I have written about this in the past, yet it is an ongoing subject that we deal with business owners day after day… A client recently asked me why we (The Strategic CFO) were insisting on generating the clients financial statements on an accrual basis and per GAAP. He insisted that cash basis was fine
Back in the day, month end reports consisted of a income statement, balance sheet, and maybe a cash flow statement. These are the three statements that made up your financial statements for month end reporting. As technology advanced and people got smarter about tracking trends, analysis, and operations today, the month end report includes much
Timely close of the financial records – this is a topic every company needs to address. Whether you are a publicly traded or private company, the issue of closing the books is ongoing. Publicly traded companies usually have well established processes in place to meet the deadlines imposed on by the regulators. However, closely held
Why use a 13-Week Cash Flow Report as a management tool? Cash is king! This applies to any and all companies. No matter the size or industry, cash and cash flow are critical to any operation. Yes, some companies have access to lines of credit and other forms of financing, but that is debt that
When we talk to people who have sales or operations backgrounds, we quickly pick up on their hatred/dislike/disdain/etc. for accounting. We get it. Accounting can be boring, especially if it’s not used for management purposes. But when we talk with the management team either in our coaching workshops or our consulting practice, we always implement
See Also: How Do You Know When It is Time to Buy New Software How to Choose New Software Microsoft Dynamics Great Plains Functionalities How to Choose a Software Dealer How to Obtain a Microsoft Dynamics Licensing Agreement Microsoft Dynamics Microsoft Dynamics is the brand name of a group of business management solutions from Microsoft.
See Also: Proforma Earnings Balance Sheet Cash Flow Statement Free Cash Flow Variance Analysis Pro-Forma Financial Statements Definition In accounting, pro-forma financial statements are hypothetical financial reports that show either forecasts of or alterations to actual financial statements. Pro-forma financial statements show the financial statements of a company in a hypothetical scenario that has not
See Also: Straight Line Depreciation Double Declining Depreciation Method Accelerated Method of Depreciation Financial Accounting Standards Board (FASB) Generally Accepted Accounting Principles Modified Accelerated Cost Recovery System Definition The modified accelerated cost recovery system (MACRS) method of depreciation assigns specific types of assets to categories with distinct accelerated depreciation schedules. Furthermore, MACRS is required by
See Also: Cash Cycle Cash Flow Statement How to Develop a Daily Cash Report SWOT Analysis Turn Idle Cash into a Valuable Resource In order for a business to run smoothly, all of its financial resources must work together. Whether you’re looking for increased efficiency in one area, or complete integration of your receivables, payables
See also: Accounting Principles 5, 6, and 7 Accrual Based Accounting GAAP Rules Generally Accepted Accounting Principles (GAAP) What is GAAP? Full Disclosure Principle Definition As one of the principles in Generally Accepted Accounting Principles (GAAP), the Full Disclosure Principle definition requires that all situations, circumstances, and events that are relevant to financial statement users
Form 1098 Definition The IRS uses the form 1098 for the purpose of gathering information upon an individual’s amount of interest payments and mortgage payments throughout the year. 1098 reporting is beneficial because it allows an individual to claim a 1098 deduction on the tax return. Form 1098 Explanation The 1098 form often times is there
See Also: Income Statement ProForma Financial Statements Flash Reports Definition The Flash Report or financial dashboard report is defined as a periodic snapshot of key financial and operational data. It’s a one-page report that helps management assess the key performance indicators of the company. There is an art to creating a flash report or dashboard report! Flash reports should cover the shortest
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