Job alert: Amazon is hiring and you can work from home
by Mike Timmermann @ clark.com
Sat Mar 24 12:30:12 PDT 2018
Want to work for Amazon? The online retail giant has just posted openings for virtual customer service associates!
How to Turn a Tax Refund Into a Fatter Paycheck
by Tina Orem @ NerdWallet
Fri Mar 23 12:34:45 PDT 2018
Getting a tax refund may seem great, but tax pros say it’s also a sign two things could be happening: You may not be doing enough tax planning, and you…
15 of the best Dollar Tree storage and organization ideas
by Mike Timmermann @ clark.com
Mon Mar 26 16:00:19 PDT 2018
You don't have to break your budget to get organized! Here are my favorite storage and organization products from the dollar store.
A Look at Federal, State, and Local Minimum Wages
by Mike Kappel @ Payroll Tips, Training, and News
Wed Mar 21 05:30:00 PDT 2018
You can’t just pay your employees any amount you want. You must follow federal, state, and local laws that set minimum wages. What is minimum wage? Minimum wage is the lowest amount you can pay an employee per hour of work. You can pay more than the minimum wage, but you should never pay less […]
The post A Look at Federal, State, and Local Minimum Wages appeared first on Payroll Tips, Training, and News.
4 Things That Could Make You a Target for a Tax Audit
by Tina Orem @ NerdWallet
Wed Mar 28 08:28:11 PDT 2018
People understandably fear tax audits, but audits actually aren’t that common: Of all the tax returns filed in 2015, the IRS examined just 0.7% the following fiscal year. Nonetheless, we’ve all…
How to Shop for Used Clothes — and Why You Should
by Laura McMullen @ NerdWallet
Thu Mar 22 20:00:39 PDT 2018
Buying used clothes at thrift stores may seem like a smart way to slash your spending — and it is. You ought to get gold stars and stickers for spending…
What Is an FEIN?
by Mike Kappel @ Payroll Tips, Training, and News
Mon Feb 26 05:10:00 PST 2018
When you run a business, you must meet many IRS requirements. You might need an FEIN to identify your business on documents like payroll tax forms. What does FEIN mean? What is an FEIN? FEIN is an acronym for Federal Employer Identification Number, also known as an EIN. This unique, nine-digit number is used by […]
The post What Is an FEIN? appeared first on Payroll Tips, Training, and News.
8 ways to save money at Hobby Lobby
by Theo Thimou @ clark.com
Tue Mar 27 12:22:43 PDT 2018
Don't expect to snag any savings at Hobby Lobby on a Sunday. The store closes for a day of rest "in order to allow our employees and customers more time for worship and family," according to the company's website. So here's how you can save money during the other six days of the week...
Correcting Employment Taxes: What to Do If You Withhold the Wrong Amount
by Rachel Gray @ Payroll Tips, Training, and News
Wed Feb 28 05:10:52 PST 2018
It’s easy to make mistakes, especially when you have a million and one things on your plate. One error you could make is deducting the wrong amount from employee wages. Correcting employment taxes is necessary if you withhold too much or too little from your employees’ paychecks. This article provides an overview of employment taxes […]
The post Correcting Employment Taxes: What to Do If You Withhold the Wrong Amount appeared first on Payroll Tips, Training, and News.
Employee Spotlight – Jeff Lane
by WP Admin @ Horizon Credit Union
Thu Jul 06 04:27:49 PDT 2017
Like many of us, Jeff wears a lot of hats too, and that’s another reason why we continue to grow and expand our horizons. There is something deeper too about Jeff – you can hear him almost anywhere these days as he’s quite the musician and singer/songwriter. You might say that Jeff is a true […]
The post Employee Spotlight – Jeff Lane appeared first on Horizon Credit Union.
Self Lender offers a new way to build credit when you have none
by Theo Thimou @ clark.com
Tue Mar 27 08:30:20 PDT 2018
Need to build credit quickly? Imagine having the ability to save money each month into an account that earns interest and builds your credit history with the three main credit bureaus at the same time.
Grove
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 04:28:57 PDT 2018
A grove is fruit or nut trees that have been planted in configurations designed to facilitate their care and harvesting. All limited-life land development costs associated with groves should be capitalized during the development period. Once production begins in commercial quantities, the accumulated costs are depreciated over the estimated useful life of the grove. During this time, the accumulated costs are reported on the balance sheet as a non-current asset.
Related Courses
Don’t Let Technology Bully You Into Tipping
by Liz Weston @ NerdWallet
Wed Mar 28 09:07:35 PDT 2018
Tipping inflation is real, and it’s coming to a tablet near you. Merchants using Square and other mobile payment services can set “recommended” tip amounts or percentages for any transaction…
Melissa Roark brings a ‘hometown touch’ to Mount Carmel branch
by WP Admin @ Horizon Credit Union
Thu Jul 06 04:29:24 PDT 2017
When Chief Operating Officer Mark Drinnon introduced Melissa Roark to Horizon Credit Union, she knew instantly that this was the place she needed to be working. After discussing employment with her husband, Melissa felt it was time for a change in her life; it was time to find a new direction and to accomplish the […]
The post Melissa Roark brings a ‘hometown touch’ to Mount Carmel branch appeared first on Horizon Credit Union.
