431 tagged with "Accounting"
Master accounting fundamentals and best practices for plain-text bookkeeping
ASC 350 Goodwill Impairment: A Private Company Guide to the Amortization Alternative and Triggering-Event Testing
ASC 350 lets private companies amortize goodwill over up to ten years and test for impairment only when a triggering event occurs. This guide walks through ASU 2014-02 and 2021-03 elections, the single-step Step One quantitative test after ASU 2017-04, and how to keep auditors and lenders aligned.
Schedule M-1 and M-3 Book-Tax Reconciliation: From GAAP Net Income to Form 1120 Taxable Income
Schedule M-3 kicks in at $10 million of year-end total assets and demands four-column detail on every book-tax difference; M-1 stays single-page below that line. A CFO walkthrough of how the reconciliation works, the recurring permanent and temporary differences, and the habits that keep the schedule clean.
Inventory Accounting Methods Compared: FIFO, LIFO, Weighted Average, and Specific Identification for Small Businesses
A practical comparison of FIFO, LIFO, weighted average, and specific identification — with IRS rules, Form 970 and Form 3115 mechanics, the LIFO conformity trap, and a five-step framework for picking the right inventory method in 2026.
ASC 842 Lease Accounting for Private Companies: Putting Operating Leases on the Balance Sheet Without the Headaches
ASC 842 requires private companies to record nearly every lease longer than 12 months as a right-of-use asset and lease liability. This guide covers the lease definition tests, operating versus finance classification, discount rate options including the risk-free rate election, the seven most common implementation pitfalls, and how the changes ripple through covenants, EBITDA, and audit work.
PCAOB QC 1000 and AICPA SQMS No. 1: What Small CPA Firms Must Implement Before December 2026
Small CPA firms must implement PCAOB QC 1000 by December 15, 2026, alongside AICPA SQMS No. 1, already effective since December 2025. A practical guide to the eight components, four required roles, Form QC reporting, and a five-phase plan to reach compliance.
ASC 842 Lease Accounting for Private Companies: Putting Operating Leases on the Balance Sheet
ASC 842 requires private companies to capitalize nearly every lease longer than 12 months as a right-of-use asset and a lease liability. This guide walks through the five-criteria classification test, the six-step calculation, the risk-free rate and short-term lease expedients, and the audit findings that most often trigger restatements.
ASC 718 Stock-Based Compensation Accounting for Startups: A Practical Guide
ASC 718 requires startups to recognize the grant-date fair value of equity awards as compensation expense over the vesting period, even when no cash changes hands. This guide covers measurement, recognition, forfeitures, modifications, disclosures, and the audit pitfalls that derail funding rounds.
Foreign Exchange Gains and Losses: A Practical Multi-Currency Accounting Guide for Small Businesses
How small businesses record foreign exchange gains and losses under US GAAP (ASC 830) and IRC Section 988, with sample journal entries, realized vs. unrealized treatment, period-end revaluation, and a practical monthly close workflow.
Software Capitalization Under ASC 350-40: A Practical Guide to the Capitalize-vs-Expense Decision
ASC 350-40 governs which software development costs SaaS companies expense and which they capitalize as intangible assets. ASU 2025-06 retires the three-stage model in favor of a probable-to-complete threshold, with the FASB signaling more costs will be expensed. This guide covers what qualifies, the EBITDA and balance-sheet impact, and how to set up an audit-defensible process.
Percentage of Completion vs Completed Contract: A Contractor's Guide to Construction Revenue Recognition
A side-by-side comparison of the Percentage of Completion (PCM) and Completed Contract (CCM) methods for construction revenue recognition, with worked examples, ASC 606 over-time criteria, the IRC Section 460 small contractor exception (~$31M for 2026), WIP schedule mechanics, and the overbilling/underbilling traps that wreck contractor cash flow.
Restaurant Accounting Demystified: Prime Cost, Tip Pooling, and COGS
A working guide to the three numbers that decide whether a restaurant makes money — prime cost, food and beverage COGS, and tip pooling — with 2026 benchmarks, FLSA rules, and a weekly accounting cadence.
The Client Intake Form That Saves Accounting Firms 20% in Lost Revenue
A diagnostic accounting client intake form captures decision-makers, transaction volumes, historical issues, and billing constraints — preventing the scope creep that costs firms up to 20% of annual revenue.