Understanding the following terminology will help you interpret your organization’s financial statements. Direct Costs. A business’s direct costs are the costs that are directly associated with the creation of a product or the performance of a service. So when we conduct a seminar, for example, the costs of renting the hotel room, transportation, set-up and [...]
A virtual bookkeeper is someone who assembles your records, prepares financial statements, handles payroll – everything you expect your regular bookkeeper to do, but they do it a little differently. A virtual bookkeeper does all that a bookkeeper who shows up your office, but from his or her own office. Some of the benefits of [...]
William Scott Deloach, Chief Financial Officer and Controller of PBS&J Corp., in Miami, Florida, was accused of issuing fraudulent checks for a total of $49 million during a period of 13 years. The scheme was discovered in March 2005 William Scott Deloach was originally hired as controller for PBS&J Corp., a Miami, Florida – based [...]
Taking the time to understand the following financial terms will help you have a better understanding of financial statements. Fair Market Value (FMV) vs. Historic Value. The fair market value of an item is what is it worth today, on the open market. The historic value of an item is the original purchase price. Now, [...]
Ever so often, I have to jump on a soap box. This is one of those times. I think there is a huge issue in our country today when it comes to financial education. Most people don’t understand the difference between an asset and a liability or how expensive credit card debt really is. I [...]
In 1955, Minnie Mangum was accused of embezzling $2,884,957 from the Commonwealth Building & Loan Association in Norfolk, Virginia. At the time, the case was the largest embezzlement by a female in US history. Mangum’s scheme spanned a 22 year period, beginning in or about 1933. Minnie Mangum was described as a kind woman who [...]
Familiarizing yourself with the following financial terms will help you understand your organization’s financial trends, statements and reporting. Cash vs. Accrual vs. Hybrid Accounting Methods. This refers to the way you track your business’s income and expenses. With the cash method, you report income when you receive it, and expenses when you pay them. This [...]
When’s the last time your bookkeeper sat down with you to go over your Balance Sheet and explain how you could make more money? We do that on a regular basis with our Cash Flow Accounting clients. Here are some of the things we might discuss regarding your Balance Sheet: What is the real FMV [...]
Ricardo S. Carrasco, a Uruguayan national, who remains a fugitive of the United States, was responsible for the misappropriation of $97.7 million from BankBoston Corp., in Boston, Massachusetts. On February 1998, after loan irregularities were discovered by BankBoston’s international private lending group in New York City, Carrasco was nowhere to be found. It became apparent [...]
Following is a practical check list designed specifically for the non-accountant entrepreneur. Balance Sheet Does your balance sheet show negative balances in the asset column? Only accumulated depreciation and accumulated amortization should be negative. Investigate and question all negative asset amounts. A negative cash balance means you’re overdrawn and a negative inventory amount is physically [...]
