Professional Accounting Blog

    Accounting For Your Prosperity

    Courtney Eaton

    Courtney Eaton is a Senior Manager in the Assurance Services Group. She provides public accounting services to a wide variety of clients.

    Recent Posts

    Technology Startups – Finding the Right Funding Sources

    Posted by Courtney Eaton on Apr 10, 2018 9:56:01 AM

    Topics: Accounting & Auditing

    A common saying in the business world is “cash is king.”

    This expression implies that the most valuable asset a company has is its cash balance. If you live by this motto, you will feel pressure to rush your technology out to potential investors to get your hands on this ever-important cash.  

    Taking on a partner at the first promise of cash may be foolish as this partner may not be the right fit for your startup. It’s your technology and management team that will attract the quality cash and the quality partner.

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    Technology Startups – Finding and Compensating Your Management Team

    Posted by Courtney Eaton on Dec 14, 2017 3:39:20 PM

    Topics: Technology

    In the startup environment, securing the right management team is a major challenge. You have a solid idea and you may even have some seed funding, but surely the cash that you do have is already earmarked for the development of your technology. Convincing major players to risk their stable career paths and join your risky startup will be a challenge, but there are some great ways to compensate your team while at the same time aligning their goals with yours.

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    3 Questions Startups Should Answer Before Seeking Out Investors

    Posted by Courtney Eaton on Sep 14, 2017 1:52:10 PM

    Topics: Technology

    Our region is bursting with exciting high-potential technology startups. These startups spring from many types of environments: universities, laboratories, neighborhood watering holes, and even dinner tables.  Once an idea is born, the next steps are critically important to its long-term success. A solid foundation must be built for a technology startup to thrive. Due to the highly competitive and fast-paced nature of this sector, the preference of the startup may be to seek out investors to fund research and development. I would suggest that the following three questions be considered and answered before the search for investment begins:

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    Simplifying the Presentation of Debt Issuance Costs

    Posted by Courtney Eaton on Apr 16, 2015 2:45:49 PM

    Topics: Accounting & Auditing

    A few months ago, we posted an article explaining the accounting treatment for debt issuance costs (click here to access that article). Since then, the FASB has issued Accounting Standards Update (ASU) 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update does not change the method for recognizing and amortizing debt issuance costs, but rather simplifies their presentation. This new guidance requires that costs related to debt issuance now be presented as a direct deduction to the carrying amount of the liability. Prior to this amendment, the debt issuance costs were presented separately on the balance sheet as an “other asset”.

    It is possible that a company could incur these types of costs in one period and not secure the debt until the next. In this circumstance, there would be an asset recorded on the balance sheet until the date that the debt is recorded, at which time the asset would be presented as a deduction to the liability.

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    Accounting for Loan Origination Fees

    Posted by Courtney Eaton on May 13, 2014 9:00:00 AM

    Topics: Accounting & Auditing

    Loan Origination Fees.jpgWhen entering into a new financing arrangement, or even renegotiating an existing one, there are often fees associated with the origination. The overarching accounting theory when accounting for these types of costs is the utilization of the matching principle. This means that to properly match these costs with the new loan, the costs should be capitalized and amortized over the term of the loan.

    There are various types of potential costs that relate to financing arrangements, some of which are:

    • Fees charged to the borrower in connection with the process of originating, refinancing, or restructuring a loan, such as application and underwriting fees.

    • Fees charged to the borrower that relate directly to making the loan (for example, fees that are paid to the lender as compensation for granting a complex loan or agreeing to lend quickly). 

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