The Fractional CFO Knowledge Center
What to Know Before Taking Out a Small Business Loan: Key Financial Considerations for SMBs
For small and medium-sized businesses, taking out a loan can unlock growth—but it can also create new risks if not approached strategically. If you’re exploring financing, knowing what to consider before taking out a small business loan is essential for protecting your company’s financial health and future. Below are the key financial considerations SMBs should …
Cash Flow Forecast Worksheet
Why Every Business Needs a Cash Flow Forecast Worksheet (and a Free Template to Get You Started) Profit doesn’t always equal cash—and that’s where many business owners get caught off guard. Even healthy, growing companies can find themselves struggling to make payroll or cover expenses because they didn’t anticipate a short-term cash crunch. That’s why …
SMB Data Security: A CFO’s Responsibility
As a CFO serving small and mid-sized businesses, I’ve seen how easily an overlooked data security gap can derail even the best-run enterprises. With modern ransomware demands now averaging $2.7 million per incident and most business breaches starting with a simple phishing email, our role in financial stewardship now includes protecting operational resilience against cyber …
How Much Cash Should a Small Business Keep in Reserve?
For small and medium-sized businesses, maintaining a healthy cash buffer is essential for long-term success. Whether you’re running a local service company, a SaaS startup, or a construction firm, having cash reserves gives you the freedom to weather downturns, cover emergency expenses, and pursue growth without added financial stress. But have you ever wondered, “How …
What the New 1099 Reporting Changes Mean for Your Taxes
The landscape for IRS 1099 reporting has changed significantly in 2025 due to new legislation. The One Big Beautiful Bill Act, effective July 4, 2025, brings higher reporting thresholds, reduced paperwork for many filers, and new compliance rules for businesses, freelancers, and gig workers. Major Changes: Higher 1099 Thresholds Form 1099-K (Third-Party and Card Payments): The …
Best Practices to Hire a Fractional CFO for Construction Companies
Running a construction company means balancing far more than projects and payroll. Between fluctuating material costs, seasonal cash flow, and complex compliance requirements, financial oversight can make or break a project. That’s where a fractional CFO comes in. A fractional CFO gives construction companies access to senior-level financial expertise without the full-time cost. They can …
10 Warning Signs of Employee Theft for Owners and CEOs
In a small or medium-sized enterprise (SME), trust refers to the reliance that owners, leaders, and employees place on one another to act with integrity, fulfill responsibilities, and support the company’s best interests. Trust in an SME is often built through close relationships, frequent interactions, and a sense of shared purpose—fostering collaboration, agility, and a …
The 5 Business Mistakes I See Over and Over (Even in $5M+ Companies)
You’d think that once a company reaches $5M+ in revenue, the biggest mistakes are behind them. But in over 30 years of working with CEOs, I’ve seen that even established businesses fall into a handful of recurring and valuation‑eroding traps. Let’s unpack them and how each affects the value buyers see in your business. 1. …
Is Your Cash Flow Forecasting Lying to You?
Cash flow forecasting is one of the most important tools a business can use—but also one of the most misunderstood. Many business owners believe they have a strong handle on their company’s cash position. They have a spreadsheet. Or maybe a report their bookkeeper runs each month. It feels like enough. But here’s the problem: …
Optimizing Manufacturing Key Performance Indicators (KPIs)
In today’s competitive manufacturing landscape, measuring and optimizing performance is crucial for success. This white paper outlines the essential key performance indicators (KPIs) that manufacturing companies should track and provide strategies for effective implementation. By focusing on these metrics, manufacturers can enhance productivity, quality, and profitability while driving continuous improvement across their operations. Introduction Manufacturing …
Construction Accounting Methods
When it comes to managing finances in the construction industry, traditional accounting simply doesn’t cut it. Project-based work, long timelines, and complex tax rules require specialized knowledge. For any construction CFO, choosing the right accounting method is essential for staying compliant, improving cash flow, and maximizing profitability. Below is a breakdown of the most common …
The Labor Market’s Cooldown
As the U.S. labor market cooldown continues through mid-2025, small businesses are navigating a landscape defined by lower hiring intentions, wage growth tapering, and lingering uncertainty about demand and costs. Through my – the strategic lens of a Fractional Chief Financial Officer, the impact of these shifts on operations, efficiency, cash flow, and profitability is …
Integrating R&D Tax Credits into a Holistic Tax Minimization Strategy
Research and Development (R&D) tax credits are a powerful tool for reducing tax obligations and supporting innovation-driven growth. When strategically integrated into a company’s overall tax planning, these credits can significantly enhance cash flow, lower effective tax rates, and provide a competitive edge. Understanding the R&D Tax Credit The R&D tax credit is a federal …
