Are CPA’s Solely Tax Gurus?

Are CPA’s Solely Tax Gurus? The simple answer is no.  Certified Public Accountants (CPA) are much more than just tax gurus. These professional accountants are trusted business advisors whose services are only limited by the expertise and experience of each…

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Working Capital

Working Capital What is Working Capital? Working capital measures a business’ ability to pay its short term liabilities. This is measured by subtracting the total current assets from the total current liabilities.  Current assets include cash, inventory, receivables, and other assets which…

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The Impact of New FASB Lease Requirements

New Lease Requirements for Lessees Scandals in the last several decades, such as Enron, have caused accounting organizations throughout the world to take a look at the way leases are reported or not reported on the financial statements. As a…

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Liquidity Ratios #3 (3-part series)

Management uses financial data to determine the success for the company. In the first two parts of the series, I discussed profitability and efficiency ratios. In this blog, I will be discussing liquidity ratios that management uses to meet their…

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Efficiency Ratios #2 (3-part series)

In this blog, I will be discussing efficiency ratios. Efficiency ratios are used internally to check if the company is utilizing their assets and liabilities efficiently in earning revenues. Efficiency ratios are mainly used to assess how well assets and…

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Financial Ratios #1 (3-part series)

Financial data by itself may not give the complete picture about a company’s performance and financial wellbeing. It is difficult to evaluate standalone numbers without comparing them to certain norms and standards. Ratios provide a set of standardized parameters which…

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