• What are AUP engagements — and does your business need one?

    In certain circumstances, businesses may need to hire CPAs to perform agreed-upon procedures (AUPs) instead of (or in addition to) a review or an audit. AUPs are a type of attestation engagement “in which a practitioner performs specific procedures on subject matter and reports the findings without providing an opinion or conclusion,” according to the standards set forth by the American Institute of Certified Public [...]

    Published On: July 31, 2024Categories: Business, Featured
  • Why auditors monitor journal entries

    With a median loss of $766,000, financial misstatement schemes are the costliest type of fraud, according to “Occupational Fraud 2024: A Report to the Nations,” a study published by the Association of Certified Fraud Examiners. Fortunately, auditors and forensic accountants may be able to detect financial statement fraud by testing journal entries for errors and irregularities. Here’s what they look for and how these tests [...]

    Published On: July 30, 2024Categories: Business, Featured
  • Bookkeeping provides a solid foundation for financial reporting

    There are currently more than 33 million small businesses in the United States, according to the U.S. Chamber of Commerce. To succeed in today’s competitive markets, it’s essential for your business organization to have accurate books and records.  Bookkeeping vs. accounting For starters, you should understand the distinction between bookkeeping and accounting. Bookkeeping refers to the systematic storing of financial documentation, such as receipts, purchase [...]

    Published On: July 29, 2024Categories: Business, Featured
  • Auditing warehouse operations

    When you hear the word “audit,” you might automatically associate it with financial reporting or the IRS. But auditing warehouse operations might also be beneficial for some businesses, such as manufacturers, distributors and retailers. Awkward or repetitive movements by employees, oversized packages and disorganized layouts can slow down productivity and even lead to medical and disability claims. Small adjustments can make a big difference in [...]

    Published On: July 28, 2024Categories: Business, Featured
  • Best practices for expense reporting

    When it comes to expense reporting, having rigorous financial controls is critical to operating a profitable business. You should monitor expenditures incurred by employees on behalf of the company. This enables your organization to track spending, control costs and maintain accurate financial records. Establishing and adhering to strong policies, using technology correctly and complying with tax regulations are important ways to ensure accurate expense reports. [...]

    Published On: July 27, 2024Categories: Business, Featured
  • Public policy organization reports increase in restatements

    Accurate financial statements are essential to making informed business decisions. So, managers and other stakeholders may express concern when a company restates its financial results. Before jumping to premature conclusions, however, it’s important to dig deeper to evaluate what happened. Uptick in restatements In June 2024, the Center for Audit Quality (CAQ) reported a recent uptick in financial restatements by public companies. The report, “Financial [...]

    Published On: July 26, 2024Categories: Business, Featured
  • End purchase order chaos with a structured approval process

    Whether hiring contractors, buying equipment or paying vendors, many businesses struggle with the procurement process. Here are some tips for streamlining your company’s purchase order (PO) approval process. Benefits of a formal workflow POs create legally binding agreements between buyers and vendors. For example, your business might outsource a function, such as payroll or marketing, to a third party. A systematic approval process helps your [...]

    Published On: July 26, 2024Categories: Business, Featured
  • Surprise audits are proven to fight fraud

    Four antifraud controls are associated with at least a 50% reduction in both fraud loss and duration, according to “Occupational Fraud 2024: A Report to the Nations” published by the Association of Certified Fraud Examiners (ACFE). They are financial statement audits, reporting hotlines, surprise audits and proactive data analysis. However, the ACFE study also found that two of these — surprise audits and proactive data [...]

    Published On: June 12, 2024Categories: Business, Featured
  • Why audited financials matter

    Reliable financial reporting is key to any company’s success. Here’s why your business should at least consider investing in audited financial statements. Weighing the differences Most businesses maintain an in-house accounting system to manage their financials. The documents your staff prepares through your in-house accounting system are called “internally prepared financial statements.” In many cases, internal financials are perfectly functional for the day-to-day operational needs [...]

    Published On: June 11, 2024Categories: Business, Featured
  • 4 bookkeeping pitfalls for small businesses to avoid

    Accurate bookkeeping is essential to operating a successful small business. The problems created by inadequate bookkeeping practices can have significant, long-lasting consequences. Here are four common pitfalls — and how to avoid them with the right knowledge and tools. 1. Commingled bank accounts It’s important to maintain a separate dedicated bank account for business transactions. Using the owner’s personal accounts for business purposes can have [...]

    Published On: June 10, 2024Categories: Business, Featured
  • New survey reveals top audit committee concerns

    Audit committees act as gatekeepers over the accounting and financial reporting processes, including the effectiveness of the company’s control environment. However, as the regulatory landscape becomes increasingly complex and organizations face evolving risks, the scope of an audit committee’s responsibilities may extend beyond traditional financial reporting. Top-of-mind list In March 2024, a survey entitled “Audit Committee Practices Report: Common Threads Across Audit Committees” was published [...]

    Published On: June 9, 2024Categories: Business, Featured
  • It’s almost time for a midyear checkup on your company’s financial health

    Interim financial reporting is essential to running a successful business. When reviewing midyear financial reports, however, you should recognize their potential shortcomings. These reports might not be as reliable as year-end financials, unless a CPA prepares them or performs agreed-upon procedures on specific accounts. Realize the diagnostic benefits Monthly, quarterly and midyear financial reports can provide insight into trends and possible weaknesses. Reviewing interim results [...]

    Published On: June 8, 2024Categories: Business, Featured
  • 4 cost-cutting areas to help your business boost profits

    Many businesses focus on selling more products and services to boost profitability. But sales volume alone doesn’t necessarily raise profits. In fact, pushing more sales through a bloated expense structure can result in lower net profits. That’s why it’s important to look at the other side of the ledger — expenses — as you aim to increase profits. A thoughtful way to cut expenses is [...]

    Published On: June 7, 2024Categories: Business, Featured
  • How to communicate accounting information to laypeople

    Accurate, timely financial information is key to making good decisions for executives, board members, investors and other stakeholders. But not everyone who reads your financial statements will really understand the numbers they receive and what they mean to your organization. Here are some ways to present your financial results in a reader friendly manner. Consider your audience The people who rely on your organization’s financial [...]

    Published On: May 3, 2024Categories: Business, Featured