Pro Forma Statements vs. GAAP Statements: What’s the Difference?

CFO News Room

Pro Forma Statements vs. GAAP Statements: An Overview. The generally accepted accounting principles (GAAP) require American-based companies to adhere to uniform reporting standards that govern accounting in the U.S. GAAP Statements.

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Reporting Requirements of Contingent Liabilities and GAAP Compliance

CFO News Room

Journal entries are recorded for contingent liabilities, with a credit to the accrued liability account and a debit to the liability-related expense account. A business accounting journal is used to record all business transactions. GAAP Compliance.

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Zack Meyer Joins The Charity CFO as Director of Quality Assurance

The Charity CFO

Zack joins us after two decades as a not-for-profit accountant in both public accounting and the nonprofit industry. In this new role, he will serve as one of our in-house experts on existing and emerging nonprofit accounting standards and auditing best practices.

Controller vs. CFO: Which is Best for your Company?

The Finance Weekly

The job description for a financial controller and a CFO are eerily similar. A controller (or comptroller in government roles) is the company’s lead accountant and the one in charge of running day-to-day activities of the accounting department. The case for a CFO.

What does the EBITDA margin imply about a company?

CFO News Room

The EBITDA margin is considered to be a good indicator of a company’s financial condition because it evaluates a company’s performance without needing to take into account financial decisions, accounting decisions or various tax environments.

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How Is Impairment Loss Calculated?

CFO News Room

generally accepted accounting principles , or GAAP, assets that are considered “impaired” must be recognized as a loss on an income statement. Carrying value does not need to be recalculated at this time since it exists in previous accounting records.

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Absorption Costing vs. Variable Costing: What’s the Difference?

CFO News Room

Absorption costing and variable costing are methods used to value companies’ work in progress and inventory, for accounting purposes. For reporting purposes, absorption costing is required under the Financial Accounting Standards Board’s Generally Accepted Accounting Principles (GAAP).

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Common Finance Terms Every Newbie Needs to Know

CFO News Room

Four terms commonly used in earnings announcements are net income, EBITDA, GAAP, and EPS. EBITDA can be used as a proxy for free cash flow because it accounts for the non-cash expenses of depreciation and amortization.

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Single-Step vs. Multiple-Step Income Statements

CFO News Room

must adhere to Generally Accepted Accounting Principles ( GAAP ), which are accounting standards issued by the Financial Accounting Standards Board (FASB). Many private companies elect to follow GAAP, even though they aren’t legally obligated to do so.

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How Are Prepaid Expenses Recorded on the Income Statement?

CFO News Room

Prepaid expenses are first recorded in the prepaid asset account on the balance sheet. The Generally Accepted Accounting Principles (GAAP) matching principle prevents expenses from being recorded on the income statement before they incur.

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When more (data) leads to less (information)!

CFO News Room

Some of this surge can be attributed to companies becoming more complex and geographically diversified, but much of it can be traced to increased disclosure requirements from accounting rule writers and market regulators. CFO News

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3 Warning Signs Pointing to Outdated Accounting Software

https://trustedcfosolutions.com/feed/

As your business grows, your accounting solution should scale and grow with you, but this isn’t the case with older, outdated software. Spreadsheets can only tell you so much at a glance and cannot address complex accounting issues. Trusted CFO Solutions Blog Posts

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When Does Your Nonprofit Need an Audit?

The Charity CFO

Don't hire the wrong accountant for your nonprofit! The #1 accounting mistake that nonprofits make is hiring the wrong people to help them. Get this FREE guide to discover what you need to do to ensure you hire the right accountant, bookkeeper, or CFO the FIRST time.

Accrual Accounting vs. Cash Basis Accounting

CFO News Room

Accrual Accounting vs. Cash Basis Accounting: An Overview. The main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognized. Accrual Accounting. Under this method, revenue is accounted for when it is earned.

5 Things We Learned From the Warren Buffett Annual Letter

CFO News Room

Its results, filed in accordance with generally accepted accounting principles (GAAP), show that the company earned $42.5 Berkshire Hathaway Inc. BRK.A ) released its 2020 annual report on Feb.

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Understanding Goodwill vs. Other Intangible Assets

CFO News Room

One of the concepts that can give non-accounting (and even some accounting) business folk a fit is a distinction between goodwill and other intangible assets in a company’s financial statements. There is a lot of overlap and contrast between the IRS and GAAP reporting. .

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How Do I Forecast with Tax Code 280E?

CFO Share

The difference between cost of goods sold and ordinary business expenses is well defined in Generally Accepted Accounting Principles (GAAP) but routinely ignored by small business bookkeeping services. Even worse, an IRS income tax return does not follow the same rules as GAAP.

IBM Cognos Controller: Financial close management managed by the office of finance

Future CFO

It also helps finance teams deliver financial results, create informative financial and management reports, and provide the chief financial officer (CFO) with an enterprise view of key financial ratios and metrics.

