What can SOX do for nonpublic companies?

When you think about the Sarbanes-Oxley Act of 2002 – SOX – Section 404 what comes to mind? Large scale fraud that caused the act? Increased government regulation around financial reporting? Requirement of controls and the disclosure of the assessment of internal controls? One of the last words that might come to mind is efficiency. …

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Benford’s Law and the mysteries beneath the numbers

Accounting is centered on numbers. Every day accounting journal entries full of numbers are recorded, accumulating as each day passes. By year-end, the general ledger will contain hundreds of thousands of entries, if not millions. As we roll up our sleeves to perform the year-end close, we are tasked with making sense of it all …

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More than just taxes – what do accountants do?

Upon telling someone that I’m an accountant, the most common response I’ve received is, “Oh, so you do taxes?” I then explain that the only taxes I prepare are my own. There are several different areas of accounting and types of accountants, both internal and external. First, there are several types of internal accountants. An …

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Common book-to-tax differences, understanding your business

While most business owners are concerned with the accounting impact for certain transactions, they are equally as interested in the impact it will have to their taxes. While many transactions are treated the same for both financial and tax purposes, there are various transactions that, due to the nature or timing, are treated differently. Accordingly, …

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Functional expenses allocation: what to include

As many of you may know, the Financial Accounting Standards Board (FASB) issued a new standard ASU 2016-14, Presentation of Financial Statements. One effect this standard has is that it creates consistency on how expenses are presented in the financial statements for all nonprofit organizations. Functional expenses can be disclosed in three different ways: 1. …

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New revenue recognition standard: subscription based organizations

After almost five years of talking about it, the long-anticipated revenue recognition standard is now being employed by the public filers. Private companies still have some time, but don’t procrastinate. There is a lot you need to do in 2018 to be able to apply the standard and the full or modified retrospective application. How …

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How to locate your old 401(k)

If you have contributed to a 401(k) at a former employer or think that you may have done so, you probably want to find your account. Maybe you switched jobs or moved and lost track of your funds. Not to worry. Your money is protected and should still be out there. Here are several steps …

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Opt-out forms: employees decline to participate in 401(k)

You’ve got your process figured out – 401(k) benefit packages are given to employees the date they’re hired, or maybe it’s when they become eligible to participate or perhaps you rely on your TPA to communicate to the employee how to enroll when eligible. You collect all the necessary enrollment forms and get participating employees’ …

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Time’s almost up to comment on revenue recognition

It’s coming, are you ready for it? Do you remember the revenue recognition standards? In our last two blogs, we discussed the government accounting standards board working on a new revenue/expense recognition project. This has huge implications on government accounting. The research phase of the project has been completed and now the board is on …

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New revenue recognition standard, time to get ready

Accounting standards are constantly evolving, with new ones issued from the Financial Accounting Standards Board (FASB) every year. Many times, they have no impact to most private companies. However, the FASB’s new revenue recognition standard is expected to have one of the most far-reaching impacts seen in quite some time. Even if it doesn’t change …

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