Sunday, January 4, 2009

Take off - Doctor's order !

OK.. Here the doctor is economy, the juncture at which it is poised now.
A quick way to reduce cost (liability) of the balance sheet is to ask employees to take paid leaves for a while.
As, one takes off or not, employer owes the allowed amount of paid leave to the employee every year and if not used by the employee, then it stays on the balance sheet as "Owed money", otherwise known as "liability", which is a negative number.
All negative numbers, pull down the positive total in a sum. In this case the "assets".
And, when best to ask the employees to take off (mandatory) ? The least productive time of the year of course.
Better that laying off a few deserving employees when economy bites !

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