In Pursuit of Profit
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![]() An organization’s fiscal calendar is not set in stone, but it’s often treated like it is. Why? Because it’s extremely cumbersome to move it! And yet, circumstances may arise where an organization really has no other option but to move its fiscal year. A change may be strongly recommended by a trusted advisor, or even required due to major organizational changes. There are many reasons why an organization could decide to shift a fiscal calendar, but the most common instances are to:
Undoubtedly, when a business owner, financial leader, or executive team is considering making a fiscal year shift, there is a valid reason to do so because the headache that results is not worth undertaking without good reason! ![]() Over the last several years commercial insurance rates have been making the headlines of business news outlets in a way that has been difficult to read, and even more difficult to bear! Why? U.S. commercial insurance rates rose 6.6% on average in Q4 of 2023 compared to the same period in the year prior with Commercial Auto, CMP/BOP (Commercial Multi-Peril/Business Owner’s Policy), General Liability, Commercial Property, and Excess Umbrella policies reflecting the highest price increases. According to analysts, the rise is primarily due to increased losses, higher court awards, and widening exposures. A recent article from the global commercial insurance channel, Business Insurance, reveals that on top of these widespread price increases General Liability coverage is also getting more restrictive in response to state law changes. And while General Liability rate increases seem to be lower for insurance policy renewals (especially for multi-line policies), they are trending upward as well. The experts point out that given the current climate, businesses with a history of significant losses or greater risk exposure will likely face increased underwriting scrutiny and unfavorable pricing rates through 2024 and into 2025. So, what do these changes mean for your organization, and how should it respond? We’re here to help you understand how to view this topic through an accounting lens so your business can be better prepared financially! ![]() Do nonprofit organizations need the same level of accounting support that for-profit entities do? Absolutely! Accounting and finance support is critical for nonprofits looking to receive funding because it increases their likelihood of both securing funding as well as utilizing that funding to drive organizational growth afterwards. Let’s explore the many ways in which accounting support can benefit nonprofit organizations looking for funding! ![]() Accounting company vs CPA firm – what’s the difference? There’s a lot of confusion regarding this topic among non-accountants, so we’re going to answer it for you by breaking down the differences and explaining the similarities. While they may sound similar (and some people may even use them interchangeably), an “accounting company” is distinctly different from a “CPA firm.” Often, the confusion results when people refer to a CPA firm as an “accounting firm,” which makes it sound very similar to an “accounting company.” So, how do they differ? The main differences are seen across credentials, regulations, services, and price. ![]() The biggest challenge we hear about every day is being behind in ongoing accounting activities! We hear it over and over, “We’re so behind on _________. I feel like we’re never going to catch up because we just don’t have the people or time to do it all!” You can fill in that blank with almost any bookkeeping or accounting activity and it would describe the kinds of conversations we have with prospective clients. Whether it’s payables, receivables, close, reconciliations, reimbursements, payroll, or reporting, we have heard it all! ![]() When we talk to prospective clients, we’re always amazed at the types of myths that are going around out there about working with an accounting services provider. After almost two decades of doing accounting work for clients, we’ve heard it all from the silly to the downright bizarre. But throughout it all, the same few myths have stuck around over the years. So, we’re taking the time to address them now to set the record straight. ![]() Think you won’t need interim accounting help this year? Think again! It’s time to recognize the fact that your accountant probably won’t be around forever. With the trend of accounting professionals changing roles every 3-5 years and the current accounting exodus that the industry is facing, the odds of your current accountant staying in their role for the next 3 years is only moderately likely, the next 5 years are very unlikely, and the next 10 years is almost certainly not going to happen. That means you need to be prepared to utilize an interim accounting services company sooner rather than later. Don’t put off for next year what you should address this year! Starting out in public accounting as a fresh-faced graduate, I naively thought there was a reasonable chance I would find fraud as part of an audit. Assessing fraud risk was always part of the prep work, but after years of auditing, no fraud had turned up. Turns out I shouldn’t have been surprised. ![]() The 2024 Report to the Nations by the Association of Certified Fraud Examiners (ACFE) sheds light on the persistent threat of occupational fraud. According to the report, only about 3% of occupational fraud is actually discovered by external audit. Turns out that employee tipsters are responsible for the lion’s share of fraud detection. This proved true in my experience. The one real instance of fraud I ran across wasn’t discovered through the audit process. I can’t even remember if the organization had been audited before. In this case, the fraud had already been uncovered by the organization and now they wanted to understand its scope. Turns out that the Executive Director of a nonprofit was submitting invoices from a fictitious vendor and also turning in personal expenses for reimbursement. This resulted in about $250,000 in stolen funds. The mind-blowing part was that this person had stolen money from a previous employer! The former employer hadn’t charged the individual, probably to avoid bad publicity, nor had they been contacted during the ED’s hiring process. Learning from their error, the nonprofit did bring charges this time around. When the culprit was located, they were in another state already working at yet another nonprofit. 5/27/2024 Is Remote Work Hurting Accountants?![]() When done wrong? Yes. But when done right, it doesn’t have to negatively affect them. In recent years most of the workforce has gotten used to working from home. However, that doesn’t mean that their employers have gotten wise about how to best manage these remote employees. Too often companies are leaving the management of remote skilled employees up to the employees themselves by failing to invest in their ongoing development and facilitate the kind of true collaboration that lifts them up. |
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7/25/2024