External Auditing of Financial Statements: Its Importance to Your Company and Business

Do you have your own company? Do you prepare financial statements for tax, loans and other compliance purposes? If yes, then you may already experience appointing a C.P.A. (Certified Public Accountant) to audit your financial statements. According to GAAS (Generally Accepted Auditing Standards), auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. Read more

How to Compute Profit for a Service Provider Company

A service company is one that sells services to its clients. Different from manufacturing and trading companies, it provides services or works of labor rather than tangible products to its customers. Accounting firms, law firms, schools, janitorial and hotel companies are some of examples of service provider companies. As the operation of this kind differs from the others, the computation and preparation of its statement of operation also differs. Since a service company sells services, we need to compute its cost of services, as computing cost of goods sold in a manufacturing and trading firms which sells goods to its costumers. But in all kind of firms, we compute direct and indirect costs to determine gross and net profit.

The revenues of a service company consist of all its receipts and receivables from rendering services during the period less all refunds associated from them. Unearned revenues collected during the period are not included because they are not related to the services rendered during the period. This concept is called accrual basis. Read more

Business future predictions: What businesses and industries will boom and rise in 2009 and the coming years?

As the year 2008 is saying goodbye and the New Year 2009 is entering, I give to you my bold predictions on what businesses and industries will rise in 2009 and the few years ahead.

1. Biotechnology

Biotechnology is technology based on biology. The future ahead promises growth in the industry of genetics, molecular biology, bio chemistry and cell biology.

2. Nanotechnology.

With the popularity of Apple’s Nano Ipod in 2008, nanotechnology will revolutionize in 2009. This industry will not only rise in the application of electronics but also in medicine. Read more