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Accounting Policy

Accounting policies are specific principles, rules, procedures, and practices used by a business in the preparation of financial statements. Accounting policies include methods, approaches, measurement systems, and procedures to present disclosure. The difference between the accounting policies and the accounting principles is that the accounting principles are a set of rules, which the company must obey.

Misstatements of information about financial reporting items are identified as material if they can affect the decisions of users. The choice and application of accounting policies should be based on the relevant International Financial Reporting Standards. When a company acquires assets from different methods such as loans, cash purchases, or lease options, management would need to refer to these policies and principles so that assets can be reflected accurately in financial statements. Check out America's Best Bookkeepers

Changes in Accounting Estimates

Accounting Estimates are frequently used in the preparation of financial statements. Thus, accountants cannot confidently predict the value of the bankruptcy value of an asset, its service life, as well as other parameters influenced by environmental factors. Accordingly, the receipt of new information leads to the need to revise previously made estimates. Evaluation involves professional judgment based on the most recent available data. For example, an estimate may be required to determine the number of debts, the degree of impairment, the fair value, the useful life, and the amount of liability for warranty service. Accounting estimates are approximate values ​​that may need to be revised when additional information becomes available. Bookkeeping can also be used for keeping the record of accounting estimates.

Principles of Accounting and Financial Reporting

Some of the main principles of accounting and financial reporting are:

  • The principle of business continuity

 It means that the assessment of the assets and liabilities of the bank is carried out based on the assumption that its activities will continue. Check out America's Best Bookkeepers

  • The principle of consistency

This principle requires banks to regularly (from year to year) apply their chosen accounting policies, i.e., a set of principles, methods, and procedures that are used by the bank to compile and present financial statements.

  • The principle of prudence

Under this principle, accounting uses valuation techniques that should prevent underestimation of the assessment of liabilities and expenses. It also should avoid overvaluation of the bank’s assets and revenues.

  • The principle of accrual and compliance of income and expenses.

According to this principle, to determine the financial result of the reporting period, it is necessary to compare the revenues of the reporting period with the expenses that were incurred to obtain these revenues.

Economic Operations

Economic operations are the actions or events which can influence various business and investment decision which will affect the structure of the assets, liabilities, and capital. Economic operations can influence the accounting policies because, over time, economic operations identify various loopholes in policies due to which policymakers require to amend the policies as per the current economic conditions. Check out America's Best Bookkeepers

Financial Policy

The short-term financial policy is a system of measures aimed at the smooth financing of the current activities of the corporation. Its main tasks are to carry out normal activities at the expense of existing capacities, ensure current financing, and generate its sources of financing. The goal of the financial policy is the use of finance to achieve strategic and tactical objectives. Financial policy is the most crucial element of the development of the corporation. It is not limited to the solution of local, isolated issues, such as market analysis, the development of the procedure for passing and negotiation of contracts, the organization of control over production processes, but is comprehensive.

One of its key tasks is to select the optimal mechanisms that allow achieving the set goals for the corporation in the shortest possible time and at the least cost. But, financial tactics are a financial policy aimed at solving specific current tasks, which are specified in the financial strategy of the corporation. It ensures a correct and timely change of financial ties, as well as redistribution of cash flows between resources of the corporation and between all structural and separate divisions.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Many companies sell car insurance. When you need the best coverage for the money, then you need to research the available companies. Insurance policies give you protection for your vehicle. This coverage allows you to have peace of mind that you are safe from financial losses. The car insurance companies give you the best customer service, updated websites that enable you to check your policies or pay your bills.

There are many car insurance corporations that give you the best policies at a reasonable price.

PROGRESSIVE INSURANCE COMPANY Check out America's Best Bookkeepers

The Progressive insurance company is a very well known insurance company with thousands of customers with great reviews. A recent study by J.D. Power found that when it comes to insurance company pricing, Progressive is one of the least expensive. 

They provide you a multi-car discount, pay in full discount, and multi-policy discounts. Progressive is at the top of the list that gives you the policy you like.

Now the best thing about Progressive, they have 18 million drivers insured today in America. 1 of 10 drivers wants to choose progressive over others.

QUOTEWIZARD INSURANCE COMPANY

Car insurance is about not comparing the rates. When you are shopping for insurance, one mistake that consumers make is not shopping multiple companies before purchasing. That is why we suggest you visit the quotewizard.com for the queries.

QuoteWizard is one of the largest independent insurance company in the U.S.

They give quotes. They are making it a straightforward policy to search auto insurance strategies when you decide to use QuoteWizard. You provide some simple information, and QuoteWizard will provide you with several insurance company quotes.

In conclusion, they will request for info like name, address, and email. They are also giving you the information for the proper workers in your area.

