Do Not Assume Your Profitable Company Has Strong Cash Flow
A dangerous assumption that many business owners make is that, if their companies are profitable, their cash flow also must be strong. But this is not always the case. Taking
A dangerous assumption that many business owners make is that, if their companies are profitable, their cash flow also must be strong. But this is not always the case. Taking
If your non-profit has lost financial support during the pandemic, you may be looking for ways to raise new revenue. But if your proposed solution is a side business, be
As year end approaches, it is a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S.
In this pandemic year, many non-profits are scrambling to find new sources of revenue to replace donor contributions and other lost income. If this sounds like your charity, you might
Want to increase your non-profit’s revenue? First, try analyzing current income as a professional auditor might. Then, you can apply your conclusions to setting annual goals, preparing your budget, and
One of the strongest predictors of a non-profit’s long-term survival is multiple revenue streams. Many organizations with only one or two found that out that the hard way when they
Traditionally, audit procedures for private companies tend to focus on the balance sheet. That is, auditors evaluate whether the book values of the company’s assets are overstated and its liabilities
For many companies, revenue is one of the largest financial statement accounts. It also is highly susceptible to financial misstatement. When it comes to revenue, auditors customarily watch for fictitious
The Tax Cuts and Jobs Act (TCJA) contains a provision that ties revenue recognition for book purposes to income reporting for tax purposes, for tax years starting in 2018. This
Auditors examining a non-profit’s financial statements spend considerable time on the revenue figures. They look at the accounting methods used to record revenues and perform a detailed income analysis. You