For companies relying on manual accrual accounting, the strain on their accounting team is often the most visible pain point. However, a significant and often overlooked consequence is the burden it places on internal auditors. The risk, inefficiency, and lack of...
CONTENT BY
David Buchanan, Sr. Manager, Product Accounting
David began his career in the audit practice at Ernst & Young, working across several industries including insurance, healthcare, biomedical, and manufacturing. David received his Bachelor's degree in Accounting from California State University Northridge and Master's degree in Accounting with an emphasis in Information Systems from the University of Tennessee.
How To Leverage Contracts for Prepaid and Accrual Accounting
Accounting teams frequently struggle with the efficient management of prepaids and accruals due to the complexities involved in tracking expenses across multiple accounting periods and ensuring precise financial reporting. Traditional methods for managing prepaids...
Mastering Accruals: True-Ups for Estimated Payments
Mastering accruals is crucial for accurate reporting and sound business decisions. Accruals represent expenses that have been incurred (the company has received goods or services) but have not yet been paid for as of the end of the accounting period. Even though the...
Lease Incentives under ASC 842 Explained with a Full Accounting Example
1. What is a lease incentive? 2. It’s a lease incentive: How do we treat it? Leasehold improvements Leasehold improvements: Lessor asset Leasehold improvements: Lessee asset Lease incentive impact to opening lease liability and ROU asset 3. Example 1: Paid at or...
4 Hidden Costs of Manual Prepaid & Accrual Accounting
Many accounting teams rely on manual spreadsheets to account for their prepaid and accrued expenses. The accounting seems relatively simple, and accountants have been using Excel to pick up where bigger tools leave off for years. But accounting automation has come a...