financial statements

Tag: financial statements

Selling Your Business & the Value of Accounting Records

M&A Current Environment 2020 and 2021 have been record years for mergers and acquisitions (M&A) despite COVID19.  Liquidity in the marketplace, abundance of retiring baby boomers, and low interest rates continue to fuel the M&A market.   This seller’s market has allowed multiples for selling businesses to remain at high levels.  Investment bankers representing sellers are

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Balance Sheet Definition

See Also: Chart of Accounts (COA) Working Capital Analysis Quick Ratio Analysis Current Ratio Definition Financial Ratios Common Size Financial Statement Contra Asset Account Balance Sheet Definition The balance sheet is a financial statement that shows a company’s financial position at a point in time. The balance sheet format comes in three sections: assets, liabilities, and owners’ equity. The

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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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Does Your Management Team Understand the Financials?

As companies grow, more and more people get involved with the operations of the business. Whether you have a manufacturing business or service business, this eventually grows beyond a one-man show. Sales people, engineers, and technical people often become the leaders responsible for driving your business and adding to the top line. Everyone understands what a

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Accounting Fraud Prevention

See Also: Accounting Depreciation Account Reconciliation Cash Flow Projections How to Develop a Daily Cash Report Future of the Accounting Workforce Accounting Fraud Prevention A small business owner typically cannot afford to hire enough people to have proper separation of duties to gain the internal controls needed to prevent accounting fraud. Using Internal Control and

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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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Common-Sized Financial Statements

As a financial leader, you look at financial statements every single day. But how do you analyze those statements? Sometimes financial statements can appear to be just a list of numbers that are simply there for record keeping. But the true purpose of keeping and updating financial statements is to have information to make better

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3 Questions Your Banker Wants Answered

Recently, I had lunch with our banker.  During the meeting, I asked her what she wanted to accomplish when meeting with her customers.  She said that she wanted to know the 3 questions your banker wants answered… 3 Questions Your Banker Wants Answered 1.  How are you feeling about your business and the local economy?

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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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Subsequent Events

Subsequent Events Definition The definition of a subsequent events are generally defined as events that occurs after the year end period but before the financial statements have been issued. A subsequent event falls underneath the disclosure principle and can be confusing to many accountants that encounter them. However, the codification provides guidance under ASC 855

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