1. There are many accounts payable to settle.
Enterprises need a large number of accounts payable that have not been properly handled before they can begin to consider turning them into non-operating income. These accounts payable can come from products that have gone offline, closed suppliers or account losses caused by business operations. If an enterprise does not have a large amount of accounts payable on hand, it is not feasible to convert it into non-operating income.
2. The company has sufficient financial support.
Turning accounts payable into non-operating income requires the company to have sufficient financial resources to support it, which is also the most difficult step in actual operation. The expenses that need to be paid in the process of transformation, such as evaluation fees, consulting fees, attorney fees, accounting fees, asset transfer fees, etc., all need the support of capital. Insufficient capital may lead to the failure to complete the transformation, and even lead to the deterioration of the financial situation of enterprises.
3. The company needs to have appropriate accounting treatment methods.
Enterprises want to convert accounts payable into non-operating income, but also need to have appropriate accounting treatment methods. These methods include evaluating the value of accounts payable, accurately calculating financial losses, safeguarding the rights and interests of decision makers and other stakeholders, and handling relevant registration. Appropriate accounting policies and principles should also be applied to recognition, measurement and disclosure. In addition, possible audit risks and tax burdens need to be considered, which should be kept in mind as a decision-making issue.
How long can accounts payable be converted into non-operating income:
According to the relevant regulations of the tax authorities, accounts payable that have not been paid for more than three years and other accounts payable that have been included in the cost should be "recognized as income". Therefore, enterprises that have not paid accounts payable for more than three years can be transferred to non-operating income.