Issuing options and warrants to your customers?

Everyone knows issuing stock options and warrants is a great way to compensate employees and contractors for a job well done. These methods of compensation have been embraced by the startup community as a way to reward others without using up their much-needed cash. Issuing options and warrants to customers is a less common practice …

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Tips for being prepared for your year end audit

It is no secret when it comes time for your annual audit, there is a lot to get done in a short amount of time. We are well aware of how stressful and time consuming this can be – which is why we want to provide you with some tips and advice so the process …

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Managing construction company overhead (general and administrative expenses)

There are generally three cost categories in construction: direct costs, indirect costs and general and administrative expenses (G&A). The word overhead is sometimes used interchangeably to describe indirect costs and G&A expenses. However, indirect costs should be thought of as field overhead while G&A expenses should be thought of as company overhead. G&A expenses are …

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Audits are not always fun, but do provide many benefits

The added responsibility of managing an audit on top of your day-to-day responsibilities can feel like an inconvenience. But it helps to keep in mind the benefits of having an audit that truly outweighs the inconveniences: Provides a reasonable level of assurance (not 100%) Provides more credibility for selling a business or applying for funding …

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Tips for auditing remotely

Auditing remotely has become the new normal for nearly every auditor across the country. While not ideal, professions are learning to adapt to the new normal we all are facing, and the auditing industry is no different. While it is easy to feel overwhelmed by having to change the processes and procedures you have become …

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The impact of hosting services on auditor’s independence

The AICPA Code of Professional Conduct provides guidance to CPAs and CPA firms related to the ability to perform non-attest services to attest (audit, review, and compilation) clients. Examples of non-attest services that practitioners, including us, provide are: Financial statement preparation Maintaining book and tax depreciation schedules Preparation of the company’s tax return Cash-to-accrual conversions …

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Importance of financial statement ratios

Monthly financial reports are a management way of obtaining a concise overview of the previous month’s financial wellbeing and performance. When reviewing these reports, there are common ratios that can give you insight into your company’s liquidity, financial leverage, and the overall efficiency of assets used, which can help when making future plans and decisions. One of …

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Funding capital to grow your business: debt vs equity

Generally, when your business requires outside financing, there are two different sources of funds, debt financing or equity financing. Both methods of financing can have a significant impact on your business and should be considered carefully. Debt Most of us are familiar with debt, whether you have had a credit card, taken out a student …

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FASB revenue recognition and lease accounting standard deferrals: You still have time!

Recently, the Financial Accounting Standards Board (FASB) voted to delay implementation of the new revenue recognition standards for nonpublic companies that have not yet issued their financial statements for calendar year 2019 and those with fiscal year ends ending after December 31, 2019. Leading up to this standard, the FASB proposed an optional extension of …

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Financial Accounting Standards Board issues guidance on how to account for a PPP loan

On June 9, 2020, the AICPA issued Technical Question and Answer (TQA) 3200.18 in conjunction with the Financial Accounting Standards Board (FASB) summarizing their responses relating to Paycheck Protection Program (PPP) loan accounting technical inquiries. PPP loans were made available through Congress’ passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act in March …

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