Planning for your year-end audit, review or compilation engagement should be kept on your mind all year round. There are several events that can occur in your business throughout the year that can impact the financial statements and the year-end engagement. We value a continuing and positive rapport with our clients throughout the year. While …
I often see that indirect costs that are incurred in the production of inventory are not capitalized, especially with smaller companies. Direct labor costs may be captured in the inventory valuation but not always indirect costs. So, what are indirect costs? Indirect costs (or “overhead”) include such items as: Building/factory rent Utilities Supervisory payroll Payroll …
Agriculture is a big part of Arizona’s past, present and future. From crops to livestock, there are many farming and ranching companies within the state. One question that may come about when running a company involving agriculture, or farm, is what to do with your crops, animals and other products. Do you make these your …
Selecting useful lives to depreciate fixed assets over can be a difficult task. It is hard to predict how long an asset will last or how long it will be before it becomes obsolete. The answer to this question first depends on the type of asset. A computer, for example, can become obsolete well before …
In our last blog posting, we covered certain non-recurring items that the Emerging Issues Task Force is looking at related to Statement of Cash Flows presentation. Let’s step it back a bit and go over the basics of the Statement of Cash Flows. Who – Financial statement preparers. What – The Statement of Cash Flows …
Electronic storage is becoming commonplace in today’s work environment and that creates modern perils for managing financial data. Companies should continue to revisit how they use electronic storage to their benefit, as well as the controls over items stored, to ensure that the control environment remains strong. This blog will cover three components to electronic …
From our experience, we’ve noticed that some smaller companies tend to struggle with the concept of accrued expenses. They are unsure about what they should accrue for and when they should accrue for it. Accrued expenses To help clear this up, let’s first start by talking about what an accrued expense is. The definition of …
In 2015, the FASB changed the requirements for presentation of issuance costs associated with debt. These updates were made as part of FASB’s initiative to reduce complexity in accounting standards and went into effect in 2016. Debt issuance costs consist of brokerage, legal and other professional fees incurred in connection with issuance of long-term debt. …
Many companies develop software internally to sell to others. But which costs are research and development expenses and which costs can be capitalized and then amortized? Technological feasibility is what separates these two costs and once determined, dictates the accounting treatment. What is technological feasibility and when does it occur? This occurs when the program …
Gift cards can have many benefits for a company. They increase cash flow, bring in new customers and can result in increased income. As beneficial as they can be, when it comes to accounting for gift cards, as well as ensuring that you’re in compliance with various state laws, there’s a lot to be aware …