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Article Archives for Accounting News Search our Accounting News archive:
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Working Capital and the Role it Plays in Your Business' Success
May 1, 2024 The accounting term working capital is essential knowledge for all business owners. Basically, it is the ability of a business to meet its ongoing obligations. Learning about some of the different aspects of working capital is vital...
Taking a Closer Look at Trial Balances
April, 2024 A trial balance is an accounting tool that helps businesses determine if the double entry accounting system has any mathematical errors. Once the trial balance is worked through, and the total debits and total credits equal each other, we know...
Contingent Liability Defined
March, 2024 As the name implies, a contingent liability for a business does not always happen and depends on how the future unfolds. When it comes to a business analyzing a contingent liability, it focuses on the probability of the business realizing it,...
Optimizing Your Business' Performance with Capacity Management
February, 2024 When it comes to business operations and measuring performance, the optimal production scale a company can sustain is an important metric to measure. If a business’ capacity can't...
Defining Materiality in Accounting
January, 2024 In the world of accounting and auditing, there is a concept called materiality. The term materiality essentially means an amount that if erroneously omitted or included impacts the financials of a company to the point where they...
How the 2022 Consolidated Appropriations Act Impacted Accounting in 2023
December, 2023 According to the Centers for Medicare & Medicaid Services’ report “Advancing Rural Health Equity,” the 2022 Consolidated Appropriations Act (CAA) maintained telehealth options...
Understanding Operating and Capital Leases
November, 2023 The first thing to define is what a lease itself is. It's an agreement or contract where one party, the lessor, allows another individual or business, the lessee, to use their asset in return for payments...
Understanding Mark-to-Market
October, 2023 The term mark-to-market is an important phrase in corporate finance that has many nuances and industry-specific uses. Mark-to-market is a corporate finance term that provides businesses with a way to evaluate a holding’s fair...
Evaluating Net Operating Loss Considerations
September, 2023 When it comes to determining if a business is eligible to claim a net operating loss (NOL), it depends on the financial situation. If a business' taxable income is less than its allowable deductions in a set tax period, usually...
How to Account for Capital Assets
August, 2023 When it comes to accounting for capital assets, specifically depreciating capital assets, the Governmental Accounting Standards Board (GASB) provides guidance to state and local governments for accounting processes. The GASB is...
Purchase Acquisition Accounting
July, 2023 Purchase acquisition accounting is the commonly accepted method to document the acquisition of another business on the balance sheet of the acquiring company. The business’ assets...
Understanding Modified Accrual Accounting
June, 2023 According to the Federal Register, there were about 90,000 local and state government entities throughout the country in 2022. This number is comprised of towns, counties, cities, special districts and independent school districts. One...
How to Look at Liquidity through an Accounting Lens
May, 2023 Liquidity refers to a business's ability to convert its short-term assets or securities into cash quickly to meet its short-term financial obligations or pay bills due within the next 12 months. Naturally, cash is most liquid. This...
How Blockchain Could Impact Accounting and Auditing
April, 2023 Blockchain has the promise to revolutionize the way businesses and their accountants keep track of their financial records. When it comes to audit evidence, blockchain may be able to give organizations more...
Noteworthy 2023 IRS Inflation Tax Changes and Accounting Considerations for High Inflation
March, 2023 With the world seeing inflation, the Internal Revenue Service (IRS) has issued guidance for tax filers. Based upon an October 2022 IRS News Release, there have been more than 60 adjustments in conjunction...
Understanding the Latest Modifications to Form 1099-K Reporting Requirements
February, 2023 There has been updated guidance on how and when tax filers must file and report Form 1099-K, Payment Card and Third-Party Network Transactions in 2022 and 2023. According to the December IRS release, new...
How Mark-to-Market Works in Accounting
January, 2023 According to the Harvard Business Review, mark-to-market accounting was what some attributed to the Great Financial Crisis of 2008. Economists such as Brian Wesbury and Steve Forbes attacked...
Inventory Valuation: How Companies Can Calculate It
December, 2022 By 2021, there were 20,000 warehouses in the United States and growing, according to the United States Bureau of Labor Statistics (BLS). With more warehouses expected to pop up in 2022 and beyond, one important...
Dissecting the Revenue Recognition Principle
November, 2022 Some businesses, especially publicly traded ones, may choose accrual accounting to reduce volatility in earnings, while start-ups or small businesses may choose to go with a cash basis accounting option. A poll conducted...
How to Determine Partnership Basis, Inside and Out
October, 2022 According to the Internal Revenue Service, the 2019 tax year saw more than 25 million partners comprising nearly four million tax returns filed by partnerships in 2019. With many concerns necessary for navigating the U.S....
Understanding Free Cash Flow
September, 2022 According to JP Morgan Chase & Co., there are some sobering statistics for businesses' cash flow challenges. Understanding how cash flow is measured and analyzed is an important step for businesses to monitor...
4 Common Depreciation Methods and Their Uses
August, 2022 Depreciation is the accounting concept that evaluates an asset's useful life. As the Internal Revenue Service explains, depreciable property – which could include equipment, structures, means of transportation, fixtures, etc. – is examined to...
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