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Should Your Business Use the FIFO Inventory Method?
Inventory accounting can get complex fast. Different inventory accounting methods can change how your business views valuations, tax obligations, seasonal shifts and profitability as a whole. The First-In-First-Out or FIFO inventory method can cut some of this complexity to give your business a logical understanding of your financial health. By matching actual inventory movement and…
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How the LIFO Inventory Method Benefits Businesses in Adverse Markets
Businesses are not very optimistic about rising inventory prices, according to recent survey data on business supply chains. Luckily, in times of rising costs, businesses can leverage certain accounting strategies to protect profitability. Among available inventory costing techniques, the Last In, First Out (LIFO) method offers distinct advantages for businesses battling inflating expenses. Learn more…
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Going Public? A SOX Compliance Overview for Executives
Few regulatory requirements demand more advanced preparation for private companies planning their IPO than Sarbanes-Oxley Act (SOX) compliance. Enacted in 2002 after high-profile accounting scandals at companies like Enron and WorldCom, SOX sought to protect investors by mandating enhanced accuracy and transparency in corporate financial reporting. It established rigorous financial control policies and procedures for…
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The Secret to Managing Offshore Teams for Accounting Firms
The practice of outsourcing accounting services to offshore teams is on the rise. The accounting profession faces a talent shortage fueled at both ends: the graduate pipeline of new recruits is dwindling even as experienced CPAs begin to retire. Today businesses are turning to outsourced offshore teams to lower costs while meeting their accounting needs. …
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A Guide to P&L Analysis for Small Business Owners
A profit and loss (P&L) statement, also known as an income statement, is a financial statement that summarizes a company’s revenue, costs and expenses. P&L analysis is essential to interpreting cost efficiency, spending trends and emerging issues impacting your company’s bottom line. It can also give potential investors important information about the sustainability of your…