Mastering Cash Flow Forecasting for Manufacturing
For small manufacturers, cash flow forecasting isn’t just a financial task—it’s mission critical. With challenges such as long production cycles, upfront costs, and delayed receivables, one missed projection can stall operations or put growth plans at risk. But with the right systems and habits in place, forecasting becomes a powerful tool for planning and protecting …
5 Cash Flow Forecasting Tips for Small Businesses
For many small business owners, cash flow can feel unpredictable. Some months are steady, others are tight—and without a clear picture of what’s coming, it’s hard to make confident decisions. But cash flow forecasting changes that. It gives you visibility, control, and the ability to plan ahead. Here are five ways to strengthen your forecasting …
10 Functions This CFO Recommends Outsourcing to Scale Smarter
After decades in finance, one thing has become clear: small business owners wear too many hats. And while that hustle is admirable, it’s not always efficient—or sustainable. If the goal is to grow with clarity and control, outsourcing isn’t just helpful—it’s essential. Here are the top 10 business functions I recommend outsourcing to scale with …
The Real Cost of Employee Turnover
Employee turnover isn’t just an HR problem—it’s a financial one too. When employees leave, it costs time, money, and productivity. For Fractional CFOs and business owners, understanding the full cost of employee turnover is key to protecting profits and keeping things running smoothly. What Does Turnover Really Cost? When an employee leaves, the cost can …
10 Things a Business Owner Should Avoid at All Costs
Running a business is full of challenges, and while some mistakes are part of the learning process, others can seriously jeopardize your success. Whether you’re just getting started or managing a growing operation, understanding the most common pitfalls can help you stay focused, protect your investments, and build a strong foundation. Here’s a closer look …
5 Risky Moves When You’re Desperate for Business Cash Flow
When cash gets tight, it’s natural to start looking for creative solutions, but not all ideas are created equal. In fact, some “quick fixes” can dig the business into a deeper financial hole. Whether it’s raiding personal savings, overextending credit, or taking risky customer deposits, the short-term relief often comes with long-term consequences. If you’re …
The Evolving Role of a CFO
The role of the Chief Financial Officer (CFO) has undergone a significant transformation in recent years, evolving from a traditional financial steward to a strategic business partner. According to recent analyses, CFOs are now at the forefront of digital transformation, ESG initiatives, and strategic decision-making, while facing increased pressure and shorter tenures in their positions. …
Why you need a CFO and a CPA
While both CPAs and CFOs play crucial roles in financial management, they have distinct responsibilities and skill sets. Here are 10 reasons why you need a CFO and a CPA. Strategic Focus They take a holistic approach to financial planning, budgeting, and forecasting, which goes beyond the typical scope of a CPA’s duties. Leadership and …
The Value in Obtaining a Business Valuation
Q: What is the value of obtaining a valuation for Financial Planning For all business owners, a must have – understanding the value of their business plays a major role in determining whether they’ll reach their personal financial goals, should they exit. Only approximately 2% of business owners, know their business real value. Q: What …
3 Out of 4 Small Partnerships Aren’t Prepared for the Future- Are You One of Them?
A troubling statistic from Forbes reveals that a whopping 75% of small businesses lack a Buy-Sell Agreement. That’s like playing Russian roulette with your future and the future of your loved ones. Let’s face it, nobody wants to think about death or disaster, but when it comes to your business, having a plan in place …
Why Waiting Until It’s Broken Can Break Your Business
In the world of entrepreneurship, there’s a saying that if it isn’t broken, don’t fix it. While this mindset can save resources and maintain stability, it also risks stagnation and missed opportunities. By focusing on proactive strategies, entrepreneurs can protect their business’s fiscal health, optimize processes, and stay ahead of the competition. The Pitfall of …
Mileage Rates for 2024 Announced by IRS -Updated
The IRS has recently released the optional standard mileage rates for 2024. These rates are used to determine deductible costs when using a vehicle for business, charity, medical, or moving purposes. The rates are applicable to a wide range of vehicles, including those powered by gasoline or diesel, as well as hybrid and electric vehicles. …
Maximizing the Value of Your Variance Report (Budget to Actual):
Variance report is an essential tool for small business owners to gain insight into their financial performance and keep track of their expenses. It is a report that compares budgeted amounts to actual amounts, highlighting areas of over or under-spending. However, with so much data to consider, it can be difficult to interpret the results …
How to Create a Detailed Cashflow Budget
A cashflow budget is an important tool that every business owner should have. It helps to ensure that your business has enough cash to meet all its needs, including payroll, inventory, and other expenses. A cashflow budget can also help you identify potential cash shortfalls and take steps to avoid them. While creating a cashflow …
What are Virtual CFO Services?
