In some cases when reviewing an investment you might be presented with an income statement only. The income statement is only one part of the financial statements. You must see all statements in order to get a full sense of the investment potential. The income statement is a great place to start, though! The income [...]
The reason most businesses fail is lack of cash. The majority of businesses are embezzled from at least once. And the most common embezzler is the bookkeeper. Put all that together and that means you need to pay attention to your financial statements. Of course, not every bookkeeper is going to steal from you. In [...]
Small and midsized businesses are the perfect target for fraud and embezzlement. True, all organizations big and small are subject to fraud, but evidence suggests the risk level small businesses face is higher, and the consequences are catastrophic. Poor economic times can possibly increase the incidence of fraud, particularly employee theft and embezzlement. Studies conducted [...]
The balance sheet is a financial snapshot. It shows the assets, liabilities, and equity (net worth) of a person or a company at a given point in time. It is a very important financial tool-one that a business owner should be able to interpret. It’s called a Balance Sheet because, well, it balances. If you [...]
At Cash Flow Accounting, our motto is “Know Your Numbers. Change Your Life.” We are a bookkeeping company, but as we like to say: “A set of financial statements will never make you rich. It’s what you DO with the information you receive.” It always comes down to action. Information, then action. If you don’t [...]
Why is it that we hear about so many embezzlement cases these days? Is it a new phenomenon? Embezzlement is definitely not a new phenomenon. It might be that due to the advances in technology and communication we are only more aware of their frequency. One thing is for sure though; there has been an [...]
Do you want to know how much income and expenses you business has? Do you want to know which way your cash is flowing on a daily basis? As a business owner it is critical that you learn how to interpret these key indicators, and in order to do so, you must familiarize yourself with [...]
If you think keeping up with income tax laws is hard, then just imagine what it is to keep up with 51 separate taxing districts who decide when and if you are subject to their laws. Well, that’s exactly what is happening with nexus. Nexus means connection. If you have a connection to a state [...]
A Lodi, California, bookkeeper has been accused of embezzling money from a local company and according to statements made in court early this year, the amount in question may very well reach $400,000. On January 23, 2011, Cheryl Jacobson, 53, was arrested for allegedly embezzling money from Tokay Glass since 2005. Days after the arrest, [...]
As a small business owner or investor it is critical that you familiarize yourself with the concept of financial statements. There’s so much more to financial statements than just the pieces of paper that make up the package. The true secret, and the power, of financial statements, lies in having the ability to understand what [...]
