You set up your franchisor Company, filed your FDD, and ready to start selling? Great, congratulations! Here’s what you need to know about franchisors’ accounting. When it comes to the world of franchising, there are many different aspects to consider in order for both the franchisor and franchisee to be successful. One area […]
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New Standard You have probably heard about the ASC 842 new lease accounting standard issued by FASB, and you’re probably not sure what it is and how to implement it. If you are a small business owner who only leases an office space, read on, this is for you. The new standard governs how
As a mortgage broker, staying compliant with the Industry regulatory requirements is of utmost priority. Failure to maintain documents and good standing might result in suspension, license withdrawal, and other regulatory sanctions, which isn’t good for business. One of the ways to stay compliant is by submitting an annual financial statement with the NMLS 90
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The Federal Housing Authority FHA credit policy requires mortgage lenders to submit an audited statement and meet the HUD compliance requirements. Maintaining the required documentation and fulfilling the audit requirements allows you to continue offering lending services. Audit requirements for FHA lender’s approval Submit audited financial statements for the previous fiscal year’s end.
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The Auditing Standards (SAS) 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, aims to establish a more transparent audit process. The SAS 134 was issued by the American Institute of Certified Public Accountants (AICPA) as a replacement for Section AU-C 700, forming an Opinion and Reporting on Financial
What are Not-for-profit Audits SAS 134 Standards? Read More »
The growth of a not-for-profit organization requires a commitment to fulfilling certain obligations. One of those obligations is conducting a regular not-for-profit audit. There are different audit requirements based on annual revenue, state, and methods of incorporation. Constitution Requirements Sometimes, the Not-for-profit bylaws might require you to conduct annual or regular financial statement
What are Audit Requirements for Not-For-Profits? Read More »
What you need to know A not-for-profit relies on maintaining good financial standing and transparency to continue receiving donations. A financial statement and annual return is a scorecard to show your organization’s credibility and financial integrity. Therefore, it’s essential to understand what document to file to avoid sanctions. What is a Not-for-profit Financial
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Is your Not-for-profit preparing for a financial audit? Here’s a list of frequently asked questions. What is an independent audit of a not-for-profit? An independent audit for a Not-for-profit occurs when an external auditor – mostly a CPA firm – conducts a financial audit of your accounting practices and records. What are
Not-for-profit Financial statement audit: Frequently Asked Questions Read More »
A successful financial statement audit is vital for not-for-profit organizations to continue receiving donations. Proper preparation will guarantee a seamless process for the independent auditor and staff involved. How to prepare for not-for-profit Audits Preparing for an audit will save you the cost of extending the audit past the agreed duration. Prepare for
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A Not-for-profit audit is a critical appraisal of the financial health of your organization and requires a final verdict from the auditor. On the other hand, a not-for-profit conducts a review to ascertain the credibility of your financial statement. Grantors, stakeholders, and government agencies use both documents to determine your organization’s credibility. Cost of
Not-for-profit Audit vs. Review: Key Differences Read More »
Why you need a financial statements audit? The ultimate goal of all franchisors is to expand their franchise by selling franchises to the prospective franchisee. However, a franchisor must meet FTC requirements and provide annual Franchise Disclosure Documents (FDD) to sell franchises in the United States. The FDD is a disclosure document that contains
What is a Franchisor Audit Read More »
Contributions Classification To account for contributions, the NFP entity first need to determine if the contribution or promise to give is conditional or unconditional. A promise to give is a written or oral agreement to contribute cash or other assets to other entity. The promise to give can be: Unconditional; recognize as revenue in
Accounting for Not-For-Profit Conditional Vs Unconditional Contributions Read More »
Revenue Resources and related Accounting Guidance Most of the NFP (Not-For-Profit) entities have 2 sources of income/revenue. The first source is contribution revenue collected from grants/contributions/donations and fund-raising events. The second source of revenue is exchange income (earned income) such as membership fees, tuition, registration fees, and sold goods/services. Contributed income is accounted for
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The ultimate goal of any business is profitability and growth. However, managing a franchise scattered across different locations and with different franchisees, each having unique experiences, can be daunting. Subsequently, it’s possible to lose track of the financial health of the business franchise, which will affect the productivity of your franchise network. Maintaining an up-to-date
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The franchise rule set by the federal trade council states that a franchisor looking at selling or offering a franchise must provide a franchise disclosure document (FDD). The FDD contains a series of 23 items that cover different areas of the franchise business. Item 21 is one of the critical sections, and it holds Financials
What’s the new franchisor financial statement phase-in process Read More »
The FDD is a document containing 23 items mandated by the Federal Trade Council (FTC) for all franchise owners to provide during the franchise evaluation process. Franchisors must provide a franchise disclosure agreement (FDD) to assist a franchisee in making an investment decision on a franchise business, As part of the requirements, the franchise owners
What is Article 21 of the Franchise Disclosure Document? Read More »
The success of a franchise business is mainly dependent on the franchisor’s ability to maintain compliance across all franchises. However, franchisees often stray from laid down agreements which pose a risk to the integrity and financial health of the franchise network. As a franchisor, it’s important to arm yourself with a tool to monitor, measure
What is a Franchise Audit? Read More »
As a franchise owner looking at offering a franchise, a franchise disclosure document is a mandatory requirement. Although this process is free at the federal level, franchise registration states require franchisors to register their FDD with the franchise regulator. Asides from the uniform registration requirements, each state on the franchise registration map has additional requirements
What are the Steps to Register a Franchise Disclosure Document? Read More »
If you want to start a franchise, familiarizing yourself with the FTC rule is essential. The Federal Trade Commission (FTC) requires franchisors to provide financial statements as part of the item 21 Franchise disclosure document at least 14 days before a franchisee signs any agreement. Failure to provide the proper documents attracts strict sanctions as
What are the FDD Financial Statement Requirements for a Franchise? Read More »
A franchise audit is an appraisal of a franchise’s business financial health by either an external, internal, or independent auditor. Furthermore, an audit gives a snapshot of the franchise’s assets, liabilities, and financial health. An audited financial statement is part of the item 21 franchise disclosure document, and you must get a good verdict to
What are the 4 Levels of Audit Opinions? Read More »
