Running header: MEMO
From: CHIEF FINANCIAL OFFICER
Date: March 23, 2020
Subject: Delayed payment of wages
Dear members, I would like to take this opportunity to explain and put to rest some of the
recent issues facing BizCon, among them being the delayed payment of employee wages. To be
more specific, BizCon employees have not received one month's wages as a result of cash
shortfalls within the company. The objective of this memo is to explain in detail why the
company has cash shortfalls.
To begin with, it is important to point out that there are apparent differences between the
accrual and cash methods of accounting. These two methods of accounting have an impact on the
business in terms of paying suppliers, settling employee wages, and the policy of 180-day
financing. The primary focus is based on wages paid to workers at different times of the financial
year and the revenues the company expects to receive using the two basic accounting methods.
The company suppliers have implored to be paid their dues on a cash bas...
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