CPAs Calculating the Latest in Audit + Accounting News

Statement of cash flows: restricted cash presentation

The Financial Accounting Standards Board (FASB) recently released Accounting Standards Update (ASU) 2016-18 regarding specific guidance on the presentation and classification of restricted cash in the statement of cash flows. The ASU notes the following items: The statement of cash flows is required to explain the change during the period in the total of cash, …

Keep Reading

Internally developed software accounting implications

There are times companies may have to make a decision of whether they should purchase software from an outside party or develop software internally to meet their operational needs. If companies choose internally developed software, they should at least be aware of the accounting implications because, when you develop the software internally, some of these …

Keep Reading

Financial ratios for analyzing financial statements

Financial ratios are often used to analyze the financial statements. They help the users to form conclusions about the financial health of the entity. Ratios can be used to form conclusions on the level of liquidity, leverage and profitability of a company’s financial statements. These ratios can also be used to compare companies with each …

Keep Reading

It’s audit time … HELP!

Is it that time again for the suits to show up at your front office asking for a conference room for two weeks and the lion’s share of your time to conduct your annual audit, while you’ve already spent hours compiling documents for their infamous “PBC List?” Well as one of those pesky auditors, I’m …

Keep Reading

How data breach can affect your business

Data breach is a topic that makes the news when large companies are affected. Earlier this year, Arizona’s largest health system provider, Banner Health, was hacked. As one of the affected individuals, I can only think about the immediate cost that Banner Health incurred when they offered me and all those impacted by the breach …

Keep Reading

Deferred compensation: does it work?

Former Major League All-Star Bobby Bonilla made headlines on July 1st, 2011, when he showed up on the New York Mets payroll. Most would expect a 48 year old former major leaguer to be on the payroll in the position of a coach or mentor, but Bobby Bonilla was just beginning to receive money that …

Keep Reading

Making the financial close process smoother

The financial close process is used to prepare the financial data of a company for financial statement presentation. The process centers on finalizing account balances in order to display financial data in the proper accounting period. It can be a complex process and usually involves many different employees, systems and processes within a company. There …

Keep Reading

Statement of Cash Flows Updates

On August 26, 2016, the FASB issued Accounting Standard Update 2016-15, Statement of Cash Flows (Topic 230). The new guidance is intended to reduce diversity in practice in how certain cash inflows and cash outflows are presented in the statement of cash flows. This update provides guidance on the following eight topics: Debt prepayment or …

Keep Reading

Financial statement requirements for franchisors

If you’re looking to start a franchise, be sure to look into all rules and requirements set by the Federal Trade Commission, or FTC. There are many items required to stay in compliance. Providing audited financial statements is one of those. Here is a brief overview of the financial statement requirements for U.S. – domestic …

Keep Reading

Why You Should Keep Your CPA in the Loop

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 …

Keep Reading