How do auditors verify account balances and transactions?

Thursday, February 06, 2025
Audit season is just around the corner for calendar-year entities. Understanding the types of source documents your audit team might request can minimize disruptions during audit fieldwork and maximize your...... Read More

Chart a course for success with a detailed chart of accounts

Thursday, January 30, 2025
A well-structured chart of accounts is essential for accurate financial reporting. A poorly organized chart, or one that groups transactions into vague, undefined categories, can hinder management’s ability to assess...... Read More

Get a handle on how accounting and tax profitability metrics differ

Thursday, January 23, 2025
Pretax (accounting) profit, as reported on your company’s income statement, is a key metric that lenders, investors, and other stakeholders use to assess financial performance. However, business owners should also...... Read More

Beyond the numbers: 5 red flags that may indicate financial distress

Thursday, January 16, 2025
Financial statements provide valuable insights into a company’s economic performance, aiding managers, lenders, and investors in their evaluations. However, they offer only a partial view and may fail to highlight...... Read More

Reporting contingent liabilities in your company’s financial statements

Thursday, January 09, 2025
It’s critical for business owners and managers to understand how to present contingent liabilities accurately in the financial statements. Under U.S. Generally Accepted Accounting Principles (GAAP), some contingent losses may...... Read More

5 reasons to outsource your bookkeeping

Thursday, January 02, 2025
Running a closely held business is challenging. Owners usually prioritize core business operations — such as managing employees, serving customers and bringing in new sales — over tedious bookkeeping tasks....... Read More

How do external auditors evaluate audit risks?

Thursday, December 26, 2024
As calendar-year entities wrap up financial reporting for the year, their external auditors work behind the scenes to prepare for audit season. Here’s what you can do to help facilitate...... Read More

The evolution of financial reporting

Thursday, December 19, 2024
In recent years, the accounting rules have undergone significant changes, including updated standards for reporting revenue, leases and credit losses. While business owners and managers often express frustration over the...... Read More

Eyes on the income statement

Thursday, December 12, 2024
When reviewing their income statements, business owners tend to focus on profits (or losses). But focusing solely on the bottom line can lead to mismanagement and missed opportunities. Instead, you...... Read More

Reminder: Profits and cash flow aren’t the same

Thursday, December 05, 2024
Profitable businesses often experience cash flow shortages, particularly if they’re experiencing rapid growth. Business owners may wonder why they owe taxes when they regularly struggle to find cash to cover...... Read More