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- Oct 12
Benefits of Cloud Accounting for Dental Practices
What is cloud-based accounting? It means you keep your business books online. The information is encrypted, much like your bank’s records, so only people with the login can view the data. Cloud-based accounting also allow employees in other specialties, remote or branch offices to access the same data and the same version of the software in real-time. Dental practices face exclusive challenges, some of these challenges include cost control, multi-entity reporting, billing, an
- Oct 12
Top 5 Reasons to Hire an Accounting Firm for Your Dental Practice
Dental practice accounting focuses on serving dental professionals. We know how experienced you are at performing an extraction or identifying a cavity, but accounting may not be the most exciting part of your day-to-day at your practice. At CPA by Choice, we understand your industry, many of our clients own/manage dental practices. There are many reasons why you should hire an accounting firm, here are the Top 5: You Have an Entire Team Managing your Finances We understand t
- Oct 7
Celebrating 20 Years of CPA By Choice
A message from our Founder & CEO, Peter Yu: This year marks a very special year for CPA By Choice as we celebrate our 20th anniversary. As the proud CEO, I started CPA By Choice back in 2002 with a vision of being a comprehensive accounting, advisory and consulting firm that can provide a total financial management solution for our various clients. This milestone anniversary represents a time of reflection of both our early days, as well as the reaffirmation of our vision for
- Sep 14
The Major Differences Between In-house Audits and External Audits
Both internal and external audits help organizations ensure that their financial reporting is aligned with accounting principles, that internal controls are working correctly, and that the organization is in compliance with relevant laws and regulations. Below we discuss several differences between in-house audits (internal) and external audits. Definition, Appointment, and Reporting An internal audit checks a company's internal controls, corporate governance, and accounting
- Aug 31
Cash vs. Accrual Accounting: What’s Best for Your Small Business?
As a small business owner, choosing between the cash basis method of accounting and the accrual basis method of accounting to track revenues and expenses is one of the most important financial decisions you have to make. The difference between cash basis and accrual basis is the timing of when transactions are recorded in your books. If you use the cash basis, you recognize transactions when cash is exchanged. If, on the other hand, you use the accrual basis, you recognize tr
- Jul 21
Basics of eCommerce Accounting
The eCommerce business model is not simple, it involves inventory management, understanding marketing spend, ever-changing digital market trends, basket sizes, understanding state taxes, amongst many other factors. eCommerce businesses need great accounting in order to understand how the business is doing financially, to make data-driven decisions, and to remain compliant with the IRS. Good accounting can help you grow your business, bad accounting could lead to failure of yo
- Jul 13
Accounts Payable and Accounts Receivable 101
As a business owner, you have probably heard the terms Accounts Payable (AP) and Accounts Receivable (AR). The definition of these terms in the accounting books can cause confusion. To keep it simple: accounts payables are obligations, money that your business owes, while accounts receivables is money that is owed to you. We will guide you through the basics of AR and AP: what they are, some examples, sample scenarios, and why they’re important. Accounts Payable Accounts Paya
- Jun 21
Common Bookkeeping Mistakes Small Business Owners Make
Bookkeeping is a significant part of any business enterprise. It is known for being a tedious task, mostly because business owners would rather spend their time in other areas of the business, but a necessary practice to keep your business successful. Here are five of the most common bookkeeping mistakes small business owners make when approaching their company’s finances: Mixing Business and Personal Bank Accounts. Not having separate bank accounts for personal and business
- Jun 8
How Hiring an Accountant Could Save Your Business
According to the Small Business Administration (SBA), 20% of businesses fail in the first year. In addition to this statistic, only about half of small businesses survive pass the five-year mark and only 1 out of 3 will get to the 10-year mark. Some of the reasons that small businesses fail are: bad business plan, lack of financing and/or financial mistakes, and rapid expansion. As a business owner, how much time do you have in daily business operations to actually do the thi
- May 12
Services Undertaken by Your Outsourced Accounting Firm
You are a busy business owner and accounting responsibilities can be cumbersome. Outsourcing accounting services is a way of freeing up your time to focus on growing your business. One of the main reasons small to mid-sized businesses outsource accounting functions is to save money. What services can you outsource through your accounting firm? We’ll share some of those services with you, services we provide at CPA by Choice. Accounting and Finance Consulting You don’t have to
