CFO

AccountingWEB Life

ASPs Offer Cost and Time Savings to Small Businesses

By Sheri Jacobs, Director of Association Marketing and Business Development for SurePayroll.com
A&A

Auditors Clean Up with Non-Attest Services

A new survey from the Financial Executives Institute (FEI) finds that an overwhelming 85 percent of respondents say their auditors also provide 'non-attest consulting services.'Respondents claim the reason why this is so high is that they want the freedom to choose consultants, and rely on firms that already provide value to their company through services like audit.More than 60 percent also said that their auditors prepare or review tax returns apart from any tax accrual audit work.The survey was released to coincide with SEC Chairman Arthur Levitt's
A&A

Online Calculator: How Much Does it REALLY Cost When Your Network Goes Down?

Stuff happens. Networks crash. But what is the cost to your organization when that happens? The REAL answer might surprise you. A good disaster recovery planning website www.drplanning.org offers a link to a Network Downtime Cost Calculator where you can calculate both direct and indirect costs of a network failure. IT specialists - you may want to run this calculator to help justify increases in the technology budget for the firm.
Practice

Internet Based Malpractice Insurance Now Available

Accountants, bookkeepers and tax preparers now have an alternative for malpractice insurance, available for the first time through the Internet through a new web site unveiled this week by one year old ePolicy.com, Inc. of Torrance, California.Shopping for insurance can be handled entirely through the Web, and coverage from major carriers is available within minutes.The malpractice insurance available through e-Policy is primarily for firms with 10 or fewer accountants or bookkeepers.
A&A

Survey Shows Trade Secrets Are At Risk

More than half of US corporations are ill-equipped to protect their trade secrets, and do not have an established protocol to ensure their protection, according to a just-released survey of 200 top trial lawyers by PricewaterhouseCoopers and the American Bar Association.Survey respondents estimated that 40-70% of company records are kept in electronic form, but the security and accessability to that information is questionable.
Practice Management

Critical Factors in Receivables Handling

Written by James Herst, Performance Source, Inc., reprinted with permission by The Financial Management Network.Sellers can avoid bad debt losses through better handling of their receivables. Here’s some suggestions. Customer Records a KeyCreate and maintain accurate customer records, including full name of customer’s bank. Know names of those who approve payment, signs check and the superior of each at customer location. Call a new customer and tell your credit terms. Ask: Can you live with that?
A&A

The Legal Audit: A How To Manual - Part II

Written by Annette S. Biesecker, Executive Vice President, Accountability Services, Inc., reprinted with permission by The Financial Management Network.In the first installment of The Legal Audit, we examined the various billing problems and irregularities that auditors should be aware of when conducting a legal audit.
A&A

Analyst Fields CPA/Financial Services Conflicts

One of the most debated and discussed issues in the accounting profession is the one about commissions and contingent fees, and whether CPAs should be in the business of taking them.What would you do if you were faced with a situation involving accounting and consulting?Industry analyst Wilbur L. Ross Jr. recently sat down with a reporter from The New York Times to answer questions like this one, along with funding Internet start-ups, restatements of corporate earnings and the economy.You can find the full interview at the link below.
A&A

IRS Shock Wave About to Hit Small Businesses

In a surprise move, the IRS, without seeking input from small business owners and other interested groups, is preparing to release a new set of guidelines that will require many businesses with revenue over $1 million to use the accrual method of accounting. These guidelines are due to be released next week.Current law requires that businesses with revenue over $5 million must use the accrual method of accounting. Most businesses with revenue that is beneath this threshold may opt to use the accrual method, or may use the cash method of accounting.
A&A

FASB Awaits "Thank You" from Microsoft Employees

If a company awards stock options and later reprices those options, FASB rules require that the repriced options must be charged against profits. In a small company where the value of the options is minimal, this might not make much of a difference to the bottom line. But if you happen to be Microsoft, and you're looking at having to offset your profits with a $30 billion adjustment over the seven-year life of the options, you may want to rethink the repricing strategy.Microsoft issued options to its employees last summer, assuming the price of its stock would continue to rise.
A&A

IRS Provides Tax Relief for Small Businesses

Businesses that must account for inventories and that have a three-year average of $1 million or less in gross receipts now have an option of using the cash method of accounting. Effective for tax years ending in December 1999, a new Revenue Procedure may result in tax savings for many small businesses.The IRS has issued Revenue Procedure 2000-22 which provides an exception to the accrual accounting rules for small taxpayers, which are defined as taxpayers with average annual gross receipts of $1 million or less.
A&A

The Legal Audit: A How To Manual For Internal Auditors

Written by Annette S. Biesecker, Executive Vice President, Accountability Services, Inc., reprinted with permission by The Financial Management Network.No one can dispute that law firms sometimes engage in outright billing fraud. Consider: Webster Hubbell, once third in command at the United States Justice Department, plead guilty to charges that he had billed his legal clients fraudulently.
A&A

Save Thousands on Conference Calls

Written by Bruce Judson - The Judson Group and reprinted with permission from The Financial Management Network.Last week I needed to set-up a conference call. To me, the process seemed unnecessarily difficult and costly: the conference call was expensive, needed to be scheduled with a telephone service operator in advance, and participants needed a special phone number and code to join the call. As I was setting all of this up, I kept thinking there must be a better service...
A&A

Crowe Chizek Forms Investment Banking Subsidiary

Crowe, Chizek and Company LLP, a leading accounting and consulting firm, today announced the formation of Crowe Chizek Capital Markets LLC. The wholly-owned subsidiary will provide investment banking services with a focus on sales and divestitures of closely held businesses with transaction sizes less than $100 million.
A&A

Playboy Gains Capital & 'Spins' Web Division

Playboy Enterprises, Inc. is a huge, international company with many concerns besides its publishing business. Today, when building capital is everything and losses are sky-high in certain cases, a company like Playboy has no other option than to get rid of its most draining businesses.In this case, it's the Web division. The larger question, though, rests with the way Playboy is handling the loss.
A&A

How Pokemon is Like the Stock Market

Do your kids collect Pokemon cards? Do you have a favorite niece or nephew who just can't get enough of the craze?In many ways, Pokemon is like the stock market. In its most basic form, a Pokemon card--one that is rare--is just like a non-profitmaking, non-dividend paying asset. Rare cards are parallel to a tiny free float.
Technology

The Future of Financial Reporting Mapped Out

AccountingWEB was honored to host an onlike workshop this week featuring Mike Willis, Chairman of the AICPA led XBRL Steering Committee, to talk about this new language of electronic financial reporting.
Practice Management

Three Uses of the Web for CPAs

Everyone these days is on the Internet, but how much can you use the Internet to deal with clients? Here are three fundamental uses of the Web.1. Answer Basic Questions: many firms use their Internet site to provide solutions for customers and clients. This is especially evident with systems like Ernst & Young's Ernie, which provides online assistance at a rate of $3,000 for 10 questions.
A&A

Microsoft Break-Up Update

Here’s an update to the story released earlier this week on the Microsoft break-up. This time, U.S. states, along with the Justice Department, will urge a Federal judge to split the company into two entities.The basis for the break-up is to avoid any future holds on a monopoly of power related to software and operating systems.
Technology

WYSIWYG With Online Security Companies

Everyone knows that labeling a transaction 'secure' over the Internet is a sure thing, right?Wrong! Not all online security companies are alike, and as financial professionals, it is up to us to advise our clients on the why and how of online security if the client conducts any kind of e-Commerce transaction.Education is the best policy.

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