent the amount paid exceeds the fair market value of the admission or event.  For instance, if you pay $100 for a dinner event and the organizers determine the fair market value of the dinner and dancing is $75.00, you can deduct $25.00.  The purchase price of a raffle ticket is not deductible.

 

FINANCIAL

 

I am often asked what the bank will think about a company’s financial statements and its ability to get a loan.  One of the primary indictors a bank will look at is the current ratio.  This ratio is a rough indicator of whether cash on hand plus the cash flow from collecting accounts receivable and selling inventory will be enough to pay off the liabilities that will come due in the next period.  This is computed by dividing current assets by current liabilities.  Banks and other lenders like to see a current ratio of 2.  In other words, current assets should be twice the amount of current liabilities.

 

DID YOU KNOW…..

 

The cost of Worker’s Compensation in Colorado should be going down next year, while the cost of medical insurance is going up again – as much as 10% next year.