Category: Accounting

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Hiring an Employee vs. Contractor
05.01.2018 | by scaaadmin

Has growth or unexpected circumstances created a need for additional help in your organization’s accounting department?  If so, knowing the dynamics between hiring employees versus independent contractors can be of great value.  Understanding the basics will give you tools that can ultimately provide better cash flow management, better optimize workflow capabilities, and ultimately provide better quality.  Accordingly, here are a few steps and suggestions to consider. Most organizations typically have…

The Fundamental Concepts of Accounting
06.15.2017 | by scaaadmin

Accounting is the language of business and it is used to communicate financial information. In order for that information to make sense, accounting is based on 12 fundamental concepts. These fundamental concepts then form the basis for all of the Generally Accepted Accounting Principles (GAAP). By using these concepts as the foundation, readers of financial statements and other accounting information do not need to make assumptions about what the numbers mean. For this…

Types and Forms of Business
12.15.2015 | by scaaadmin

A business is an organization that uses economic resources or inputs to provide goods or services to customers in exchange for money or other goods and services. Business organizations come in different types and forms. There are three major types of businesses: Service Business A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.Examples of service…

Uses of Financial Reports
12.15.2015 | by scaaadmin

Financial statements may be used by different stakeholders for a multitude of purposes. Owners and managers use financial statements to make important long-term business decisions. For example: whether or not to continue or discontinue part of its business, to make or purchase certain materials, or to acquire or rent/lease certain equipment in the production of its goods. Prospective investors use financial statements to perform financial analysis, which is a key component in making investment decisions. A lending institution will…

Objectives of Financial Reporting
12.11.2014 | by scaaadmin

Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts. Going Concern, unless…