When it comes to revenue, nonprofits need to think like auditors

Auditors examining a not-for-profit’s financial statements spend considerable time on the revenue figures. They look at the accounting methods used to record revenues and perform a detailed income analysis. You can use the same techniques to increase your understanding of your organization’s revenue profile. In particular, consider: Individual contributions. Compare the donation dollars [...]

By | 2018-07-11T13:42:51+00:00 July 11th, 2018|Auditing, Business, Not For Profit|Comments Off on When it comes to revenue, nonprofits need to think like auditors

Unlock hidden cash from your balance sheet

Need cash in a hurry? Here’s how business owners can look to their financial statements to improve cash flow. Receivables Many businesses turn first to their receivables when trying to drum up extra cash. For example, you could take a carrot-and-stick approach to your accounts receivable — offering early bird discounts to new [...]

By | 2018-01-31T11:32:23+00:00 January 31st, 2018|Accounting, Auditing|Comments Off on Unlock hidden cash from your balance sheet

How financial statements can be used to value private businesses

Owners of private businesses often wonder: How much is my business interest worth? Financial statements are a logical starting point for answering this question. Here’s an overview of how financial statements can serve as the basis for value under the cost, income and market approaches. Cost approach Because the balance sheet identifies a [...]

By | 2018-01-17T16:54:57+00:00 January 17th, 2018|Accounting, Auditing|Comments Off on How financial statements can be used to value private businesses

How to conduct a year-end risk assessment

Auditors assess their clients’ risk factors when planning for next year’s financial statement audit. Likewise, proactive managers assess risks at year end. A so-called “SWOT” analysis can help frame that assessment. Typically presented as a matrix, this analysis of strengths, weaknesses, opportunities and threats provides a logical framework for understanding how a business [...]

By | 2017-12-20T10:11:47+00:00 December 20th, 2017|Auditing|Comments Off on How to conduct a year-end risk assessment

Respecting auditor independence

Auditor independence is still a hot topic among investors and lenders even though the financial crisis of 2008 was nine years ago. Here’s an overview of the independence guidance from the Securities and Exchange Commission (SEC). These rules apply specifically to public companies, but auditors of private companies are typically held to the [...]

By | 2017-08-08T15:58:14+00:00 August 8th, 2017|Auditing|Comments Off on Respecting auditor independence