Podcasts about Revenue recognition

In this episode, we take a deep dive intoIFRS 15 – Revenue Recognition, unpacking thefive-step framework that governs how companies should recognize revenue under the International Financial Reporting Standards.Listeners will gain aclear and practical understanding of:✅Identifying contracts and performance obligations✅Determining and allocating transaction prices✅Recognizing revenue at the right timeThe discussion also coverskey complexities such as:

In this insightful episode, we break down the fundamentals of long-term finance, exploring the key financing options available to companies—from equity and debt instruments to venture capital and business angels. Learn the crucial differences between ordinary and preference shares, rights issues, and convertible debt, and understand how companies structure their financial strategies for growth.We also dive deep into Earnings Per Share (EPS), the finance vs. operating lease debate, and the essential principles of IFRS 15 revenue recognition. Our discussion includes a step-by-step guide to ensuring compliance with international accounting standards. Whether you're a student, finance professional, or business owner, this episode provides a strong foundation in corporate finance essentials. Tune in now!

Points of Interest00:49 – 01:50 – Introduction to Ryan McNamara Marcel introduces Ryan McNamara, Head of Operations at Rise at Seven, and highlights his impressive journey from startup founder to agency leader.01:51 – 03:00 – Building Rise at Seven Ryan discusses the rapid growth of Rise at Seven, their creative-first, search-driven approach, and their international presence in the UK and US.04:21 – 05:40 – Defining Operational Leadership Ryan explains the challenges and responsibilities of operational leadership, emphasizing the importance of understanding finance, team dynamics, and business goals.08:11 – 09:20 – The Rise of Operations in Agencies The growing emphasis on operations and finance as key to agency survival is discussed, with insights on how agencies are adapting to a more competitive and demanding market.10:41 – 12:00 – Leveraging Personal Development Plans The importance of structured PDPs (Personal Development Plans) and appraisals to help team members see their growth trajectory and contribution to the business is explored.12:01 – 13:20 – Process vs. Flexibility Ryan explains the balance between setting processes for consistency and allowing flexibility for creativity and innovation within teams.13:21 – 14:50 – Managing Team Growth and Churn The challenge of managing team growth in alignment with business needs while mitigating churn and ensuring cultural fit is unpacked.17:21 – 18:40 – Balancing Risk and Innovation The discussion explores how agencies can manage operational risks without stifling creativity, enabling teams to focus on outcomes while maintaining flexibility in their processes.21:31 – 22:50 – Fostering Team Accountability Insights are shared on creating systems where every team member understands their role in driving the business forward and how their contributions impact overall performance.24:01 – 25:30 – The Evolving Role of Operations The conversation shifts to how operations professionals are becoming pivotal thought leaders, connecting finance, delivery, and team dynamics in modern agencies.25:31 – 26:50 – Challenges in Standardizing Processes Ryan discusses the difficulty of standardizing processes in a creative environment, where flexibility is often required to deliver exceptional outcomes.29:41 – 31:00 – Advice for Aspiring Operators Ryan offers advice for those stepping into operational roles, encouraging them to focus on outcomes, embrace adaptability, and prioritize team empowerment.Show NotesConnect with RyanLinkedInRise at SevenLove the PodcastLeave us a review here.

Send us a textIs your profit really profit—or just an illusion? In this episode, Steve pulls back the curtain on the hidden traps of cash-basis accounting, exposing how tools like QuickBooks can trick business owners into celebrating wins that don't exist. With a jaw-dropping example from the construction world, he reveals how premature revenue recognition can send your business on an emotional rollercoaster.Curious to unlock the truth behind your financial statements? Steve breaks down the secrets of GAAP and shares powerful strategies to align your numbers with reality. Whether you're chasing clarity or protecting your bottom line, this episode will change how you see your business's success forever.Disclaimer:BYFIQ, LLC is a wholly owned entity of Coltivar Group, LLC. The views expressed here are those of the individual Coltivar Group, LLC (“Coltivar”) personnel quoted and are not the views of Coltivar or its affiliates. Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Coltivar has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendations. The Company is not affiliated with, nor does it receive compensation from, any specific security. Please see https://www.byfiq.com/terms-and-privacy-policy for additional important information.Get the free BYFIQ app and Starter Course here: https://www.byfiq.com/app Support the show

Christian Rivera is the founder of The Ecommerce Accountants, a firm that specializes in tax, accounting, and business structuring for e-commerce companies. Their clients include social media marketing agencies, dropshippers, digital marketers, Amazon automation, Amazon FBA, and internet coaches/gurus.In this episode of the DTC POD, Christian explores key accounting issues that e-commerce businesses must address to succeed, such as sales tax compliance, revenue recognition, and inventory accounting. He also unpacks tax strategies that can help entrepreneurs set up smarter finances and maximize their profitability.Interact with other DTC experts and access our monthly fireside chats with industry leaders on DTC Pod Slack.On this episode of DTC Pod, we cover:1. E-commerce Accounting Challenges2. Sales Tax Management3. Revenue Recognition4. Inventory Accounting5. Financial Strategies and Advice6. Inventory Management and Financing7. Business Entity Structures8. Growth Patterns of Successful Brands9. Tax Planning and OptimizationTimestamps00:00 Christian Rivera's background and company04:47 Accounting and tax for commerce brand08:05 How sales tax works and where it applies13:46 How every successful entrepreneur starts16:44 VAs, agencies, and managing paid traffic19:45 Inventory management for DTC brands22:55 Strategies for inventory financing25:16 Tax planning and optimization27:57 S corp and LLC: difference and benefits33:37 Tax strategies for foreign-owned businesses 36:52 Puerto Rico's Act 60 tax incentive program39:39 Tax strategies for American entrepreneurs45:24 Christian Rivera's advice for DTC foundersShow notes powered by CastmagicPast guests & brands on DTC Pod include Gilt, PopSugar, Glossier, MadeIN, Prose, Bala, P.volve, Ritual, Bite, Oura, Levels, General Mills, Mid Day Squares, Prose, Arrae, Olipop, Ghia, Rosaluna, Form, Uncle Studios & many more.  Additional episodes you might like:• #175 Ariel Vaisbort - How OLIPOP Runs Influencer, Community, & Affiliate Growth• #184 Jake Karls, Midday Squares - Turning Your Brand Into The Influencer With Content• #205 Kasey Stewart: Suckerz- - Powering Your Launch With 300 Million Organic Views• #219 JT Barnett: The TikTok Masterclass For Brands• #223 Lauren Kleinman: The PR & Affiliate Marketing Playbook• ​​​​#243 Kian Golzari - Source & Develop Products Like The World's Best Brands-----Have any questions about the show or topics you'd like us to explore further?Shoot us a DM; we'd love to hear from you.Want the weekly TL;DR of tips delivered to your mailbox?Check out our newsletter here.Projects the DTC Pod team is working on:DTCetc - all our favorite brands on the internetOlivea - the extra virgin olive oil & hydroxytyrosol supplementCastmagic - AI Workspace for ContentFollow us for content, clips, giveaways, & updates!DTCPod InstagramDTCPod TwitterDTCPod TikTok  Christian Rivera - Founder of The Ecommerce AccountantsBlaine Bolus - Co-Founder of CastmagicRamon Berrios - Co-Founder of Castmagic

SAP offers a quote-to-cash Software-as-a-Service solution for which it has recently been named leader by Gartner in their Magic Quadrant for Recurring Billing Solutions. Join us in this episode of the Inside SAP S/4HANA Cloud podcast as we delve into the world of subscription-based business models and how SAP is at the forefront of providing end-to-end quote-to-cash solutions. We will explore the challenges and opportunities that companies, especially in the SaaS industry, face when dealing with subscription management. Greg Hutcheon interviews our experts from SAP, Isabel Reingruber and David Eastlund, as well as John Froelich from the SAP partner Bramasol. They share their insights, experiences, and successful use cases.

Which metrics should you track, to run your agency as efficiently as possible?In this episode we speak with Richard Brett. Rich is a seasoned FinOps professional with 15+ years of experience, including a decade in the agency world. Rich has played a key role in scaling agencies, setting up financial processes, and supporting sustainable growth. Rich will take us into a deeper dive of agency finances, starting with revenue recognition – recording revenue when it's earned, not when payment is received – and explain why this is so important. Next, we'll discuss key metrics and the kind of decisions you'll be able to make using each:Utilization: see how effectively your team's time is allocated to billable work, helping identify resource optimization opportunities.Recovery: shows the actual revenue generated from billable hours worked, highlighting areas of over-servicing.Billable paid: shows the proportion of billable work that is successfully paid for, helping assess the financial health of client engagements.Future month work value: projects the expected revenue from booked hours in upcoming work, allowing for proactive resource and budget management.Finally, Rich will tell us 5 ways we can influence margins through agency rate cards.Rich now runs his own consultancy, Rich Brett FinOps, providing bespoke financial services to agencies.Follow Richard on LinkedIn: https://www.linkedin.com/in/richard-brett-36903590/Follow Harv on LinkedIn: https://www.linkedin.com/in/harvnagra/Stay up to date with regular ops insights. Subscribe to The Handbook: The Operations Newsletter.This podcast is brought to you by Scoro, where you can manage your projects, resources and finances in a single system.

