Evaluating “going concern” concerns
Is your business struggling? If you have “substantial doubt” about its ability to continue normal operations, you may encounter financial reporting issues. Here’s important information to review.
What revenue numbers can reveal about your nonprofit’s financial health
You don’t have to wait for the next scheduled audit to assess your nonprofit’s financial health. Instead, think like an auditor and review revenue numbers for negative trends. Here’s how.
Give your construction company’s bonding capacity a solid foundation
A high bonding capacity is a strategic objective of many construction businesses. How do you build it? With a solid foundation. For starters, ensure your financial statements are complete, accurate and timely. One critical indicator is profitability. Projects that suffer from “profit fade,” when gross profits shrink over the course of a job, often indicate weaknesses such as inaccurate estimating and sloppy management. Sureties also want to see strong working capital, which is defined as current assets minus current liabilities. To improve this, consider deferring year-end bonuses or refinancing short-term debt with long-term debt.
Businesses: Act now to make the most out of bonus depreciation
If your business plans to purchase bonus depreciation qualifying property, take action soon to realize a valuable tax break.
Remote auditing: A brave new world
Pandemic-related lockdowns have forced auditors to conduct many procedures off-site. That change may not necessarily be temporary. After realizing the potential benefits, remote audit procedures may be part of the “new normal” going forward.
Weathering the storm of rising inflation
Business owners: When it rains, it pours. Inflation may be putting a damper on economic optimism, but there are ways to brighten your horizons.
SDAT Raises Business Personal Property Exemption From $2,500 TO $20,000
SDAT Raises Business Personal Property Exemption From $2,500 TO $20,000
Reviewing revenue recognition for construction companies
Properly handling revenue recognition is critical for construction companies. Here’s a quick review of the three most used methods.
Is your nonprofit paying enough attention to Generation Z?
Ignore Generation Z at your peril. The latest cohort of young adults is socially conscious, financially generous and hands on. These individuals are more likely to donate to charity at an early age, participate in crowdfunding and contribute on Giving Tuesday. As digital natives, they prefer social media platforms such as TikTok and Snapchat, which may require your organization to create new, narrowly tailored content to get their attention. They’re also more receptive to digital ads than their parents. But they expect outreach to be narrowly tailored to their interests, so be sure you rely on good data to engage them.
lease accounting
Private companies: Have you implemented the new lease accounting rules? If not, you can’t afford to procrastinate any longer. Here’s what you’ll need to do before year end and how it may impact your financials.
Reviewing — and possibly revising — your nonprofit’s spending policy
Your not-for-profit likely follows a spending policy to determine how much of the value of your investments to tap each year for operating costs and capital projects. Although it’s usually a good idea to stick with an established spending policy, circumstances may warrant changes. There are several types of policies, including fixed rate, rolling average, inflation-based, geometric and hybrid, all with pros and cons. When selecting a model, you should consider how that method potentially could cause you to increase spending and undermine your investments’ long-term growth.
Supplement your financial statements with timely flash reports
Here’s how daily or weekly flash reports can help your organization become more responsive to changing market conditions.