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Thursday, 4 June

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Reporting contingent liabilities

Stephen Leazzo

Posted By: Stephen Leazzo

Posted February 1, 2020 / No comments

Contingent liabilities reflect amounts that your business might owe if a specific “triggering” event happens in the future. Sometimes companies are unclear when they’re required to report a contingent liability on their financial statements under U.S. Generally Accepted Accounting Principles (GAAP). Here are the basics. What are contingent liabilities? Operating a business comes with a

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Nonprofits: Are you ready for the new contribution guidance?

Stephen Leazzo

Posted By: Stephen Leazzo

Posted January 2, 2020 / No comments

When the Financial Accounting Standards Board (FASB) updated its rules for recognizing revenue from contracts in 2014, it only added to the confusion that nonprofits already had about accounting for grants and similar contracts. Fortunately, last year, the FASB provided some much-needed clarification with Accounting Standards Update (ASU) No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying

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FAQs about prepaid expenses

Cynthia Petschke

Posted By: Cynthia Petschke

Posted December 6, 2019 / No comments

The concept of “matching” is one of the basic principles of accrual-basis accounting. It requires companies to match expenses (efforts) with revenues (accomplishments) whenever it’s reasonable or practical to do so. This concept applies when companies make advance payments for expenses that will benefit more than one accounting period. Here are some questions small business

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GAAP vs. tax-basis: Which is right for your business?

Keith Orr

Posted By: Keith Orr

Posted November 28, 2019 / No comments

Most businesses report financial performance using U.S. Generally Accepted Accounting Principles (GAAP). But the income-tax-basis format can save time and money for some private companies. Here’s information to help you choose the financial reporting framework that will work for your situation. The basics GAAP is the most common financial reporting standard in the United States.

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Can employees donate unused vacation pay to charity?

Robert Tighe

Posted By: Robert Tighe

Posted November 25, 2019 / No comments

Like many employers, you may allow employees to carry over unused vacation pay from one year to the next. With the year winding down, and gift giving on the minds of many, certain staff members might inquire about donating their unused vacation pay to charity. In turn, you may wonder: Is doing so allowed under

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2 valuable year-end tax-saving tools for your business

Cynthia Petschke

Posted By: Cynthia Petschke

Posted November 25, 2019 / No comments

At this time of year, many business owners ask if there’s anything they can do to save tax for the year. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery, equipment, furniture or

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Manage your working capital more efficiently

Stephen Leazzo

Posted By: Stephen Leazzo

Posted November 22, 2019 / No comments

Working capital is the difference between a company’s current assets and current liabilities. For a business to thrive, its working capital must be greater than zero. A positive balance enables the company to meet its short-term cash flow needs and grow.   But too much working capital can be a sign of inefficient management. In

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Close-up on pushdown accounting for M&As

Stephen Leazzo

Posted By: Stephen Leazzo

Posted November 15, 2019 / No comments

Change-in-control events — like merger and acquisition (M&A) transactions — don’t happen every day. If you’re currently in the market to merge with or buy a business, you might not be aware of updated financial reporting guidance that took effect in November 2014. The changes provide greater flexibility to post-M&A accounting. Pushdown accounting is optional

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Don’t worry! A broken trust can be fixed

Keith Orr

Posted By: Keith Orr

Posted October 29, 2019 / No comments

There are good reasons why estate planning advisors recommend you revisit and, if necessary, revise your estate plan periodically: changing circumstances, including family situations and new tax laws. While it’s relatively simple to change a beneficiary, what if an irrevocable trust no longer serves your purposes? Depending on applicable state law, you may have options

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Reasons why cash is king

Stephen Leazzo

Posted By: Stephen Leazzo

Posted October 20, 2019 / No comments

In financial reporting, investors and business owners tend to focus on four key metrics: 1) revenue, 2) net income, 3) total assets and 4) net worth. But, when it comes to gauging short-term financial performance and creditworthiness, the trump card is cash flow. If a business doesn’t have enough cash on hand to pay payroll,

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