In this episode of For The Record we dive into the dollars and cents of running a successful med spa, particularly managing finances effectively. We're joined by Nick Liguori, CPA, and Dan Simard, Director of Business Development from Liguori Accounting, a New Hampshire-based, full-service accounting firm that exclusively serves the Aesthetic industry. We explore many of the common pitfalls Practice owners must watch out for when starting their business- things like, Can I keep my own books and save money? Why am I working so hard but making no money? Do I wait until I can pay cash to buy a device? These questions and many, many more are top of mind for med spa owners, even when they've matured out of their early startup phase. That's where Liguori comes in! They discuss what it means to have a fractional CFO to not only help assess the data and be on call to make the important decisions, but also to NOT be on the payroll when their services aren't required. In addition, they speak to the differences in that role versus a CPA and a bookkeeper- a distinction that is critical when it comes to managing the day to day versus the long-term financial health and overall tax burden of the business. When do you outsource? When do you insource? What happens if you've been burned by a prior firm, and now you are scrambling to pick up the pieces? As a firm who specializes specifically in our industry, Nick & Dan have such a good handle on the challenges clients face throughout their entrepreneurial journey, and they offer some great tips and areas of opportunity for any owner making the decision to change up their financial management team. From bookkeeping and tax strategies to navigating revenue recognition and fractional CFO services, Nick and Dan share practical advice to help you grow your med spa business smartly and sustainably: Key Takeaways: 1. Why Outsourcing Accounting Matters – Learn the benefits of having an outsourced accounting team with industry-specific knowledge and how it helps med spa owners focus on what they do best. 2. Revenue Recognition & Cash Flow Planning – Understand the importance of accurately tracking sales, package liabilities, and the impact on your financials. 3. Navigating Common Med Spa Accounting Challenges – From keeping track of inventory to dealing with complex tax strategies, Nick and Dan break down how to simplify your med spa's financial management. 4. The Importance of Financial Forecasting – Discover why it's crucial to work with professionals who can provide insights on growth opportunities and potential financial risks. 5. Tips for Preparing for Tax Season – Proactive planning can help avoid surprises when tax time rolls around, and Liguori Accounting gives advice on how to stay ahead. 6. Avoid the DIY Trap – Why it's better to delegate accounting tasks to professionals and focus on running your practice efficiently. 7. Beware of Always Showing a Loss- When you need to take out a loan or show value in your business, be cautious of taking advantage of all the write-offs and showing little to no profit…..it may come back to bite you! Nick and Dan share common financial mistakes we all make when it comes to burning through cash, tightening the belt with expenses, and finding the right opportunities for growth. This episode is time well spent learning actionable tips on how to better manage cash flow, optimize tax planning with a fractional team, and understand your financials to ensure long-term profitability. Whether you're just starting out or looking to scale, this episode will help you analyze how confident you feel in your existing accounting team, and what next steps may be if you are looking for a change! Reach out to Liguori Accounting; https://liguoricpa.com/ Connect with Dan for a Discovery Call: d.simard@liguoricpa.com Checkout Liguori on LinkedIn: https://www.linkedin.com/company/liguoriaccounting/

Text us your thoughts on this episodeWe continue our revenue podcast miniseries discussing contract modifications. Contract modifications are accounted for as either a separate contract or as part of the existing contract, depending on the nature of the modification.In this episode, we discuss: 4:47 – An overview of contract modifications   5:57 – Modifications that are accounted for as separate contracts 6:54 – Modifications that are accounted for prospectively 10:08 – Modifications that result in cumulative catch-up adjustments 11:28 – Other types of modifications 13:16 – Common contract modification scenarios and related accounting pitfalls 23:22 – Contract terminations For more information, see section 2.9 of our Revenue guide. Also, check out other episodes in our miniseries: Gross versus net revenue: Is your company the principal or agent? and Identifying the contract – The first step in recognizing revenue. Additionally, follow this podcast on your favorite podcast app for more episodes.   Pat Durbin is a Deputy Chief Accountant in PwC's National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS. Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC's global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC's quarterly webcast series. Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

In this episode of Cherry Bekaert's GovCon Podcast, Brynn McNeil and Craig Hunter both Assurance Partners in Cherry Bekaert's Government Contracting Industry practice, discuss  revenue recognition for government contractors. Listen to learn more about:The five steps for recognizing revenue under Accounting Standards Codification (ASC) 606Understanding how costs drive revenue Common errors in recording revenue Best practices for government contractors regarding processes and controls for recording revenue Cherry Bekaert's team of government contracting consultants have significant experience in navigating the SBA 8(a) business development program and can assist your business with the best accounting practices. If you have any questions specific to your situation, our government contracting consultants are available to discuss your situation with you. Contact us.View all Government Contracting Podcasts

This week on the Expert Voices podcast, Randy Wootton, CEO of Maxio, speaks with Alex Diaz-Asper, Principal & Founder of Tarsus, and an experienced figure in the financial dimension of SaaS businesses. With an extensive background in private equity and M&A, Alex shares key financial concepts and strategies within the SaaS landscape. Randy and Alex explore the importance of clean financials, the impact of accounting errors on M&A, and navigate through the potential risks and rewards of dealing with client concentration. Delving into the transition from PE to an operational role, Alex also shares insights from the strategic partnership between finance and sales divisions in scaling SaaS businesses. Quotes“If you have large annual upfront invoices you can't assume cash comes in evenly over the twelve months. So if you signed everybody in Q4, you had a great Q4 and Q3, and you're starting to run out of cash and you know, you got it. You see down the horizon. Okay, here comes all the renewals and new cash is coming in. So that's super important from the cash flow models to be able to see those kinds of ebbs and flows of cash flow and having a tool to help you track the renewals.” -Alex Diaz-Asper [23:51]“One thing that has changed a lot is how the CFO is a big part of the collaboration, especially with the sales team, early stage. It is super important that we are partners with each other, the salespeople and the CFO, because we need to know how to manage cash and we need to know new sales as well.” -Alex Diaz-Asper [35:00]Expert Takeaways Clean books and accurate revenue recognition inform go-to-market strategies for SaaS businesses.Managing client concentration: advocating for no more than 20% revenue dependence on a single client.Alex's transition from a PE background to an operational role underscores the importance of building a strong finance team around you.Understanding revenue definitions: the distinction between GAAP revenue and analytical revenue (ARR), both crucial for different stakeholders.Staying on top of technology tools and adopting efficient RevOps strategies for SaaS growth.Timestamps(02:51) Accounting Errors as Deal Breakers in M&A(06:02) Mitigating Risks of Client Concentration in Business(10:03) Evolving Financial Roles in Early Stage Companies(15:41) Decoding Financial Operations and Revenue Recognition(26:30) Efficiency in Finance Through Technology Adoption(32:10) Evolving Roles and Tools for Today's CFOs in B2B SaaS(40:46) Speed Round: Favorite Metrics and InfluencersLinksMAXIOUpcoming EventsMaxio Institute ReportRandy Wootton LinkedIn Alex Diaz-Asper LinkedIn

Hector and Alicia answer your questions. From tracking expenses to their sources and properly categorizing transactions, utilizing automation, and using cost accounting techniques to calculate profit margins for individual products, customers, and sales channels.SponsorsLiveFlow - https://uqb.promo/liveflowTimesheets.com- https://uqb.promo/timesheetsOnPay - https://uqb.promo/onpay (00:00) - Welcome to The Unofficial QuickBooks Accountants Podcast (03:30) - Listener Mail: Revenue Recognition & Uncategorized Expenses (18:45) - Tracking your Customer Deposits (22:48) - QBO Advanced's new Revenue Recognition feature (32:46) - QBO's Chart of Accounts default accounts (36:32) - Uncategorized Assets (38:43) - Using Books Review & Banking Options with Uncategorized Expenses (42:45) - Apps that use Uncategorized Expenses (47:58) - Thanks for listening and remember to subscribe Send your Questions/Comments (we could read/answer them on air) ask@uqapodcast.comLinks/Apps Mentioned in this episode: Hector's App - RightTool www.righttool.app Alicia's Training - RoyalWise http://royl.ws/uqapodcast QuickBooks Connect Conference:www.quickbooksconnect.com Firm of the Future: www.firmofthefuture.com

