Accounting

When the company pays its premiums, the bookkeeper credits the cash account and debits the insurance payable account. This entry brings the insurance payable account back to zero, therefore settling the debt. The accounting concepts of debit and credit run counter to the banking terminology. If you prepay for a period of time on your business insurance policy, this payment is a type of asset, or something you own. For this reason, prepaid insurance plays a part in the equation showing your comp […]

Identify the right business opportunities and apply a value-based pricing model to reveal your true worth to your clients. Your tax department must stay on top of these new regulatory requirements. Try our solution finder tool for a tailored set of products and services. To qualify as a tax-free reorganization, a transaction must meet certain requirements, which vary greatly depending on the form of the transaction. Free Financial Modeling Guide A Complete Guide to Financial Modeling This resou […]

Each fiscal year is identified by the calendar year in which it ends and commonly is referred to as “FY.” For example, FY2008 began October 1, 2007, and ends September 30, 2008. A fiscal year could be a 12-month period of time or a 52/53-week period of time.

According the to IRS, a fiscal year is 12 consecutive months ending on the last day of any month except December. Because Apple’s revenue is highly seasonal, they have a non-standard fiscal quarter setup. A fiscal year mu […]

If an audit report containing facts protected under the sixth exemption is sought under the Act, the solution would ordinarily be to delete the name and other identifying information of the individual. Or, if the requester knows or is likely to discover the identity of such individual despite deletion, the solution is to delete the privacy information itself before releasing the report.

Audit.The Contractor shall keep and maintain until 6 years after the end of the Contract Period, or as long […]

You may want to consider hiring another person to double-check the books, also known as a controller. A good choice for a controller, if you’re able to afford it, is to hire a CPA. Not only will they check your bookkeeper’s work, but a CPA is a tax expert, which your bookkeeper most likely isn’t. A CPA can thoroughly review your financial records to ensure everything matches up with your tax returns and find deductions you may have overlooked. The fraud audit typically is a co […]

Not all products require the support of all overhead costs, so it is not reasonable to apply the same overhead costs to all products. Assume Kline Company allocates overhead costs with the department approach.
Activity cost pools help to accurately assign costs, which is important in determining the profitability of products and making production decisions to improve profit margins. Accountants created the ABC method to solve the problems of inaccuracy that result from the traditional costing a […]