Blog
  • Are you ready for the upcoming audit season?

    An external audit is less stressful and less intrusive if you anticipate your auditor’s document requests. Auditors typically ask clients to provide similar documents year after year. They’ll accept copies or client-prepared schedules for certain items, such as bank reconciliations and fixed asset ledgers. To verify other items, such as leases, invoices and bank statements, […]

  • Tax Provisions Included in Infrastructure Bill Brings an End to Employee Retention Tax Credit

    The recently passed Infrastructure Investment and Jobs Act (HR 3684) was not focused primarily on tax but did include a provision ending the Employee Retention Tax Credit (ERC) earlier than planned. Under pre-Act law, eligible employers can claim the ERC for wages paid before January 1, 2022 against applicable employment taxes. For each calendar quarter […]

  • 4 Ways to Improve the Effectiveness of Your Audit Committee

    Audit committees faced many challenges in 2021. As the economy continues to navigate a global pandemic, there are new dimensions to the oversight roles and responsibilities of the audit committees. Consider taking the following four steps to fortify your committee’s effectiveness. 1. Focus on fundamentals Check in with your accounting team and evaluate the planning […]

  • Choosing Your Audit Firm Series: Size and Resources

    How should a public company go about selecting its audit firm? The data show public companies tend to default to one of the Big 4 or National firms. According to a 2020 article by Audit Analytics, the Top 10 firms audited nearly two-thirds of all public companies, with the Big 4 firms auditing approximately half […]

  • FASB Offers a Practical Expedient for Private Companies that Issue Share-Based Awards

    On October 25, the Financial Accounting Standards Board (FASB) issued a simpler accounting option that will enable private companies to more easily measure certain types of shares they provide to both employees and nonemployees as part of compensation awards. Here are the details. Complex rules Many companies award stock options and other forms of share-based […]

  • Choosing Your Audit Firms Series: Audit Quality as a Barometer

    Let’s face it: no company wants to pay hundreds of thousands – or even millions of dollars to be audited. For public companies, though, it’s not a choice, it’s an annual requirement. So how should a public company go about selecting a PCAOB registered audit firm? The data show public companies tend to default to one […]

  • Get Your Piece of the Depreciation Pie Now with a Cost Segregation Study

    If your business is depreciating over a 30-year period the entire cost of constructing the building that houses your operation, you should consider a cost segregation study. It might allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits of a cost […]

  • Hit or Miss: Is Your Working Capital On-Target?

    Working capital equals the difference between current assets and current liabilities. Organizations need a certain amount of working capital to run their operations smoothly. The optimal (or “target”) amount of working capital depends on the nature of operations and the industry. Inefficient working capital management can hinder growth and performance. Benchmarks The term “liquidity” refers […]

  • Private Companies: Are you on track to meet the 2022 deadline for the updated lease standard?

    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 not-for-profit entities must follow suit, starting in fiscal year 2022. The updated guidance requires these organizations to report — for the first time — the full magnitude […]

  • 10 Financial Statement Areas to Watch for COVID-Related Effects

    The COVID-19 pandemic is still adversely affecting many businesses and not-for-profit organizations, but the effects vary, depending on the nature of operations and geographic location. Has your organization factored the impact of the pandemic into its financial statements? You might not have considered this question since last year if your organization prepares statements that comply […]