Welcome to a new episode on the Modern SaaS Finance Podcast hosted by ⁠⁠⁠⁠David Appel⁠⁠⁠⁠, head of Software/SaaS at ⁠⁠⁠⁠Sage Intacct⁠⁠⁠⁠. This is episode 9 of our Learn on the GO series from the recently launched ⁠⁠⁠⁠Modern SaaS Finance Academy⁠⁠⁠⁠. Todays episode is on the Planning high ACV billing and revenue recognition models. For SaaS businesses dealing with high Annual Contract Values (ACVs), strategic planning of billing and revenue recognition models is paramount. Listen to the full episode to discover the nuances of revenue recognition models for high ACV deals, including over time and point-in-time recognition methods and explore best practices for choosing the right method based on contract terms, delivery, and customer usage, ensuring accurate financial reporting. Whether you're a SaaS startup aiming for high growth or an established company adapting to changing markets, this episode offers invaluable insights to help you plan billing and revenue recognition strategies that align with your high ACV objectives. Listen to the full episode for all the great insights shared. Please NOTE: These episodes are not CPE credit eligible. Join us on the academy to enroll in our full course line up and learning path options that offer globally recognized badges, CPE credits and so much more! If you are yet to enroll on the academy, ⁠⁠⁠join us for FREE today!⁠⁠⁠ About the Modern SaaS Finance Academy The Modern SaaS Finance Academy is an always-on, free curated learning experience designed to educate SaaS finance leaders and experts on subscription and usage billing models, accounting, revenue recognition, SaaS metrics, forecasting and other key functions on driving the cash flow and trajectory of a firm on its path to IPO.   For more episodes on the Modern SaaS Finance, subscribe to our podcast channel on any major streaming platforms including Spotify, Apple Podcast, Google Podcast, Amazon Music, Audible, etc. If you are a SaaS finance leader or expert and will like to join our Modern SaaS Finance community, ⁠⁠⁠click here to request access.⁠⁠⁠ ⁠⁠⁠Explore more SaaS finance tips and best practices here.⁠

 | Customer Data Junk Food: How your marketing programs are leaving valuable revenue + recognition on the table, and how to start claiming both

Welcome to a new episode on the Modern SaaS Finance Podcast hosted by ⁠⁠⁠David Appel⁠⁠⁠, head of Software/SaaS at ⁠⁠⁠Sage Intacct⁠⁠⁠. This is episode 9 of our Learn on the GO series from the recently launched ⁠⁠⁠Modern SaaS Finance Academy⁠⁠⁠. Todays episode is on the 3 Steps to Build Your Revenue Recognition Strategy. Navigating revenue recognition in the complex landscape of SaaS finance can sometimes be challenging. Join us as we break down three essential steps that will guide you in developing a robust revenue recognition strategy tailored to your SaaS business model. In this episode, you'll learn how to analyze your subscription offerings, pricing structures, and contract terms to determine the most suitable revenue recognition methods. We will explore key considerations such as recognizing revenue over time or at a point in time, and the implications of ASC 606 and IFRS 15 standards. Whether you're a SaaS startup building your financial foundation or a growing company refining your revenue recognition practices, this episode will help you discover how to integrate automation and technology into your strategy to ensure accuracy and compliance. Listen to the full episode for all the great insights shared. Please NOTE: These episodes are not CPE credit eligible. Join us on the academy to enroll in our full course line up and learning path options that offer globally recognized badges, CPE credits and so much more! If you are yet to enroll on the academy, ⁠⁠join us for FREE today!⁠⁠ About the Modern SaaS Finance Academy The Modern SaaS Finance Academy is an always-on, free curated learning experience designed to educate SaaS finance leaders and experts on subscription and usage billing models, accounting, revenue recognition, SaaS metrics, forecasting and other key functions on driving the cash flow and trajectory of a firm on its path to IPO.   For more episodes on the Modern SaaS Finance, subscribe to our podcast channel on any major streaming platforms including Spotify, Apple Podcast, Google Podcast, Amazon Music, Audible, etc. If you are a SaaS finance leader or expert and will like to join our Modern SaaS Finance community, ⁠⁠click here to request access.⁠⁠ ⁠⁠Explore more SaaS finance tips and best practices here.⁠

To state the obvious, rev rec has some teeth. But construction and engineering companies face even more potential potholes than most thanks to a nuanced industry filled to the brim with complex contracts. That's why Embarkers Adam Olsen, Zac Smith, and Donald Thomas devoted an entire Accounting Matters episode on 606 issues for construction and engineering companies. Enjoy!For more information on ASC 606 and related topics:Navigating ASC 606 Revenue Recognition: A Comprehensive Guide for CFOsASC 606, Revenue from Contracts with CustomersFor more information on carbon accounting and related topics:Carbon Credit Accounting: Considerations for Environmental CreditsWhy ESG Is So Important to Your Organization's FutureESG Reporting Best Practices: Implementation & BeyondGHG Inventory Development Process and GuidanceConnect with Embark on: LinkedIn Instagram Twitter Facebook YouTube Listen to Accounting Matters on Apple Podcasts, Google Play, and Spotify.

Every Tuesday in June, Angela Fergason is taking over the podcast to share the latest in her areas of specialty — including recent trends in revenue, how to consider whether your company is a principal or agent when recognizing revenue, software costs, and restructurings.To kick off the series, Angela shares insights on current trends in the accounting for revenue transactions.In this episode, you'll hear discussion of:1:38 - An overview of accounting for revenue4:16 - “Everything as a Service” (XaaS) arrangements and their embedded complexities, including interaction with the lease accounting model12:38 - Revenue contract modifications, including scope reductions17:32 - The non-cash consideration revenue model, including equity payments for both vendors and customers as well as interaction with stock-based compensation guidance23:04 - Considerations when revenue arrangements include significant financing26:05 - SEC comment letter trends and final advice on accounting for revenueFor more information, read our Revenue, Leases and Stock-based compensation guides. Additionally, check out our prior podcasts on the subscription economy, identifying embedded leases, and Revenue: 2022 SEC comment letter trends.Angela Fergason is a partner and standard setting leader in PwC's National Office who specializes in accounting for revenue and employee compensation arrangements. She also consults on a range of financial reporting issues impacting technology companies. Heather Horn is PwC's National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC's accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather's accounting and auditing expertise includes financial instruments and rate-regulated accounting.Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Join Aaron Patrick and the team on the live LABS podcast, where each Month, they discuss various accounting software updates and other topics that can benefit the accounting community and business owners alike. Both are experienced accountants, certified QuickBooks trainers and entrepreneurs. Have a question you'd like to ask? Join us live and ask away. If we can help you, we will. Interested in being a guest on the show? If you have a product or knowledge that would be useful to share with others in the accounting world, please get in touch. https://www.facebook.com/quickbookslabs

Gaurav Sodhi from Intelligent Investor and Mathan Somasundaram from Deep Data Analytics go in-depth and stock specific. Stocks covered: ORG, REH, VUK, RIO, VTS, STO, TYR, SVW, BLX, RHC. Our stock of the day is Dubber (DUB). Hosted on Acast. See acast.com/privacy for more information.

➤ New interior photos of the Tesla Cybertruck show updates from prototype ➤ Target investor update may carry broader market implications ➤ FSD Beta expands significantly ➤ Musk's Twitter financing reportedly on hold ➤ Tesla pushes back on DFEH discrimination lawsuit ➤ News from IDRA open house ➤ Filing shows Tesla still has interest in radar ➤ Volkswagen software efforts face major challenges ➤ Dealer markup on F-150 Lightning ➤ Starlink IPO update Shareloft: https://www.shareloft.com Twitter: https://www.twitter.com/teslapodcast Patreon: https://www.patreon.com/tesladailypodcast Tesla Referral: https://ts.la/robert47283 Executive producer Jeremy Cooke Executive producer Troy Cherasaro Executive producer Andre/Maria Kent Executive producer Jessie Chimni Executive producer Michael Pastrone Executive producer Richard Del Maestro Executive producer John Beans Disclosure: Rob Maurer is long TSLA stock & derivatives

In this episode you hear from Nathan Shinn, Co-Founder & CSO at BillingPlatform. Nathan has 20+ year business experience and lives in Fort Collins, CO. Here he talks about their CPQ Solution, Billing, Revenue Recognition and other products they offer, as well as their solution architecture, how they integrate with other solutions, what CPQ capabilities customers can expect from BillingPlatform in the next 12 months & much more LinkedIn: www.linkedin.com/in/nathan-shinn-bb90b71/  website: billingplatform.com 

Not too long ago, accounting standards established by the American Institute of Certified Public Accountants required real estate companies to navigate various requirements for purchase and sales agreements that often resulted in straight forward AS-IS, WHERE-IS terms. But that changed in May 2014, when the FASB issued new guidelines designed to make revenue recognition standards more consistent across industries. Known as “Topic 606,” the new guidance required all companies to disclose additional revenue information in their financial statements.In this edition of Weaver: Beyond the Numbers, Rob Nowak and Howard Altshuler, spoke about how different the FAS 66 was prior to the new guidance saying that, “FAS 66 had prescriptive requirements that would enable a company to recognize revenue on a real estate sale. Primarily, they had to transfer title, that's a given. You had to have a really strong down payment, or all cash. You had to limit the amount of future participation with the project once it was sold.”Once FASB released the new guidance, the rules all changed drastically, and more freedoms were enabled. The new rules set in place allowed companies to structure sales agreements in more creative ways.According to Altshuler, “When 606 came out, it went from that rules-based approach to more of a concepts-based approach. And some of those concepts were a little bit different. What it does is put things into the context of a performance obligation.”To hear more of Weaver's discussion about Topic 606 and its implications, as well as other news about the real estate industry, check out this podcast and others at weaver.com.

