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 …
Whether you are a corporate manager or an investor in the stock market, basic financial analysis is an imperative skill. When glancing at a statement of operations, revenue and earnings are typically the first items looked at. When public companies release quarterly earnings which slightly beat or miss expectations, stock prices can fluctuate greatly. Even …
Many companies sell to large, national retailers. Often, when selling to these retailers, these companies will need to make separate payments to these customers or have amounts deducted from the payments received on their invoices. However, many times we don’t see these accounted for appropriately. How should these be accounted for? It depends on the …
The new revenue recognition has been discussed extensively for the past few years and while most discussions focus on the technical issues, I like to discuss application of the standard, particularly on how it affects the construction industry. On a previous blog, I discussed contract fulfillment costs and how these costs are treated under the …
Over the years, the subsequent accounting for goodwill has been an area that has seen a lot of changes and our blog has tried to keep you up to date with all of these. Where do we stand now? First off, goodwill mainly arises from a business combination where the purchase price exceeds the fair …
Back in 2014, FASB initially provided variable interest entity (VIE) consolidation relief to certain common control leasing arrangements. While this was great as common control leasing arrangements were probably the most frequent occurrence that led to consolidation of a VIE, there has always been hope that this alternative would be expanded to all common control …
Generally, when executives are discussing the company’s internal safeguards, they look to controls within the accounting department such as segregation of duties, dual check signors and purchase order matching. But what about safeguards within the information technology environment? As the role of IT continues to grow in the business world, your company should continue to …