Cook the books
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 04:57:00 PDT 2018
To cook the books means that the managers of a business are deliberately falsifying certain aspects of its financial statements to give investors a false impression of the true state of the business. Alternatively, they engage in business practices to enhance financial results that are technically legal, but which will have a negative impact on the business over the long term. A number of techniques can be used to cook the books, such as the following:
Falsification activities
- Leaving the books open past the end of the month to record additional sales within the prior reporting period.
- Not recording expenses in the reporting period, even though they clearly reflect resource consumption in the period.
- Altering the terms of leasing arrangements so that the liability appears to be held by a third party, thereby keeping the liability off the entity's balance sheet.
- Falsely recording pension liabilities lower than is really the case.
- Setting up expense reserves, such as the allowance for doubtful accounts, that do not reflect the actual loss rate.
- Recording consignment sales as though they are actual sales.
- Taking a one-time charge that is set up as a "cookie jar," which can be used in subsequent periods to write off expenses and artificially inflate profits.
Business practices
- Engage in channel stuffing to sell more goods to customers than they can realistically use.
- Grant much higher credit levels to customers in order to boost sales, even though the customers may not be able to pay off the receivables.
Related Courses
Consult This Employee Termination Checklist to Keep Things Running Smoothly
by Rachel Gray @ Payroll Tips, Training, and News
Wed Mar 07 05:10:00 PST 2018
Employees leave companies every day to pursue growth opportunities, accommodate personal lives, or experience change. As an employer, you hope employees won’t leave your business, but you know this is wishful thinking. When an employee resigns, you need to know what to do. The average annual overall turnover rate is 19%, according to SHRM. If […]
The post Consult This Employee Termination Checklist to Keep Things Running Smoothly appeared first on Payroll Tips, Training, and News.
Should You Pay Employees by Check or Direct Deposit?
Service Business Blog with Resources, News, and Tips | Jobber Academy
Planning on hiring? Welcome to the world of payroll decisions. We’re going over the pros and cons of paying employees by check or direct deposit.
Financial model
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 16:52:00 PDT 2018
A financial model is a mathematical representation of the key variables impacting an organization, which is used to make estimates of how future scenarios will impact the performance and financial position of the business. This model is usually constructed on an electronic spreadsheet, using summary-level revenues and expenses, and employing formulas that change the results of the model when certain variables are altered. For example, variables could be used to model the impact of an increase in energy prices, a decline in product prices, a product recall, a change in the rate of sales growth, or a successful employee strike that results in increased compensation and benefit costs.
A financial model is useful for estimating the effects of a number of scenarios within a short period of time, though its effectiveness depends on how well the model mimics the business. An analyst can use a financial model for a number of purposes, such as:
- Acquisitions. To determine the range of possible outcomes that an acquirer can expect with an acquiree, depending on the actions it takes after the deal has been closed.
- Budgeting. To develop several scenarios as part of the budgeting process, to decide which scenarios to pursue when a detailed budget is constructed.
- Capital budgeting. To determine a range of outcomes that might impact the cash flow return related to a prospective fixed asset purchase.
- Risk analysis. To determine which variables can have the greatest negative effect on a firm, as part of a formal risk analysis.
There are two potential problems with financial models. One is that a model may not properly account for the variables that will impact the model's projected future results. The other problem is that a more complex model is at risk of having calculation errors built into it, which can be difficult to detect.
Related Courses
Exchange of nonmonetary assets
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 04:59:00 PDT 2018
An exchange of nonmonetary assets occurs when two entities swap nonfinancial assets. The accounting for a nonmonetary transaction is based on the fair values of the assets transferred. This results in the following set of alternatives for determining the recorded cost of a nonmonetary asset acquired in an exchange, in declining order of preference:
- At the fair value of the asset transferred in exchange for it. Record a gain or loss on the exchange.
- At the fair value of the asset received, if the fair value of this asset is more evident than the fair value of the asset transferred in exchange for it.
- At the recorded amount of the surrendered asset, if no fair values are determinable or the transaction has no commercial substance.
There can be any number of variations on the nonmonetary exchange concept, including ones where some cash is exchanged, along with other nonmonetary assets. If there is a significant amount of monetary consideration paid (known as boot), the entire transaction is considered to be a monetary transaction. In GAAP, a significant amount of boot is considered to be 25% of the fair value of an exchange. Conversely, if the amount of boot is less than 25%, the following accounting applies:
- Payer. The party paying boot is not allowed to recognize a gain on the transaction (if any).
- Recipient. The receiver of the boot recognizes a gain to the extent that the monetary consideration is greater than a proportionate share of the carrying amount of the surrendered asset. This calculation is based on the percentage of monetary consideration received to either:
- Total consideration received, or
- The fair value of the nonmonetary asset received (if more clearly evident)
- Nonmonetary exchanges of inventory should be recognized at the carrying amount of the inventory transferred (not their fair values).
Related Courses
Human resource accounting
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 16:21:00 PDT 2018
Human resource accounting involves the tracking of all costs related to employees in a separate report. These costs may include the following:
- Employee compensation
- Employee payroll taxes
- Employee benefits
- Employee training
Such an accounting system can be used to determine where human resources costs are especially heavy or light in an organization. This information can be used to redirect employees toward those activities to which they can bring the most value. Conversely, the report can be used to identify those areas in which employee costs are too high, which may lead to a reduction in force or a reallocation of staff away from those areas.