Virtual CFO services refer to financial management and advisory services that are offered remotely, rather than in-person. This type of service is becoming increasingly popular as businesses look for ways to reduce costs and increase efficiency. One of the main benefits of virtual CFO services is that they provide a cost-effective solution for businesses that …
Budgeting is a crucial aspect of financial management
There are two main approaches to budgeting: driver-based budgeting (DBB) and zero-based budgeting (ZBB), both of which are known for improving FP&A processes. Each method has its own advantages and is suitable for different industries, depending on their specific characteristics and requirements. We will delve into the distinctions between DBB and ZBB and analyze why …
Hiring A Fractional CFO
Hiring a fractional CFO can be a game-changer for small business owners, startup founders, managing members, and CEOs. A fractional CFO brings expert financial management without the cost of a full-time executive. However, to make the most of this partnership, you need to know how to engage your fractional CFO effectively. Here’s a step-by-step guide …
When to Engage a Fractional CFO
Navigating the financial landscape of any size business can be challenging. Knowing when to engage a Fractional CFO can set you up for success and ensure your company’s financial health. Here’s a guide to help you identify that right moment. Why Consider a Fractional CFO? They provide high-level financial strategy and expertise without the full-time …
Corporate Transparency Reporting Rules
As of January 1, 2024, the U.S. government will mandate most businesses to disclose additional details about individuals who exert direct or indirect control over the company. This involves revealing information about owners, officers, and key operators. This change stems from the Corporate Transparency Act, which Congress passed in 2021 with the objective of curbing …
Understanding 1099 Compliance Requirements
Maintaining compliance with tax laws and regulations is a critical responsibility for any organization. Among the many requirements that businesses must adhere to is the 1099 compliance. A 1099 is a tax document that is issued to non-employees, such as independent contractors, freelancers, and vendors, for income they received from a business. Failing to comply …
Tax Relief Post-Hurricane Helene
If Hurricane Helene has impacted your business, there’s crucial news from the IRS. On October 1, 2024, they issued Notice 2024-253, extending tax filing and payment deadlines to May 1, 2025, for areas affected by Hurricane Helene, as designated by FEMA. This includes Alabama, Georgia, North Carolina, South Carolina, parts of Florida, Tennessee, and Virginia. …
Understanding the New Clean Vehicle Tax Credit
2023, the IRS has implemented a revamped tax credit for electric vehicles. While this isn’t entirely new—formerly known as the Plug-In Electric Drive Motor Vehicle Credit—the IRS has rebranded it as the Clean Vehicle Tax Credit under the Inflation Reduction Act. With this change comes a new set of qualification criteria you’ll want to understand …
Section 1202 (IRS Code) Qualified Small Business Stock Gain Exclusion (QSBS) Implications
Section 1202 of the Internal Revenue Code, often referred to as the Qualified Small Business Stock (QSBS) Gain Exclusion, is a powerful tax incentive designed to encourage investment in small businesses. For small business owners and investors, it can mean substantial tax savings when selling certain types of stock in qualifying companies. What Does IRS …
10 Reasons To Involve A Fractional CFO in Annual Budgeting
Annual budgeting is a crucial process for any business, big or small. It involves creating a financial plan for the upcoming year and helps in determining how much money needs to be allocated to different areas of the business. This process requires careful analysis, forecasting, and strategic decision making. 1. Financial Expertise A CFO, or …
Bonus and severance programs: Key strategy to reduce employers’ legal risk
You and your Finance team may want to give your bonus and severance programs a second look. It’s important to make sure they’re aligned with federal standards, if possible. Otherwise, you may have to deal with tricky state wage laws in any legal disputes. Many state laws are more favorable to employees. This makes it …
Is it illegal for employers to ask about salary history?
