Accounting & Audit

With the First Major Change in Nonprofit Financial Reporting in Over 25 Years, Are You Ready?


In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. This is the first major change in nonprofit financial reporting in over 25 years. Below is a brief overview of the changes resulting from the new guidance. ASU 2016-14 is designed to reduce complexity, increase understandability and use to stakeholders, and assist nonprofits with improved financial reporting.Read More

Simplified Employee Benefit Plan Financial Reporting; Have you complied?


In August 2015, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update (“ASU”) to help simplify the reporting on employee benefit plan financial statements. The update became effective for plan years after December 15, 2015. Employee benefit plan administrators commonly have raised questions related to the implementation of this standard. Let’s go over a “refresher” to ensure your plan is in compliance with this standard.Read More

The Building Blocks to a Useful Financial Statement Package


Preparing a useful financial statement package is essential to your board of directors’ (“Board”) or finance committee’s ability to make informed business decisions. Although there are nuances specific to different organizations that may require additional metrics, there are general measures of performance that can be included in financial statement packages to help leaders make the most considerate decisions for their organization. Read More

Whose Job is it Anyway? Evaluation of the Going Concern Assumption


What is substantial doubt about an entity’s ability to continue as a going concern? Who is responsible for evaluating going concern? What are the reporting requirements in regards to the preparation financial statements in accordance with generally accepted account principal financial statements? The above questions are important to ask as the requirements to evaluate and report on substantial doubt about an entity’s ability to continue as a going concern have recently changed. Read More

Accounting for Long-Lived Assets, a Refresher


Accounting principles generally accepted in the United States of America (U.S. GAAP) for long-lived assets are detailed in ASC 360, Property, Plant, and Equipment. Policies for recording cost, capitalization, assigning useful lives, and depreciation are summarized here. Read More

Modifications: Updated Guidelines on Share-based Payment Awards


The Financial Accounting Standards Board has issued new guidelines, ASU 2017-09, regarding Compensation-Stock Compensation (Topic 718). The goal of the amendment is to clarify the terms and conditions surrounding share-based payment awards and help entities determine when to apply modification accounting. Read More

Transition Time: Applying the New Lease Accounting Standard for Lessees


New year, new lease standard! If you currently lease an asset, prepare to implement the new lease accounting guidance issued by the Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) 2016-02, Leases. Read More

Analyzing the Results of Budgets and Forecasts


At the end of each year, it is important to both look back and see how well your organization performed against its budget and look forward to forecasting for the future. Budgets and forecasts are important tools to help you plan for your business’s future, and to gain insight into areas of improvement.Read More

The IRS reminds employers of the January 31st filing deadline


Historically, employers have had to manage two filing deadlines for their Forms W-2, Forms W-3, and Forms 1099-MISC. The first deadline was January 31st, whereby these forms were due to the respective recipients. A second deadline of March 31st also had to be managed. This was when these forms were due to the Social Security Administration. Beginning in 2017, recipient copies and filing copies are both due January 31st, regardless of whether they are electronically filed or paper filed.Read More

IT Controls: How safe is your organization?


We live in the time of technology, where further enhancements are created every day to make the business world a more effective and efficient place. With increased reliance on technology, many organizations highly depend on their IT department to ensure their systems are running smoothly and that controls are implemented to keep them safe. Read More

Internal Control Monitoring - Are You In Control?


Are your internal controls functioning properly? Help your organization achieve its goals by implementing a system to monitor your internal controls and measure their effectiveness.Read More

Internal Control: Control Environment and Control Activities


Have you thought about ways to make your entity more efficient and secure? By understanding the elements of internal controls and the implementation of these controls, you will be able to do just that. Read More

Internal Risk Assessment: Are you prepared?


There are several areas of risk when running a business and these risks can have a significant effect on business operations. It is imperative to perform internal risk assessments to properly monitor and implement controls that can mitigate these risks. Read More

Internal Controls: To Prevent or Detect?


An effective internal control system is essential to an organization to achieve its strategic, operational, compliance, and reporting goals. Most important, an effective internal control system is necessary to mitigate the risk of fraud. Evaluating your current internal control structure and considering the effectiveness of its preventive and detective controls on an ongoing basis can help to ensure that your organization’s processes are functioning properly; thus saving costs in the long-term.Read More

Cloud based accounting, is it worth the cyber risk?


