What is the Difference Between Donor-Advised Funds and Restricted Donations?

Donors advising on the use of their donation sounds relatively the same as donors restricting the use of their donation, doesn’t it? These are actually very different concepts. Donor advised funds are separately identified accounts that are maintained by a public charity. After the donor makes an unrestricted donation to the donor advised fund/account, the …

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Straight-line expense recognition of leases

Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020.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 …

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International fraud awareness week puts spotlight on fraud

International Fraud Awareness Week is an initiative to raise fraud awareness. Here are some basics that all organizations should follow to prevent and detect fraud, according to the Fraud Week website. Establish a fraud policy  This policy outlines what activities are considered and how they should be reported to management or the board of directors. …

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Accounting for property taxes

Real estate and personal property taxes can be a little tricky for some people to account for. For instance, in Arizona, taxes for the calendar year are generally due in two installments. The first installment for the first half of the year is due on October 1 and delinquent on November 1. The second installment …

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The differences between GAAP, cash basis and modified cash basis of accounting

Generally Accepted Accounting Principles in the U.S. (GAAP) are just that – generally accepted. However, it’s not the only choice of accounting basis available to nonprofit and government organizations, and many organizations select another basis of accounting. There could be many reasons for presenting a different basis, one being that it may be more in …

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8 Essential Elements of an Exit Strategy for Business Owners: Part III

Develop a Strong Management Team The development of a strong management team is usually a necessary consideration in the preparation of an exit strategy. This helps to ensure a smooth transition with some continuity of leadership and talent. One consideration is whether, and when, the owner replaces himself/herself as the CEO. An outside person may …

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What is an ESOP?

I started a new job as an accounting manager and my employer notified me that I will be eligible to participate in their Employee Stock Ownership Plan (“ESOP”) after one year of service. They also said the ESOP was leveraged. In addition to being eligible to participate in the ESOP, I was given the task …

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