Professional Accounting Blog

    Accounting For Your Prosperity

    Dan Prendergast

    Dan Prendergast is a Vice President at Meaden & Moore. He offers over two decades of experience working with closely held and entrepreneurial companies.

    Recent Posts

    Improving Your Company’s Month End Close

    Posted by Dan Prendergast on Oct 18, 2016 8:00:00 AM

    Topics: Small Business

    Management theory tells us that you cannot set improvement goals without first having a means to measure or quantify if your goals are being reached. Consistent with the theme of quantifying your results is the secondary goal of having the information available on a timely basis. Data that isn’t timely can quickly become useless. There may be no better example of this theory than how it relates to the production of monthly financial statements. Having the statements available as close as possible to the end of the measurement period is critical when management is attempting to assess what improvements can or should be made. 

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    Measuring Management Effectiveness with Cash Conversion Cycle

    Posted by Dan Prendergast on Apr 23, 2015 2:59:00 PM

    Topics: Small Business

    There are many parameters that a company’s management is assessed and evaluated on. Some of the parameters are based on financial statement ratios, customer satisfaction, and employee satisfaction. One of the financial statement ratios that can be used to assess the overall operating health of the company is a cash conversion cycle. A cash conversion cycle could provide management with useful information about where improvements could be needed.  It’s also a very easy ratio to calculate.  

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    6 Reasons We Like QuickBooks

    Posted by Dan Prendergast on Jun 5, 2014 11:09:00 AM

    Topics: Small Business

    QuickBooks is an accounting software package that enables you to do as much or as little bookkeeping as you choose. It is an application that is capable of tracking great detail, processing payroll, and producing managerial reports. It is easy to learn and can be used as minimally as needed. You can maintain a check register with deposits and payments categorized. There are several editions of QuickBooks, so we would be happy to discuss which version will suit your needs.

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    Cash Management Best Practices

    Posted by Dan Prendergast on Apr 10, 2014 12:51:00 PM

    Topics: Small Business

    What is the most important asset on the balance sheet in terms of running day-to-day operations?  That’s right, it is cash.  Cash is the heart of every business, and every company needs cash to pay suppliers, employees, contractors, purchase equipment, etc. What are some of the best practices in cash management? 

    Monthly Budgeting is Key

    The first and probably the most important step you can take to help you control and manage cash is to develop and review budgets on a periodic basis throughout the year.  How would you like to realize one month that you don’t have enough cash available to pay your employees because you did not budget your monthly cash receipts and expenses, and you purchased an expensive piece of equipment in the beginning of the month? Monthly budgeting allows you to control and predict cash ins and outs and see how much cash you will have at the end of each period.

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    What is Your Cash Flow Statement Telling You?

    Posted by Dan Prendergast on Jan 16, 2014 9:25:00 AM

    Topics: Small Business, Accounting & Auditing

    Understanding your cash flows is critical in running a business. Just like I know that understanding your mileage log is critical in running for a big race. As a runner, I know the miles that I need to run each day and how often I need to run in order to prepare for my next successful race. As a business owner, do you know how much cash you need to run your business or how much cash you need to prepare for your next successful year? The cash flow statement is a very powerful tool in determining your financial stability of your business and to determine future needs.  It also compliments the income statement by reconciling your net income to your net cash.  

    The statement of cash flows is one of the required financial statements. It classifies cash receipts and cash payments into three categories (operating, investing, and financing).  Separate disclosure of noncash investing and financing activities is also required.  

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    Proper Accounting is a BIG Deal for a Small Business

    Posted by Dan Prendergast on Dec 4, 2013 10:33:00 AM

    Topics: Small Business

    When you own a closely held small business, to say you have a vested interest in its success is an understatement. You started your business to pursue something you love; not to wile away hours fretting over the books. While there might be a temptation to haphazardly categorize expenditures (who wants to belabor the check recording process?) a small time investment yields useful information. There’s truth to the old saying, “Garbage in. Garbage out.”

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