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Income Statement: The Importance

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...

New Revenue Recognition Standards

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...

Liquidity Ratios: Current vs. Quick Ratios

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 and creditors assess the...

Tax Changes in 2018 That Will Impact You

Tax Changes in 2018 That Will Impact You There have been a lot of rumors and speculations in the past year regarding potential tax changes. At the close of the tax year, it is hard to know what is fact and what is fiction. Here is a recap of selected changes affecting...

The Balance Sheet

The Balance Sheet The balance sheet is important because it’s essentially a company’s statement of financial position at a specific date. Investors, creditors, and other businesses use it to: calculate financial ratios, determine how much money the company...