Auditing Book Publishers
July 16, 2008
If you are a book publisher with sales of $5M or more, or a small publisher owned by a larger company its likely that your books are audited by an outside certified public accounting firm.
To minimize this expense you need to know what they will be looking for and be prepared to answer their questions. Here are the six areas that we see auditors of book publishers focusing on; Read more
Audit 101 Accounts Receivable
June 1, 2008
This post is the first of a series on how to pass an audit of your book publishing firm with flying colors.
1. Accounts Receivable
When an outside auditor looks at your book publihsing trade A/R (accounts due from customers) they are likely looking for several things;
a. Are your A/R properly classified. Accounts with a credit balance (i.e. they have a credit balance, most likely for returned books) should be classified as a liability not an asset.
b. Do you resonably expect to collect on the amounts listed within one year?
c. Is your allowance for doubtful accounts a realisitc and supportable number?
d. Is your allowance for future returns a realistic and supportable number?
e. Have you reconciled the A/R balances of your major accounts?