Revenue Attribution and Data Platform

Isaac is the co-founder and CEO of Trullion, an AI-powered SaaS platform that automates financial workflows for CFOs, accountants, and auditors. Trullion unifies the unstructured and structured worlds of accounting by reading PDFs and Excel and translating them into financial workflows, such as Lease Accounting and Revenue Recognition.

All right if you read annual reports or listen to earnings calls, you’ll sometimes hear revenue recognition mentioned. What’s it all about?

This is the second episode where audit manager at Dezan Shira & Associates, Jess Feng, breaks down the revenue recognition in the new accounting standards in China. Learn about the major stages of the Five-Step Model Framework in the new accounting standards. 00:00 Intro 00:34 What are the five stages of the Five-Step Model Framework for revenue recognition? daxue consulting website: https://daxueconsulting.com/ What do you have in mind for your expansion in China? Contact us now: https://daxueconsulting.com/contact-us-now/ Dezan Shira & Associates website: https://www.dezshira.com/ Dezan Shira & Associates email: UK.Ireland@dezshira.com Listen & Subscribe to the Podcast: YouTube: https://www.youtube.com/watch?v=LDka8-Z2Jr0&list=PLcVM3NJYsLF1Z2LLcVGbBVlwVQOOsuuJh Soundcloud: https://soundcloud.com/user-177979339/tracks Apple Podcast: https://podcasts.apple.com/us/podcast/daxue-talks/id1492896072 Spotify: https://open.spotify.com/show/2lfCyDOJJNMeW2W0Ad21QK What is Daxue Talks? Daxue Talks, a China business vlog powered by daxue consulting, a china-based strategic market research company founded in 2010! With Daxue Talks, you will stay up to date with all the latest business updates in China. Every day, you will learn from china-based experts who share their knowledge about the Chinese market in 2-5 minutes. #DaxueTalks #CAS #Accounting

This is the first episode where audit manager at Dezan Shira & Associates, Jess Feng, breaks down the revenue recognition in the new accounting standards in China. Learn about the major changes in the new accounting standards of CAS14. 00:00 Intro 00:34 What is CAS14 and what are the major changes in the accounting for revenue recognition? daxue consulting website: https://daxueconsulting.com/ What do you have in mind for your expansion in China? Contact us now: https://daxueconsulting.com/contact-us-now/ Dezan Shira & Associates website: https://www.dezshira.com/ Dezan Shira & Associates email: UK.Ireland@dezshira.com Listen & Subscribe to the Podcast: YouTube: https://www.youtube.com/watch?v=LDka8-Z2Jr0&list=PLcVM3NJYsLF1Z2LLcVGbBVlwVQOOsuuJh Soundcloud: https://soundcloud.com/user-177979339/tracks Apple Podcast: https://podcasts.apple.com/us/podcast/daxue-talks/id1492896072 Spotify: https://open.spotify.com/show/2lfCyDOJJNMeW2W0Ad21QK What is Daxue Talks? Daxue Talks, a China business vlog powered by daxue consulting, a china-based strategic market research company founded in 2010! With Daxue Talks, you will stay up to date with all the latest business updates in China. Every day, you will learn from china-based experts who share their knowledge about the Chinese market in 2-5 minutes. #DaxueTalks #CAS14 #Accounting

Purchase the Telehealth Toolkit and register for Revenue Recognition in Telehealth Best Practices, a webinar hosted by AHIMA and Optum360 on August 3.What did you think of the podcast? Contact AHIMA's Matt Schlossberg at matt.schlossberg@ahima.org.

Under Armour settled its long-pending SEC investigation by agreeing to pay $9 million surrounding misleading statements and practices relating to its revenue growth and uncertainties as to future growth. As part of the settlement, the SEC declined to bring charges against its CEO, Kevin Plank, and its CFO, David Bergman. The Justice Department inquiry appears to have lost steam since the middle of last year, and DOJ likely declined prosecution. Under Armour had been the subject of a long-running probe since 2019 when Under Armour disclosed the DOJ and SEC investigations into its accounting practices. The SEC's case eventually focused on its revenue projections and accounting practices. In this Episode, Jonathan Marks from Baker Tilly and Michael Volkov discuss the Under Armour case and financial accounting fraud.

Patrick explains Revenue Recognition, Materiality, Conservatism, and the Full Disclosure Principle.

What were the audit implications of the Ever Given container ship blocking the Suez canal? Ben discusses how inventory, provisions and revenue recognition could be impacted.

Jason LeBlanc, ARB Principal and Nonprofit Advisory Services Group Leader, hosts this week's episode of Savvy & Sensible! Join Jason as he discusses revenue recognition for Non-Profit organizations with Albin Randall & Bennett Managers Gisele Couturier and Alyssa Hemingway.

This episode explains the difference between direct recognition and non-direct recognition policy loans and how they impact your policy as you practice infinite banking.

Proper Revenue Recognition is crucial to any business but things are changing. What steps can you take to ensure you’re following the right guidelines? Nick Tamvaklis, a Manager at DGC, will guide us through the new Revenue Recognition standard and will highlight the changes you need to know. For more information about DGC, visit our website: www.dgccpa.com

Dean Pulliam, Director of Nonprofit and Charity Accreditation at BBB and I discuss the resources that BBB can provide to Nonprofit Organizations at various stages of development. Then I jump into the revenue recognition rules once again. It is complicated but we cannot run from the rules any longer.

In this episode, Kailey will break down the new revenue recognition accounting standard. What does this mean? If you ever have a topic you think you might want to speak on, please email it to HappyHouratBland@blandcpa.com  #Binformed #Binspired #Bawesome Subscribe so you don’t miss an episode! Follow our  “Happy Hour at Bland” podcast on Instagram! Also, follow Bland & Associates on Instagram, Facebook, and LinkedIn. A Hurrdat Media Production. Hurrdat Media is a digital media and commercial video production company based in Omaha, NE. Find more podcasts on the Hurrdat Media Network and learn more about our other services today on HurrdatMedia.com.

