Accounting updates occur pretty regularly. Sometimes they might be updates that don’t concern you and are regarding a particular kind of accounting treatment. Other Times, they’ll change how you draw up your accounts. If you miss these accounting changes you could be submitting wrong calculations and accounts and could end up falling into trouble with your tax authority or having to end up drawing up your accounts all over again which could cost money. So, here are some examples of recent accounting changes along with some helpful ways to ensure you keep up to date with these accounting changes.
FASB ASC 842: Our Example
Our example here focuses on the recent lease accounting update. It’s known by many as the FASB ASC 842 update although usually it’s just referred to as ASC 842 or even just 842. This recent lease accounting update dictates that the majority of businesses reporting under US GAAP must now place their lease arrangements on the balance sheet. It helps people value the business and keeps businesses transparent. If you didn’t know about this and aren’t drawing up your accounts to ASC 842 you’ll need to make a change as soon as possible. If you don’t think this applies to you it’s worth remembering that the majority of businesses in the USA have a lease of some form. Could be a place of business like a building or even a computer or machinery. Be sure you’ve kept up to date with your lease accounting updates. Chat with your accountant or be sure to use the proper lease accounting software to get where you need to be.
Keeping Up With Accounting Updates
Here are some tips on keeping up to ensure that your business doesn’t run out.
Industry newsletter
If you find a good newsletter you can subscribe to it and use it as a basis for information on accounting changes. The key here is to make sure you subscribe to a good one. If you subscribe to another one that’s bad you could end up getting the wrong information and making bad mistakes.
Accounting software
If you pick up and use the right accounting software it’ll do the hard work for you. The key here is using software that updates automatically. If you use software that doesn’t update you could end up once more filing the wrong accounts with potentially bad results. Make sure that if you use accounting software, you use reliable and good software.
Doing Your Own Accounts? Attend Training Days
If you’re doing your own accounts it’s important to attend training days. They can keep you up to date with what you should and shouldn’t be doing. Make sure you sign up for the right kind of training day though otherwise, you’ll end up spending an age listening to people talk about aspects of accounting that just aren’t relevant to you. Be careful with what you pick and you won’t waste your time and you’ll also learn what you need to know.
Join professional accounting organizations
Many professional accounting organizations offer newsletters and other resources to keep members up-to-date on changes in the accounting profession. Joining a professional accounting organization can provide a wide range of benefits for accounting professionals. Firstly, it can help to enhance your professional credibility and standing within the industry. Being a member of a recognized professional organization can demonstrate your commitment to the profession and your willingness to adhere to ethical and professional standards.
Secondly, joining an accounting organization can provide you with access to valuable resources, such as industry research, networking opportunities, and professional development events. These resources can help you to stay up-to-date with the latest trends and developments in the accounting profession and can help you to enhance your skills and knowledge.