In case anyone is confused, under the accrual accounting method "income" is made when you get the RIGHT to be paid. So for example if you have performed a service and are awaiting payment, you are considered to have received income when the service was performed, not when actually paid. Under the cash method, you are considered to have received income when you actually receive the money.
Sounds to me like a moral issue. It seems that a profit sharing program was implemented and when it came time to payout the earnings from the program someone didn't like the amount being paid out so now they are finding reasons to not pay out the earnings.
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In case anyone is confused, under the accrual accounting method "income" is made when you get the RIGHT to be paid. So for example if you have performed a service and are awaiting payment, you are considered to have received income when the service was performed, not when actually paid. Under the cash method, you are considered to have received income when you actually receive the money.
It can work the other way around, too - if you are paid in advance for work, that isn't profit until you've actually done the work.
Great explanation
Sounds to me like a moral issue. It seems that a profit sharing program was implemented and when it came time to payout the earnings from the program someone didn't like the amount being paid out so now they are finding reasons to not pay out the earnings.
That reminds me of a very large project I helped get. Got to go fishing offshore with the customers and team but payday was over 2 years out.
She sounds like she's striking a fair balance between paying her people more yet being careful with her company's funds.
hazing? Dave? no way I don't believe it