What the Generally Accepted Accounting Principles (GAAP) Mean to Your Business

GrowthForceBlog

Accounting & Bookkeeping7 min read. You know the drill- as a small business owner, you find yourself constantly juggling responsibilities (with what seems like no end in sight).

Why You Should Put Profit First

DuctTapeMarketing

Questions I ask Mike Michalowicz: Why do you need to account for profit first? What are the basic accounting principles of a profit first formula?  Services Online Audit. Strategy First. Marketing Training for your team. Website Review. Local Marketing System. Professional Services Marketing. A la carte SEO. Websites. Pay Per Click. Guides Local Marketing. Professional Services. Consulting Business. Marketing Strategy Plan. Content Marketing. Customer Journey.

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Flash Reports: Real-Time Financial Reporting

Marlogin,Winer&Evens

Generally Accepted Accounting Principles (GAAP). … The Bottom Line Featured Post Accounting & Auditing Featured ContentTimely financial reporting is key to making informed business decisions.

Common Accounting Mistakes: Government Edition - Issue #11 What is GAAP?

SMBAccountant

Many small business government contractors are exempt from complying with cost accounting standards (CAS) and defined by the code of federal regulations (CFR). However, compliance with generally accepted accounting principles (GAAP) is required.

Governmental Accounting Standards Update: 8/31/20

Katz,Sapper&Miller

The Government Accounting Standards Board (GASB) regularly issues GASB Statements to set accounting and financial reporting standards for state and local governments that follow generally accepted accounting principles in the United States (U.S.

Standards Update: 10/30/20

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP).

Governmental Accounting Standards Update: 5/12/20

Katz,Sapper&Miller

The Governmental Accounting Standards Board (GASB) regularly issues GASB statements to set accounting and financial reporting standards for state and local governments that follow generally accepted accounting principles in the United States (U.S.

Standards Update 5/20/20

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP

Standards Update: 12/17/19

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP).

Common Accounting Mistakes: Government Edition - Issue #7 Accounting for Fixed Price vs Cost Contracts

SMBAccountant

This requires a detailed job costing within an accounting system for which many contractors are not prepared. These oversight bodies are not typically concerned with a contractor’s accounting system during a phase I award because of the fixed price.

Standards Update: 5/29/19

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP). Below are select ASUs that were recently issued

Common Accounting Mistakes: Government Edition – Issue #3 Policies and Procedures

SMBAccountant

When working as a government contractor, these processes and policies need to be written, reviewed, and updated regularly to ensure compliance with the company’s own requirements, and the accounting standards demanded of contractors spending tax dollars. Accounting policies and procedures can reach into almost every department, area, or responsibility, so they need to be communicated and monitored often.

Standards Update: 11/26/18

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP

Accounting Treatment for PPP Loans

Katz,Sapper&Miller

The AICPA recently issued nonauthoritative guidance addressing how nongovernmental entities should account for PPP loans as there is no authoritative guidance for business entities related to this type of transaction in Accounting Principles Generally Accepted in the United States (GAAP

What You Should Expect from Your CPA During an Audit |For Privately Held Companies

LSLCPAs

Most CPA firms perform audits in accordance with Generally Accepted Accounting Principles (GAAP). You’ve just been told you need an audit by your banker to satisfy covenants, or your Board of Directors is requiring that an audit be performed.

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Changes to Manufacturing Lease Accounting

Katz,Sapper&Miller

That means nearly all of these businesses will be impacted by the Financial Accounting Standards Board’s (FASB) update to the accounting standards for leases under generally accepted accounting principles in the United States (GAAP).

How to Record the Purchase of an Asset in QuickBooks Online?

FusionCPA

You need to be careful when it comes to your real estate investment firm accounting. Along the way, you’ll realize several real estate accounting principles and rules that should be incorporated throughout your entire process

Standards Update: 2/27/18

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted (GAAP) in the United States. Below are select ASUs that were recently issued

Accounting Update for Not-for-Profit Entities: Leases

Katz,Sapper&Miller

In February 2016, the Financial Accounting Standards Board (FASB) issued one of the most sweeping changes to generally accepted accounting principles in the United States (GAAP) – Accounting Standards Update (ASU) No.

