Eric Gerard Ruiz, CPA

By following our 10 cash flow management tips for small business operations—including not paying bills until due, utilizing a credit line, investing excess cash, establishing a petty cash fund, and determining your cash conversion cycle—you can meet short- and long-term cash requirements and optimize return on idle funds. Cash flow management is important for all…

The best accounting software for consultants includes essential features such as project-based invoicing, time tracking, and client management tailored to a consultant’s specific requirements. We evaluated several solutions to help you manage finances and stay on top of invoicing and expenses. Here are our top six accounting software for consultants: : Best overall accounting software…

The International Financial Reporting Standards (IFRS) is a set of accounting standards designed in London, UK, by the International Accounting Standards Board or IASB. US companies don’t need to use IFRS because they follow US GAAP. However, if a US business operates in countries that use IFRS, then it must comply with the local accounting…

The best multicompany accounting software for your business depends on whether you need to keep separate books for multiple organizations or consolidate those organizations into a single set of financial statements. When keeping the books for multiple organizations, it’s nice to have the ability to add multiple companies to your software without paying for each…

Artificial intelligence (AI) is slowly reshaping the landscape of the accountancy profession and accounting industry. AI pushes accountants to embrace a more strategic and data-driven role in business management, rather than the traditional routine and mundane tasks. Though AI poses a threat to job security in other fields, accounting professionals have nothing to worry about…

A compiled financial statement (FS) is a set of FS prepared by a certified public accountant (CPA) without giving any kind of assurance. Companies need to enter a compilation engagement with a CPA to have their FS compiled. Given that it’s a nonassurance engagement, the CPA will not issue any kind of opinion to the…

First-in, first-out, also known as the FIFO inventory method, is one of four different ways to assign costs to ending inventory. FIFO assumes that the first items purchased are sold first. Companies must make an assumption about their flow of inventory goods to assign a cost to the inventory remaining at the end of the…

Accounting controls are methods and procedures that prevent, detect, and correct misstatements that occur within the financial accounting process until the formation of the financial statements. They are one type of a larger set of internal controls that every business should follow. When we talk about accounting controls, we’re referring to controls within the accounting…

A reviewed financial statement (FS) is a set of financial statements that a certified public accountant (CPA) has reviewed. In a review, the CPA only performs analytical procedures and inquiries to check whether the FS has no significant modifications and is compliant with the US GAAP. Unlike an audit, reviews aren’t extensive and detailed. They…

An audited financial statement (FS) is a set of financial documents examined by an independent CPA. The audit report attached to the complete set of FS provides an opinion on whether the FS presents fairly, in all material respects, and on the company’s financial position, operations, and cash flows. It is mandatory for publicly listed…

The cash purchase price and sales price of equipment are both shown in the investing section of the cash flow statement. However, if all or a portion of an equipment purchase is financed, that portion has no cash flow effect and is excluded from the cash flow statement—but it is reported either as disclosure in…

Cash controls are a crucial component of cash management because cash—being the most liquid of all assets—is highly susceptible to theft and misappropriation. Creating internal cash controls for small businesses involves setting policies for handling physical cash and checking accounts and delegating responsibilities in keeping them. To help you, we cover 20 best practices and…