A more comprehensive human resource accounting system goes beyond the simple tracking of employee-related costs, and addresses the following two additional areas:
- Budgeting. An organization's annual budget includes a component, in which is concentrated all employee costs being incurred from across the organization. By concentrating cost information by its nature, management can more clearly see the total impact of human resource costs on the entity.
- Employee valuation. Rather than looking at employees as costs, the system is redirected toward viewing them as assets. This can involve the assignment of values to employees based on their experience, education, innovativeness, leadership, and so forth. This can be a difficult area in which to achieve a verifiable level of quantification, and so may have limited value from a management perspective.
From an accounting perspective, the expense-based view of human resources is quite easy - employee costs from the various departments are simply aggregated into a report. The employee valuation approach is not a tenable concept for the accountant, since this is an internally-generated intangible asset, and so cannot be recorded in the accounting system.
Related Courses
Follow this simple chart to become a millionaire
by Mike Timmermann @ clark.com
Mon Mar 26 13:00:00 PDT 2018
If becoming a millionaire is something that's been on your mind, this helpful chart reveals what it will take to get there!
Two legitimate ways to get free Disney World tickets
by Theo Thimou @ clark.com
Mon Mar 26 10:42:33 PDT 2018
Who says there's no free lunch? Turns out there might actually be a way to score free tickets to Walt Disney World and Disneyland — in some circumstances.
Did a Tax Pro Botch Your Return? Here’s What to Do
by Tina Orem @ NerdWallet
Fri Mar 23 06:53:52 PDT 2018
To err is human, but to err on your tax return is a total dumpster fire. If you did your own taxes, of course, you may have only yourself to…
How to Setup Direct Deposit
Bank of America
Bank of America direct deposit makes it easy for you to deposit checks into your account automatically. Learn about setting up direct deposit today.
Competitive advantage
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 14:27:00 PDT 2018
Competitive advantage is the ability of an organization to gain a material edge over its competitors. Having such an advantage can result in above-average profits or high levels of customer loyalty. There are many types of competitive advantage that a business can take advantage of, such as the following:
- Having a supply of unusually inexpensive raw materials
- Having access to a low-cost labor force
- Owning a patent that is key to a product category
- Having a large field servicing operation that can maintain products on short notice
- Having a large chain of retail stores through which goods can be sold
- Having a highly-regarded Internet store that experiences a large number of return visits
- Having a design team that routinely produces leading-edge designs
- Having a short product development cycle that pushes new products into the marketplace faster than what competitors can achieve
An example of how a core competency is used is to leverage a strong field service operation by noting the company's 24-hour response time when pitching a prospective sale to a customer. Another example is being able to offer a commodity product to a customer at an unusually low price, since the seller's workforce is located overseas, where labor costs are reduced by more than half.
Competitive advantage can be taken away by a determined competitor in one of two ways:
- Match and then exceed the advantage offered by the company; or
- Undermine the company's position by developing an entirely new competitive advantage that is highly prized by customers.
It is essential to maintain a competitive advantage, in order to sustain long-term profitability. This means that management must be aware of the advantage and continually reinforce it with ongoing investments in the targeted area.
A competitive advantage can even be achieved by unethical means, such as by offering bribes to the purchasing manager of a customer. Since other sellers are presumably not willing to engage in unethical behavior, the use of bribes can be seen as a competitive advantage.
We visited a Toys R Us on the first day of liquidation — here’s what we found…
by Theo Thimou @ clark.com
Sun Mar 25 11:00:11 PDT 2018
The liquidation sale you've been hearing about got underway today. Here's what we found and when you should expect even deeper discounts!
Vets warn dog owners about threat of potentially deadly bacteria found in water
by Jared Leone | Cox Media Group National Content Desk @ clark.com
Wed Mar 29 12:52:06 PDT 2017
Cases of a potentially deadly bacteria being reported throughout the country are prompting warnings from vets to pet owners.
Leptospirosis is a bacteria found in water that can cause serious damage to the liver and kidneys of dogs. It can …
Inventory change
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 13:22:00 PDT 2018
Inventory change is the difference between the inventory totals for the last reporting period and the current reporting period. The concept is used in calculating the cost of goods sold, and in the materials management department as the starting point for reviewing how well inventory is being managed. It is also used in budgeting to estimate future cash requirements. If a business only issues financial statements on an annual basis, then the calculation of the inventory change will span a one-year time period. More commonly, the inventory change is calculated over only one month or a quarter, which is indicative of the more normal frequency with which financial statements are issued.
For example, if the ending inventory at the end of February was $400,000 and the ending inventory at the end of March was $500,000, then the inventory change was +$100,000.
The inventory change calculation is applicable to the following areas:
- Accounting. Inventory change is part of the formula used to calculate the cost of goods sold for a reporting period. The full formula is: Beginning inventory + Purchases - Ending inventory = Cost of goods sold. The inventory change figure can be substituted into this formula, so that the replacement formula is: Purchases + Inventory decrease - Inventory increase = Cost of goods sold. Thus, it can be used to slightly compress the calculation of the cost of goods sold.