STATE FARM INSURANCE COMPANY

State farm insurance started in 1922; the company has a past of customer satisfaction and financial stability. State Farm gives you individual services with offices or agents spread all over the country. The company’s major offers are, they have several discounts they offer, brick and mortal agents and stores, and a great mobile app. Check out America's Best Bookkeepers

Pros of State Farm:

Limited agent and offices give in-person need

Inordinate mobile website and app

Sufficient discounts are available

 

ESURANCE COMPANY OF INSURANCE

 

The primary rewards of purchasing auto insurance with Esurance (owned by Allstate) is having the flexibility and control to manage your policy. Esurance is convenient and allows for customization of your coverage.

Pros of Esurance:

Easy and quick contact to auto insurance

Many options of customization

LIBERTY MUTUAL INSURANCE COMPANY Check out America's Best Bookkeepers

Liberty mutual insurance is one company that provides coverage to more than 1.5 million automobiles; they are considered the top of the most customer service rating.

Liberty Mutual was graded “better than most,” in J.D. Power’s 2018 Insurance Shopping Survey.

Pros of Liberty Mutual

Services provided 24 hours a day

Standard coverage is excellent and includes accident forgiveness, replacement of the new car, and deductible funds.

Cons of Liberty Mutual

If you are purchasing a single policy, it can be expensive.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Employee theft prevention - Complete Controller

Business owners often face fraud and theft each year due to their employees. The risk of fraud has increased due to the advancement of technology and the progressive development of the world market. According to research reports, organizations face a 5% loss due to fraud each year, in which internal employees committed 85% of serious fraud cases. Organizations should develop multi-layered fraud prevention strategies while keeping these statistics in view. Practice the following plans and policies to prevent fraud and employee theft in your business.

  1. Practice corporate culture

Corporate culture defines procedures and policies which govern employees. The organizational structure of reporting systems, the accountable person, their segregation of duties, job responsibilities, and limitations should be clearly defined. Hire the right employees by investigating their past employment history and educational background. Check out America's Best Bookkeepers

  1. Establish an anti-fraud policy

A documented policy that defines fraud, its prevention, and detection policies should be implemented after proper training of all employees. A zero-tolerance policy of all kinds of fraud should be communicated to employees. They should also be aware of actions that would be taken in case of fraud.

  1. Prevent Theft of Physical Assets

Random and surprise audit system

Along with an annual and quarterly audit of assets, a system for uninformed audits should also be developed. Under the pressure of unexpected audits, employee avoids stealing and fraud.

Segregation of duties

Duties of inventory management staff should be segregated to prevent fraud. Purchase order issuance and receiving of stocks should be done by two different individuals.

Security cameras

In inventory storage areas, CCTV cameras should be installed to prevent employee theft.

Limited access to inventory storage areas

Only authorized personnel should be allowed to enter areas in which inventory is kept, and these areas should be kept locked in off-hours. Keys should be issued to specified individuals only.

  1. Prevent Check Tampering Check out America's Best Bookkeepers

Security of blank checks

Blank checks should not be accessible to anyone and should be locked until required for bookkeeping.

Check bank statements of the business

A review of monthly bank statements helps in detecting fraud in the form of tampered checks.

  1. Prevent Expense Reimbursement Schemes

Receipts of expenses

For reimbursing expenses, demand a receipt of the amounts that the employee is claiming.

Policy for expense reimbursement

A company must have a documented expense reimbursement policy. Clear segregation of reimbursable expenses should be defined in that policy, and every employee must receive a copy of the reimbursement policy.

Comparison of expense reports

A comparison of expense reports submitted by different employees should be made to evaluate the legality of expenses.

  1. Prevent a Billing Scheme

List of approved vendors

To prevent fraud at this level, maintain a list of approved vendors, and do research to ensure the legality of the vendors. If you don’t practice this simple plan, then you may be paying fake companies.

List of approved prices

An approved price list should also be maintained to avoid payment at higher rates. Check out America's Best Bookkeepers

Signed receipts

Sign a check only if a signed receiving of the product is attached.

  1. Prevent Theft of Cash

Manager’s approval

Sensitive transactions should always be accomplished after the approval of a manager only.

Monthly account statements

Regular updates of customer accounts prevent fraud at this level.

Rotation of duties

Rotation of duties and sending employees on annual leaves and vacations prevent employee theft because the employee has the terror of easy detection by others.

Bank lockers

Cash and payment handling by employees should be minimized to prevent cash theft. Payments should be received directly in a bank account of the company.

Surprise audit of cash

Discrepancies in cash can be detected easily by counting the cash and comparing it with receipts.

Video cameras

Install video cameras in sensitive areas where cash is handled to prevent stealing.

Conclusion

Fraud prevention is critical to secure your business. Following the above plans and policies in an organized manner will prevent employee theft.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers