The Importance of the Income Statement There are four basic financial statements: Balance Sheet, Cash Flow Statement, Income Statement and Statement of Retained Earnings. External users such as investors, creditors, etc. use these statements to gain insight into the financial…
Read MoreICS Schedules Explained
ICS Schedules Explained Have you seen all the schedules on an Incurred Cost Submission (ICS)?! The ICS seems to never end. Why are there so many schedules and what do they do? Before explaining all these schedules, a quick review…
Read MoreNew Revenue Recognition Standards Are Now REAL
New Revenue Recognition Standards Are Now REAL For nonpublic companies, the new revenue recognition standards that the Financial Accounting Standards Board (FASB) implemented are now a reality. FASB 606, Revenue from Contracts with Customers, is effective for fiscal years beginning…
Read MoreCurrent Ratio vs. Quick Ratio
Current Ratio vs. Quick Ratio Liquidity ratios are an important tool used to measure how efficiently a company can pay off its debt. The most common liquidity ratios used are the current and the quick ratio. These ratios help investors…
Read MoreIndirect Costs and Billing Rates
Indirect Costs and Billing Rates For government contractors there is a considerable amount of emphasis on indirect costs. The Federal Acquisition Regulations (FAR) provides the parameters for grouping these costs. Per FAR 31.203(c), “logical cost groupings” are for indirect costs….
Read MoreHow to Maintain FAR Compliance in QB
How to Maintain FAR Compliance in QB One of the areas of concern to government contractors is meeting the requirements for bookkeeping under Federal Acquisition Regulations (FAR). While the Defense Contract Audit Agency (DCAA) does NOT approve or recommend any…
Read More2018 Tax Changes for Small Businesses
2018 Tax Changes for Small Businesses When it comes to taxes, there have been a lot of rumors and speculations in the past year regarding what will change. At the close of the tax year, it is hard to know…
Read MoreWhat Does Section 199A Qualified Business Income Mean for S Corp Shareholders?
What does Section 199A Qualified Business Income mean for S Corp Shareholders? There have been a lot of changes and uncertainties with the 2018 corporate tax changes. Since an S Corporation (S Corp) is a pass through entity, the corporation…
Read MoreGovernment Contracting Mystery
Government Contracting Mystery The world of government contracting is often a mystery for those looking in from the civilian world. To clear up some of the mystery, here are answers to some common questions. What IS DCAA and FAR? A…
Read MoreMore Unallowable Costs
More Unallowable Costs Government contractors must adhere to the Federal Acquisition Regulation (FAR), which provides businesses the guidelines on contract procurement. Under FAR, there are costs that are not billable to the government, such as, organizational costs, fines and penalties,…
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