Small businesses may start off using the cash-basis method of accounting. But many eventually convert to accrual-basis reporting to conform with U.S. Generally Accepted Accounting Principles (GAAP). Which method is
Major events or transactions — such as a natural disaster, a cyberattack, a regulatory change, or the loss of a large business contract — may happen after the reporting period
Business transactions with related parties — such as friends, relatives, parent companies, subsidiaries, and affiliated entities — may sometimes happen at above- or below-market rates. This can be misleading to
Recently, the news media has given a lot of attention to initial public offerings using special purpose acquisition companies (SPACs). But there’s another major transaction that’s gaining momentum amid the
In late January, a survey entitled ‘Audit Committee Practices Report: Common Threads Across Audit Committees’ was published by Deloitte and the Center for Audit Quality, an affiliate of the American
Starting in fiscal year 2022, all entities — except non-profit organizations in the scope of Topic 958, Not-for-Profit Entities, and employee benefit plans — must provide detailed disclosures about government
The first page of audited financial statements is the auditor’s report. This is an important part of the financials that shouldn’t be overlooked. It contains the audit opinion, which indicates
Spring is the time of year calendar-year-end businesses issue financial statements and prepare tax returns. This year, take your financial data beyond compliance. Here’s how financial statements can be used
Footnotes appear at the end of a company’s audited financial statements. These disclosures provide insight into account balances, accounting practices, and potential risk factors — knowledge that’s vital to making
Revenue and expenses, as reported on your company’s income statement, have limited usefulness to people inside the organization. Managers often need information presented in a different format to make operational