Whether anybody really understands how “the cloud” works is something we may never know. Regardless of whether we understand it or not, we are already living in a cloud computing world of social media, mobile devices and the birth of the App Generation. It is easy to see how cloud based systems are quickly emerging as the most advantageous method of accounting. Cloud based accounting allows you to stay connected and access information from anywhere, at any time, but is it safe? Read More

To Record or Not To Record? Accounting for Conditional and Unconditional Grants


Grant-making and grant-receiving is commonplace in the nonprofit industry. Certain grants can have conditions attached to them which would impact their accounting treatment. Let’s examine the two types of grants and the related accounting from the Donor’s perspective as well as the Donee.Read More

Financial Instruments: Implementing the Improvements


The Financial Accounting Standards Board (“FASB”) issued a new accounting standards update, ASU 2016-01, to make the reporting of financial instruments simpler and more beneficial to financial statement users. If your organization holds financial assets or owes financial liabilities, be ready to integrate these recognition, measurement, presentation, and disclosure changes into your accounting processes. Read More

Consolidation: When is it required for related nonprofit entities?


As you prepare for this year’s upcoming audit of your charitable organization, have you thought about the entity’s related parties? Perhaps one of the entities has an ongoing economic interest in the other. It is important to consider just how closely related these organizations are as the nature of their relationship could significantly impact the audit of your organization and result in consolidated financial statements. Read More

Are You Budgeting for Your New Year Resolutions?


As you “Ring in the New Year” and celebrate the successes of 2016, it’s time to look towards the future and determine what you would like to accomplish in the next twelve months. A great way to memorialize these goals is within a budget. A budget is a planning tool that reflects an organization’s program, mission, and strategic financial goals and the resources required to accomplish this plan.Read More

FASB Makes a Statement on Cash Flows


It’s no secret the statement of cash flows can be difficult to prepare with the wide variety of transactions companies are involved with on a daily basis. Beginning in December 2016, the Financial Accounting Standards Board (“FASB”) issued a new Accounting Standards Update “ASU” to standardize the reporting and classification for eight tricky cash-related transactions. This update, referred to as ASU 2016-15, addresses issues faced by both financial statement preparers and users!Read More

Don't Forget to Record those Pesky Year-End Accruals!


The year-end close of your organization’s books involves many steps. An often-challenging task in ensuring your books are complete is the close of your liability accounts, particularly accrued expenses. Accrued expenses are those costs that you have incurred, but have not yet been paid. It is important that the proper steps to accrue for liabilities are not overlooked. Read More

From Costly to Cost-Effective: Additional Benefits of Employee Benefit Plan Accounting Updates


If your company has an employee benefit plan, you may have found yourself wondering where the benefit is when faced with the complex investment accounting that comes alongside it. Beginning in December 2015, the Financial Accounting Standards Board (“FASB”) issued a new accounting standards update regarding employee benefit plans with the intention of simplifying the accounting procedures and reporting.Read More

Accounting and Assurance Department


Our accounting and assurance department possess Big 4 experience in a variety of industries including manufacturing, professional services, and nonprofit entities. We strive to bring the expertise of a large firm while providing the personalized service you would expect of a smaller firm.Read More

Phishing: Are You Going to Bite the Bait?


As the business world increasingly relies on technology, cyber-attacks and scams are becoming more prevalent. There are many opportunities for hackers to gain access to and exploit confidential information. One cyber security threat that can affect businesses, nonprofits, and individuals alike, is commonly referred to as Phishing. Read More

Nonprofit Financial Statement Reporting Changes on the Horizon; are you ready for change?


In August of 2016, the Financial Accounting Standards Board, (“FASB”) issued a new accounting standards update (“ASU”) regarding accounting and reporting for nonprofits, known as ASU 2016-14. This ASU marks the one of the biggest changes in accounting and reporting for nonprofit organizations.Read More

Don't Fall Behind - Record Your Volunteer Time!


