Leverage Accounting

Japanese businesses operating in the United States face many challenges common to operating in a foreign environment, such as a lack of familiarity with local regulatory requirements, inexperience with local business customs and practices, and the need to adapt management practices to match the local market.  These challenges can be especially formidable when a Japanese company first begins operating in the United States or when, for example, there is a period of management transition at a U.S. subsidiary. At such times, certain key vendor relationships provide critical support to assist the Japanese business in successfully navigating the challenges of operating in a foreign market.  One of these key relationships is the public accounting firm engaged to provide professional tax, accounting, and general business services.  This article provides insight on critical factors for Japanese businesses to consider when selecting a public accounting firm.   The first factor is location.  It can be tempting to simply search for a firm that has [...]

Fraud is a serious risk in business—and especially in small and medium-sized businesses. In fact, as reflected in the Association of Certified Fraud Examiners’ global fraud survey, occupational fraud siphons astounding sums of money from businesses. In the most recent ACFE report, the median fraud loss for a business was $117,000.  Small businesses face unique risks, too. With fewer resources, smaller companies can be hit harder financially by fraud. In addition, certain frauds like check and payment tampering and skimming tend to occur more frequently at smaller businesses. In this article, we dive into how a certified fraud examiner can protect your business from fraud, lower risk, and benefit your bottom line.   What is fraud?  Let’s start with the basics. In this article, we are discussing “occupational fraud,” or crimes committed against a company by employees, directors, or officers. Small and medium-sized businesses are often more vulnerable to this type of fraud. This is because they typically have less [...]

Sales are up. Money is rolling in and your business is growing. It’s great because it’s what you’ve always hoped for. But it can be challenging, too, because the next level of success demands financial expertise you might not have on staff.  You might be wondering about things like debt financing, effective cash flow utilization, and if you’re using the right metrics for financial performance. You might be considering an acquisition or expansion into a new market—even abroad.  If so you’re in good company, as many business owners and leaders are facing the same questions and challenges. Let’s look at five reasons why hiring an outsourced controller is a smart investment for your business, especially when you’re growing or expanding.  What does an outsourced controller do?  An outsourced controller provides expertise in accounting and financial management. He or she also oversees the accounting function to ensure streamlined processes and up-to-date financial information. The controller sits between the level of [...]

If your business is growing, acquiring or merging with another business, or establishing itself in a new market, things can get complicated fast. Planning for the future and making good business decisions can become really complex without an accurate picture of your financials.  A controller ensures your financials are accurate and up to date. But not every business has an experienced controller or can afford to hire one in-house—because salaries and benefits can be expensive, and talent can be hard to find. Hiring an outsourced controller can give you access to a highly experienced professional at lower cost. This article tells you how hiring an outsourced controller can help your business.  What does an outsourced controller do? First, let’s define what a controller does. Controllers oversee all daily accounting operations in your accounting department. A controller:  Creates accurate and timely financial statements Assists in preparing the annual budget Ensures integrity of your accounting information systems Controllers go beyond the [...]

Thoughts on Leveraging Accounting For privately-owned companies December 15, 2021 is an important date and it is right around the corner. That is the deadline for implementing Accounting Standards Codification (ASC) 842 Leases. Prepare now. Effective implementation of a new accounting standard requires a strategic project plan. The lease standard is one of the more complicated standards issued in recent years so proper planning becomes even more important. Start by identifying a team member with sufficient knowledge and authority to lead the project to completion. From there, a preliminary review of the extent of the company’s leasing activities should be done. Be sure to consider both finance leases and operating leases when doing this preliminary review. This will allow for an assessment of the scope required for implementation and will enable the company to begin talking with firms that can provide outside support during this process. Analyzing and reviewing lease documents can take considerable time and requires a solid [...]