Professional Accounting Blog

    Accounting For Your Prosperity

    John Nicklas

    John Nicklas is a Vice President of the Assurance Service Group. He has 19+ years of experience serving accounting and business advisory needs.

    Recent Posts

    Buying a Business – Why Perform Financial Due Diligence?

    Posted by John Nicklas on Oct 7, 2014 9:00:00 AM

    Topics: Accounting & Auditing

    Buying a business is an exciting and over-whelming time for a “soon-to-be” new business owner. Buying an existing business should represent less risk, time and resources than starting a new business from scratch, but the venture of becoming a business owner is still very risky. In order to mitigate some initial risk, we suggest that you perform financial due diligence, which is the process of conducting an investigation of the target business to determine the “true financial condition” and any financial implications of the proposed transaction.

    Quality of Earnings Report

    The most common report requested by potential buyers is a “quality of earnings” report or engagement. The objective of a quality of earnings engagement is to assess the sustainability and accuracy of historical earnings as well as the achievability of any earnings projections. A quality of earnings report provides a detailed analysis of all the components of a target business’s revenue and expenses. 

    Read More

    Differences Between EBITDA and Operating Cash Flow

    Posted by John Nicklas on Jul 8, 2014 8:00:00 AM

    Topics: Accounting & Auditing

    EBITDA is often used and confused as an approximation of operating cash flow. Many business professionals (CPAs, business owners, bankers, attorneys and others) struggle to understand the differences between EBITDA and cash flow from operations within a business. Below are some differences between these business metrics. 

    Definitions of each as provided by Investopedia.com:

    1. “EBITDA” is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.
    Read More

    Please…Make the Auditing Stop!

    Posted by John Nicklas on Mar 6, 2014 1:45:00 PM

    Topics: Accounting & Auditing

    Oh what a wonderful time of year. There’s snow on the ground, a chill in the air, and your conference room is full of auditors. Besides trying to close March, you’ve got a special project to complete, a new hire to train, and a board meeting to prepare reports for. The audit needs to fit in with all of this and it’s in everyone’s best interest to get it done as soon as possible. But how can you streamline an audit? Is it even possible?

    Read More

    One Easy Way to Increase Your Revenue by 5%

    Posted by John Nicklas on Jan 7, 2014 8:46:00 AM

    Topics: Accounting & Auditing

    If someone asked you to come up with an example of fraud, several pictures might run through your head. Maybe you envision an employee stealing money from the petty-cash box or someone walking out the door with a company laptop. What if an employee created a fictitious vendor or a ghost employee and is receiving payments from the company? Any of these situations can happen – but can it happen to you?

    A recent study “estimated that the typical organization loses 5% of its revenues to fraud each year” (Report to the Nations on Occupational Fraud and Abuse – 2012 Global Fraud Study). This percentage may appear to be trivial, but in actuality it could add up to a significant dollar amount that is flying out the window, at your company’s expense. The question that business owners need to ask themselves is how to prevent this from happening. The answer: implementing strong internal controls within the day-to-day processes that work effectively.

    Read More

    Subscribe to Email Updates

    New Call-to-action
    New Call-to-action
    New Call-to-action
    New Call-to-action