Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020. For further information on the upcoming changes to lease accounting, click here. Sometimes operating leases aren’t as straightforward as they seem to be and there are a couple of situations that create a deferred …
There are some simple steps any entity can take to help make a financial audit as simple and painless as possible. First, good cooperation between the client and auditor is essential. Second is the client’s maintenance of a good system of internal controls over the financial activities occurring in the entity. These things make it …
Asset-based financing, though once considered a financing option of last resort, is now a popular choice for companies that are highly leveraged with debt or do not have a long credit track record for traditional financing. The main difference between asset-based financing and other traditional types of lending is that asset-based financing is secured by …
A key concept of internal controls within an organization is segregation of duties. Segregation of duties helps to significantly reduce the risk of error or fraud. Do you know which duties need segregation? Here is a little refresher on some of the control activities that should be segregated when it comes to accounts receivable and …
If you are in the business of providing goods, then you undoubtedly are in the business of managing your freight costs (both product in and product out). This posting will focus on managing inbound freight costs. For many companies, freight expense can be a significant portion of total expenses incurred for the year. So, what …
Over the past year, there seems to be some increase in activity related to mergers and acquisitions (“M&A”). When times are tough you typically see an increase in M&A activity as strong companies will act to buy other companies to create a more competitive, cost-efficient company. M&A’s can come in various forms. They can be …
If you are a business owner and your business is growing you may be looking into hiring additional help. The question then may be whether you should hire this person as an employee or as an independent contractor. Like most business owners, you will probably start by weighing those costs associated with each classification. Hiring …
It’s one of the most dreaded days of the year for many of you…physical inventory day. This can be a frustrating and time-consuming process with numerous obstacles, though with the proper planning you can make the physical inventory process run smooth and efficient. Inventory preparation – There is a lot you can do ahead of …
A significant portion of my career has been spent working with small or medium sized businesses that share two things in common. They use QuickBooks for their accounting software and their accounting personnel are not trained on how to effectively use QuickBooks. Without being trained on how to effectively use QuickBooks, the risk that errors …
As a follow up to the September 20th posting “Big GAAP vs. Little GAAP – Where are we at?” the Financing Accounting Foundation’s (FAF) Board of Trustees released its proposed plan last week to address constituents concerns over the standard-setting process for private companies. The proposed plan calls for the establishment of a “Private Company …
Get a high-level summary of the new leasing standard and what it means for you and your restaurant.