Accounting for debt issuance costs

In 2015, the FASB changed the requirements for presentation of issuance costs associated with debt. These updates were made as part of FASB’s initiative to reduce complexity in accounting standards and went into effect in 2016. Debt issuance costs consist of brokerage, legal and other professional fees incurred in connection with issuance of long-term debt. …

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Accounting for Software Development Costs

Many companies develop software internally to sell to others. But which costs are research and development expenses and which costs can be capitalized and then amortized? Technological feasibility is what separates these two costs and once determined, dictates the accounting treatment. What is technological feasibility and when does it occur? This occurs when the program …

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Accounting for gift cards

Gift cards can have many benefits for a company. They increase cash flow, bring in new customers and can result in increased income. As beneficial as they can be, when it comes to accounting for gift cards, as well as ensuring that you’re in compliance with various state laws, there’s a lot to be aware …

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Accounting for lease incentives and tenant allowances

Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020.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 and lease incentives, see our article on preparing for the new lease standard. Many leases include incentives offered in the form of free or …

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Are you on the same page as your CPA?

I recently read an article that was quite interesting, very true (in some cases) and, at times, hilarious. It was an article titled “A New Glossary of Accounting Terms” by Charles J. Pendola. In the article, he discusses how accounting terminology may not mean the same thing from one individual to another, and the actual …

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The importance of preparing a budget

How successful would your business be if you could predict the future? Preparing a budget for your financial statements isn’t necessarily going to predict your future, but it is a good start. Budgeting your future financial statements is a helpful and useful tool that your business can utilize to help anticipate future performance and help …

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Internal Control & Outsourcing

What is the first thing that comes to mind when you think of internal controls? Making sure work is double checked? Making sure that the employee in charge of reconciling the bank account does not also receive the mail, sign checks, and reconcile receivable and payable accounts? Segregation of duties is typically one of the …

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Personal Financial Statements

Accountants are occasionally requested to compile personal financial statements. Unless these financial statements are specifically presented under another comprehensive basis of accounting such as cash basis or tax basis, these financial statements will generally be presented in accordance with generally accepted accounting principles (“GAAP”). However, there are a few key differences between GAAP for personal …

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Are You Biased?

As auditors, we’ve been taught over and over again to maintain professional skepticism when performing our audits. But as the landscape of companies change, so does our audit approach. With the increased use of technology and longevity of our client base, we need ensure our eyes are open and we ask the right questions. Bias …

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