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1. Analyzing liquidity using the cash conversion cycle  

BY Corey S. Cagle, CPA, CGMA, Ph.D., Sharon N. Campbell, CPA, DBA and Keith T. Jones, CPA, Ph.D.
A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy. FASB describes liquidity as reflecting “an asset’s or liability’s nearness to cash” (Statement of Financial Accounting Concepts No. 5, Recognition and Measurement in Financial Statements of Business Enterprises).

2. Treasury basics for an overseas expansion  

BY Brad Hardy, CPA and Ken Tysiac
Understanding regulatory requirements and standard operating procedures in international locations is essential for domestic corporations expanding into overseas markets. The following tips, compiled by Wells Fargo’s international banking division, can help companies establish an effective global treasury policy: Consult with key advisers early. Draft the overall scope and plan for international expansion with the help of tax advisers, bankers, legal consultants, and IT experts.

3. Three common currency-adjustment pitfalls  

BY Scott L. Spencer, CPA and Glenn E. Richards, CPA
Although the rules on accounting for foreign-currency translations have not changed in many years, mistakes in this area persist. Such mistakes can result in misstatements in financial reporting, hurting the bottom line, creating false understandings of business results, and exposing companies to possible regulatory scrutiny. A key factor raising the stakes in foreign-currency reporting is the fact that U.S.

4. How to Manage Fluctuations in Foreign Currency Rates  

BY Pam Heye, CPA
Managing the P&L and cash flow impacts related to foreign exchange exposures can appear daunting. The following steps, while not all-inclusive, make this task easier: Develop a foreign currency policy and procedure. Include the company goals related to foreign exchange management, types of derivatives that may be employed, and personnel authorized to execute transactions.

5. CPAs Can Help Builders Increase Profits, Cash Flow  

BY Michael J. Otis, CPA
At a time when the construction industry is faced with unprecedented economic conditions, companies must do everything possible to remain profitable and maintain positive cash flows. Consider the following tips to help your clients in this industry: Take every available tax credit. These include, for example, various Enterprise Zone tax incentives, credits and deductions for placing in service energy-efficient properties, and taking advantage of cost segregation.

6. Best of Both Worlds?   CPEDirect

BY Ellen D. Cook, Dan R. Ward and Suzanne Pinac Ward
Over the past several years many companies pursued extremely aggressive growth, resulting in an accumulation of fixed assets on balance sheets. Many of these assets (especially land and buildings) have enjoyed an unprecedented appreciation in value. However, the current recession and accompanying credit crunch have caught some companies in a crisis of having to raise cash or face going out of business.

7. Optimizing Company Cash: A Guide for Financial Professionals  

BY Paul Bonner
by Michèle Allman-Ward and A. Peter Allman-Ward AICPA, 2007, 271 pp. Cash flows, liquidity, the banking system and other touchstones of business finance are laid out in this comprehensive and easy-to-follow guide to cash management, with copious exhibits and examples. Of particular interest to practitioners in this increasingly specialized field are the many points at which the husband-and-wife authors distinguish cash metrics from those of accountants and managers.

8. Golden Business Ideas  

BY Stanley Zarowin
The Right Way to Use PowerPoint Do you use PowerPoint, the Microsoft presentation software, to make sales pitches for new clients? Or do you use it, as a consultant would, to lay out in-depth analyses in an effort to convince a client or your boss to adjust complex business strategies? If you use it for the former task—as a persuasion tool to highlight major talking points—then you’re using it to its best advantage.

9. Maximize Your Global IP  

BY Michael W. Hardgrove, Alex Voloshko
EXECUTIVE SUMMARY MULTINATIONAL COMPANIES NEED TO PLAN for issues involving identification, use, reporting and valuation of their intellectual property (IP) in order to avoid misdirecting internal investments or depriving their international business units of the use of such intangible assets. CPAs CAN ASSIST BUSINESSES in planning IP strategies by using a four-step process: Identify IP and demonstrate how effectively managing it can help a company achieve strategic business objectives, develop alternatives for structuring business functions and risks, develop a strategy for aligning risks and functions with ownership of IP within the company,

10. Recovery of Embezzled Assets Half a World Away  

BY Marc A. Siegel
EXECUTIVE SUMMARY THE FIRST STEP IN A FORENSIC INVESTIGATION is to gather as many details as possible about the facts of an alleged misappropriation. But CPAs need to be systematic to guard against “information overload,” which can lead to important factors being overlooked. CPAs, INVESTIGATORS AND ATTORNEYS need to develop a work plan and pool what they learn about the core facts every day.
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