About Chris Hervocohon:Chris Hervochon is often referred to as the Michael Jordan of accounting. A graduate from Elon University with a degree in Accounting and minor in Finance. He is a Certified Public Accountant (CPA) in South Carolina and Pennsylvania, and also holds the Certified Valuation Analyst (CVA) certification. A Certified QuickBooks Online ProAdvisor, and have earned the Data Analytics Executive Certificate from the AICPA.In 2018, he was one of only 41 CPAs honored by the AICPA as a member of the Leadership Academy's tenth graduating class. In 2019, I was named as one of CPA Practice Advisor's "40 Under 40" in the accounting profession.He started his firm called Better Way CPA, where he helps creative, digital marketing agencies, and service-based businesses with intelligent, actionable accounting.Follow Chris Online:WebsiteFacebookInstagramChris' TwitterYouTube ChannelResources:From Freelancer to Agency Ebook WayfinderAbout PageMy YouTube ChannelTimestamps:Intro 0:00Who is Chris 01:00How Chris Started in the Service Business Industry 2:20What Makes Accounting Service Businesses Unique 4:48Why is it Important for Agencies to Have a Clean Accounting Data 8:58Common Mistakes Agencies Commit in Terms of Accounting 10:04Why Service Businesses Must Use Accrual Basis 13:53Revenue Recognition for Accrual Accounting 17:25Benefits of Cloud-Based Accounting 19:48Cash Reserves for Agency's Survival 22:30The Right Corporate Entity for Your Business 28:10Biggest Problem for Service Agencies' Chart of Accounts 30:35Freelancers Vs. Full-Time Employees 35:00Allocating Your Salaries 39:48Gross Profit Vs. Net Profit 41:50Maximizing Profit: Pricing and Operating Perspective 45:50Outro 50:00 Often, we base an agency's success on its profitability. However, we tend to forget the financial aspect of things. And, why agencies need to understand the importance of accounting. And so there's just so many things that I want to talk to you about. And, I want you to ask yourselves why you chose to run or work on a service business.And according to Chris Hervechon:“Marketing agencies are a lot like accounting firms. How they operate. It's a different service. Sure, it's more creative, generally speaking. But they're both service-based businesses.”What Makes Accounting for Service Businesses UniqueAccording to Chris Hervochon, there's a lot of agency owners that do not realize that running a service business when it comes to accounting, which is very different than almost every other service business.And, its main difference happens above the margin. So your margin is your gross revenue minus all the variable costs that go into generating that gross revenue.If you think about a retail store that tends to have lower margins, your gross revenue is gonna be all the stuff that you sell. Let's say you sold a television for $850, then that's already your gross revenue. If it cost you $500 to buy the television, including taxes and licenses, then your gross profit is $350.On the other hand, service-based businesses tend to have higher margins. There is not much variable cost going into generating the revenue. It is solely based on human capital, on the amount of effort agency owners and their employees put into to generate profits.Why is it Important for Agencies to Have a Clean Accounting Data?The entire purpose of accounting is so that you can ask questions about your business and get accurate and reliable answers.According to Chris, you must ask yourselves these questions while also knowing how to answer them to see whether your business/es are properly tracked and documented:Is this project profitable?Is this service profitable?Is this niche profitable?What are the fixed expenses?Where can I cut costs to be more profitable?What's too expensive?What's not expensive enough?Am I spending enough or too much on my marketing?Through these questions, you will be able to know your agency's trajectory and what to expect.Common Mistakes Agencies Commit in Terms of AccountingYou will be surprised at how agencies commit the same mistakes.Let's start with how often you sit down with your accountant. Agency owners are usually the creative type who is good at marketing and promotion. However, it is important that you, as an agency owner know to hire someone who has proven knowledge in accounting.Not having organized and systematic documentation of your expenses and revenue. Make sure that you keep track of the inflows and outflows of your money.They did not start using the accrual basis. From an accrual accounting perspective. I've got somebody who comes and goes. My clients come every week on a Monday, we hope, but they come every week nonetheless. That's a real base accounting. It's matching the activity with the expense of the revenue when it happened.Why Service Businesses Must Use Accrual BasisLooking at things on an accrual basis is certainly a change for a lot of people, especially small businesses. But it's something that you need to do. Because there's no way to forecast cash accurately. And, it will answer the questions:How is my business doing?How is it looking for next month?In a service-based business, accrual accounting is important because it's reflective of the business model. It's reflective of the way that value is earned and value is actually accrued over time. So if you run a service-based business, you should be doing your books and you're counting on an accrual basis so that you can get accurate insights into your business.Accrual-based accounting is more time-intensive. It does require more expertise and so to do it is more expensive. But there is a line where the business is big enough.Revenue Recognition for Accrual AccountingChris said that before anyone starts with what accounting method they're going to use, you must start with what your contract stipulates. If the contract says that it's going to be based on specific deliverables, then you base your revenue recognition on those specific deliverables.If the contract says it's gonna be there's one deliverable and you're doing it over some time. If it were me, I would allocate it based on the amount of time it's been spent on that particular project. But, to get down to the real nitty-gritty. Look at the contract for the contract is going to dictate it and then go to some sort of another allocation method.Benefits of Cloud-Based AccountingChris states that as an agency owner, you need actual accounting software, you need applications that play well with that software, and most importantly your accounting software should be cloud-based instead not desktop based.The reason being is if you have an accountant who's halfway across the country, you could be looking at the same numbers in real-time while doing the same thingAnd, what you can effectively do with cloud-based accounting systems is offload the security to somebody who's probably a lot better at it than you are. You must protect your business information and there has been a lot of hackers targeting these hosted type platforms like QuickBooks.The third thing is that cloud-based accounting systems make it easier to plug-in other applications. Whether it's a bill pay system or an expense tracking system or maybe it's just other marketing data that you can then combine with your financial data to make it leverage data.Non-financial data equals leverage data. When you can combine these two things, you can get greater insights out of it. That's near and dear to your heart as well.Cash Reserves for Agency's SurvivalChris Hervochon recommends that agencies must set aside between two to six months' worth of fixed expenses before investing in a new venture or offering new services. Fixed expenses are expenses that are going to exist in the business, whether or not you generate revenue for the whole month.Earlier we talked about margins, on how they're a variable. Your revenue variable is the uncertainty of earning revenue for tomorrow. And the expenses to generate that revenue which are expenses that bring down to a margin. Because if you don't have the revenue, you're not going to have those expenses. So fixed expenses are all that inevitable expenses that come along with the operation of your business.Biggest Problem for Service Agencies' Chart of AccountsThe chard of accounts is the foundation on which the insights that you get from your accounting data is built, or from which you get to the insights that you want to build. This is something that a lot of people don't think about a whole lot when they're setting up books for the first time or if they're hiring an accountant that doesn't know a lot about service businesses.Chris mentioned to try and answer the questions that they want to answer, they've got to sift through a ton of data and do a bunch of math. So when it comes to setting up your chart of accounts as a service business where some of the best practices we want to make sure we're keeping an eye on the inflows and outflows of our businesses.The biggest problem Chris generally sees is what we would refer to as a sprawling chart of accounts where you've got a separate account. When we say account, what we need is a bucket, a bucket where you would put activity. So in other words, it goes in a rent bucket and where a rent account and the chart of accounts is the total listing of all of the accounts that you have for your business.That said, the biggest mistake is a sprawling chart of accounts where you've got one account for every little transaction. So if you have accounts that you know, on a very regular basis have one transaction per month or one transaction per year, you've got way too many accounts.Charter accounts make it very difficult to manage. It makes it very difficult to do the accounting because now you're splitting hairs on how you're going to classify this transaction of that transaction.The two biggest things, according to Chris Hervochon are:You've got to be able to get to a good margin. And we talked about that a little bit earlier. The gross profit margin is everything variable. Revenue is variable, Revenue is variable and all the expenses that need to achieve that gross margin.You've got to break out your salaries and wages.And, make sure that your chart of accounts isn't enormous because it is going to be impossible to manage.Freelancers Vs. Full-Time EmployeesFreelancers, generally speaking, are going to go above the line because you're only going to bring them on for certain projects, certain clients, certain services, whatever it is. They're 100% variable because you've already generated some sort of revenue or you think that you're going to generate revenue because you have a signed contract. So there should be some sort of a contract labor line in your chart of accounts to get you to that gross profit number.Chris said that a lot of people are tied up with the idea of the relationship or the contractual relationship they have with an individual as it relates to “Are they an employee? Or are they a contractor?”There are four components that you must ask yourself to determine if they're an employee or a contractor:Are they fixed or are they variable?Are they contractors or are they employees?Are you controlling when and where they do the work?Are you providing them with tools or software?This is an important point that you're making about the relationship that that person has with variability. If you have a person that isn't technically an employee of the company, but you pay them $2000 a month which is going to be more of a fixed cost.And, this is how you classify people between contractors and employees. If you control how, when and why they do their work and you provide training and you provide the equipment and the software and all of that stuff, they're an employee. If they can do the work unsupervised, they're going to provide you a deliverable. You're not controlling where they work or when they work. Then they're a contractor.Most businesses want more contractors because contractors are cheaper. And the reason that they're cheaper is that you don't have to pay benefits. You don't have to pay employee-employer taxes. You've got to be careful because that's a really good way to get yourself in trouble.Allocating Your SalariesAccording to Chris, time tracking will help you accurately allocate salaries within your agency. You can either ask your freelancer or contractors to either track time or give an estimate on how much time they need to complete the project or how much will that certain project costs, whichever works.There's no data-based way to go and allocate it aside from using a time tracker. At the end of the day, it's cost accounting and then you could allocate anything based on any model that you come up with. But if it's gonna be a data-driven approach, if it's gonna be based on reality.Chris mentioned that you've got to make sure that when you're allocating those expenses that you're allocating the fully loaded expenses which include salaries, benefits, and taxes. The full cost of having that employee is what you want to allocate. You can't just allocate the salary.Gross Profit Vs. Net ProfitIt's important to define what is gross profit and what is net profit because I think a lot of agencies now are starting to look at gross profits on projects I think is a good thing. But then a lot of them are not clear on what that means and what should and shouldn't be factored into that.So gross profit is gross revenue while net profit is gross revenue minus all of the variable costs that go into generating that revenue to revenue or so expenses that you would not generate otherwise if it were not for generating that revenue.Maximizing Profit: Pricing and Operating PerspectiveAgencies should be pricing not based on the time that they spend, they should be pricing based on the value that they deliver. And that's different for the different forms of agencies.Chris mentioned a really good example is a digital direct marketing agency that is running ads. “You should be charging higher if your ads are more effective than the next agency down the street. You should be pricing based on the value that you deliver and you should not need to be measurable.”As an example, while not all 20 of those industries are going to be profitable and you can't take the products or the service that you delivered for “Industry 1” and then apply that to “Industry 10.” Every age or every industry is different. You need to know about the business.And being diligent and paying close attention to the expenses in your business because they can get out of control quickly, especially in a software-heavy society that we have now. By being vigilant about where all those numbers go and that gets back to the point, you need to be looking at your finances with somebody qualified to walk you through and tell you the status on a very regular basis.From making sure that you're sitting down with your accountant regularly, reviewing these things, managing your expenses, the value-based pricing, which I think for most agencies need to do is probably a great way to increase the amount of money that you make for the amount of time that your team has to invest and the number of costs that you get.There you have it, folks! I hope you're getting so much value from this episode. And, if you're looking for more checkout our Agency Profitability Tool Kit, and find awesome resources such as downloadable spreadsheet templates, KPI cheat sheets, benchmarks, and other awesome stuff you need in running a profitable agency.And, we have Parakeeto, our software product which helps you keep track of all of your most important metrics in real-time without changing your software and processes. Things like bill rates, utilization, profitability capacity across your whole business, and even let you run simulations to help you gauge and understand business decisions before making them. All you have to do is request an early process to start earning more profits!

