Professional Accounting Blog

    Accounting For Your Prosperity

    Kendra Williams

    Kendra Williams is a Senior Manager with Meaden & Moore. In this role, Kendra assists in the planning of engagements, supervising staff, preparing financial statements and tax work, and working with clients to find solutions to problem areas, and developing ideas for growth. She works directly with numerous not-for-profit organizations performing both attestation and tax services. In addition to her not-for-profit experience, Kendra also conducts audits of 401(k) plans, pension plans and a wide variety of corporate engagements including manufacturing clients.

    Recent Posts

    How to Prevent Fraudulent Bank Transactions in Your Account

    Posted by Kendra Williams on Jul 8, 2019 9:30:00 AM

    Topics: Accounting & Auditing

    In the “old days” (insert my sweet grandmother’s voice), accounting employees waited to reconcile cash until the monthly bank statements were received in the mail. Today, companies are “going green” to avoid monthly fees by waiving paper statements. It’s far easier and more convenient to review daily transactions through the bank’s website.  But is pressing that easy button causing you to overlook fraudulent bank transactions in your account?

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    Difference Between Deferred & Temporarily Restricted Revenues

    Posted by Kendra Williams on Dec 30, 2013 8:30:00 AM

    Topics: Not For Profit

    It’s the end of the year and the auditors are in the conference room auditing away on your year-end financials. You feel confident because you know you accrued for all open invoices in accounts payable. You even setup a new account for deferred revenue for the grant money you received that is to be used for your next fiscal year. All of a sudden, the Senior Auditor knocks on your door and says “Can we discuss this new deferred income account?” You’re happy to explain but then you’re not so happy to hear him say what you’ve done isn’t right. 

    The first principle we all learned is the matching principle; revenues and their related expenses should be recognized in the same period. The rules surrounding deferred revenue are different for not-for-profit organizations. The guidance states any money received and/or granted during the year should be recognized as revenue in that same year. Per ASC 958-605-25, contributions received shall be recognized as revenues or gains in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received.  If there is a restriction on when the money can be used (time restriction) or how the money can be used (specific purpose), the funds should be reported as temporarily restricted revenue until the restriction is met. 

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