GAAP / IFRS

Category: GAAP / IFRS

CPA’s are Specialized

The Difference in CPAs Looking back at my career I don’t know how many times I have introduced myself to someone and they ask, “Are you a CPA?” and I say yes. Then they tell me “you must be very busy with tax season” and I look at them with a bit of awe and

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Pitfalls to Avoid When Growing Your Business

A strong economy drives business growth. I think most of us can agree on that. Growth is usually good… But if it is not controlled growth, it simply will not be sustainable. In this blog, Pitfalls to Avoid When Growing Your Business, I outline several pitfalls to avoid when growing your business (especially in a

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The Importance of Using GAAP Financial Statements

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

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General Ledger Reconciliation and Analysis

See also: Account Reconciliation Standard Chart of Accounts Problems in Chart of Account Design Cash Flow Statement Income Statement Subsidiary Ledger General Ledger Reconciliation and Analysis Definition Define a general ledger as the financial record of every transaction of a company. Commonly, it is referred to as the “books” of the company. In the general

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Does Your Business Need A Financial Audit?

The question we’re answering is, does your business need a financial audit? Before we get to that, let’s define financial audit. The term audit can mean many different things. You can audit operations, taxes, health safety and environmental, manufacturing processes, and your accounting records. When we refer to an “audit”, we are referring to an

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You Can’t Afford Not to Spend Money on the Accounting Department

As a former CEO to some CEOs, this Blog is to my counterparts that “don’t know what you don’t know.”  I have seen time and time again closely held businesses that have experienced growth make the same mistakes over and over again. To the CEO that believes bookkeeping is a necessary fixed cost that should be

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Are you maintaining accurate records?

Have you ever sat down at your desk and seen papers everywhere, little to zero organization, and not been able to tell where your company stood financially right away? It is easy for financial leaders, executives, and other business leaders to get in this messy state. Sure, you may have once had accurate records and

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Selling Your Business

Companies are constantly being bought and sold; so regardless of what position you are in or what industry you service, selling your business is one of those topics you need to know about. It’s a common misconception that the financial persons are overhead, are not valuable, and simply just count the numbers. But over the

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Generally Accepted Accounting Principles (GAAP)

See Also: Accrual Based Accounting Modified Accelerated Cost Recovery System MACRS 10 Q Asset History of Accounting Full Disclosure Principle Generally Accepted Accounting Principles (GAAP) Definition Generally Accepted Accounting Principles (GAAP) are a set of standards, guidelines, and regulations for financial accounting. Companies should follow GAAP rules when preparing financial statements. GAAP rules were established

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What Does A Lender Want To Know?

See Also: Relationship with Your Lender Finding the Right Lender The Dilemma of Financing a Start-up Company Every Business has a Funding Source, Few have a Lender Required Rate of Return Venture Capital What Does A Lender Want To Know? I had a conversation with a prospect that needed working capital funding. He asked, “What

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Securities Act of 1933

See Also: Primary Market Securities Exchange Act of 1934 Investment Banks Secondary Market Initial Public Offering (IPO) Securities Act of 1933 The Securities Act of 1933 was a landmark decision in the United States to regulate the issuance of newly issued shares into the market – an initial public offering. The act is also there

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Straight Line Depreciation

See Also: Depreciation Accelerated Method of Depreciation Double Declining Method Depreciation Amortization Fixed Assets – NonCurrent Assets Straight Line Depreciation Definition The straight line method of depreciation is the simplest method of depreciation. Using this method, the cost of a tangible asset is expensed by equal amounts each period over its useful life. The idea

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