What is the mark of a good peer review? Is it delivering a “Pass” without exceptions? Is it guaranteeing a conflict-free process for the firm? When we review fellow insurance CPA firms, neither of these play into our metrics for success. Rather, our goal is to help our colleagues resolve struggles they’re experiencing so they can perform higher-quality audits. And we take great pride in finding these solutions. We know our colleagues have a desire to perform top-notch audits, so instead of a quick fix, we always strive to find and help implement the permanent fixes that will serve them well into the future. We recently asked JLK Rosenberger partner James Dougherty, CPA, CGMA what he enjoys about performing peer reviews. He said, “I like to get to know the firm and their desire to do things correctly and know that we made a difference.”
One of the most crucial parts of payroll in a small company is remitting taxes on time. Often, when considering the importance of payroll, withholding comes to mind. Especially this year, as the IRS has released new tables under the Tax Cuts and Jobs Act. However, if taxes are not remitted to the federal government on schedule, harsh personal penalties can be incurred.
Now and then, CFOs and other executives present company information, like strategies, risks and operations, to the audit committee. Three key components will assist you in making the most effective presentation: thoroughly grasping the committee’s role; building relationships with committee members beforehand, and concentrating on the most pertinent information. Discover how.
Accountants can’t look into every transaction when running an audit or review so they appoint a “materiality” threshold instead. They apply this benchmark to gain reasonable assurance in an audit — or limited assurance in a review — of uncovering misstatements that might be big enough, individually or collectively, to be material to the financial statements.
For-profit companies, as evidenced by the name, have one primary goal — to maximize profits for their owners. Conversely, nonprofits are typically motivated by a charitable purpose. Read on to see how their corresponding financial statements reflect this difference.
Statement of Cash Flows was revised to adopt ASU 2016-18 to reduce the difference between statutory and US GAAP on cash flow classifications. In the revision, restricted cash and cash equivalents are no longer reported as cash flows from operating, investing or financing buckets. Instead, they are included in the beginning and ending balances of the cash flow statements.
The amounts reported on a company’s financial statements are meaningless without a relevant basis of comparison. Assessing certain financial ratios and comparing them to the same results over time and against those of competitors can be an invaluable tool. Consider … Continued
Adding diversity to your team can add valuable insights. The Securities and Exchange Commission (SEC) will be expanding their disclosure requirements on boardroom diversity for public companies, but private companies can also benefit from the right insights from a board … Continued
Hedging to account for price fluctuations in various commodities has become commonplace to minimize volatility in financial statements. The Financial Accounting Standards Board (FASB) recently issued an update to its guidance on hedge accounting rules with improvements that could encourage … Continued
Payroll reporting is one of those tasks business owners often dread. Whether the problem is lack of time or expertise, this can lead to putting it off until the last minute and even costly inaccuracies. Luckily, there is another option. … Continued