The COVID-19 pandemic has thrown a curveball that caused a unique environment in every industry. To most construction companies the pandemic had no significant effect on volume, however most contractors are worried about what the future holds and believe that curveball is still making its way to the plate. While there are theories of how …
Quite often, debt with lending institutions will contain certain covenants within the agreement that your company must abide by. Included with these may be certain financial covenants that must be met. For example, your company may need to maintain a level of debt service coverage or a minimum level of net worth. When these are …
While millions of businesses in the United States are grappling with the economic impact of COVID-19 and the uncertainly that lies ahead, there are potential items resulting from the pandemic that you need to consider as part of your financial reporting. You need to keep these in mind when reporting financial information to third parties. …
Personal data is a complicated asset for many businesses but is becoming more pervasive in the modern business world. Personal data obtained by businesses relating to their customers or employees is an extremely valuable asset and is used to market a business, make informed decisions and policies and reach certain conclusions. While the data is …
Internal controls should be designed to safeguard assets and help prevent or detect losses from employee dishonesty or error; the owner’s involvement in a small organization is important in maintaining good internal controls. One area of focus should be segregation of duties, which largely means having different people responsible for authorizing transactions or contracts, recording …
Many companies look to other forms of compensation to reward employees outside of standard cash paid wages and salaries. One common form is equity compensation. Equity compensation is the practice of granting non-cash pay that represents partial ownership in a company in exchange for services. The purpose of equity compensation is to allow the company’s …
In the accrual world of accounting, GAAP says that expenses should be recorded in the period in which the related revenues are earned. When it comes to your customers or clients paying their bills, it might not always happen and depending on the terms of the arrangement, it could be months before you are sure …
Your organization has changed. From employees to the services you offer to the technology you use, everything is in a constant state of change. However, one area that typically remains unchanged are the processes and controls that were originally set in place. But is that ok? If things are continually changing, shouldn’t you also be …
With many companies having manual accounts payable, there is bound to be inefficiencies and mistakes. It can be time-consuming and may hold companies back from reaching goals or growing in their industry. With the growth of a business, you might be outgrowing your accounts payable. Here is how to know: Don’t miss: Accounting for estimates …
Not every financial statement item is able to be precisely measured. Often, your company will have to make a best-educated guess to account for items that are not able to be specifically determined. This is where accounting for estimates comes into play. Don’t miss: The future of auditing with artificial intelligence Auditing standards define an …