Financial statements that are audited means that they have been certified by an independent Certified Public Accountant for the business or non-profit organization. The CPA will certify that the company’s financials and accounting methods either do or don’t meet the requirements of the GAAP (Generally Accepted Accounting Principles).

Sometimes an opinion is not issued on a the statements. That could be due to the fact that there were not enough source documents available to prepare the audit correctly, or there were issues that need to be resolveded before evaluating the accuracy of the financial documents. A lack of opinion usually indicates that a company has some issues that are lacking in their accounting systems or practice. The business should take it seriously and strive to improve so they can meet the requirements of the United States Generally Accepted Accounting Principles.

(more…)

November 19, 2008 - The end of 2008 is coming up fast. With the year drawing to a close, now is an ideal time to review your tax situation and evaluate strategies that may help minimize your tax bill. Once December 31 passes, your 2008 tax bill is essentially set. Taking certain steps before then can make a difference. How much you can save depends on your individual circumstances, but examination of the following general areas is worth a look — in addition to considering the tax impact of any special circumstances in which you might find yourself this year.

TRADITIONAL TECHNIQUES

Income shifting. One of the most fundamental year-end tax planning techniques involves accelerating deductible expenses into 2008 and deferring income, if economically feasible, into 2009. With the possibility of changes in the tax brackets following the elections, the deferral/acceleration issue becomes even more complicated. By delaying taxable income you defer taxes. Delaying taxable income may also prevent you from losing lucrative tax breaks that can be reduced or eliminated altogether as your income level rises and propels you into a higher tax bracket.

(more…)

Let’s face it - these are difficult times in the business world. The shape of Wall Street has changed forever, credit markets are caving and economic uncertainty is scary high! A lot of people are worried, but guess who are sitting pretty? Accountants. If you are starting out in your career there has never been a better time to become a part of one of the Big 4 Public Accounting firms.

There is an old saying, “a great economy needs good accountants and a bad economy needs great accountants.” This has never been truer today. With fair value accounting so heavily entrenched in what has happened recently, the convergence to International Standards on the horizon, Sarbanes Oxley still kicking around, FIN 48, etc. there is plenty of work for accountants. However, not just anyone can make it through the doors of a Big 4 public accounting firm,.

If you are reading this you no doubt are well aware of who these guys are:

PricewaterhouseCoopers, Deloitte and Touché, KPMG and Ernst & Young.

These firms provide the recent accounting grad with a world class experience. Want to be on the cutting edge of IFRS convergence? Join a Big 4. Want to be part of the fair value developments as they happen? Join a Big 4. Oh yeah, not to mention, want an industry leading salary, amazing benefits and job security? JOIN A BIG 4!.

(more…)

Industry professionals, recruiters and college professors are unanimous in their belief in one thing: there is no better way to start a career in accounting than experience with a Big 4 public accounting firm. If you are reading this you no doubt are well aware of who these guys are:

PricewaterhouseCoopers, Deloitte and Touché, KPMG and Ernst & Young.

While each of these companies has various strengths and weaknesses, they are all alike in the fact that they provide the recent accounting grad with a world class experience. First year associates at these firms are given a level of responsibility that is truly remarkable. When I was a first year I remember thinking on an almost daily basis “I can’t believe they’re letting me do this.” As I strolled into the CEO’s office of the firm we were auditing, as I tallied up a multi-million dollar mistake I’d found in another company’s books and as I traveled the country with my very own American Express Corporate Card, I kept repeating this thought:
(more…)

Don’t try to compete on price.  Competing on price is almost always a losing proposition. For small business owners, the most important impact lands right on the bottom line. The smaller the gross margin (the % of sales price remaining after deducting the cost of producing the product) the more pronounced the negative impact of cutting price to get a sale.  Instead, work on the issue of making price a secondary consideration to your customers.  Take a long look at your products or services and seek opportunities to differentiate yourself.

Concentrate on marketing.  A recession is not the time to cut your marketing budget.  Stay in the spotlight.  By letting your customers and potential customers know you’re thriving and always ready to do business, you’ll fare much better coming out of the recession.

(more…)