What is Managerial Accounting and How Does it Differ from Financial Accounting?


When starting a business, all the paperwork and accounting may seem daunting. No matter how large or small your business is, managerial accounting will help you gain profit. So what’s managerial accounting, and why is it crucial for small business owners?

Supreme Court To Analyze Report of Foreign Bank and Financial Accounts Penalties


The IRS requires FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR), to be filed annually by every U.S. Civil penalties for willful violations are currently maximized at $134,806 or 50% of the amount in the account at violation, whichever is greater.


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Litigation Activity Keeps Spotlight on Reporting of Foreign Financial Accounts


With penalties including monetary fines and possible jail time, the Internal Revenue Service (IRS) and Department of the Treasury have shown how seriously they treat violations related to foreign financial account reporting. Considering such tough penalties, it is critical to understand who is required to file, what information is needed, and how recent cases could impact you

Are the articles of secondhand clothing offered for sale on ThredUp’s online store included in inventory on ThredUp’s balance sheet?

Wendy Tietz

Ch 06 Inventory & COGS Financial accounting financial accounting inventory teaching accountingThredUp Inc. is a startup online consignment and thrift store.

When will Ford recognize revenue in the reservation, order, and delivery process for its currently sold-out Ford F-150 Lightning electric truck?

Wendy Tietz

Ch 05 Receivables and revenues Financial accounting financial accounting revenue recognition teaching accountingThe Ford Motor Company (NYSE: F) is selling an electric version of its F-150 pickup truck, the F-150 Lightning electric truck.

What closing entries would Wendy’s have made in 2021 based on its trial balance?

Wendy Tietz

Ch 03 Accrual income Financial accounting closing entries closing entry financial accounting teaching accounting trial balanceThe Wendy’s Company (NASDAQ: WEN) is a fast-food chain and is a publicly held corporation.

New! Crossword puzzle to review the accounting cycle

Wendy Tietz

Ch 01 Financial statements Ch 02 Transaction analysis Ch 03 Accrual income Crossword puzzle Financial accounting accounting cycle basic accounting crossword financial accounting puzzle teach accountingRecently, I surveyed my students and found that most enjoy crossword puzzles. While not every activity will suit every student, I thought it would be a good idea to create some crossword puzzles for review activities.

What information is provided in Chipotle’s basic 2021 financial statements?

Wendy Tietz

To follow are Chipotle’s four basic financial statements for its most recent year, the year ending December 31, 2021. Ch 01 Financial statements Financial accounting balance sheet financial accounting financial statements income statement statement of cash flows teaching accounting

What internal controls might have prevented an Anderson Community School bookkeeper from stealing more than $1 million?

Wendy Tietz

She reconciled the bank account, maintained vendor invoices, prepared checks to send […]. Ch 04 Internal control and cash Financial accounting financial accounting teaching accountingThe Anderson Community School Corporation hired Carla Burke in 1998 and then made her the food service department bookkeeper in 2006. She worked as the bookkeeper until she retired in 2019. Burke was responsible for maintaining the records for the school lunch fund.

What are the fiscal year ends of Walt Disney, Carnival Corporation, and Royal Caribbean Cruises, and others?

Wendy Tietz

Companies are allowed to select a fiscal year that is different from the calendar year, which means not all companies’ financial statements cover the calendar year of January 1 through December 31. Ch 03 Accrual income Financial accounting financial accounting fiscal year end teaching accountingA calendar year runs from January 1 to December 31 each year.

How will Chipotle recognize the costs of Chippy, its tortilla-chip-making robot?

Wendy Tietz

Ch 07 PP&E and Intangibles Financial accounting capitalization capitalize expense financial accounting fixed assets plant assets teaching accountingChipotle is currently testing Chippy, a robot that makes tortilla chips.

New! Beginning Data Cleaning (ETL) & Analytics Project for Excel: KAT Concession Supply

Wendy Tietz

Just posted this project on the other blog I co-author, Accounting Is Analytics. I am really excited about this project – it introduces accounting students to basic data cleaning and analytics concepts using Excel.

A financial statement analysis mini-dashboard for a quick data analytics exercise

Wendy Tietz

Looking for a quick data analytics exercise for financial statement analysis in an introductory accounting class? You can give your students the link for this financial statement analysis dashboard and then ask a series of questions.

