Basic Cost Accounting Information starts with cost: a financial measure within your accounting management system defined as resources consumed or acquired in accomplishing a specified purpose such as performing a service, providing a product, or carrying out a project or program regardless of when the resources were ordered, received, or paid. Cost can be defined in a variety of ways depending on the objectives or information desired. Continue reading What Are the Uses of Cost Accounting Information?
The financial transactions of any accounting system can be grouped into four major accounting cycles: Revenue, Purchase, Payroll, and General Journal. Continue reading How Do Accounting Systems Work?
How familiar are you with the accounting rules and concepts utilized by accounting systems? If you were more confident with the information generated by your accounting program, would it help you to use it more effectively to run your company? More importantly, do you understand how your Accounting Policies and Procedures integrate with the accounting rules and concepts to produce the internal controls you need? Continue reading What Are Accounting Management Systems?
If you qualify as a non-accelerated filer (i.e., your company’s public float is under $75 million), you’ll have to start complying with Section 404(b) of SOX, which requires company management and independent auditors to sign off on, or attest to, the effectiveness of your risk control framework or accounting policies and procedures for internal control. Are your processes protecting you from the risk of material misstatements (RMM)? Do you know how to control and reduce SOX compliance costs? Continue reading How to Reduce SOX Accounting Compliance Costs
The purpose of your Accounts Receivable Policy, found in our Accounts Manuals Template, is to document the financial principles and policies governing your company’s accounting and collection practices. Your Accounts Receivable Policy Manual and associated accounting procedures are intended to satisfy the documentation requirements for an Accounting Management System. Continue reading What Is in Accounts Receivable Policy Manual?
When you hear the phrase “internal control system required by Sarbanes-Oxley (SOX) Section 404,?” do you automatically think of policies and procedures? Simply having accounting policies and procedures does not indicate an internal controls accounting system. Well-written accounting control procedures that document well-defined accounting processes, however, are an important component of the control system you are building. Continue reading What Are Accounting Controls and Processes?
The two important terms “accounting” and “bookkeeping” are easily confused. What are they, how do they interrelate, and how do they interface with accounting policies and procedures? First let’s define the terms. Continue reading What’s the Difference Between Finance, Accounting and Bookkeeping?
Purchasing Procedures provide vendor selection and purchasing controls that assist in managing expenses and provide quality inputs to the company. The following Purchasing Procedures should be utilized to account for and control all purchases and acquisitions of the company. Continue reading What Purchasing Procedures Does Your Company Need?
Cash Management is a critical part of small and medium-sized businesses that rely on a steady, consistent stream of incoming cash — customers paying for goods and services with cash, checks, and credit cards. Continue reading What Are Cash Cycle Procedures?
The proper identification and acceptance of all sales are an important element of internal control for a company’s income statement. It represents the primary source of most companies operational cash flow and therefore needs to be protected, managed and monitored using financial internal controls. The following Accounting Revenue Cycle Procedures should be utilized to account for and recognize all sales income of the company. Continue reading What Is the Revenue Cycle?