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Updated Accounting Standards for In-Kind Donations (2022)

The Charity CFO

If your nonprofit uses donations of supplies, services, and even time to help fund your operations, you need to know about recent changes in accounting standards for in kind donations. Check out our blog on accounting for in-kind donations for more details.

core e-commerce, cloud computing, consumer services

CFO News Room

Alibaba announced in early December that deputy CFO Toby Xu would succeed Maggie Wu as the company’s new CFO, effective April 1, 2022. Securities and Exchange Commission ( SEC ) and does so in accordance with generally accepted accounting principles ( GAAP ).

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Do Nonprofits Use Cash or Accrual Accounting?

The Charity CFO

If you’re like many people, you probably think that there is a single set of accounting rules that every company must follow. . So which accounting method is right for you? Is your nonprofit required to use accrual accounting? Cash vs. Accrual Accounting: What’s the difference?

How Canopy Growth Makes Money: Recreational and Medical Marijuana

CFO News Room

generally accepted accounting principles (GAAP). The segment accounted for nearly 59% of Canopy Growth’s total revenue for the quarter. The segment accounted for all of the company’s gross profit during the quarter. Canopy Growth Corp.

Fund Accounting for Nonprofits & Charities

The Charity CFO

And the issue of restricted funds presents unique bookkeeping and accounting challenges for a nonprofit that a for-profit company doesn’t face. This accounting system is called fund accounting. Who’s Required to Use Fund Accounting? . What is fund accounting? .

Nonprofit Accounting Services: The Right Solution

The Charity CFO

What should you look for when evaluating nonprofit accounting services? Yes, they might have a board member or volunteer who takes care of the finances, but they often lack specific expertise in nonprofit accounting. Benefits of Nonprofit Accounting Services.

Balance Sheet vs. Profit and Loss Statement (P&L)

CFO News Room

Also known as accounts receivable , this represents money owed to the company by customers. This is an internal report that stays in the accounting department.

What is Quality of Earnings?

CFO Share

Audited financial statements focus on compliance with GAAP accounting standards, whereas Quality of Earnings reports focus on the company’s earnings history and potential. Significant and/or unusual accounting policies such as: Changes in accounting methods.

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Set Up a Nonprofit Chart of Accounts (Free Template)

The Charity CFO

If you’re brand new to nonprofit accounting, the Chart of Accounts might be the best place to start. Because even if you only have one bank account, bill, investment, or expense, you’ll need one. What is a Chart of Accounts? What goes on the Chart of Accounts?

Statement of Activities: Reading a Nonprofit Income Statement

The Charity CFO

Like all nonprofit financial statements , the central role of the Statement of Activities is to provide transparency and accountability to your donors and board. If you use cash-based accounting, you’ll only record cash deposited into your bank during the reporting period. .

Accounting for In-Kind Donations to Nonprofits

The Charity CFO

But accounting for in-kind donations presents its own unique challenges. In this article, we’ll dig into how to account for in-kind donations on your nonprofit’s books. Why accounting for in-kind donations matters. How accounting for in-kind gifts works .

The Basics of Nonprofit Bookkeeping

The Charity CFO

Do a Google search on nonprofit bookkeeping, and you’ll find page after page of articles on nonprofit accounting. Because while nonprofit bookkeeping and accounting are related, they’re not the same thing. Allocate revenue and expenses to restricted fund accounts .

Nonprofit Accounting Basics for Founders, Board Members & Executives

The Charity CFO

If you’re like most nonprofit leaders, you’re not researching nonprofit accounting basics to satisfy your curiosity. with this overview of nonprofit accounting basics. . What is nonprofit accounting? Don't hire the wrong accountant for your nonprofit! Accounts receivable.

How to Change Careers to a Financial Sector Job

CFO News Room

Retail and commercial banking —Banks provide deposit accounts, mortgages, loans, credit cards, and debit cards. Other financial services —Other areas of the financial industry include careers in accounting, tax preparation, payment processing, and software development.

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How Compliance Rules Vary For State- Vs SEC-Registered RIAs

CFO News Room

Though Section 203(c)(1)(D) of the Advisers Act contemplates the possible adoption of a rule that requires the submission of a balance sheet certified by an independent public accountant and “other financial statements,” the SEC has to-date not adopted such a rule. Executive Summary.

Understanding Functional Expenses for Nonprofits

The Charity CFO

Don't hire the wrong accountant for your nonprofit! The #1 accounting mistake that nonprofits make is hiring the wrong people to help them. Get this FREE guide to discover what you need to do to ensure you hire the right accountant, bookkeeper, or CFO the FIRST time.

The top 10 in-demand shared services skills in the finance function

Future CFO

There are 10 most sough-after shared services skills in the finance and accounting function in the past year, said Gartner recently. Accounting experience. Experience in accounting processes such as accounts payable. Knowledge of GAAP.

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