In addition to numerous federal, state, and local employment laws, which prohibit gender and racial discrimination against employees, several states and cities are banning inquiries into salary history in an effort to address pay inequities for women and minorities. Employee advocates claim that, in determining an employee’s salary based on their previous salary, employers exacerbate …
Do Criminal Background Checks Violate Title VII
President Biden’s recent campaign stop at a Sheetz convenience store ended in an unexpected twist. While sipping on his cup of coffee and chatting with employees and customers, little did he know that Sheetz had something else brewing in the background. The company was hit with a lawsuit by the Equal Employment Opportunity Commission (EEOC) …
Is the New DOL Overtime Rule a Boon or a Burden for American Workers?
The Department of Labor’s (DOL) recent release of its final overtime rule has grabbed headlines for its sizable impact on millions of American workers. The changes enforce minimum earnings that are the bedrock of fair labor practices, yet the scope of their reach is stirring a potpourri of reactions. Is the new rule symbolizing a …
This is Business – Keep Emotions out.
Google’s CEO Sundar Pichai recently published a blog post discussing the company’s reorganization to focus on artificial intelligence. While he doesn’t specifically address the recent firing of employees, Pichai highlights the importance of preserving a culture of open discussion while also acknowledging that ultimately Google is a business. He emphasizes that Google is not a …
Who Does What? Understanding CFOs, Bookkeepers and CPAs
CFOs (Chief Financial Officers), Bookkeepers and CPAs (Certified Public Accountants) all help manage a business’s money, but they each have different jobs and levels of responsibility. CFO (Chief Financial Officer) CFOs are top-level managers in charge of a company’s financial plan and strategy. Their main jobs include: CFOs have a lot of experience in finance …
What is a Fractional CFO (Chief Financial Officer)?
A fractional (CFO) provides businesses with high-level financial expertise on a part-time basis. This role is ideal for companies that need strategic financial guidance but can’t justify the cost of a full-time CFO. Businesses of all sizes, from startups to mid-sized companies, can benefit from having an experienced financial leader without the long-term commitment. What …
Why Startups Need a Fractional CFO
A fractional CFO for business startups helps new companies navigate financial challenges, plan for growth, and avoid costly mistakes. Because, starting a business is exciting, but managing finances can be overwhelming. What is a Fractional CFO for Startups? They are a financial expert who provides part-time CFO services to startups. They help new businesses with financial planning, cash …
Where are we today with the Business Ownership Information (BOI) Requirements – January 9, 2025.
The Beneficial Ownership Information (BOI) reporting deadlines have undergone several changes due to recent legal developments. Here are the current key deadlines for BOI reporting: Existing Companies Reporting companies created or registered before January 1, 2024, now have until January 13, 2025, to file their initial BOI reports with FinCEN. This is an extension from …
Payroll Tax Changes for 2025
In 2025, several changes to payroll taxes and related deductions are being implemented across various states and at the federal level. Here’s an overview of the most significant updates: Federal Payroll Taxes – Social Security Taxable Wage Base: The taxable wage base for Social Security is increasing to $176,100 in 2025. This means that earnings above …
Tax Deductions available for Startups in 2025
Below is a list of tax deductions available for startup businesses in 2025. Remember to keep detailed records of all expenses and consult with a tax professional to ensure you’re complying with IRS regulations. Employee benefits and healthcare: Including retirement plan contributions and wellness program costs. Lastly, check your local state legislation for local tax …
President Trump’s 2025 Address to Congress – Key Impacts on Business and the Economy
Though not officially a State of the Union speech, the President outlined significant economic and business-related policies with major implications for various sectors. Below are Economic Policies and Possible Business Impacts The address presented an agenda aimed at revitalizing American manufacturing, energy independence, and infrastructure development. While these policies promise growth opportunities in specific sectors like …
Fractional CFO Services: The Ultimate Guide
What Are Fractional CFO Services? A fractional CFO is an experienced financial professional who provides CFO-level guidance on a part-time or contract basis. Unlike a full-time CFO, a fractional CFO works with multiple businesses, offering strategic financial expertise without the high costs of a salaried executive. This service is particularly valuable for startups, small businesses, …
Business Radio X Interview
Business CFO for Hire: I was honored to have the opportunity to talk to John Ray on Business Radio X about being a Fractional CFO and the big positive impact hiring a fractional financial leader can have for a business. During our conversation, we explored how businesses, especially small to mid-sized companies, can benefit from …
A Fractional CFO Smooths the Business Selling Process.