- Inventory management. The materials management staff uses the inventory change concept to determine how its purchasing and materials usage policies have altered the company's net investment in inventory. They typically drill down from the inventory change figure and review changes for each type of inventory (e.g., raw materials, work in process, and finished goods), and then drill down further to see where changes arose at the level of each stock keeping unit. The result of this analysis may include changes in ordering policies, the correction of faulty bills of material, and alterations to the production schedule.
- Cash budgeting. The budgeting staff estimates the inventory change in each future period. Doing so impacts the amount of cash needed in each of these periods, since a reduction in inventory generates cash for other purposes, while an increase in inventory will require the use of cash.
The concept is also used in a general sense to keep track of the overall investment in inventory, which management may monitor to see if working capital levels are increasing at too rapid a pace.
Related Courses
Recall alert: Organic coconut flour poses salmonella risk
by Craig Johnson @ clark.com
Mon Mar 26 12:15:22 PDT 2018
The King Arthur Flour Co. is recalling its organic coconut flour due to the potential presence of salmonella, the company has announced. People should check their cupboards for the product and take prompt action, the company said.
“Consumers who have …
Will the Courts Accept a Jury Duty Excuse Letter If You’re in a Pinch?
by Rachel Gray @ Payroll Tips, Training, and News
Mon Mar 19 05:10:23 PDT 2018
Sometimes, you or your employees’ personal responsibilities conflict with your business. For many small businesses, if you miss work or lose an employee for an extended period of time, there can be harmful effects on productivity in the workplace. But if you or an employee are called in for jury duty, you might not have […]
The post Will the Courts Accept a Jury Duty Excuse Letter If You’re in a Pinch? appeared first on Payroll Tips, Training, and News.
FAQs: Questions about Direct Deposit
Bank of America
Find answers to your frequently asked questions about direct deposit with Bank of America FAQs.
When to Pay Employees for FLSA Hours Worked
by Kaylee Riley @ Payroll Tips, Training, and News
Wed Mar 28 05:15:18 PDT 2018
When nonexempt employees are doing their primary job duties, it’s easy to tell that they are working. Their working time should be compensated. But, when nonexempt employees are not doing their main job duties, it can be more difficult to tell if they are working and if they should be compensated. The Fair Labor Standards […]
The post When to Pay Employees for FLSA Hours Worked appeared first on Payroll Tips, Training, and News.
What You Need to Know About a Qualifying Life Event
by Rachel Gray @ Payroll Tips, Training, and News
Mon Mar 12 05:10:40 PDT 2018
Employees have a window of time each year to sign up for certain types of employer-sponsored insurance. Although this open enrollment period takes place at the end of each year for all employees, an employee can add or remove coverage at any time of the year if they have a qualifying life event. What is […]
The post What You Need to Know About a Qualifying Life Event appeared first on Payroll Tips, Training, and News.
How Grads Can Get Another Shot at Student Loan Forgiveness
by Anna Helhoski @ NerdWallet
Tue Mar 27 09:20:39 PDT 2018
The Trump administration is giving student loan borrowers who missed out on public service loan forgiveness a second chance, and they should move now to prepare. The recently passed $1.3 trillion federal…
Price to book ratio
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 04:53:00 PDT 2018
The price to book ratio compares the current market price of a company's stock to its aggregate book value. When the ratio is excessively high, it can indicate that a company's shares are over-priced, especially when the ratio is high in comparison to the same calculation for other companies in the same industry. The calculation is:
Closing price of the stock ÷ (Total assets - Intangible assets - Liabilities)
Investors like to use the price to book ratio to search for undervalued companies, and invest in their stock in hopes of having the share price return to a more normal level over time. However, there are a number of issues with the ratio to be aware of, including the following:
- The ratio could be low because the company has been mismanaged, in which case there can be no expectation that the ratio will improve over time.
- The ratio could skewed too high because the company is using accelerated depreciation to write down the value of its fixed assets at an accelerated rate.
- The company may have valuable intellectual property that does not appear on its balance sheet at all, but which is being recognized by investors through a high market price for its stock.
- The company may be investing a large amount in research and development costs, which must be charged to expense as incurred, rather than capitalized. This tends to result in a comparatively low book value for the business.
- The ratio is not overly useful when evaluating services firms and technology companies, since these entities have comparatively fewer fixed assets on their balance sheets.
Related Courses
Business Ratios Guidebook
The Interpretation of Financial Statements
Organic growth
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 12:42:00 PDT 2018
Organic growth is the increase in sales of a business generated by those of its operations that were in existence at the beginning of the measurement period. The concept is used to differentiate between sales generated from existing operations and those operations that were acquired during the measurement period. In particular, organic growth is used to determine whether existing operations are in a state of decline, neutral growth, or expansion. It is entirely possible that organic "growth" will actually be negative.
For example, a company may report 100% growth during a period, but further analysis may reveal that 95% of the growth was from sales attributable to an acquisition and 5% to existing operations.
Organic growth can be caused by any of the following:
- An increase in prices
- An increase in units sold of existing products
- Sales of new products from existing operations
- Sales to new customers for products from existing operations
- Sales generated by new distribution channels
- Sales generated in new sales regions
Organic growth nearly always refers to changes in revenue, but can be used in reference to changes in profitability or cash flows.
