CPAs Calculating the Latest in Audit + Accounting News

Are you on the same page as your CPA?

I recently read an article that was quite interesting, very true (in some cases) and, at times, hilarious. It was an article titled “A New Glossary of Accounting Terms” by Charles J. Pendola. In the article, he discusses how accounting terminology may not mean the same thing from one individual to another, and the actual …

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The importance of preparing a budget

How successful would your business be if you could predict the future? Preparing a budget for your financial statements isn’t necessarily going to predict your future, but it is a good start. Budgeting your future financial statements is a helpful and useful tool that your business can utilize to help anticipate future performance and help …

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Internal Control & Outsourcing

What is the first thing that comes to mind when you think of internal controls? Making sure work is double checked? Making sure that the employee in charge of reconciling the bank account does not also receive the mail, sign checks, and reconcile receivable and payable accounts? Segregation of duties is typically one of the …

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Personal Financial Statements

Accountants are occasionally requested to compile personal financial statements. Unless these financial statements are specifically presented under another comprehensive basis of accounting such as cash basis or tax basis, these financial statements will generally be presented in accordance with generally accepted accounting principles (“GAAP”). However, there are a few key differences between GAAP for personal …

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Are You Biased?

As auditors, we’ve been taught over and over again to maintain professional skepticism when performing our audits. But as the landscape of companies change, so does our audit approach. With the increased use of technology and longevity of our client base, we need ensure our eyes are open and we ask the right questions. Bias …

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Accounting Standards Update: Accounting for Identifiable Intangible Assets in a Business Combination

In recent Henry & Horne blog posts, we have discussed the implementation of new Financial Accounting Standards Board (FASB) Accounting Standards Updates due to The Private Company Council’s (PCC) diligent work in finding alternatives within U.S. Generally Accepted Accounting Principles warranted for private companies. In December 2014, the FASB formally issued Accounting Standards Update (ASU …

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Inventory Reserves

If you are a company that carries inventory, you should most likely have an inventory reserve accounting policy in place. Creating an inventory reserve is a proactive and conservative accounting approach that companies use to prepare for events such as spoilage, theft, obsolescence, and other adverse situations on their inventories. An inventory reserve is a …

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Accounting Standards Update: Going Concern Disclosures

Traditionally under GAAP, financial statements are prepared using the going concern basis of accounting. This basis of accounting operates under the presumption that the reporting organization will continue to operate as a going concern (except in limited circumstances). Ultimately, this basis of accounting is critical to financial reporting because it establishes the fundamental basis for …

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Simplified Accounting for Goodwill for Private Companies

As many people know, in 2012, the Private Company Council (“PCC”) was formed to assist in creating alternatives in accounting for private companies. In November 2013, the Financial Accounting Standards Board (“FASB’) endorsed the proposal regarding an alternative approach for private companies for accounting for goodwill after a business combination. This accounting alternative was issued …

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