Show Summary Mike Cheng, Frazier & Deeter national professional tax partner, joins host Roger Lusby, CPA to discuss various types of complex accounting that can arise for business clients, and financial reporting issues, including lease accounting. Business Beat is brought to you by Alpharetta CPA firm Frazier & Deeter. Mike Cheng, Frazier & Deeter Mike […] The post Frazier & Deeter’s Business Beat: Mike Cheng, Frazier & Deeter appeared first on Business RadioX ®.

After their prior podcast from Controlling 2019 on Robotic Process Automation (RPA), Jon and Kent Bettisworth move into his views on revenue recognition. How much progress have SAP/ERP customers made? What are the obstacles still ahead? They also discuss the latest regulatory timelines, and how SAP customers are approaching RAR (SAP's revenue recognition functionality). The guys hash out what Kent learned on the ground at this year's show. Before wrapping, they also discuss the degree of S/4HANA adoption at the conference, and what SAP customers are weighing when it comes to S/4HANA upgrades. 

Assurance and Advisory Partner Bill Godshall speaks with Mike Cheng, Frazier & Deeter's National Professional Practice Partner and former member of the Financial Accounting Standards Board (FASB), about upcoming changes to Topic 606, standards on revenue recognition and lease accounting with an emphasis on impact to Manufacturers & Distributors.

To preview their Oct. 16, 2019, presentation at the PICPA Construction Industry Conference, John Bieber of National Glass & Metal Co. Inc. and Tony Stagliano of CBIZ Inc. joined us to discuss the ways in which treatment of the revenue recognition standard is unique to the construction industry, plus differences for public and private contractors.   To read the full transcript click here. 

The Financial Accounting Standards Board has issued what's being called “the most significant revision to the U.S. Generally Accepted Accounting Principles' revenue recognition standards in history.” So Chris Roush, a principal in Rea's Millersburg office, and Katie Snyder, a supervisor in our Wooster office, have confronted the changes head on to help business owners understand the new standard, while uncovering opportunities for new bottom line growth. During today's episode, Chris and Katie explain what business owners need to know about this new standard, as well as the opportunities for potential revenue that it creates. Five Steps of Revenue Recognition The Financial Accounting Standards Board's new standard includes five steps of recognizing revenue from contracts with customers: Identify contracts with your customers Identify the performance obligations in the contract (i.e. what is the customer going to get in exchange for what they pay?) Determine the transaction price Allocate the prices to the performance obligations, if there are multiple performance obligations Recognize revenue If you are a business owner or financial professional, you will be interested in these other topics discussed in this episode: What changes are in store for financial statement preparers All GAAP financial statement preparers will need to enhance/expand footnote disclosures regarding revenue, even if there is no other impact How the new standard can actually be viewed as an opportunity to look at other areas of potential revenue If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your professional network. You can also use #ReaRadio to join the conversation on Facebook and Twitter, and you can watch the podcast in action on the Rea & Associates YouTube channel. Additional resources can be found at www.reacpa.com.

Not-for-profits have their own specific concerns related to the Financial Accounting Standards Board’s new revenue recognition standard. Find out in this episode how the new standard applies to not-for-profits.

