Auditors for New York Book Publishers
August 1, 2008
When book publishers in New York ask us to recommend CPA firms that know book publishing we usually recommend;
1. Eisner LLP based in New York with offices in New Jersey and Long Island.
2. Marks Paneth & Shron LLP, also based in New York.
3. Ernst & Young LLP, one of the big four accounting firms.
Intercompany Sales
May 24, 2008
Occassionaly we come accross book publishers that operate several companies and transfer books among these related companies for resale. The question arises as to what is the proper way to account for sales.
Some publishers account for them as normal sales. This recognizes income at the time of the stock transfer, even though the inventory has not been resold to the final consumer.
Others transfer the stock on a consignment basis. With this method the original publisher retains title until the stock is sold. This delays revenue recognition until the books are sold to the final consumer.
The proper way to account for these transfers is to treat them as consignment sales.
Why?
- You do not recognize income until the stock is actually sold to the end user (ie retailer, wholesaler).
- You minizime your taxable income.
