Predicting Future Performance

CPAs typically report historical financial performance. But sometimes they’re hired to predict how a company will perform in the future. Prospective Reporting Options There are three types of reports to choose from when predicting future performance: Forecasts. These prospective statements present an entity’s expected financial position, results of operations and cash flows. They’re based on […]

IRS Updates Rules for Personal Use of Employer-Provided Vehicles

The IRS recently announced the inflation-adjusted maximum value of an employer-provided vehicle under the vehicle cents-per-mile rule and the fleet-average value rule. Employers can use the rules to value an employee’s personal use of such a vehicle for income and employment tax purposes. The new values reflect vehicle-related amendments in the Tax Cuts and Jobs […]

Put a QOE Report to Work for You

An independent quality of earnings (QOE) report can be a valuable tool in mergers and acquisitions. It’s important for both buyers and sellers to look beyond the quantitative information provided by the selling company’s financial statements. Quality Matters There’s a lack of guidance from the American Institute of Certified Public Accountants (AICPA) regarding scope and […]

Close-Up on Financial Statements

There are three types of financial statements under U.S. Generally Accepted Accounting Principles (GAAP). Each one reveals different, but equally important, information about your company’s financial performance. And, together, they can be analyzed to help owners, management, lenders and investors make informed business decisions. Profit or Loss The income statement shows revenue and expenses over […]