THE 3 PROFITS of the INCOME STATEMENT…do you know them? Yes, understanding Financial Statements is an essential business skill. In this Podcast we continue our deconstruction, decoding and deciphering of the key financial statements. Last episode we dug into the Balance Sheet. I hope you found that episode insightful. If you haven’t heard it yet no worries, check it out when we finish here! This Episode is about the INCOME STATEMENT. The Income Statement goes by many other names and aliases, Profit and Loss Statement, the P&L, Revenue Statement, Statement of Financial Performance, Earnings Statement or Statement of Earnings, Operating Statement, or Statement of Operations…geeezzzz, enough already, if one name wasn’t hard enough to remember. I’ll stick with calling it an Income Statement, but my lenders and banker’s always ask me for our P&L. Of all the financial statements this is the one you are probably most aware of and check because is contains one number everyone wants to know…. THE BOTTOM LINE or NET PROFIT. This number is the easiest to locate, because it’s at the bottom line of the Income Statement. You probably dash there when the reports arrive, eager to see how the practice did. Hopefully you don’t find a number bracketed by parentheses signifying a loss. What’s up with that? That doesn’t make any sense, how can one have negative money? You know there is money in the bank account because you just checked! You say to yourself I never understood those dagnabnett accounting reports and financial statements any way and carry on with business as usual. If there is a BOTTOM LINE, there must be a TOP LINE…correct you are! And a MIDDLE too! So let’s starting deconstructing the INCOME STATEMENT! An Income Statement contains three sections: TOP LINE: shows you your total REVENUE or SALES SIDE BAR here, when business folks talk of TOP LINE GROW, that’s secret code for sales growth, plain and simple. MIDDLE SECTION: reveals your COSTS and EXPENSES broken down by category. BOTTOM LINE: shows your NET PROFIT or LOSS; which is REVENUE - EXPENSES. It’s that simple, and as we learned in the Balance Sheet Podcast, it’s the NET PROFIT that connects the INCOME STATEMENT to the BALANCE SHEET since it is added to the RETAINED EARNINGS section of the BALANCE SHEET. An income statement is much like a report card. It is always calculated over a given time period, typically one month. Understanding this, we can better see that the income statement affects the balance sheet much like how an individual grade affects your GPA. The RETAINED EARNINGS section of the balance sheet accumulates all of the profits or losses in the business. This is a critically important point to highlight and understand for it is how the BALANCE SHEET and INCOME STATEMENT are connected. So, back to the most important feature of the INCOME Statement, the calculation of PROFIT! Your MISSION, should you choose to accept it, is to Learn what all the line items on the income statement are, and how to manage them. With this knowledge you will know how to improve and contribute to the profitability of your firm. The income statement measures how profitable your products or services are when everything is added up! Remember, the bottom line Profit number is always an estimate, since estimates and assumptions sneak into some of the line items of the income statement. Just as important is the fact that PROFITS are NOT CASH! You can’t spend PROFIT, you can only spend CASH. We will look in greater detail at CASH in the next podcast on the STATEMENT of CASH FLOWS. Overtime, in a well run and managed firm, PROFITS will turn into CASH! Let’s deconstruct our INCOME STATEMENT a little further. We will start at the top line of the income statement - REVENUE or SALES. A critical element here is when is REVENUE RECOGNIZED or RECORDED. For listeners that are using a Modified Cash Basis Accounting System, then this is easy…your REVENUE is the total Payment from all sources, typically patients and insurance and is RECOGNIZED only when payments are received! For other firms and publicly traded companies that are required to follow GAAP accounting rules, REVENUE RECOGNITION can be more challenging. Let’s keep it simple for our purposes and say that a company can record a sale, or recognize revenue, only when it delivers a product or service to a customer. This is an area where accountants have great discretion and latitude, and where estimates and distortions can sneak in. For Revenue to be recognized it must have been EARNED, either a product shipped, or service work performed. The next section of the INCOME STATEMENT, the Middle Section details all your COSTS and EXPENSES. EXPENSES are divided into 2 distinct categories: Cost of Good Sold (COGS), or Cost of Services (COS) and Operating Expenses, also referred to as Sales, General, and Administrative Expenses (S,G&A), or just G & A for General and Administrative. The COGS or COS includes all the costs directly involved in producing a product or delivering a service. Typically this includes the wages of employees making a product or delivering a service and the materials or supplies used. This distinction between COGS/COS and OPERATION EXPENSES also serves as a dividing line on the income statement. You may hear executives and managers talking about ABOVE THE LINE and BELOW THE LINE. Well, this is where the line is! ABOVE THE LINE there are only 2 items, REVENUE and COGS or COS this is the GROSS MARGIN you hear “Mr. Wonderful” asking about on Shark Tank, or Marcus Lemonis preaching about on The Profit. BELOW THE LINE, we will learn next, are OPERATING EXPENSES, INTEREST, and TAXES. Why is this distinction important? Well, the items ABOVE THE LINE tend to vary more in the short term so attract more attention from managers. So, if an EXPENSE is NOT a COGS or COS then it is an OPERATING EXPENSE and appears BELOW THE LINE. These OPERATING EXPENSES are NOT directly related to making a product or delivering a service. OPERATING EXPENSES are often referred to as OVERHEAD and includes such items as rent, utilities, telephone, internet, advertising, marketing, IT, etc. Buried in OPERATING EXPENSES is DEPRECIATION and AMORTIZATION. This is an area of great confusion so let’s take a closer look at this. The first point to remember is that DEPRECIATION is treated like an EXPENSE, so can dramatically affect the PROFIT on an INCOME STATEMENT. Plain and simple, DEPRECIATION is the “expensing” of a physical asset over its useful life. AMORTIZATION is the same as DEPRECIATION but applies to INTANGIBLE ASSETS like GOODWILL. There is considerable latitude and methods for how one can depreciate ASSETS, consultation with your ACCOUNTANT is critical here. Remember too that even for the same firm, DEPRECIATION can be calculated differently for TAX accounting vs. GAAP accounting. I won’t bore you with the details here, just appreciate that DEPRECIATION can be calculated in many different ways! DEPRECIATION is the best example of what we call a NON-CASH Expense! So, what’s up with that? This is one of the most confusing and misunderstood areas of your financial statements, but critical for you to understand. The key to unlocking this confusing concept is to remember that the CASH for the asset has already been paid out! The vehicle or piece of CAPITAL EQUIPMENT was paid for at the time it was acquired, but the total expense was not recorded in that month. Instead, the expense is divided, or allocated, over its useful life….a little at a time, month by month! That’s DEPRECIATION. Again, it is important to understand there are many ways to calculate the depreciation expense. The method chosen can have a profound impact on your PROFITS reported on the INCOME STATEMENT. KEY POINT HERE! Good financial managers will match the use of an asset, or its depreciation, with the revenue it is bringing in. If the depreciation exceeds its revenue then this asset is creating a loss, if revenue exceeds its depreciation , the asset is returning a profit, a goal we should be striving for. Next, let’s look at the 3 profits; Gross Profit, Operating Profit and Net Profit. GROSS PROFIT is REVENUE minus COGS or COS , and is a key number. It tells us about the profitability of your product or service. If profitability is not achieved here it is unlikely that your business will survive long. GROSS PROFIT must be enough to cover OPERATING EXPENSES, TAXES, FINANCING and of course NET PROFIT. So what is a healthy Gross Profit? How much is enough? This will vary considerably by industry and from one company to another even in the same industry. Having metrics and reports that allow you to follow year-to-year trends will help you identify whether your profit is heading up or headed down. If Gross Profit is decreasing one needs to ask why. Are your COGS or COS rising? Is Revenue decreasing due to lower fees, discounts, or lower insurance fee schedules? Understanding why helps managers determine where to focus their attention. OPERATING PROFIT is GROSS PROFIT minus OPERATING EXPENSES, including DEPRECIATION and AMORTIZATION. This is also know by the odd acronym EBIT (pronounced EE-Bit). This stands for EARNINGS before INTEREST and TAXES. Why are interest and taxes not included you may ask? OPERATING PROFIT is the PROFIT a firm makes from running the business. Taxes don’t contribute to how well you run your business. And interest expense depends on how the firm is financed, i.e., with debt or equity which is termed its CAPITAL STRUCTURE. EBIT is a closely watched metric since it is a good gauze of how well a firm is being managed. Another metric is EBITDA (EE-bid-dah), which is Earning before interest, Taxes, Depreciation and amortization. This is thought to be a better measure of a firm’s operating efficiency since it ignores NON-CASH Charges like depreciation and amortization altogether. We have just reviewed the bias and distortions that can be introduced calculating depreciation, so with EBITDA it is ignored. Finally we have arrived at the BOTTOM LINE, or NET PROFIT, which is what’s left over after everything is subtracted, COGS/COS, operating expense, non-cash expenses, interest, and taxes. This is the same number used to calculate EPS, earnings per share, and the PRICE/EARNINGS ratio used on WALL STREET. Finally, if the INCOME STATEMENT calculates our PROFIT, then it is logical to ask how can we MAXIMIZE OUR PROFIT? That’s a great question. My friend, Jason Andrews in his new book, STARK NAKED NUMBERS, provides us a great and quick analysis of this topic. Quick side bar here, Jason is a Chartered Accountant, who like me, is passionate about business owners extracting value from their financial statement data. You can find his book on Amazon and I will include a link in the show notes for you. I receive no royalties from this endorsement. Please check out his fresh perspective on accounting and finance. Jason identifies several financial levers which one can use to increase profitability; the SALES LEVER; either increase sales volume or increase price, and the COST LEVER; reduce DIRECT and/or INDIRECT COSTS. It is surprising the impact on profitability a 10% change in these levers has on NET PROFIT…listed from greatest impact to least impact and the % change are; Sales Lever, Increase price 10% increases net profit 53%. Direct Cost, decrease 10% increase net profit 37%. Operating Cost, decrease 10% increase net profit 26%. Sales Lever, Increase Sales 10% only increases net profit 16%. So the fastest and easiest way to increase your BOTTOM LINE is to INCREASE YOUR PRICES/FEES. Creating more business, or increasing sales, has the least effect. Let’s wrap this PodCast up with some useful take away points. Only When REVENUE from Services exceeds EXPENSES can profit be achieved. Buying gadgets, gizmos, latest and greatest equipment, a new office, the list can go on and on are all irrelevant, EXCEPT if the gadgets, gizmos, latest and greatest equipment and new office creates GREATER REVENUE, or LOWER EXPENSES. This is also called VALUE CREATION when the PRICE a customer is willing to pay is greater than the COST to make the product or deliver the service. VALUE, like PROFIT, can only be achieved when products are sold and services delivered. The #1 GOAL of any BUSINESS is to CONTINUOUSLY CREATE VALUE for their CUSTOMERS! The hardest part is the CONTINUOUS and CONSTANT need to always be CREATING VALUE! ACCELERATING DEPRECIATION, as in SECTION 179 depreciation we are all familiar with, creates a LARGE DEPRECIATION EXPENSE that reduces your PROFITS, NET INCOME and RETAINED EARNINGS. This is a TAX STRATEGY plain and simple and points out the difference between TAX ACCOUNTING and MANAGERIAL ACCOUNTING. Planning for this DEPRECIATION should be done every time capital equipment is acquired, NOT AT THE VERY END OF THE YEAR at the encouragement of highly motivated SALES PERSONAL. OVERHEAD PERCENTAGE is a metric that dentists can not stop talking about and comparing! As you see from the above discussion, there is no OVERHEAD LINE ITEM on an INCOME STATEMENT. OPERATION EXPENSES come close but what items do you include or exclude? There are as many variations in calculations as there are people calculating it. For me it is a non-precise metric that can be distorted. A better metric to monitor and tract overtime is GROSS PROFIT and OPERATING EXPENSES as a PERCENT OF GROSS PROFIT. Whatever metric for overhead you choose, it becomes more powerful when tracked and compared overtime. PROFITS are not CASH. A profitable firm can run out of cash and a cash rich firm can non-profitable. So that wraps things up for this Podcast.  Hopefully you have a better understanding of the mechanics of the INCOME STATEMENT. We hope that this information has created a few “Ah Ha” moments, or stimulated some additional questions you can direct to your advisers or accountants.  We welcome your inquiry here too at OmniStar Financial.  Our contact information can be found at our website OmniStarfinancial.com  .  You will also find a link to sign up for our newsletter.  Please share this podcast if you found it helpful, and leave a review on iTunes too.  We welcome your feed back and suggestions for future podcast sessions.  You can always find me, your host, david darab, at my twitter handle, @ddarab. Thank you so very much for tuning in and listening.  We are very grateful for your time and attention and so very pleased to have you in our audience. REFERENCES: Financial Intelligence, Revised Edition: A Manager’s Guide to Knowing What the Numbers Really Mean: Karen Berman, Joe Knight, John Case: 8601406238220: Amazon.com: Gateway Stark Naked Numbers: Uncover Your Financials, Unlock Your Cash, and Unleash Your Profits: Mr Jason Frederick Andrew: 9780648424000: Amazon.com: Books

Should I Have a Quality of Earnings Report Done? What is a quality of earnings report? Why would I want one done for my business? How does a quality of earnings report help as I’m getting ready to make an acquisition or sell my company? These questions and more are answered in this episode of […] The post Decision Vision Episode 10: Should I Have a Quality of Earnings Report Done? - An Interview with Teresa Snyder, Brady Ware & Company appeared first on Business RadioX ®.

Implementation of new revenue recognition standards was always going to be a challenge, no matter the timing. Hopefully, those companies who come later can learn a little bit from those brave souls who are showing the way: the early adopters. Rob Peters, senior director of Intelligize, discusses the findings of his company’s report on revenue recognition early adoption trends, Impact of Revenue Recognition Standards on Private Companies.  For a full transcript, click here.

