The COVID-19 pandemic is still adversely affecting many businesses and non-profit organizations, but the effects vary, depending on the nature of operations and geographic location. Has your organization factored the effects of the pandemic into its financial statements? You might not have considered this question...
Timely financial reporting is key to making informed business decisions. Managers need to know what is in the pipeline to respond promptly and decisively. Unfortunately, it typically takes several weeks to prepare financial statements under U.S. Generally Accepted Accounting Principles (GAAP). In addition, many companies...
Timely financial data is key to making informed business decisions. Unfortunately, it is common for managers to struggle with their companies’ accounting systems to get the information they need when they need it. Often, it takes multiple, confusing steps to enter and extract data specific...
Related-party transactions and financial connections are a normal part of operating a business. However, these arrangements have gotten a bad rap because dishonest people sometimes use them to disguise poor performance or dishonest activities. So, identifying related parties and evaluating your interactions with them are...
In the first half of 2021, there was a surge in financial restatements. The reason relates to guidance issued by the Securities and Exchange Commission, requiring special purpose acquisition companies (SPACs) to report warrants as liabilities. SPACs are shell corporations that are listed on a...
Many companies have resumed some level of business-related travel and entertainment (T&E) activities or plan to do so this fall. Unfortunately, these expense categories may be susceptible to incomplete recordkeeping and even fraud. So, it is important for companies to implement formal T&E policies to...
In the midst of mounting inflation, supply shortages, geopolitical turmoil, threats of cyberattacks, and continuing COVID-19 concerns, public stock prices are expected to fluctuate in the coming months. This situation has unsettled shareholders and makes long-term strategic planning challenging. Now might be a good time...
Updated accounting rules for long-term leases took effect in 2019 for public companies. Now, after several deferrals by the Financial Accounting Standards Board (FASB), private companies and private non-profit entities must follow suit, starting in fiscal year 2022. The updated guidance requires these organizations to...
Auditors of public companies started reporting critical audit matters (CAMs) in their audit opinions in 2019. This represents a major change to the pass-fail auditors’ reports that had been in place for decades. Now, accounting rule makers are assessing how this project has fared over...
Auditors typically deliver financial statements to calendar-year businesses in the spring. A useful tool that accompanies the annual report is the management letter. It may provide suggestions based on industry best practices on how to fortify internal control systems, streamline operations, and reduce expenses. Managers generally...