December 2020

Breaking News

A Better Way to Gauge Profitability

EXECUTIVE SUMMARY Return-on-equity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The “advanced” version of the DuPont model remedies the original model’s failure to cleanly separate the effects of operating and financing...

TAX

The COVID-19 era: Planning for the year end and beyond

Tax-savvy and risk-averse strategies come to the fore.

TAX

Business tax quick guide — tax year 2020

Download or print this quick guide for use during tax season, and look for our quick guide for individual taxpayers in the January 2021 issue.

MANAGEMENT ACCOUNTING

Capex risk management during the coronavirus pandemic

The coronavirus pandemic has disrupted companies’ capital project plans, not only this year but most likely for the foreseeable future. This five-step risk-modeling approach can help finance leaders identify company vulnerabilities and capital expenditure opportunities.

MANAGEMENT ACCOUNTING

When factoring receivables can help SMEs improve cash flow

Small businesses may be able to solve cash flow problems by factoring their receivables, then selling them to a financial institution at a reduced price for cash upfront. Here’s how to find out if the strategy makes sense.

FINANCIAL REPORTING

Standard setters focus on costs vs. benefits, ‘big three’ projects

FASB Chair Richard Jones, CPA, and GASB Chair Joel Black, CPA, describe their visions and priorities in this Q&A.

PRACTICE MANAGEMENT

Help interns grow their emotional intelligence

Accountants need soft skills as well as technical acumen to succeed in the profession. Discover some easy-to-implement ways to help interns increase their emotional intelligence.

TECHNOLOGY

Data preparation for CPAs: Extract, transform, and load

ETL tools can help accountants streamline the process of preparing data for analysis and aid in better decision-making.

ADVERTISING SUPPLEMENT

Ask the expert: Tax planning

Karla D’Alleva Valas leads Fidelity Charitable’s adviser success strategy focused on CPAs who prioritize charitable planning as integral to their practice. Previously, she led the Complex Asset Group, a team of attorneys working with CPAs to facilitate charitable donations of appreciated private company stock and other nonpublic assets.