ICANDO Pte Ltd is a medium size IT Company that was started in January 2011 by Dennis Tan. When the company was set up in 2011, Dennis did his own accounting but he later employed April, a fresh graduate, to help him in December 2011.
Nature of the Projects
The main revenue of the company comes from IT projects that ICANDO develop for enterprises that operate their businesses on websites.
Revenue is recognised based on the percentage of completion method. The project managers will estimate the percentage of completion for the project based on project milestones which typically involves scoping of client's requirement, development work, and implementation.
The payment of these projects does not necessarily correspond with the percentage of completion. A typical payment schedule would consist of 60% upfront payment upon engagement of services, a subsequent payment of 30% upon satisfactory completion of project and then a final 10% retention sum payable one month upon handover of project.
A typical project schedule will involve the stipulated number of consultancy man days and how much time they had spent in the project. For most of these projects, the customers would also request that the hardware be purchased by ICANDO on their behalf.