What are Cost Accounting Standards?  Cost Accounting Standards (CAS) are important because they promote a better understanding of costing as a whole, and exist to ensure consistency and uniformity in cost accounting practices. Having a system of standards and practices every government contractor can follow, ensures that investors and stakeholders can depend on the information presented to them. This credibility ensures a level playing field of sorts. It is paramount that contractors follow CAS to avoid a potential contract violation. Government contractors must know if they are subject t ..read more

Employee embezzlement is, unfortunately, a frequent occurrence in the workplace and often goes unnoticed for months or even years. Both outright stolen and mishandled funds can constitute embezzlement and lead to significant financial losses for your company or business.  What Is Employee Embezzlement? Employee embezzlement is when an entrusted person steals from the business they are employed by. Some examples include padding expenses, creating fake vendor payments, or stealing customer credit card data.  Vigilance is key to both preventing and eliminating these opportunities and ot ..read more

Homeowner associations can be wonderful. They allow for community building, upkeep, and beautification of shared spaces and entire neighborhoods, and can increase property value. However, they do come with the risk of possible homeowner association fraud. Homeowner association fraud happens when funds are used inappropriately, irresponsibly, or even criminally. It’s important to be informed about—and have a clear picture of—how and why funds are used. Unfortunately, it is not unusual for funds to mysteriously go missing or be unaccounted for. What Do I Do if I Suspect HOA Fraud? If you believe ..read more

So you or your company is being audited. You might be tempted to run and hide, or even avoid it — but don’t. If your financial records are in order, an audit can be highly beneficial. Defining Audits Although audits inspire fear, they don’t have to. In the simplest terms, audits are an objective examination and evaluation of a company’s financial statements. These evaluations ensure that the financial records are a fair and accurate representation of the company’s transactions. Typically, financial statements that include audit evaluations are considered more beneficial than their alternatives ..read more

Most businesses earn a modest income, even after-tax payments to the IRS. Still, there are many questions around businesses that conduct sales through a currency-only exchange. In fact, there’s often a heightened curiosity for cash-only type businesses across the United States. Namely, is it legal to accept only cash and what happens when they’re investigated? Is it simple for forensic accountants to discover monies that may not be disclosed in the books? The short answer is, simply, yes. Yes, it’s legal to operate cash-only businesses so long as appropriate taxes and laws are met. On the othe ..read more

Homeowner associations (HOA) and condominium associations (CA) are legal entities set up to manage the operations and finances on behalf of the owners. Typically, the management team (administrator) selected to run the HOA or CA is comprised of other homeowners or condo owners. If a lot of thought was put into the selection criteria, then the administrators will be knowledgeable individuals with experience in management and/or finance. If not, the administrator can end up being someone who can barely balance their own checkbook, let alone manage the books and records of a $5,000 annu ..read more

The bright line in ethics Ethics means Ethics is your moral code. Its your values, your sense of right or wrong. Its the principles you live by. However, ethics has degrees based on one’s values and principles. Ethical conduct does not always equate to following the rules. Breaking the law a little is the same as breaking it a lot. Its black or white, not shades of gray. If employees feels that breaking the rules a little is no big thing because it was not “major”, your organization is already at risk for fraud. Your company should have a clear, concise set of rules with as little ambiguity as ..read more

  When a client voiced strong suspicions that her soon-to-be ex-husband was hiding assets, her attorney investigated the claim but found nothing amiss. However, he hired a forensic accounting expert to help ensure his client would receive an equitable share of the marital estate. The expert turned up a trunkload of hidden treasure — undeclared cash income and property “stashed” under the names of the husband’s mother and siblings. Deceptive spouses — and other parties to litigation — often are experts at hiding assets. To protect your client from such scam artists, you’ll need your own ex ..read more

Owning a business is hard work and it’s common for business owners to wonder how much their company is worth. Whether you are thinking about selling your business or not, have an offer on the table or are merely curious, there are quite a few misconceptions out there about how to value a business. Here are five myths about the value of your business. Myth 1: Valuation is Only Needed When You Want to Sell A common myth about valuing businesses is that valuation should only be figured when a business is getting ready to be sold. Knowing how much your business is worth is good information to have ..read more

  There are 3 important causes of loss profit (or loss fee) litigation in government contracts.  Loss profit calculations are based primarily on a contract and a defined period of time (i.e. contract term). Scope creep, subcontractor disputes, and delays are the most common causes of loss profits/fees when performing work on federal contracts.  All stem from a failure to clarify contract or subcontract language before work begins and/or during the contract performance (i.e. modifications and change orders). Scope Creep Scope creep ensues when the customer begins to request work ..read more