Category Archives: Accounting Knowledge

The Ins and Outs of SMB Cloud Accounting

…And Why Accountants Love It Cloud accounting and its swiftly growing market has garnered quite a bit of attention over the last couple of years, and it looks like things are just getting started. And the potential market is vast. …

Improving a Budgeting System

A company’s budget is just a theory unless there is follow-up and staff feedback. Weak links in a budget can include management’s inattention to the budget, large variances in the budget left uncorrected,  and lack of communication. Those who actively …

How the Sarbanes-Oxley Act Applies to Nonprofit Organizations

The dishonesty of investor-owned companies was uncovered and reprimanded in 2002 with the Sarbanes-Oxley Act. Congress was determined to outline better accounting controls for investor-owned companies. The act’s purpose was to make financial reporting one of management’s top priorities. The …

Financial Reporting in Foreign Countries

The financial statements from companies from around the world typically reflect the cultural values and economic climate of their country. Because there is so much variation, investors may have a difficult time reading and interpreting the financial statements of foreign …

Reports Required by Sarbanes-Oxley

As a result of the scandals of Enron, Tyco and WorldCom, the Sarbanes-Oxley Act was passed through Congress. The purpose of this act was to prohibit several questionable activities like some insider trading, conflicts of interest involved with auditors, and …

The Content of Note One in an Annual Report

The financial statements in an annual report are comprised by the accountant and make up the bulk of its content. Although the calculations and data divulge much about a company’s current financial health, the note section is even more revealing. …

Finding Annual Reports on the Internet

Shareholders and potential investors or money lenders will utilize annual reports to help them evaluate the soundness of their investment. Thankfully, with access to the Internet, various company’s annual reports can be easily found online. However, if preferred, annual reports …

Constant Dollar vs. Current Cost Accounting

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 …

Tracking Federal Grants

When 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. …

Key Players in the Auditing Process

Going 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 …