A Fractional CFO can be one of your most valuable partners. A Fractional CFO smooths the process of selling your business. They bring high-level financial expertise on a flexible basis, helping you get your financials in order, uncover opportunities to increase your valuation, and guide you through the complexities of due diligence. With a clear, well-prepared financial …
Financial and Operational Challenges Manufacturers Face Today
In today’s rapidly evolving manufacturing landscape, businesses are facing more financial and operational complexity than ever before. Economic uncertainty, global supply chain issues, workforce shortages, and increasing regulatory demands all contribute to a challenging environment. Manufacturers must constantly balance cost-efficiency with innovation, operational performance, and long-term sustainability to remain competitive. As these pressures mount, it …
Why Work-Life Balance is Important to a CFO
You might be surprised that a CFO is writing about work-life balance, but let’s be clear—ignoring work-life balance is not just bad for morale, it’s bad for business. CFO’s now have a responsibility to look beyond spreadsheets and see one of the real drivers of profitability: our people. When a workforce is burned out, …
Fractional CFOs Help Companies Track and Improve Performance
Fractional CFOs help companies track and improve performance by reviewing the same critical performance data as an in-house CFO—but with an added layer of strategic objectivity and flexibility. By leveraging real-time, high-impact metrics, a fractional CFO can quickly assess where a company stands financially and operationally, and offer guidance that drives growth, efficiency, and profitability. …
Questions to Ask When Vetting an Outsourced CFO
Hiring a fractional or outsourced CFO is a big decision. This person will influence how you grow, spend, and protect your money. Use the questions below when vetting an outsourced CFO candidate to determine whether they have the experience and qualities you need. What is your financial background and education? Why this matters: A strong …
Why Accurate Financial Records Matter
In today’s fast-paced and competitive business environment, the ability to maintain timely and accurate accounting records goes far beyond meeting basic compliance standards. For companies of all sizes, the reliability of financial data directly influences every aspect of operations—from day-to-day decision-making to long-term strategic growth. Understanding why accurate financial records matter can help business owners …
DeFi as a payment source. Is it right for your business?
The adoption of Decentralized Finance (DeFi) as a payment source is becoming an increasingly important consideration for businesses across various industries. As the DeFi ecosystem continues to evolve and mature, companies are exploring its potential to streamline financial operations, reduce costs, and access new opportunities. Key Factors to Consider Potential Benefits Challenges and Risks Assessing …
Navigating Your Business Through Uncertainty
When economic uncertainty strikes—rising interest rates, inflation, market volatility, or shifting consumer behavior, it can be difficult to know how to navigate your business through the uncertainty. Sales may slow. Costs may rise. And cash flow might feel tighter than ever. During times like these, financial discipline becomes more than a good habit, it becomes …
Ways to increase margin and cash holdings in an inflationary period.
Inflation typically has a negative connotation associated with it, however, this does not mean doom and gloom for the Entrepreneur or small business. There are opportunities to increase margin and cash holdings. “Begin with the end in mind.”– Stephen Covey Inventory: One way for businesses to combat inflation is by increasing their inventory holdings. The …
Why Benchmark?
Benchmarking is a technique used to compare the performance and quality of products, services, or processes against industry standards, competitors, or other organizations. It can help identify areas where improvements can be made and provide guidance on how best to allocate resources and optimize operations. Benchmarking involves the collection of data from both internal sources …
How to Create a Detailed Budget for Your Business
Starting a small business is an exciting journey, but it comes with many challenges, especially when it comes to financial planning. Budgeting is one of the most crucial aspects of any small business’s success, yet many small business owners skip or overlook this critical step. A detailed budget can help you stay on track, avoid …
How to Create a Functional Dynamic Business Model
As a business owner, you already know that starting a company is just the first step in the long journey to success. One of the most crucial elements of building a successful business is developing a functional and dynamic business model. A business model is essentially a plan that outlines how you will make money, …
Building Resilience and Grit as an Entrepreneur
In the high-stakes world of entrepreneurship, resilience and grit are not just desirable traits—they are essential. Recently, I came across an illuminating book by Erik Barker titled “A Navy SEAL explains 8 secrets to grit and resilience.” This piece resonates profoundly with the entrepreneurial spirit and offers fundamental insights that anyone in a leadership role …
Federal Court Rejects FTC Noncompete Ban: Implications for CEOs and Presidents
In a landmark decision, the U.S. District Court for the Northern District of Texas recently rejected the Federal Trade Commission’s (FTC) noncompete ban, casting uncertainty on the future of such agreements in the workplace. This ruling has significant implications for business leaders nationwide, particularly CEOs and presidents, who must now reassess their strategies for employee …
Good Habits Equate to Good Financial Discipline
In the world of business, success is rarely an accident. It stems from strategic planning, meticulous execution, and the cultivation of good habits. For entrepreneurs, owners, and CEOs, building a disciplined approach to financial management can mean the difference between thriving and merely surviving. I will share disciplined strategies to help you achieve better economic …
Potential Policy Changes that Business should be aware of and be prepared to adopt too.
