Category: Bookkeeping

Pro forma financial statements are the financial reports prepared by companies to project their future financial performance. Some of the most commonly used financial statements for pro forma are the income statement, the cash flow statement, and the balance sheet. Companies are generally prohibited from creating misleading or fraudulent pro forma financial statements. The first […]

An outsourced CFO is a third party that provides the same expertise as a C-level employee but on a part-time or an as-needed basis. They may be hired for project work or through a CPS firm that also provides controller, bookkeeper, or tax consulting services. Outsourced CFO services are used by businesses to provide stability, […]

Finding the right tools that help you focus on growing the business without getting too stuck in the weeds is essential. In other words, while you’re building and scaling software that solves problems for your customers, you need accounting software that does the same for you. Pratiiek Mavani is a seasoned professional in accountancy, taxation, […]

A disadvantage of the double declining method is that it is more difficult to calculate than the more traditional straight-line income statement method of depreciation. Given the difficulty of calculation, this also means that it is easier to calculate the wrong amount of depreciation. Also, most assets are utilized at a consistent rate over their […]

Liabilities are measured at current value in specific instances, most notably those related to defined benefit pension plans. Available-for-Sale (AFS) securities are measured at current value but treat unrealized gains and losses differently. The unrealized gains and losses from these investments flow directly through the income statement, increasing the volatility of reported earnings. Trading securities, […]