Standards Update: 8/22/19

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP). Below is a select ASU that was recently issued

Governmental Accounting Standards Update: 4/24/19

Katz,Sapper&Miller

The Governmental Accounting Standards Board (GASB) regularly issues GASB statements to set accounting and financial reporting standards for state and local governments that follow generally accepted accounting principles in the United States (U.S.

Standards Update: 2/25/19

Katz,Sapper&Miller

The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP). Below are select ASUs that were recently issued. This update covers ASU 2018-18, 2018-19, and 2018-20

Common Accounting Mistakes: Government Edition – Issue #3 Policies and Procedures

SMBAccountant

When working as a government contractor, these processes and policies need to be written, reviewed, and updated regularly to ensure compliance with the company’s own requirements, and the accounting standards demanded of contractors spending tax dollars. Accounting policies and procedures can reach into almost every department, area, or responsibility, so they need to be communicated and monitored often.

Looking Ahead: ASUs Effective for Fiscal Years Beginning After 12/15/18

Katz,Sapper&Miller

As 2018 comes to a close, it’s time to look ahead to the many changes in generally accepted accounting principles in the United States (U.S. The following summarizes accounting standards updates (ASUs) which are effective for fiscal years beginning after Dec. GAAP) that will become effective for 2019 calendar year ends. 15, 2018 for most nonpublic companies

Common Accounting Mistakes: Government Edition - Issue #6 Fixed Assets

SMBAccountant

Most companies set a threshold in their accounting policies to avoid wasted time and effort on immaterial or low cost items. Be sure to talk with your accountant about what depreciation is recorded in your books. If that’s the case, a work in progress account should be established on the balance sheet to hold all the costs until the asset is finished and put into service. Nearly all businesses have some kind of fixed assets.

Revenue Recognition Changes Are Here. Is Your Manufacturing Company Ready?

Katz,Sapper&Miller

In recent years, the Financial Accounting Standards Board (FASB) received feedback that revenue recognition guidance was fragmented at best, confusing at worst. In response to this feedback, the FASB issued Accounting Standards Update (ASU) No. Generally Accepted Accounting Principles (U.S. This is significant considering revenue is the key measurement used to determine a manufacturing company’s performance.

Common Accounting Mistakes: Government Edition - Issue #7 Accounting for Fixed Price vs Cost Contracts

SMBAccountant

This requires a detailed job costing within an accounting system for which many contractors are not prepared. Whether the SBIR/STTR that’s being worked is a grant through the National Science Foundation (NSF) or a federal contract, there is an oversight agency, such as the Defense Contract Audit Agency (DCAA) for Department of Defense (DOD) contracts, that will review the adequacy of a contractor’s accounting system prior to a phase II award.

Common Accounting Mistakes: Government Edition - Issue #6 Fixed Assets

SMBAccountant

Most companies set a threshold in their accounting policies to avoid wasted time and effort on immaterial or low cost items. Be sure to talk with your accountant about what depreciation is recorded in your books. If that’s the case, a work in progress account should be established on the balance sheet to hold all the costs until the asset is finished and put into service. Nearly all businesses have some kind of fixed assets.

Shifting Lanes: How Updated Lease Accounting Standards Are Affecting Dealerships

Katz,Sapper&Miller

That means nearly all auto dealers will be impacted by the Financial Accounting Standards Board’s (FASB) update to the accounting standard for leases under U.S. generally accepted accounting principles (GAAP). Most auto dealers participate in leasing in some way, whether they are leasing a building or equipment, operating as a lease here – pay here (LHPH), or are lessors of real estate.

Technology is Enabling Centralized Global Statutory Reporting

ThomsonReuters

Multinational enterprises (MNEs) began using centralized shared services centers three decades ago to standardize and improve efficiency in back-office functions such as finance & accounting, human resources, and IT. That’s our guiding principle.

