To ensure your financial reporting is accurate, you need to have clear processes and procedures for recording and verifying revenues, expenses, assets, and liabilities. Keeping in line with these rules is called compliance. Although there are many sources of accounts and finance regulations and laws, we’ll discuss two of the primary ones in this article.
A company’s general ledger (G/L) is a comprehensive record of all your accounting transactions. Whenever a transaction is made, that transaction is recorded in the general ledger. Each journal consists of a debit to one account and a credit to another.
CFOs bridge the gap between technical financial information and business strategy. Most CFOs have a deep understanding of accounting and finance, yet also be an adept manager. They typically have an extensive background in these functional areas, as well as qualifications such as a CPA license or CFA designation.
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) stated that internal controls are “designed to provide reasonable assurance of the achievement of objectives” in the following three areas:
As your company grows, things get complicated. More cash is coming in, which is good — but understanding what is really happening within your company’s walls and planning for the future can be more complex.