Signs It May Be Time For a New Accountant


Hiring your first accountant, whether it be internal or external, for your business is a big step in terms of growth. However, the first accountant or the current accountant that you work with might not be the best accountant or even the best option for your business.

Top Tips To Find A Good Accountant For Your Business


From one-man-teams to small and medium-sized businesses, accounting services are now a mandatory requirement of operations. But you probably don't need to hire an accountant or bookkeeper internally; you just need a trustworthy professional to work with.

How does Amazon’s stock buyback impact its earnings per share and balance sheet?

Wendy Tietz

Ch 10 Stockholders' equity Financial accounting financial accounting stock buyback stockholders' equity teaching accounting treasury stockIn March 2022, Amazon’s board of directors authorized it to buy back up to $10 billion of its stock. The stock buyback will take place over a multi-year period. Amazon may not buy back the full $10 billion of its stock; the board’s authorization is simply the maximum amount of stock that can be repurchased. […].

How does Nordstrom’s dividend announcement impact its balance sheet?

Wendy Tietz

Ch 10 Stockholders' equity Financial accounting declaration date dividend dividends financial accounting stockholders' equity teaching accountingNordstrom, Inc., is a luxury department store chain headquartered in Seattle, Washington. It was founded in 1901 as a shoe store. It would begin selling clothes more than sixty years later in 1967. Its stock ticker symbol, JWN, represents the initials of Nordstrom’s founder, John W. Nordstrom.

Free webinar: “Low Man on the Totem Pole – How I Became a White-Collar Criminal”

Wendy Tietz

The Akron chapter of the Institute of Management Accountants (IMA) is sponsoring a webinar on white-collar crime – “Low Man on the Totem Pole – How I Became a White-Collar Criminal.” Financial accounting Managerial accounting Miscellaneous ethics teaching accountingThe webinar is on Wednesday, October 19, 2022, from 6:30 – 8 pm Eastern. Registration is at this link. I cannot emphasize enough what […].

How will the $2 billion bond issuance by the University of Michigan impact its balance sheet?

Wendy Tietz

Ch 09 Long-term liabilities Financial accounting accrue interest bonds issuance bonds payable financial accounting issue bonds liabilities long-term liabilities teaching accountingThe University of Michigan issued $2 billion in bonds in March 2022. The proceeds from these bonds will be used to finance construction and renovation projects on the campus. billion was issued as century bonds, which must be repaid in 100 years.

How does Amazon’s 20-for-1 stock split impact its stockholders’ equity?

Wendy Tietz

Ch 10 Stockholders' equity Financial accounting common stock equity financial accounting shareholders' equity stock split stock splits stockholders' equity teaching accountingAmazon announced a 20-for-1 stock split in March 2022. This stock split was its first stock split in over twenty years. On the day that Amazon announced its stock split, one share of its stock was selling for $2,785.58. The stock split will occur at the close of business on June 3, 2022.

30-minute webinar on Google Sheets data cleaning project this Tuesday, July 19, 1 pm Eastern

Wendy Tietz

I have developed a case that is suitable for introductory accounting that uses just Google Sheets – and I provide step-by-step tutorial videos, making it […]. Data analytics Financial accounting Managerial accountingAre you interested in data cleaning and visualization? Do your students use Google Sheets? Want a ready-made project for your class that uses Google Sheets for data cleaning and visualization?

The 5 Keys to a Faster Financial Close


A yearly financial close can be a laborious process that accounting and finance departments dread. It requires tracking down information from other departments, ensuring financials are accurate, and identifying/correcting errors.

What do you think of the new blog post format that includes a tutorial video?

Wendy Tietz

Miscellaneous financial accounting managerial accounting; teaching accountingEarlier today, I shared a new blog post (How does Amazon’s stock split impact its stockholders’ equity? link.) In this blog post, I experimented with a new blog post format.

What are Days Sales Outstanding and How Can You Reduce Them?


Small Business Advice and Tips small business bookkeeping small business tips small business accounting tips financial management financial accounting business collections financial reporting

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What Are Clean Financials and How Can You Get Them?