The organic growth concept is a solid growth strategy for many businesses. This approach depends on internally-generated growth, rather than through acquisitions, and is a particularly viable option for a business that does not have sufficient cash to acquire other entities. However, this type of growth tends to be rather slow, especially when compared to the massive sales gains that can be achieved through an acquisition strategy. Also, organic growth could be in a sales segment that does not generate much cash flow, whereas an acquisition could generate sales in a more profitable segment of the market.
Related Courses
Business Ratios Guidebook
Financial Analysis
The Interpretation of Financial Statements
How to Set Up Direct Deposit - NerdWallet
NerdWallet
Direct deposit is a free service that electronically sends your paychecks or benefit checks to a bank account or prepaid debit card of your choosing. Electronic payments have a number…
Minimum internet speeds for YouTube TV, DirecTV Now, Sling TV and other live TV streaming services
by Mike Timmermann @ clark.com
Wed Mar 28 07:00:39 PDT 2018
If you're thinking about canceling cable or satellite TV to sign up for an affordable live TV streaming service, make sure that your internet connection can handle it.
Valuation account
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 13:57:00 PDT 2018
A valuation account is paired with an asset or liability account, and is used to offset the value of the assets or liabilities recorded in the account with which it is paired. The result of this account pairing is a net balance, which is the carrying amount of the underlying asset or liability. The "valuation account" term is a less-used phrase that has the same meaning as the contra account concept.
Examples of valuation accounts are:
- Allowance for doubtful accounts (paired with the trade accounts receivable account)
- Allowance for obsolete inventory (paired with the inventory account)
- Accumulated depreciation (paired with the various fixed asset accounts)
- Discount on bonds payable (paired with the bonds payable account)
- Premium on bonds payable (paired with the bonds payable account)
The valuation account concept is useful for estimating any possible reductions in the values of assets or liabilities prior to a more definitive transaction that firmly establishes a reduction.
Valuation accounts are only used in accrual basis accounting. They are not used in cash basis accounting.
Similar Terms
A valuation account is also known as a valuation reserve or contra account.
Related Courses
Throughput definition
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 15:19:00 PDT 2018
Throughput is the number of units that pass through a process during a period of time. This general definition can be refined into the following two variations, which are:
- Operational perspective. Throughput is the number of units that can be produced by a production process within a certain period of time. For example, if 800 units can be produced during an eight-hour shift, then the production process generates throughput of 100 units per hour.
- Financial perspective. Throughput is the revenues generated by a production process, minus all completely variable expenses incurred by that process. In most cases, the only completely variable expenses are direct materials and sales commissions. Given the small number of expenses, throughput tends to be quite high, except for those situations in which prices are set only slightly higher than variable expenses.
For operations, throughput can be increased by enhancing the productivity of the bottleneck operation that is constraining production. For example, an additional machine can be purchased, or overtime can be authorized in order to run a machine for an extra shift. The key point is to focus attention on the productivity of the bottleneck operation. If other operations are improved, the overall throughput of the system will not increase, since the bottleneck operation has not been enhanced. This means that the key focus of investment in the production area should be on the bottleneck, not other operations.
For financial analysis, throughput can be increased by altering the mix of products being produced, to increase the priority on those products that have the highest throughput per minute of time required at the constrained resource. If a product has a smaller amount of throughput per minute, it can instead be routed to a third party for processing, rather than interfering with the bottleneck operation. As long as some positive throughput is gained by outsourcing, the result is an increased overall level of the throughput for the company as a whole.
Related Courses
Continuing professional education
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 04:53:00 PDT 2018
Continuing professional education (CPE) is ongoing training that is required in order to remain certified as a professional in certain fields. The intent behind requiring this training is to force professionals to continue to update their knowledge of pertinent information that can improve their ability to serve their clients. In the accounting field, the state boards of accountancy all require a significant amount of CPE for certified public accountants (CPAs). Though the exact training requirements vary by state, the general requirements are:
- To take 40 hours of training per year, with some minimum number of hours spent on accounting or auditing subjects; and
- To take an ethics course every other year, which in some cases must pertain to the specific ethics requirements of the relevant state board of public accountancy.
If a CPA does not meet the CPE requirements of the governing state board of public accountancy, there is usually a requirement to make up the missing training time. If this does not happen within a reasonable period of time, then the person's CPA certificate is revoked.
There are a number of ways to fulfill the CPE requirement. A person may take classes from a CPE provider that is registered with the National Association of State Boards of Accountancy, or which is registered with the applicable state board of public accountancy. These classes can take the form of online self-study training, online webinars, in-person training, and so forth. A recent change in the rules is nano learning, where extremely short courses are offered that grant fractions of a credit hour for course completion. Some proportion of a person's CPE hours can also be earned by teaching classes or writing relevant professional articles or books.
For employees: How to check the status of your direct deposit funds transfer
Help Center
Are you an employee of a business owner who uses Payroll by Wave? If you're paid by direct deposit, follow these instructions if you'd like to check the status of the transfer of your pay.You can ...
Should You Offer a Nonqualified Deferred Compensation Plan?
by Mike Kappel @ Payroll Tips, Training, and News
Mon Mar 26 05:10:00 PDT 2018
You know employees like employer-sponsored benefits. As an employer, offering benefits is advantageous for your business, too. A nonqualified deferred compensation plan is one type of benefit that both you and your employees can enjoy. Find out what a nonqualified deferred compensation plan is, why you might consider offering it, and how to set it […]
The post Should You Offer a Nonqualified Deferred Compensation Plan? appeared first on Payroll Tips, Training, and News.