Some Businesses Gloss Over Pandemic’s Impact On Revenue

PYMNTS

Financial metrics don’t have to follow generally accepted accounting principles (GAAP), which makes it hard for investors to get a good picture of what a company’s financial landscape looks like, the news outlet noted.

What is a provision for income tax and how do you calculate it?

ThomsonReuters

Other types of provisions a business typically accounts for include bad debts, depreciation, product warranties, pensions, and sales allowances. GAAP procedures differ in important ways from income tax accounting rules. What is a tax provision?

SEC Flags Benchmark That Obscured WeWork’s Bottom Line

PYMNTS

The company used generally accepted accounting principles (GAAP) to essentially turn a $1.9 The We Company , the parent of WeWork , uses a cash-flow metric called the “contribution margin,” which showed that its core services were profitable, Bloomberg Tax reported on Tuesday (Dec.

What are CPA Services? And What Kind of Business Needs a CPA?

LyfeAccounting

CPA services are accounting services that are provided by a Certified Public Accountant, also known as a CPA. Most CPAs have Master’s Degrees in Business or Accounting with at least a few years of experience under a CPA. Accountant. Accounting

cpa 52

Under Armour Defends Reputation Amid Investigations

PYMNTS

With respect to inquiries into Under Armour’s business practices by the Securities and Exchange Commission and the Department of Justice, we firmly believe that our disclosures and our accounting practices have been entirely appropriate,” Plank said. “We In this respect, our process for recognizing revenue and recording returns and other allowances has not changed and has always been in compliance with generally accepted accounting principles,” the company said in an official statement.

Number Of Corporate Accounting Errors Unexpectedly Climbs

PYMNTS

A research firm has discovered that the number of material accounting mistakes made by U.S. While the number of mistakes has declined every year since 2006, during the first six months of 2018, 65 companies found accounting mistakes that required them to restate and refile entire financial filings, compared with 60 companies for the same period last year. tax law and revenue accounting rules.

IPOs Gain Ground As Flywire Files To Go Public

PYMNTS

The SEC was reminding SPAC founders and targets of SPACs that existing regulation needs to be followed — there are no shortcuts with respect to disclosure, due diligence or complying with generally accepted accounting principles.”.

California CPAs Call For Crypto Accounting Clarity

PYMNTS

Certified Professional Accountants (CPAs) in California are calling on an industry watchdog to clarify standards for cryptocurrency accounting, with expectations that corporations will increase their use of cryptocurrencies moving forward. ” The committee also suggested in its letter that standards approach cryptocurrency accounting the same way they would for a corporation holding and using foreign currencies.

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T-Mobile Sales Practices Under Fire

PYMNTS

Back in November, T-Mobile was targeted by complaints from CtW Investment Group , the pension fund sponsored by unions affiliated with CtW, regarding accounting and disclosure practices. CtW Investment Group had requested that the Security and Exchange Commission investigate the reporting behind T-Mobile’s non-standard accounting efforts as well as how it records and presents info tied to customers who have defaulted on phone installment payment plans.

Sales 56

PayPal And The Rewards Of Non-GAAP Accounting

PYMNTS

When it comes to earnings, a bit of accounting can make all the difference. The key element deserving of scrutiny here, the Times pointed out, comes with the way PayPal — and, to be fair, other tech companies — account for employee stock-based compensation. Nowadays, companies report for both generally accepted accounting principles (GAAP) and non-GAAP numbers, as mandated by the Securities and Exchange Commission.

Pulling Back The Curtain On Corporate Finance Reports

PYMNTS

Corporate accounting standards are changing, with the Financial Accounting Standards Board adopting new standards in ways companies report on leases, hedging and other financial activity. While any change is often disruptive, the FASB and analysts noted that the adjustments ultimately aim to make accounting and reporting easier for finance professional, ad promote transparency. B2B Payments accounting scandal B2B corporate finance Cybersecurity financial regulation News