We often hear prospective clients come to us explaining they are in need of clean financials. outsourced accounting services small business bookkeeping financial management financial accounting financial statements accounting analysis clean financials

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Goodwill defined

Martin Quinn

Here is a great post from The Accounting Cafe which defines goodwill in a really nice way. Goodwill is a relatively common intangible asset, which accounting students often find difficult to grasp initially, so thanks for the great explanation. Financial accounting

Quovo Raises $10M In VC Funding To Accelerate Growth


Quovo, a data platform providing insights and connectivity for financial accounts, announced Wednesday (April 26) that it has raised $10 million in Series B funding. In a press release , the company said F-Prime Capital and Napier Park Financial Partners co-led the round and were joined by existing investors, FinTech Collective and Long Light Capital.

The CARES Act Provides Temporary Relief from CECL Standard


The CARES Act (the “Act”) provides temporary relief from FASB Accounting Standards Update (ASU) No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

FBAR Deadline is April 15 (Not 18)

CPA Practice

citizens, resident aliens and any domestic legal entity with foreign banking accounts have a deadline of April 15 to file their annual Report of Foreign Bank and Financial Accounts (FBAR). For additional information about filing deadlines, filers.

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FASB Revises Collections Definition


Last month, the Financial Accounting Standards Board (“FASB”) finalized new guidance that updates its definition of “collections” to be aligned with the definition used by the American Alliance of Museums. In Accounting Standards Update (“ASU”) No. The standard can be applied to annual financial statements issued for fiscal years, and interim periods within those years, starting after December 15, 2020.

Proposal Aims to Clarify Stock Compensation Guidance


Available for public comment is Proposed Accounting Standards Update (“ASU”) No. Issued last month by the Financial Accounting Standards Board (“FASB”), the proposal aims to close a gap in stock compensation guidance concerning which topic to use when share-based consideration is paid to a customer. General Proposed Accounting Standards Update Revenue from Contracts with Customers (Topic 606) Stock Compensation (Topic 718

Nonprofits Seek More Clarity on Contributions Accounting


Almost one year has passed since the Financial Accounting Standards Board (“FASB”) released guidance for contributions accounting, but several nonprofit organizations still struggle with understanding the new provisions. At a March 4 meeting on accounting needs and concerns impacting the nonprofit industry, the FASB’s Not-for-Profit Advisory Committee acknowledged that nonprofits need more guidance to apply Accounting Standards Update No.

Shrinking the Delaware Tax Loophole: Other U.S. States to Incorporate Your Business


You don’t need a bank account in Delaware or Nevada to incorporate in those states. From a financial perspective, your state of incorporation hits the bottom line in the form of corporate taxes and fees. intellectual property, stocks, bonds, and bank accounts) assets in Wyoming.

Not-for-Profits in the Know Webinar Series: In-Kind Donation Reporting is Changing

Anders CPA

The Financial Accounting Standards Board (FASB) issued new reporting guidelines to help increase transparency around the measurement of contributed nonfinancial assets recognized by not-for-profits, including how much was used to support programs and activities.

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Standards Update: 10/30/20


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).

Teaching at Baruch


I will be teaching Financial Accounting to non-accounting majors. Friday, I start teaching for the first time at my alma mater, Baruch College.

Standards Update 6/5/20


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 5/20/20


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


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).

What Can Outsourced Bookkeeping Services Do for My IT Company?


The day-to-day grind makes it difficult for you to find the time to focus on working on the back end of your business by making sure your financial accounts are up to date. based dedicated team that consists of a bookkeeper, staff accountant, and accounting manager….

Proposed Accounting Standards Update - In-Kind Contribution Reporting


FASB Votes to Delay Effective Date for Major Accounting Standards


Yesterday, the Financial Accounting Standards Board (FASB) voted to approve proposals to amend the effective dates for several major Accounting Standards Updates (ASUs). The FASB voted to issue final ASUs to amend the effective dates of the following ASUs

What is an Integrated Accounting System? How Software Integrates Financial Systems 2022

Accounting Seed

We’ve come a long way since “accounting software” meant a series of spreadsheets. In 2022, instead of a separate general ledger, project accounting ledger, billing software, and inventory tracking program, integrated accounting systems handle it all. What is Project Accounting?