Reporting Restricted Cash

Your company’s financial statements should be transparent about any restrictions on cash. Are your reporting practices in compliance with the current accounting guidance? The Basics Restricted cash is a separate category of “cash and cash equivalents” that isn’t available for general business operations or investments. There are many types of

2021-03-30T13:43:50-06:00March 30th, 2021|

Why Normalizing Adjustments are Essential to Benchmarking

Financial statements aren’t particularly meaningful without a relevant basis of comparison. There are two types of “benchmarks” that a company’s financials can be compared to — its own historical performance and the performance of other comparable businesses. Before you conduct a benchmarking study, however, it’s important to make normalizing adjustments

2021-04-12T14:54:14-06:00May 4th, 2020|

Going Concern Assessments and COVID-19

The novel coronavirus (COVID-19) pandemic has adversely affected the global economy. Companies of all sizes in all industries are faced with closures of specific locations or complete shutdowns; employee layoffs, furloughs or restrictions on work; liquidity issues; and disruptions to their supply chains and customers. These negative impacts have brought

2021-04-12T14:54:14-06:00April 28th, 2020|

Adjusting Financial Statements for COVID-19 Tax Relief Measures

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, contains several tax-related provisions for businesses hit by the novel coronavirus (COVID-19) crisis. Those provisions will also have an impact on financial reporting. Companies that issue financial statements under U.S. Generally Accepted Accounting Principles (GAAP)

2021-04-12T14:54:14-06:00April 28th, 2020|

Financial Statements Help Make Informed Business Decisions

There are three types of financial statements under U.S. Generally Accepted Accounting Principles (GAAP). Each one reveals different, but equally important, information about your company’s financial performance. Together, they can be analyzed to help owners, management, lenders and investors make informed business decisions. Profit or Loss (aka Income Statement) The

2021-04-12T14:55:12-06:00June 4th, 2019|
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