- Mar 31
What to Know About Accounting When Starting a New Business
Accounting is the process of recording, maintaining, and communicating financial transactions pertaining to a business. Your small business depends on good accounting. Without accounting, you won’t be able to keep track of your business, you won’t know whether it is successful or not, and you will likely have difficulty when it’s time to file income taxes. You will also have a difficult time attaining bank loans and investors, because they often require detailed financial inf
- Feb 23
How to Clean Your Accounting Records with These Simple Steps
Running a business is not an easy task. You are managing inventory, employees, customers, marketing, partnerships… the list goes on and on and on. At CPA By Choice we recognize the time and effort that YOU put into your business, therefore we want to ensure your bookkeeping and accounting records are receiving the attention it needs. Business owners’ busy schedules often cause accounting records to be overlooked. Organized accounting records have a positive impact on your bus
- Feb 3
Ways to Survive a Cash Flow Crisis
Cash flow measures the net amount of cash and cash equivalents coming into and going out of a business over a set period of time. It indicates the financial health of your business by showing how much cash your business has on hand. If the pandemic has taught us anything, it is that as business owners, you may have the best-prepared plans and the unpredictable happens. As a result of the unpredictable, your business may take a hit that makes cash flow harder to come by. Here
- Dec 14, 2021
Do You Need a Business Credit Card?
As a small business owner, deciding on whether your company needs a credit card can be difficult. You may be concerned about interest payments, penalties, and annual fees, as well as the time and effort it takes to apply. However, for most businesses, having a company credit card can be a major asset to help operate and expand the business. When used properly, a small business card can help mitigate cash flow issues, keep personal and business finances separate, and boost a c
- Oct 20, 2021
Accounting Practices that will Add More Time Back to your Business
We hear it quite often from business owners that they wished they had more hours in the day, or that time is the one thing they wish they could buy. The following accounting practices will not only help you add more time back to your business but they will also result in cost reduction strategies, after all Time is Money. Separate Business and Personal Expenses A common mistake new business owners make is using their personal bank account to fund business needs. It is not unc
- Oct 14, 2021
5 Ways to Prevent Expense Fraud
The Association of Certified Fraud Examiners (ACFE) defines expense fraud as a fraudulent disbursement scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses. Common types of expense fraud include: Mischaracterized expenses: an employee submits a personal expense for reimbursement as a business expense. Overstated expenses: an employee submits a claim for a legitimate expense but increases the amount. An example of this can be
- Sep 24, 2021
Understanding and Analyzing Financial Statements
Financial statement analysis is the process of analyzing a company's financial statements for decision-making purposes. As a business owner, knowing how to analyze financial statements will allow you to assess your company’s strengths and weaknesses, and determine the overall financial position of the company. There are various techniques available to analyze financial statements. Ratio analysis is the most widely utilized technique. Ratio analysis measures the proportional r
- Sep 22, 2021
Budgeting & Forecasting for Small Businesses
A budget is a dynamic, detailed plan of operations used to outline a company’s anticipated revenue and expenses for an upcoming period of time. A financial forecast is an estimate of a company’s future performance based on current and historical information. A budget is a roadmap that outlines where management wants to take the business. A financial forecast tells you whether your company is reaching its goals and where it is heading. As a business owner, the success of your
- Aug 25, 2021
Tips on Effective Debt Management for Business Owners
Debt is a necessary part of running a business. A business loan, line of credit or a business credit card can help your company hire new employees, purchase inventory, purchase equipment, and finance growth. However, too much debt can stand in the way of your business objectives and become an unsustainable expense. As such, managing debt is vital to sustaining your business operations and credit rating. If you find yourself unexpectedly further in debt than you'd like, here a
- Aug 18, 2021
Management Accounting: How to Make Better Decisions and Improve Profitability
Management accounting is the process of identifying, measuring, analyzing, and interpreting accounting information to be used by business leaders in making informed operational decisions and achieve business goals. As a business owner, you are in a position where every decision you make could impact your company’s bottom line. As such, it is important to make educated decisions in order to drive your company’s financial performance. Here are 3 steps you can take to help you m