Can Clark tell the difference between his favorite diet soda and a discount store knockoff???
by Beth Marcinko @ clark.com
Tue Mar 27 09:24:23 PDT 2018
Clark loves diet soda, but does he really know the difference between the name brand and generic? His blind taste test says it all.
Clark Howard 3.27.18
by @ clark.com
Tue Mar 27 14:00:00 PDT 2018
Topics: Amazon drone delivery developing sophistication; How changing the credit card you use can make a positive impact; Small business websites are really prone to hackers
Learn more about your ad choices. Visit megaphone.fm/adchoices…
UPS and FedEx warning: Beware of deliveries you didn’t order
by Theo Thimou @ clark.com
Tue Mar 27 12:00:36 PDT 2018
Got a package at your door of something you didn't order? The real scam may be what happens next...
Why the ‘official bank’ of your campus is likely the wrong bank to do business with
by Theo Thimou @ clark.com
Fri Mar 23 06:45:00 PDT 2018
Chances are your school has forged an "official bank of..." relationship with some bank. And while that partnership may be in the university's best interest, it's seldom in your best interest!
Nonprofit accounting
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 04:55:00 PDT 2018
Nonprofit accounting refers to the unique system of recordation and reporting that is applied to the business transactions engaged in by a nonprofit organization. A nonprofit entity is one that has no ownership interests, has an operating purpose other than to earn a profit, and which receives significant contributions from third parties that do not expect to receive a return. Nonprofit accounting employs the following concepts that differ from the accounting by a for-profit entity:
- Net assets. Net assets take the place of equity in the balance sheet, since there are no investors to take an equity position in a nonprofit.
- Donor restrictions. Net assets are classified as being either with donor restrictions or without donor restrictions. Assets with donor restrictions can only be used in certain ways, frequently being assigned only to specific programs. Assets without donor restrictions can be used for any purpose.
- Programs. A nonprofit exists in order to provide some kind of service, which is called a program. A nonprofit may operate a number of different programs, each of which is accounted for separately. By doing so, one can view the revenues and expenses associated with each program.
- Management and administration. Costs may be assigned to the management and administration classification, which refers to the general overhead structure of a nonprofit. Donors want this figure to be as low as possible, which implies that the bulk of their contributions are going straight to programs.
- Fund raising. Costs may be assigned to the fund raising classification, which refers to the sales and marketing activities of a nonprofit, such as solicitations, fund raising events, and writing grant proposals.
- Financial statements. The financial statements produced by a nonprofit entity differ in several respects from those issued by a for-profit entity. For example, the statement of activities replaces the income statement, while the statement of financial position replaces the balance sheet. Both for-profit and nonprofit entities issue a statement of cash flows. Finally, there is no nonprofit equivalent for the statement of stockholders' equity, since a nonprofit has no equity.
Related Courses
Direct Deposit
Investopedia
Direct deposit is the deposit of electronic funds directly into a bank account rather than through a physical paper check.
Switching your direct deposit | A quick and easy step-by-step guide
Clark Howard
After switching to a better bank, one of the first things you’ll want to do is set up direct deposit to get your paycheck automatically sent to your new account.
Types of financial analysis
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 14:44:00 PDT 2018
Financial analysis involves the review of an organization's financial information in order to arrive at business decisions. This analysis can take several forms, with each one intended for a different use. The types of financial analysis are:
- Horizontal analysis. This involves the side-by-side comparison of the financial results of an organization for a number of consecutive reporting periods. The intent is to discern any spikes or declines in the data that could be used as the basis for a more detailed examination of financial results.
- Vertical analysis. This is a proportional analysis of the various expenses on the income statement, measured as a percentage of net sales. The same analysis can be used for the balance sheet. These proportions should be consistent over time; if not, one can investigate further into the reasons for a percentage change.
- Short term analysis. This is a detailed review of working capital, involving the calculation of turnover rates for accounts receivable, inventory, and accounts payable. Any differences from the long-term average turnover rate are worth investigating further, since working capital is a key user of cash.
- Multi-company comparison. This involves the calculation and comparison of the key financial ratios of two organizations, usually within the same industry. The intent is to determine the comparative financial strengths and weaknesses of the two firms, based on their financial statements.
- Industry comparison. This is similar to the multi-company comparison, except that the comparison is between the results of a specific business and the average results of an entire industry. The intent is to see if there are any unusual results in comparison to the average method of doing business.
Related Courses
Business Ratios Guidebook
Financial Analysis
The Interpretation of Financial Statements
Joe and Paula Lynch
by WP Admin @ Horizon Credit Union
Fri Sep 15 07:50:36 PDT 2017
To Joe and Paula Lynch, working with a financial institution that provides a “down-home” feel and customer service that is second to none has been important to them for 30-plus years.
The post Joe and Paula Lynch appeared first on Horizon Credit Union.
