Does your company have a capitalization policy?

When undergoing an audit, one question the auditors may ask is “does the company have a fixed asset capitalization policy?” While having a written capitalization policy in place will make your auditor happy, it will also help simplify the accounting for fixed asset purchases. Establishing a capitalization policy helps keep the treatment of property additions, …

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Carrying value of inventory

A lot of times the cost at which a unit of inventory is being carried at is made up of more than just the cost of materials used to produce the actual item. It often includes other costs which are incurred to get the items in place and ready for sale. Some of these other …

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Financial tips for starting a business

You are disruptive. You are SoLoMo (or is that MoSoLo?). You are ready to take your market by storm. But have you laid the accounting and tax groundwork for future success? A few simple things upfront can pay big dividends later, or cause huge headaches if they aren’t done. Here are a few financial tips …

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Is your 401(k) plan properly insured?

There are two common insurance policies that relate to employee benefit plans: an ERISA fidelity bond and fiduciary liability insurance. Both help lower risk but only one of the policies – the ERISA fidelity bond – is required by the Employee Retirement Income Security Act (ERISA) administered by the Department of Labor (DOL). An ERISA …

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Utilization of service organizations

Service organizations exist to assist companies of all sizes in performing certain tasks that the company is not capable of performing or would rather outsource to a third-party. Examples of service organizations include: Payroll providers 401(k) record-keepers IT backup and cloud services And more But do companies understand and review the controls within the service …

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Selling your business? Here’s what to expect

We continue to see some of our clients looking to sell their business, whether to a strategic buyer or to a private equity group. For many of our clients this may be the one and only time that they sell a business. For any person looking to sell a business, there are some things to …

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We’ve outgrown our accounting software! Now what?

Many small businesses begin with commercial accounting software, such as QuickBooks or Peachtree and find that, as their business grows, they may spend a considerable amount of time exporting data to create various management reports that can’t be generated within the current accounting system. In addition, they may see their chart of accounts rapidly growing …

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Does your employee benefit plan need an audit?

If your Company sponsors an employee benefit plan (this includes 401(k) plans), an audit of that plan may be required. What triggers the need for an audit? The number of participants. Plans with 100 or more participants at the start of the plan year are considered “large” and generally require an annual audit, while plans …

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Preparing for your 401(K) audit

Proper preparation for your year-end 401(K) audit can lead to a much smoother and effective audit experience for both your company and your auditor. A constant line of communication leading into the audit will allow both parties to be as efficient as possible, especially when it comes to performing fieldwork. In addition to what your …

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Prevent expense reimbursement abuse

Dishonest employees can see an opportunity to steal from the company through expense reimbursements. If you don’t have a strong travel and expenses policy that is routinely monitored and enforced, you open yourself up for the risk of expense reimbursement fraud. Some common examples of fraud schemes that impact everyday companies are: Double billing: seeking …

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