What it means to be a CPA

If you use someone to prepare your taxes or have a firm that performs your company’s compilation, review or audit engagement, you are likely going to be working with a CPA who is signing off on the return or the report to your issued financial statements. You may even have a team of CPAs at …

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Benefits of cross training employees

Cross training is training people to work in several different roles or training them to do tasks outside of their normal responsibilities. In today’s competitive hiring environment, implementing cross training can bring benefits to existing and future employees and your company. Don’t miss: The benefits of peer reviewed CPA firms Some of the employee benefits …

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The benefits of peer reviewed CPA firms

Every three years audit firms enrolled in the AICPA Peer Review Program are required to have a peer review of their accounting and audit practice. Since the AICPA oversees the peer review program, the entity that performs the peer review is another firm approved by the AICPA. Basically, this is where the term “peer review” …

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What are the audit independence requirements?

Audited or reviewed financial statements need to be performed by an independent public accounting firm. What causes a firm to not be independent from your company? While there may be an obvious reason such as having ownership in your company, there are many situations that cause threats to independence. Here are occasions you may be …

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Significant risks in an audit

In order to perform an effective audit that results in a set of fairly stated financial statements it is necessary for us (the auditors) to gain an understanding of your business and identify any specific financial reporting risks, referred to as significant risks in an audit. Don’t miss: Monitoring inventory For the purpose of an …

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Monitoring inventory

Retail and distribution can be highly competitive. In order to persevere over your competitors, it is essential to have a strong grasp of your inventory system. Doing so will prevent obsolescence, shrinkage, provide insightful information and more. Along with monitoring inventory quantity and quality, key ratios in your everyday course of accounting and operations will …

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When is an accrual needed if you track accrued paid time off?

Many companies provide paid time off to employees, however not all employees use the entirety of their time off within the company’s fiscal year and roll over time to be taken in the following year. When this happens, it is the responsibility of the employer to track accrued paid time off for each employee. Accounting …

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What is an income tax provision?

Buckle your seatbelts because we’re about to go on an income tax provision ride. In this blog, we will be primarily focusing on current versus deferred portions of an income tax provision. Let’s begin by defining some terms. A tax provision is the income tax corporate entities will incur based upon the company’s net income …

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Does your company have antifraud programs and controls?

Antifraud programs and controls are put in place by a company to ensure management directives are carried out related to compliance with laws and regulations. Good antifraud programs and controls should focus on prevention, deterrence and detection of fraud related activities. Normally, there are three conditions that are present when fraud occurs: 1) incentive/pressure 2) opportunity …

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Financial statement close checklist

Whether you are new to the financial closing process or have been doing it for years, you know this task can be a daunting one. If you have never done a financial statement close it is best to understand the process and what you are trying to accomplish. When closing the books for a month/quarter …

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