This episode we covered the ins and outs of Bookings, Billings, and Revenue. BBR, not Pabst Blue Ribbon PBR, but BBR, Bookings, Billings, and Revenue.

ASC 606 Revenue Recognition final step of the five step process in the new revenue recognition standards.

Revenue Recognition ASC 606 Step four of the five step process in the new revenue recognition standards.

In May 2014, FASB issued Accounting Standards Update, Revenue from Contracts with Customers for public business entities, certain not-for-profit entities, and certain employee benefit plans. In addition to changing things dramatically in the accounting and financial realms, this new revenue recognition standard which may significantly impact the compliance profession, programs and practitioners going forward. In this episode, we introduce the new revenue recognition standard. Learn more about your ad choices. Visit megaphone.fm/adchoices

There are new Revenue Recognition Standards which will significantly impact all industries that sell a good or service. Specifically, we are discussing the Accounting Standards Codification (ASC) Topic 6 of 6 which was originally introduced in the Accounting Standards Update 2014 09. Originally, Revenue Recognition Standards were based on different industries and what has been done now is that revenue recognition has been standardized across all industries. The changes to apply to every entity and focuses on contracts with the customers. Whether they are from construction, manufacturing, software, etc., all industries will now have same revenue recognition standards. Learn more about the changes in Revenue Recognition in this podcast:

Workday’s Chief Financial Officer, Robynne Sisco, and Corporate Controller, Trish Coughlin, talk about Workday’s adoption of the new revenue recognition standard and lessons they learned in the process.

The latest accounting standards are changing the way technology, media, and telecom companies recognize revenue—it’s more than a change in rules, the new standard demands a change in mindset. In addition to impacting finance departments, the new accounting standard also means big changes for strategy, information technology, human resources, sales and marketing, and tax. In this episode Joe Talley and Bryan Anderson explore the cross-organizational impact of the new revenue standards, how companies are developing their commission plans, operational impacts of the standards, managing costs and disclosures, and key points of focus for companies preparing to comply. Listen in to find out how the changes will affect your organization.

Chris Wright, Protiviti Managing Director and a leader with the firm's Financial Reporting Remediation & Compliance practice, talks about the effects of the new revenue recognition standard on SOX compliance activities.

We are now less than six months away from a new Revenue Recognition (“new rev rec”) standard which may significantly impact the compliance profession, compliance pr Learn more about your ad choices. Visit megaphone.fm/adchoices

Brian Christensen, Executive Vice President – Global Internal Audit for Protiviti, discusses some of the key findings from Protiviti's 2017 Sarbanes-Oxley Compliance Survey.

Revenue Recognition Update by AAFCPAs

This episode features Brad Hale, Managing Director at CBIZ MHM, where he discusses what businesses should do to prepare for the new revenue recognition standard. 

Finance experts from PwC and Workday explain big changes coming to revenue recognition and what companies should be doing to prepare. © 2016 Workday, Inc.

Now that the new revenue recognition standard has become a reality, you will have to reassess the way you record revenue. Managing Director, Brad Hale explains how you should approach the inevitable adoption of this standard and suggests ways that you can use this opportunity to prepare for the future. http://www.cbiz.com

Revenue Recognition, Disclosure Initiative, Research project on high inflation, Draft interpretation that the Interpretations Committee is going to issue relating to accounting for uncertainties in income taxes.

Revenue Recognition, Leases, PIR for IFRS 3 Business Combinations, Disclosure Initiative, Comprehensive review of IFRS for SMEs, public consultation for Rate Regulation and Macro Hedging.

When is a sale not a sale? Investors should be aware of the different ways in which even a simple number such as the sales figure can be reported. Here I point out a couple of the techniques that can be used to flatter a firm’s results.

Revenue recognition for contracts with customers

In this interview, Robert speaks with Phil Barden, Leader of Deloitte Expert Advisory Panel on Revenue Recognition, Panos Kakoullis, Head of Audit of Deloitte UK, William Touche, a Senior Partner of Deloitte UK's Technology Group, and Mark Beddy, a Senior Partner of Deloitte UK's Real Estate Group. They discuss the background to the new standard on revenue recognition and the impacts it may have on revenue recognition, particularly in the telecommunications, software and real estate sectors.

Revenue Recognition, Hedge Accounting, Impairment, Classification and Measurement, Leases, and Rate-regulated Activities

Impairment, Hedge Accounting, Revenue Recognition, and Disclosure Initiative

Financial Instruments: Classification and Measurement, Financial Instruments : Impairment, Revenue Recognition, IAS 1 Presentation of Financial Statements amendments

Revenue Recognition, Financial Instruments: Classification and Measurement, Financial Instruments: Impairment, Post-implementation Reviews, and Accounting for Macro Hedging

Comprehensive review of the IFRS for SMEs, IFRS 3 Business Combinations: Mandatory Purchases of Non-controlling Interests, IAS 39 Financial Instruments: Recognition and Measurement: Novation of Derivatives and Continuation of Hedge Accounting, Conceptual Framework, Accounting for Macro Hedging, Revenue Recognition, and Financial Instruments: Classification and Measurement

The not-for-profit accounting and auditing landscape has undergone significant change in recent years. In this podcast, CPA not-for-profit experts Chris Cole, Jennifer Hoffman, Frank Jakosz and Andrew Prather discuss current NFP issues that face CPA preparers and auditors and describe how the AICPA’s newly updated Not-for-Profit Entities Audit and Accounting Guide can be a resource for NFPs. Discussion topics include recent Financial Accounting Standards Board updates, changes in the NFP investment arena, revenue recognition, gifts-in-kind valuation, and taxes and regulatory considerations.

Agriculture: Bearer Biological Assets, IFRS for SMEs: Comprehensive Review 2012–2014, Conceptual Framework, Fair Value Measurement, Annual Improvements 2010–2012, proposed narrow-focus amendment to IAS 1 Presentation of Financial Statements, Revenue Recognition, and put options written on non-controlling-interests

Insurance Contracts, Conceptual Framework, Revenue Recognition, Rate-regulated Activities, and Agriculture

Conceptual Framework, Financial Instruments: Impairment, Revenue Recognition, Insurance Contracts, Bearer Biological Assets, and Rate-regulated Activities

Financial Instruments: Impairment, Revenue Recognition, Conceptual Framework, Insurance Contracts, Offsetting Disclosures—Amendments to IFRS 7 (Update), due process documents, and Enhanced Disclosure Task Force Report

Insurance Contracts, Accounting for Macro Hedges, Impairment, Revenue Recognition, and IAS 8

Leases, Insurance Contracts, Accounting for Macro Hedges, Classification and Measurement of Financial Instruments, Impairment, Revenue Recognition, Investment Entities, Rate regulated Activities, Bearer Biological Assets and Conceptual Framework

Classification and Measurement of Financial Instruments, Impairment, Insurance Contracts, Investment Entities, Leases and Revenue Recognition

Classification and Measurement of Financial Instruments, Impairment, Insurance Contracts, Investment Entities, Agenda Consultation, Leases and Revenue Recognition

Randall Sogoloff, Leader for Communications in the Deloitte IFRS Global Office, provides an update on the revenue recognition project.

Randall Sogoloff, Leader for Communications in the Deloitte IFRS Global Office, and Phil Barden, Leader for Deloitte's Global Revenue Recognition team, discuss the new Revenue Recognition exposure draft 'Revenue from Contracts with Customers' with Robert Bruce. They discuss the key changes that are proposed and provide insights into the likely effect they will have in practice.

Financial Instruments, Revenue Recognition, Leases, and Insurance

Lease Accounting, Impairment, effective dates (IFRS 9 and Revenue Recognition), Agenda Consultation and other matters (Hedge Accounting, Insurance, Disclosure)

Insurance, Leases, Impairment, Revenue Recognition, and Offsetting

Insurance, Hedge Accounting, education sessions on Leases and Revenue Recognition

Insurance, Leases, Revenue Recognition, Financial Instruments, and future activities

Insurance, Hedge Accounting, education sessions on Leases and Revenue Recognition

Insurance, Leases, Revenue Recognition, Hedge Accounting, Impairment, and future activities

Insurance, Leases, Revenue Recognition, and future activities

Insurance, Leases, Revenue Recognition, and future activities

Revenue Recognition, Insurance, Leases, Financial Statement Presentation, effective dates consultation, and coming events

Cross-cutting issues, Insurance Contracts, Revenue Recognition, Leases, Post-employment Benefits and Financial Instruments: Impairment

Revenue Recognition, cross-cutting issues, Insurance, Leases, and Post-employment Benefits

Revenue Recognition, Leases, comment letter database, Post-employment Benefits, and Insurance

John Carroll University's Professor Jerry Weinstein discusses recent changes in the standards for multiple deliverable arrangements.