Inflation affects the actual value of recorded assets and liabilities. If changes in dollar values are ignored, investment in assets can either be understated or income overstated. The accuracy of a company’s books is more affected the more long-term assets …
posted in Accounting KnowledgeWhen starting a business, one must legally define it. How the business is established can bring individual advantages or disadvantages. There are three filing options: proprietorship, partnership, and C corporation. A partnership is a business run by two or more …
posted in BusinessThe basic financial statements a company produces are not only for internal evaluation, but for the use of external entities like shareholders and creditors. Typically, these external users want to see a company’s balance sheet, income statement, statement of ownership …
posted in BusinessWhen a nonprofit is allocated grant money, every penny must be carefully documented. There are many rules and regulations about how to spend the money granted. It is crucial to meticulously track just how and where every penny is spent. …
posted in Accounting KnowledgeOne of the primary purposes of bookkeeping and accounting is to have audited financial statements at the end of accounting periods and the fiscal year. Transactions are recorded. Receipts and detailed records are kept on file.There are some main differences …
posted in Accounting KnowledgeControllers play a key role in the function of a company. They provide the tools needed to steer the business towards financial success. Although a large part of a controllers job involves basic accounting, the controller is occupied with management …
posted in CareerGoing through an audit can be a stressful undertaking for a nonprofit organization. It is necessary to have an audit performed by an external auditor every fiscal year. In addition to the external auditor, there are other people involved in …
posted in Accounting KnowledgeRemarkably, the world’s most profitable tech company, Apple, has developed tax strategies which have helped them avoid paying billions in taxes. This isn’t unusual for technology companies. Their products aren’t necessarily physical goods but royalties or patents in this digital …
posted in Accounting KnowledgeNo company wants to be the victim of fraud or embezzlement. In one current case, Pedro Espada and his son stole more than a half a million dollars from a nonprofit health care network. Mr. Espada was the chief executive and …
posted in Accounting KnowledgeThe word audit often conjures up negative and fearful emotions. However, an audit doesn’t have to be daunting. In fact, an audit is simply an evaluation of the organization’s accounting systems to verify the accuracy of its financial data. If …
posted in Accounting Knowledge