Accounting Miami

Miami Accounting firms, and as a CPA in Miami, I know small businesses love to use QuickBooks. There are versions of QuickBooks which are even free. However, like the “batteries not included” disclaimer on toys, the CPA in Miami is not included with QuickBooks. In order to make informed business decisions with accurate accounting data you should hire Accounting Miami (Gustavo A. Viera CPA).

If you own a business, then at the end of the every month you mostly face the problems which involve bookkeeping and accounting. Accounting Miami provides bookkeeping and accounting services in Miami and support and employ professional qualified Accountants in Miami. Accounting Miami also complies with the preparation of financial statements, tax preparation Miami and cost reports to regulatory agencies such as AHCA preparing Medicare Cost Reports.

 With the advent of the internet, it has become easy to handle the accounting and bookkeeping task in an easy and simple way. That is of course assuming you have some basic accounting knowledge.

Don’t “Fire your Accountant in Miami” just yet as the old QuickBooks advertisement used to tout. QuickBooks quickly reversed its advertising strategy when business owners flooded their tech support lines with basic accounting questions and their books in shambles. Intuit, the owners of QuickBooks products, quickly came out with an “Accountants Edition” of QuickBooks which allowed the business owner to send Accounting Miami and other CPA in Miami an “Accountants Copy” for review at the end of the month.

Accounting Miami is:

• Forward-looking
• Supports in the decision making process
• Prepares timely financial statements
• Helps small business improve control functions
• Highly automated using the latest management information systems

 CPA in Miami firms are traditional vs. innovative. Accounting Miami is all about:

•  Our Miami Accountants are strategic partners in your organization
• Our Miami accounting firm assist in decision-making of the organization
• Our Miami accounting helps you with Risk Management

 Miami accounting services are not all alike. With tough economic times, small businesses have been greatly impacted. Saving a buck is always a good idea, but not when it comes to your accounting. We have seen so many businesses get bad advice that lands them in trouble with the IRS. The number of fraudulent tax preparation Miami has also risen with “tax services in Miami” promising huge refunds. What many people don’t know is that the income tax return is prepared fraudulently and you become personally liable when you sign it. These tax services in Miami try to walk away when they get caught. But the IRS is cracking down on the owners of these services and they’re putting them in jail. I applaud the IRS’s efforts to clean up the industry.

 When hiring a CPA in Miami, consider if you want traditional vs. innovative practices in your Miami Accountants?

Please call us for a free initial consultation.

Gustavo A Viera CPA

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For years, government, public and private parties have discussed creating a separate private company accounting standards. Now standard-setters may actually do something about it. The Financial Accounting Foundation (FAF) — parent organization to the Financial Accounting Standards Board (FASB) — will soon decide whether to adopt recommendations made earlier this year by a blue-ribbon panel on standard setting for private companies.

The panel recommended that the FAF establish a separate, private company standards board to develop appropriate changes to U.S. Generally Accepted Accounting Principles (GAAP) that would “better respond to the needs of the private company sector.” The new board would work closely with FASB, and its standards would be incorporated into FASB’s Accounting Standards Codification (ASC).

However, the board would have final authority over all exceptions and modifications. The panel also recommended the creation of a “differential framework” to guide the new board’s standard-setting activities.

Public GAAP applied to private companies

In the United States, public and private companies, for the most part, are subject to the same set of accounting standards — GAAP. Public companies are required under SEC rules to prepare audited, GAAP-compliant financial statements. Generally, private companies are not legally obligated to follow GAAP, but they may need to do so to satisfy lenders, sureties, venture capitalists or other stakeholders.

Preparing GAAP financial statements can be a challenge for private companies, particularly in the current environment. During the last several years, FASB has been shifting toward a fair-value-based accounting approach. In other words, GAAP increasingly requires companies to report assets and liabilities at fair value rather than historical cost. This trend is increasing the complexity and cost of complying with GAAP, which now demands periodic valuations and impairment testing for many financial statement items.

This type of information is valuable to public company investors, but lenders and other users of private company financial statements tend to be less interested in fair value and more interested in free cash flow and a company’s ability to pay its debts. In some cases, GAAP can make it more difficult for these users to get the information they need.

Consider, for example, employee stock options. Historically, these options were reported at their “intrinsic value” — that is, the amount (usually zero) by which the underlying stock’s market value on the grant date exceeded the option exercise price. Several years ago, however, FASB modified its standards to require companies to expense employee stock options based on their grant-date fair value, using one of several option-pricing models.

Valuing options can be complex — especially for private companies with limited trading data. Plus, many lenders view stock options as a noncash expense that has little effect on a company’s ability to pay its debts. From their perspective, reporting options at grant-date fair value actually distorts the company’s income. For that reason, they add the expense back into net income when evaluating a company’s financial statements.

Differing viewpoints and broad changes

Proponents of separate private company accounting standards point to fair value reporting as well as other GAAP provisions that may be either irrelevant or counterproductive in a nonpublic setting. They include:

• Reporting of uncertain tax positions,
• Consolidation of variable interest entities, and
• Accounting for derivatives.

As a result, many private companies prepare non-GAAP financial statements — on a cash or income tax basis, for example — while others opt to receive “qualified” opinions from their auditors. Many lenders accept these financial statements or waive certain GAAP requirements because they recognize that compliance can be burdensome and that many GAAP standards lack relevance for private companies.

Some opponents argue that financial statements are either correct or they aren’t, and that separate standards will lead to inconsistency and lack of comparability. They advocate a single set of standards that can be modified, if appropriate, on a case-by-case basis by agreement between a company and its financial statement users. They also contend that, if GAAP standards are overly complex or burdensome, they should be simplified for all companies, both public and private.

The panel’s recommendations

The blue-ribbon panel considered several models for addressing the needs of private companies, including a standalone GAAP built from the ground up and several versions of International Financial Reporting Standards (IFRS), including IFRS for Small and Medium Entities.

The panel concluded that a new board with standard-setting power would be the most effective approach. In the panel’s view, FASB is too focused on public company financial reporting to address the needs of private companies.

In settling on U.S. GAAP with exceptions and modifications for private companies, the panel explained that a standalone set of standards could take a significant amount of time to create and could be significantly different from current U.S. GAAP. It also rejected the various IFRS options, noting that “U.S. private companies should not be leading the charge, en masse, to an IFRS-based set of standards before the SEC makes a decision on U.S. public companies . . .”

The panel noted that FASB’s Private Company Financial Reporting Committee (PCFRC) has submitted approximately 40 recommendation letters since it was formed in 2007. Although FASB has modified some standards, generally by changing effective dates or disclosure requirements for private companies, the panel concluded that many private company stakeholders view the PCFRC’s work as “not being wholly successful because the FASB has not also shown a willingness to consider carefully and approve, where appropriate, the possibility of measurement, recognition, or presentation differences.”

GAAP in the coming year

It’s not yet certain how the FAF will respond to the blue-ribbon panel’s recommendations. But there’s widespread support for the panel’s approach among accountants and finance executives, as reflected in the vast majority of nearly 2,000 letters the FAF has received. Keep in mind that the FAF’s decision and ultimate approach may be affected by the SEC’s decision, expected later this year, on whether to adopt IFRS for U.S. companies.

If you own a private company and have questions about how the blue-ribbon panel’s proposed recommendations might affect how you prepare your financial statements, please give us a call. We would be happy to answer any questions you may have.

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Related posts:

1. Blue-Ribbon Panel Envisions GAAP with Exceptions and Separate Board for Private Companies
2. What the Latest IFRS Developments Mean to Private Companies
3. CFOs See Significant Opportunity in Conversion from GAAP to IFRS

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