Clark Howard 3.26.18
by @ clark.com
Mon Mar 26 14:05:29 PDT 2018
Topics: Walmart is now selling used cars; Congress doesn’t want you to know about future data breaches; Awesome deals today from Moviepass, Costco, and more
Learn more about your ad choices. Visit megaphone.fm/adchoices…
Clark Howard 3.27.18
by @ clark.com
Tue Mar 27 14:00:00 PDT 2018
Topics: Amazon drone delivery developing sophistication; How changing the credit card you use can make a positive impact; Small business websites are really prone to hackers
Learn more about your ad choices. Visit megaphone.fm/adchoices…
Check your mail: Valpak may be sending you a $100 check!
by Mike Timmermann @ clark.com
Wed Mar 28 07:18:03 PDT 2018
Do you receive envelopes stuffed full of coupons from Valpak? There may be something more valuable inside.
Employee Spotlight – Vicky Fields
by WP Admin @ Horizon Credit Union
Thu Jul 06 04:30:56 PDT 2017
Vicky Fields, Director of Mortgage Lending has many years of experience in Mortgage Lending. Vicky states that the thing that sets Horizon Credit Union apart from other lenders, is her ability to find the right solution for the borrower instead of trying to fit everyone into one set category. Vicky can listen during the application […]
The post Employee Spotlight – Vicky Fields appeared first on Horizon Credit Union.
Evaluation of internal controls
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 05:50:00 PDT 2018
An evaluation of internal control involves an examination of the effectiveness of an organization's system of internal controls. By engaging in this evaluation, an auditor can determine the extent of other tests that must be performed in order to arrive at an opinion regarding the fairness of the entity's financial statements. A robust system of internal controls reduces the risk of fraudulent activity, which moderates the need for additional audit procedures. The examination concentrates on such issues as:
- The separation of duties
- Checks and balances
- Safeguarding of records
- The training level and competence of employees
- The effectiveness of the entity's internal audit function
The steps involved in this evaluation process include the following:
- Determine the extent and types of controls being used by the client.
- Determine which of these controls the auditor intends to rely upon.
- Based on the first two steps, determine which audit procedures should be expanded or reduced.
- Make recommendations to the client regarding how to improve its system of internal controls.
The last of the preceding steps is useful for improving the control environment for the auditor in the following year's audit.
Related Courses
How To Get Free Checking Without Direct Deposit | Bankrate.com
Bankrate
Can’t find free checking unless you sign up for direct deposit? Try this option.
How to Calculate a Raise
by Rachel Gray @ Payroll Tips, Training, and News
Wed Mar 14 05:10:09 PDT 2018
Employees have money on their minds. According to a Gallup poll, 59% of employees were not completely satisfied with their current pay. And, one SHRM survey found that 44% of respondents said they would leave their job to make more money elsewhere. To avoid losing their top employees, many businesses offer pay raises. Learn why employee […]
The post How to Calculate a Raise appeared first on Payroll Tips, Training, and News.
Buying prescription glasses online
by Clark Howard Staff @ clark.com
Sun Mar 25 21:00:00 PDT 2018
Did you know you can get prescription glasses for $15? Well, you can and Clark has all the info just for you!
Pros and Cons of Direct Deposit for Employers
Payroll Tips, Training, and News
There are a few different ways you can pay employees, like direct deposit. Learn about the pros and cons of direct deposit.
3 Money Lessons We Can Learn From ‘Roseanne’
by Courtney Jespersen @ NerdWallet
Sun Mar 25 18:00:27 PDT 2018
On March 27, the Conner family is coming back to prime time, thanks to the revival of ABC’s “Roseanne.” The popular sitcom starring Roseanne Barr and John Goodman as husband…
Big tipper? Find out which states are most and least generous with gratuities
by Craig Johnson @ clark.com
Fri Mar 23 11:01:44 PDT 2018
If you’re like many Americans, you may feel that what you tip at a particular restaurant has everything to do with the service you’re getting – but that may not necessarily be the case. A recent study shows which region …
Cookie jar accounting
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 11:09:00 PDT 2018
Cookie jar accounting occurs when a business sets up excessive reserves in profitable periods and draws down these reserves during lower-profit periods. The intent is to give the impression that the organization generates more consistent results than is really the case. When investors believe that a firm is able to consistently meet its earnings targets, they tend to place a higher value on its stock. There is a greater temptation to use cookie jar accounting among publicly held businesses, since doing so can mislead analysts into issuing more favorable reports about them to the investment community. This approach to reporting earnings does not reflect actual results, and so can be considered fraudulent reporting.
Cookie jar reserves can be created either by over-estimating the more common reserves (such as for bad debts) or by taking large one-time charges for expected losses from one-time events, such as acquisitions or downsizings.
The term comes from the practice of using a “cookie jar” of reserves whenever needed.
Related Courses
The difference between an invoice and a statement
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 16:21:00 PDT 2018
A customer may receive an invoice and a statement from a supplier. What is the difference between these two documents? When a seller issues an invoice to a buyer, the invoice is related to a specific sale transaction where goods or services were provided to the buyer. Since the invoice relates to a specific sale transaction, it itemizes all of the information the buyer needs to know in order to pay the seller, including:
- Invoice number
- Invoice date
- Item description
- Item price
- Shipping and handling charges
- Sales tax
- Total amount payable
- Remit to address
- Payment terms and early payment discount terms (if any)
The intent of an invoice is either to collect payment from the buyer, or to create evidence of the sale (if payment was made in advance or in cash). If payment was made at the time of sale, the invoice is stamped "Paid" before issuing it to the buyer.