As the Trump administration prepares to take office in January 2025, businesses across the United States are bracing for significant policy shifts that could reshape the regulatory landscape. Here’s an overview of key legislative changes that may impact businesses in the coming year: Tax Policy The expiration of the 2017 Tax Cuts and Jobs Act …
5 Year Strategic Plan vs Your Leadership Style
Leadership without a 5-year documented strategic plan can have significant consequences, both positive and negative, depending on the leadership style employed. Let’s examine the impact of procrastinating, reactive, and proactive leadership approaches in the absence of a long-term strategy. Procrastinating Leadership Procrastinating leadership is characterized by a tendency to delay important decisions and actions. Without …
Why Some Small Businesses Struggle to Grow
Why Do Some Small Businesses Struggle to Grow? Small businesses fuel local economies, spark innovation, and create jobs—but many hit a plateau before reaching their full potential. Whether it’s financial strain, strategic missteps, or operational roadblocks, the reasons behind stalled growth tend to follow familiar patterns. Understanding these common obstacles is the first step to …
Client Retention Metrics
Client retention is the foundation of sustainable growth. Why? Because keeping a client is far less expensive than acquiring a new one. And with the right client retention metrics, you can not only track how well you’re doing—but also spot red flags before they cost you business. Here’s your guide to the key metrics, tools, …
What’s the Cost of Underutilized Software?
Back office software, like accounting systems, CRMs, ERP platforms, and scheduling tools—is designed to improve efficiency, reduce costs, and support growth. But what’s the cost of underutilized software when these tools aren’t fully optimized or properly implemented? From a CFO’s perspective, the financial impact of this misalignment is significant and often hidden, affecting everything from …
Navigating Your Business Through Uncertainty
When economic uncertainty strikes—rising interest rates, inflation, market volatility, or shifting consumer behavior, it can be difficult to know how to navigate your business through the uncertainty. Sales may slow. Costs may rise. And cash flow might feel tighter than ever. During times like these, financial discipline becomes more than a good habit, it becomes …
Animal Tax Deductions?
Emotional Support Animals (ESA) vs. Service Animals Owning a service animal or emotional support animal (ESA) can come with significant expenses—vet visits, specialized training, food, and supplies can add up fast. But here’s the good news: in some cases, these costs may be tax deductible. Whether it’s a dog trained to detect seizures or an …
What is EBITDA and Why is It Important?
When it comes to understanding the financial health of a business, one question many owners ask is: What is EBITDA? Knowing the answer is more than just financial jargon—it’s an essential tool for making better business decisions. EBITDA gives business owners, investors, and lenders a clear picture of how a company is performing at its …
Should You Use The Cash Value of a Life Insurance Policy as Collateral for a Business Line of Credit?
For business owners seeking flexible financing, leveraging the cash value of a life insurance policy as collateral for a line of credit offers a strategic alternative to traditional asset-backed loans. This approach can provide access to capital without risking personal or business property, while also maintaining the long-term benefits of life insurance coverage. How It …
Common Trigger Events for a Company Tax Audit
Several factors can increase the likelihood of a company being selected for a tax audit. While some audits are random, most are triggered by specific red flags or patterns in tax filings. Here are the most common triggers: Summary Table: Major Audit Triggers Trigger Event Description Unreported/Misreported Income Discrepancies or omissions in reported income Excessive/Disproportionate …
Why Expense Allocation in Your General Ledger Matters
Accurate expense allocation in your general ledger is more than a bookkeeping detail—it’s a critical part of your company’s financial integrity. When expenses are misclassified, the impact reverberates far beyond the accounting department. It affects everything from strategic decisions to investor confidence to tax compliance. Here’s why every business, regardless of size, should treat expense …
