Working capital — the funds your company has tied up in accounts receivable, accounts payable, and inventory — is a critical performance metric. During times of rising inflation and interest rates, managers search for ways to free up cash [...]
Contingent liabilities reflect amounts that your business might owe if a specific “triggering” event happens in the future. Sometimes companies are unclear when they’re required to report a contingent liability on their financial statements under U.S. Generally Accepted Accounting [...]
Many companies have resumed some level of business-related travel and entertainment (T&E) activities — or they plan to do so. Unfortunately, these expense categories may be susceptible to incomplete recordkeeping and fraud. So, it’s important for companies to implement [...]
Data Visualization in accounting and auditing has become increasingly important in recent years. Graphs, performance dashboards and other visual aids can help managers, investors and lenders digest complex financial information. Likewise, auditors use visual aids during a financial statement [...]
Deferred taxes are confusing and the accounting rules for reporting these items can seem illogical. Here’s a brief overview to help clarify matters. What are deferred taxes? Companies pay income tax on IRS-defined taxable income. On their Generally Accepted [...]
You have choices when it comes to reporting inventory costs. One popular technique — the last-in, first-out (LIFO) method — assumes that merchandise is sold in the reverse order it was acquired or produced. That is, it allocates the [...]
Operating as an S corporation may help reduce federal employment taxes for small businesses in the right circumstances. Although S corporations may provide tax advantages over C corporations, there are some potentially costly tax issues that you should assess [...]
CPAs typically report historical financial performance. But sometimes they’re hired to predict how a company will perform in the future. CPAs can help companies make informed decisions about their future performance to reach their financial goals. Prospective reporting options [...]
Under tax law, businesses can generally deduct advertising and marketing expenses that help keep existing customers and bring in new ones. This valuable tax deduction can help businesses cut their taxes. However, in order to be deductible, advertising and [...]
Graphs, charts, tables and other data visualizations can be inserted in your financial statement disclosures to improve transparency and draw attention to key accomplishments. By pairing visual aids with verbal explanations, you can increase the likelihood others understand the [...]
