Nonprofit functional expense - blue

Nonprofit functional expense reporting and how to make sure it’s accurate

| Audit and Accounting, Business Miscellaneous

By Natalie Hopkins and Chris Mennel     One of the fun parts about offering auditing and accounting services to various nonprofits (that’s right, we used fun and auditing in the same sentence #accountingnerd), is getting to see the operations of different types of organizations.  There are some amazing missions, people and passions in the nonprofit community.   While every organization is different, there are certain parallels in the composition of an organization’s audited financial statement, Read more [...]

Make Your Audit Count

| Audit and Accounting

By Natalie Hopkins      Governance, Fraud, Conflicts of Interest and 990 Reviews are among the hot topics that have circled the not-for-profit world the last couple of years.  Finance committees, tax preparers, and boards of directors can all provide critical information related to these areas and aim to help an Organization achieve the many goals it has surrounding fiscal responsibility. However, the annual independent audit process can also be a crucial benchmark Organizations use to measure Read more [...]

Accounting for Your Volunteers, Literally!

| Audit and Accounting

By Tyler Kleinschmidt     Not-for-profit entities rely heavily on volunteers and a variety of contributed goods and services to fulfill their mission. The Financial Accounting Standards Board (“FASB”), which sets the rules regarding accounting and financial reporting, outlines criteria that govern whether or not a contributed service should be recognized in the financial statements.  However, there is still debate as to whether these guidelines allow for the most accurate reflection of the Read more [...]

Mid-Year Check Up

| Audit and Accounting

By Natalie Hopkins    Many of our clients are currently closing out their fiscal year-end financial records and keeping up with the many to-dos that go along with that strenuous process. However, we have many nonprofit clients who are hitting their halfway mark of their fiscal year and are ready for a mid-year checkup. Finance Committees should be evaluating cash flows and what is anticipated during the second half of the year to understand shortcomings and how to invest additional cash that Read more [...]

Accounting & Reporting Standards for Privately-Held Businesses – the FASB Needs to Step Aside….

| Audit and Accounting

By Mike Alerding     In 42 years of public accounting, I have fought the “Public vs Non-Public” battle of accounting and disclosure principles to no avail.  The FASB continually and consistently has stuck to its guns that “GAAP is GAAP” like not unlike the “Right is Right” concept.  However, regardless as to what those at the FASB believe, when it comes to reporting for closely-held businesses, Right is not always GAAP and certainly GAAP is not always RIGHT. In early June 2013, Read more [...]

IFRS and GAAP Convergence – A Case for Technical Isolationism

| Audit and Accounting

By Mike Alerding     The freight train running down the tracks at breakneck speed called "IFRS/GAAP Convergence," is headed for a tragic and regrettable collision with reality and common sense. Creditors, investors and stockholders are all giving a hearty thumbs-up to convergence under the mistaken premise that the grass is actually greener on the world stage. These so-called "users" in the U.S. are hiding behind the same curtain that hid the Wizard of Oz and, through their silence, are condoning Read more [...]

Creation of Private Company Financial Reporting Standards

| Audit and Accounting

Letter to Board of Trustees of the Financial Accounting Foundation Dear Financial Accounting Foundation: I am writing in support of the Blue Ribbon Panel’s recommendations on the creation of Private Company Financial Reporting Standards (PCFRS) for privately-held companies. A new set of meaningful and pragmatic standards and a separate standard-setting body are critically needed as soon as possible in order to assist the real engine of our economy – closely-held businesses – in spending less Read more [...]

Information Overload in Financial Reporting for Closely Held Businesses – Part 3

| Audit and Accounting

By Mike Alerding     Over the years, closely held businesses have really received the short end of the stick when it came to compliance with accounting and reporting standards. Pronouncements have always started with the publicly held sector and trickled down to the closely held sector, even though many – if not most – of them either didn’t really apply or had diminimus value to the reader/users of the financial statements. The trickledown effect has been costly and continues to increase Read more [...]

Information Overload in Financial Reporting for Closely Held Businesses – Part 2

| Audit and Accounting

If a tree falls in the forest and no one hears it, did it really make a noise? By Mike Alerding     I have been reviewing, drafting and analyzing financial statements for closely held businesses for almost 40 years. I have had the opportunity to see basic financial statements and disclosure requirements change markedly, probably a half a dozen different times, usually as a result of some malady in the US economic markets. Beginning with the formation of the Financial Accounting Standards Board Read more [...]