When a seller issues a statement, the document itemizes all invoices that have not yet been paid by the buyer, as well as partial payments. In this case, the intent is to remind the buyer that it has an obligation to pay the seller. Since the statement is more aggregated than an invoice, it provides less detailed information at the invoice level. It typically includes the following items:
- Statement date
- Invoice numbers
- Invoice dates
- Invoice totals
A more sophisticated statement will aggregate invoice totals by time bucket, so that overdue invoices are clearly shown.
Invoices are issued whenever a sale has been completed, so they may be issued every day and in significant quantities. However, statements are usually only issued at regular intervals, such as once a month, as part of a company's collection activities.
From the perspective of the buyer, the receipt of an invoice triggers an accounting transaction, which is an account payable. Conversely, the receipt of a statement is strictly informational - it does not trigger the creation of an accounting transaction.
It can be unwise to treat a statement as an invoice and pay items listed on the statement, since it is possible that the buyer already paid for those items, but the payment has not yet been reflected in the seller's accounting system. A better alternative for the buyer is to make inquiries about any invoices that are listed on the statement, and obtain more detailed information before issuing a payment.
There can be some confusion between the invoice and statement terms when dealing with credit card providers, since they issue a "statement" that is actually an invoice.
Related Courses
Find your account number and routing number on a check to set up direct deposit.
Key.com
Take advantage of direct deposit with select KeyBank accounts. Set up your direct deposit using a check number and routing number here.
BECU News Center : Hassle-Free Direct Deposit
BECU
Does your employer offer Direct Deposit? Great, BECU can help! Direct Deposit is fast, convenient and completely free.
Economic order quantity
by Steven Bragg @ Articles - AccountingTools
Wed Mar 28 14:59:00 PDT 2018
The economic order quantity (EOQ) is a formula that derives the optimum quantity of goods to order, so that several costs related to inventory are minimized. These costs are inventory ordering costs, holding costs, and stock out costs. The formula incorporates the following factors:
- Setup costs
- Rate of demand
- Production costs
- Interest rate
The formula is most useful when standardizing the reordering of components on a repetitive basis. The formula can be inserted into a materials management system, so that the system automatically places replenishment orders with suppliers. The formula is least useful in lean production environments, where only the exact amount of components needed for the current production requirements are kept on hand; all other requirements are ordered on a just-in-time basis.
Related Courses
How not to get kicked out of your Airbnb rental
by Craig Johnson @ clark.com
Fri Mar 23 13:54:41 PDT 2018
While travel season used to be a boon for hotels, it has now turned into a blessing for many homeowners, too, thanks to Airbnb.
The homesharing service is disrupting the hotel industry by providing affordable lodging from people who are …
You can buy almost anything at Walmart…why not a used car, too?
by Theo Thimou @ clark.com
Mon Mar 26 13:24:17 PDT 2018
Used car buyers have historically been faced with a lot of both hazard and opportunity.
The hazard comes into the equation because used cars come with a history and you don’t want to be buying someone else’s headache.
But the …
Turnover ratios
by Steven Bragg @ Articles - AccountingTools
Tue Mar 27 15:24:00 PDT 2018
A turnover ratio represents the amount of assets or liabilities that a company replaces in relation to its sales. The concept is useful for determining the efficiency with which a business utilizes its assets. In most cases, a high asset turnover ratio is considered good, since it implies that receivables are collected quickly, fixed assets are heavily utilized, and little excess inventory is kept on hand. This implies a minimal need for invested funds, and therefore a high return on investment.
Conversely, a low liability turnover ratio (usually in relation to accounts payable) is considered good, since it implies that a company is taking the longest possible amount of time in which to pay its suppliers, and so has use of its cash for a longer period of time.
Examples of turnover ratios are:
- Accounts receivable turnover ratio. Measures the time it takes to collect an average amount of accounts receivable. It can be impacted by the corporate credit policy, payment terms, the accuracy of billings, the activity level of the collections staff, the promptness of deduction processing, and a multitude of other factors.
- Inventory turnover ratio. Measures the amount of inventory that must be maintained to support a given amount of sales. It can be impacted by the type of production process flow system used, the presence of obsolete inventory, management's policy for filling orders, inventory record accuracy, the use of manufacturing outsourcing, and so on.
- Fixed asset turnover ratio. Measures the fixed asset investment needed to maintain a given amount of sales. It can be impacted by the use of throughput analysis, manufacturing outsourcing, capacity management, and other factors.
- Accounts payable turnover ratio. Measures the time period over which a company is allowed to hold trade payables before being obligated to pay suppliers. It is primarily impacted by the terms negotiated with suppliers and the presence of early payment discounts.
The turnover ratio concept is also used in relation to investment funds. In this context, it refers to the proportion of investment holdings that have been replaced in a given year. A low turnover ratio implies that the fund manager is not incurring many brokerage transaction fees to sell off and/or purchase securities. The turnover level for a fund is typically based on the investment strategy of the fund manager, so a buy-and-hold manager will experience a low turnover ratio, while a manager with a more active strategy will be more likely to experience a high turnover ratio and must generate greater returns in order to offset the increased transaction fees.
Related Courses
Business Ratios Guidebook
The Interpretation of Financial Statements