Did you know that nonprofit organizations may recognize donated time from their volunteers as contribution income in their financial statements? In order to take advantage of these financial reporting rules, management and volunteers must be aware of certain requirements and restrictions on recording donated time.Read More

Preparing for the New Lease Accounting Standard


Do you lease office space or equipment? If so, have you heard about the changes to lease accounting? In February of 2016, the Financial Accounting Standards Board (FASB) issued a new accounting standards update regarding accounting for leases, known as ASU 2016-02. Forget everything you used to know about capital and operating leases – well, maybe not quite everything – and prepare to learn about a new world of lease accounting. Read More

Are Your Donated Noncash Assets Recorded Correctly?


Contributions can come in several forms, including both cash and noncash assets. Examples of noncash assets include property, equipment, furniture and fixtures. If an organization donates a noncash asset, they must take into account the book value and fair value of the asset in order to properly record the transaction. Click below to learn more!Read More

Changes are Coming to Not-for-Profit Reporting


The Financial Accounting Standards Board (“FASB”) Not-For-Profit Advisory Committee (“NAC”) has recommended that changes be made to better serve the needs of not-for-profit financial statement users. To help better assess the financial health of the not-for-profits, NAC seeks to make not-for-profits more comparable through improved financial reporting, and to provide donors and lenders with information useful in assessing liquidity.Read More

ASU No. 2015-03: New Presentation Standards for Debt Issuance Costs


The Financial Accounting Standards Board (“FASB”) has issued an accounting standards update (“ASU”) to the presentation of debt issuance costs as part of its overall effort in reducing the complexity in accounting standards.Read More

A New Kind of New Year's Resolution


2016 is here which means it is time for New Year’s Resolutions. Why not make a resolution to enhance your organization’s internal controls surrounding cash?Read More

Saying Goodbye to a Year of Accounting


Ready to say goodbye to 2015 and hello to the New Year? In the midst of the holiday season hustle and bustle, remember to close your books properly to start 2016 off on the right foot. Read More

The Importance of W9s and Other Year-End Cost Saving Tips


As 2015 is quickly coming to an end you may be asking yourself, what about Forms 1099 and the information needed to prepare these forms? Have you been good this year?Read More

Subsequent Events: When Do I Record and When Do I Disclose?


Subsequent Events: When Do I Record and When Do I Disclose?Read More

Accounting and Assurance Services


Do you want to enhance your entity’s operating effectiveness, efficiency and financial accuracy? Do you know what services can help you get there? Read More

Related Party Transactions


Did you know you there are specific disclosure requirements for related party transactions? Read More

QuickBooks Tips: Downloading Financial Information Directly Into QuickBooks


Did you know you can download your daily bank and credit card activity directly into QuickBooks? Instead of manually entering each and every transaction on your monthly statement, why not let QuickBooks do all the work for you by downloading them straight from the bank?Read More

Allowance for Doubtful Accounts


Accounting estimates require judgment by management based on knowledge/experience of past/current events. It’s important to provide accurate estimates so the financial statements portray a fair representation of the financial position of the company in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). The allowance for doubtful accounts is one example of an important estimate made by management, and there are several methods to use in determining the estimate.Read More

Agents and Intermediaries: Recognizing Revenue Collected on Behalf of a Non-Profit


Does your business ever raise funds to donate to charity? How do you report these transactions? Do you even record it at all or do you simply take the cash and hand it to the charity? The correct action would be to record the transaction. However, whether or not an entity should report revenue collected on behalf of a not-for-profit organization depends on whether the entity has variance power. The recipient entity, or the organization that collects the funds, can act as an intermediary or agentRead More

Nonprofit Audit Committees: Their Purpose, Significance, and Effectiveness


With the ever changing economic environment and the increase in reports of financial debacles and alleged fraudulent activities, there has been an increasing demand for more effective measures of regulation in the nonprofit industry. Many of these concerns were answered with the creation of the Nonprofit Integrity Act of 2004 ("Integrity Act"), which included the requirement for certain nonprofit organizations to have financial statement audits. The Integrity Act also requires the establishmenRead More

California’s Nonprofit Integrity Act of 2004… ARE YOU IN COMPLIANCE?


Charitable organizations that are incorporated, do business, or hold assets in the state of California are subject to the provisions set forth in the Nonprofit Integrity Act of 2004. Are you in compliance with these provisions?Read More