The last thing your company or organization wants is unreliable financial statements. Your partners, investors, lenders and especially your company’s bottom line depend on numbers from your accounting department that you can comprehend and trust.
To minimize the potential for errors, make sure that the following criteria are met when reporting your numbers:
Asset accounts should have debit balances and liability accounts should have credit balances.
As long as your...
By Erin Silkowski
Your company’s operation might rely heavily on leasing equipment or property as a way of using assets without the burden of purchasing or disposing of them when no longer needed. Due to changes adopted by the Financial Accounting Standards Board, many of these lease agreements that take place off the balance sheets will soon find their way on to them. As a result, it is essential to familiarize yourself with the upcoming changes sooner rather than later to avoid...
By Bill Beiermeister
It can be tempting to use financial instruments to quickly raise cash, especially for technology and life sciences companies that must go through several rounds of financing before they can develop marketable product lines and begin generating income.
But if you’re thinking about going this route, tread carefully. Some financial instruments must be treated as liabilities on your balance sheet if payment is demanded at certain times or under stated circumstances....