Both, cash and accrual methods are used for recording accounting transactions. Cash Method With the cash method, there is no record of accounts payable or accounts receivable. Instead, revenue is recorded when cash is received and expense is recorded when cash is paid out. The cash method also serves as an indication of whether there

Accounts receivables (AR) keeps stock of the payments received by the business. For a business that is generating a considerable income, managing to keep expenses low, and ensuring effective daily operations, losing track of the accounts receivables still remains a reality and one that can have a negative impact. For a growing business, it is

Financial sustainability of a business depends on several factors, including its accounting and bookkeeping functions which form the basis of strong financial operations. The presence of robust financial operations typically indicate diligent bookkeeping and accounting practices. Furthermore, a reliable accounting division in a business may be determined by the collective strength of the accounting team’s

A CFO is indispensable when it comes to driving value and growth by supporting financial operations, budget compliance, and operations management while keeping costs controlled. Today, the CFO is emerging as a primary engineer of overall business success, not just financial success. While the key responsibility area of a CFO remains financial operations, it is

Audits are conducted for several reasons, one of them being to ensure that reports and financial statements conform to requirements. Audits also provide information on the business’s accounting and whether or not it is in order. Investors and other shareholders utilize audit information to understand the financial health of the business. Furthermore, the IRS may

For smaller-sized businesses poised for growth, one of the biggest challenges they face is the ability to stay on top of their accounting and bookkeeping processes while pursuing business opportunities. Business Revenue Suffers One of the most common casualties of neglected accounting processes is gaps in bookkeeping and maintaining records. In businesses that handle particularly

For a business to be successful, it should strive towards becoming a high-economic value venture. One way to ensure this is by having an exit strategy in place that established the business as a viable acquisition for other companies or for a smooth transition from one business structure to another.  An exit strategy is not

Automation is no longer limited to high-volume tasks or large, established businesses. It is rapidly becoming one of the critical practices for helping small businesses and startups streamline operations that result in a positive impact to the bottom line. Automation to the Rescue Automation is an essential component to ensuring business continuity. When a business

Integrated small business accounting systems can change the way a business works, in terms of both growth and profitability. What does integration do? Integration works by bringing together different software applications so that they are working seamlessly without the need for additional, expensive manual manipulation or software. An integrated accounting system is one where a

Most CPA firms constantly face one critical challenge: ensuring their own finances are on track in the same manner as those of their clients. Efficient accounting and bookkeeping is the bedrock of sound finances and it can be easy for CPA firms to get immersed in managing clients’ books to the extent that one of