The procure-to-pay process followed by many middle-market companies today is anything but efficient. Typically, the process starts with a requisition and then proceeds to a purchase order, invoice and eventually a payment, either by check or electronically using the Automated Clearing House (ACH). This process may be justified for the purchase...
Since the principles of modern accounting were first established early in the 20th century, the record-to-report model has been the dominant accounting process. This approach manages the accounting cycle as a repeatable, end-to-end process that includes all steps starting with the booking of transactions and going all the way through...
When they first start a new business, entrepreneurs often create a centralized organizational structure. The authority in such a structure is top-down, which makes it easy for the owner and his or her key managers to make important decisions and keep tight control over all aspects of the organization....
The 21st century is sometimes referred to as the Digital Age due to the fact that so much of what we do is done digitally. This includes everything from listening to music and watching television to accessing our news, information and entertainment on handheld mobile devices like smart phones...
Any company that has gone through a merger and acquisition (M&A) understands the complexity involved in accounting for divestitures. Covered under ASC 805 (formerly SFAS 141), accounting for divestitures — along with accounting for business combinations, discontinued operations, impairments, intangibles and segment reporting — poses many challenges for businesses and...
Manufacturers make or create products to sell to customers, but service businesses sell customers something a little less tangible. While manufacturers keep careful track of their product inventory, service businesses need to track a different kind of inventory: the time employees spend working that can be billed to clients. This measurement...
Since we last wrote about big data over a year ago, the topic has been getting a lot of media attention. It seems like businesses of all sizes and in all industries are figuring out how to use data mining techniques to tap into big data and use...
“We’ve always done it that way.” These may be the most dangerous six words in the English language. Los Angeles and Southern California small businesses that don’t adapt to change could eventually end up being the 21st century equivalent of the buggy manufacturer who in the early 20th century...
Despite low interest rates and an improving economy, many Los Angeles and Southern California small businesses are finding it difficult to obtain financing. An article published late last year in The Wall Street Journal1 pointed out that “the biggest banks in the U.S. are making far fewer loans to...
In a previous article we looked at the importance of planning early and adequately for business succession, including having the right management team in place that will be ready to lead the company into the future after you have stepped aside. With so many Baby Boomer owners set to...