2 ms·
Ugh finance sucks but dude this guy's examples don't check out. > Our organisation’s accountants, in their infinite wisdom, had hardwired rules about maximum i
by curiousllama 6y ago
Ugh finance sucks but dude this guy's examples don't check out.
> Our organisation’s accountants, in their infinite wisdom, had hardwired rules about maximum increases in pay for existing employees which blocked this engineer’s manager from being able to give them a raise in line with their market rate
Escalate the pay issue of that soon-to-be college grad up your chain. Why are you making this Finance's call? If there's no escalation path (or sympathietic exec), then it's a management problem, not a finance problem.
> As a fleet of vehicles we used was approaching the end of a lease-hire agreement, we had the option of buying them out for a lump sum worth about 5 month’s worth of lease – let’s say €3k each or, getting a new fleet for another 3-year contract at €600/each per month. ... The accountants, however, were more worried about the abstract and frankly imaginary concept of depreciation that would come from us technically now owning these assets and them losing 10% of their value per year on paper.
Those numbers do not pass the most cursory of accounting logic from a finance perspective. You'd reduce Opex 86% by buying & depreciating over 3 years. If you depreciate on a 10 year schedule you're looking at 95%+ opex reduction. There's legit reasons not to do that (is the company's cash position weird? What are this quarters #s looking like? What else is in capex this year? What costs might you be forgetting?), but this guy seems to wildly misunderstand those reasons.