LanguageEnglish
+

Friday, 20 May

Search Engine

The ABCs of activity-based costing

Cynthia Petschke

Posted By: Cynthia Petschke

Posted January 28, 2022 / No comments

Revenue and expenses, as reported on your company’s income statement, have limited usefulness to people inside the organization. Managers often need information presented in a different format in order to make operational and strategic decisions. That’s where activity-based costing comes into play. This costing system is commonly used in the manufacturing and construction sectors to

Read More

Look to the future with a QOE report

Stephen Leazzo

Posted By: Stephen Leazzo

Posted November 19, 2021 / No comments

Are you thinking about merging with or acquiring a business? CPA-prepared financial statements can provide valuable insight into historical financial results. But an independent quality of earnings (QOE) report can be another valuable tool in the due diligence process. It looks beyond the quantitative information provided by the seller’s financial statements. These reports can help

Read More

Updated guidance on the employee payroll tax deferral

Cynthia Petschke

Posted By: Cynthia Petschke

Posted January 29, 2021 / No comments

In late January, the IRS updated Notice 2020-65. It provides guidance regarding an executive memorandum signed last summer that allowed employers to defer the withholding, deposit and payment of certain payroll tax obligations in 2020. The update reflects the changed deferral rules contained in the Consolidated Appropriations Act (CAA). A brief history On August 8, 2020, a

Read More

Accounting for property, plant and equipment assets

Cynthia Petschke

Posted By: Cynthia Petschke

Posted January 22, 2021 / No comments

Businesses and not-for-profit entities capitalize machines, furniture, buildings, and other property, plant and equipment (PPE) assets on their balance sheets. Here’s a refresher on some common questions about how to properly report these long-lived assets under U.S. Generally Accepted Accounting Principles (GAAP). What’s included in book value? PPE is reported on the balance sheet at

Read More

New law provides option to delay implementing the updated CECL standard

Stephen Leazzo

Posted By: Stephen Leazzo

Posted January 8, 2021 / No comments

The Consolidated Appropriations Act (CAA), signed into law on December 27, 2020, includes a variety of economic relief measures. One such measure allows certain banks and credit unions to temporarily postpone implementation of the controversial current expected credit loss (CECL) standard. Here are the details. Updated accounting rules The Financial Accounting Standards Board (FASB) issued Accounting

Read More

Gifts in kind: New reporting requirements for nonprofits

Cynthia Petschke

Posted By: Cynthia Petschke

Posted October 2, 2020 / No comments

On September 17, the Financial Accounting Standards Board (FASB) issued an accounting rule that will provide more detailed information about noncash contributions charities and other not-for-profit organizations receive known as “gifts in kind.” Here are the details. Need for change Gifts in kind can play an important role in ensuring a charity functions effectively. They may

Read More

Forecasting financial results for a start-up business

Stephen Leazzo

Posted By: Stephen Leazzo

Posted August 9, 2020 / No comments

There’s a bright side to today’s unprecedented market conditions: Agile people may discover opportunities to start new business ventures. Start-ups need a comprehensive business plan, including detailed financial forecasts, to drum up capital from investors and lenders. Entrepreneurs may also use forecasts as yardsticks for evaluating and improving performance over time. However, forecasting can be

Read More

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

Read More

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

Read More

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

Read More