May 2020 Article Archives

Has Coronavirus Changed Bookkeeping Forever?

Published on May 20, 2020

The global health and economic crisis triggered by coronavirus is a heavy burden for businesses. Even those for whom remote working is possible had to solve the problem of accessing the data they need in order to stay operational.

Traditional bookkeeping software is typically installed on a dedicated computer drive, only accessible by a licensed user through a desktop application on their machine.

Now take your bookkeeper out of the office, and ask them to work from home.

Fortunately, fintech has evolved to a point that cloud accounting software resolves many of these accessibility issues. Bookkeeping software has, in most instances, been moved to the cloud, and what a relief that is in unprecedented times like these.

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Ransomware Is Now the Biggest Online Menace You Need to Worry About - Here's Why

Published on May 20, 2020

Ransomware attacks have overtaken credit card theft as the top form of cybercrime according to new data.

Ransomware attacks have become more commonplace than payment card theft incidents for the first time, as cyber criminals alter how they go about their malicious operations in an effort to gain the biggest financial reward for the least amount of effort.

Analysis of more than a trillion security events over the past year and hundreds of breach investigations by researchers at cybersecurity company Trustwave found that ransomware attacks have become the most common security incident.

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The Death of Traditional Accounting

Published on May 20, 2020

It wasn’t that long ago that people drove their cars holding a large unfolded map in one hand, glancing at it now and then to determine when to make the next turn. Today, we look back and marvel at how antiquated this everyday practice has become.

Technology has a way of doing that to us, turning the conventional into the old-fashioned. Traditional accounting is a case in point. What once was considered the optimal means of processing financial data manually using spreadsheets now seems as archaic and risky as driving with a map in one’s hand.

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FASB Proposes to Delay Leases and Rev Rec Standards Due to Coronavirus

Published on May 20, 2020

The Financial Accounting Standards Board issued a proposed accounting standards update that would delay the effective date for one year for some private companies and nonprofits in applying its leases standard, and for franchisor businesses in applying the revenue recognition standard, because of the impact of the coronavirus pandemic.

Earlier this month, the FASB board members voted remotely to propose the delay to help businesses and nonprofits trying to cope with the far-reaching impact of the pandemic.

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Congress Should Leave Accounting Standards to FASB

Published on May 20, 2020

In March, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act to help stabilize the U.S. economy in the wake of COVID-19. Included in the Act, and little noticed by the general public, are provisions that exempt companies from complying with two accounting standards issued by the Financial Accounting Standards Board. One provides “temporary relief” from required disclosures on troubled debt restructuring, while the other allows certain financial institutions to delay compliance with a new standard that improves the accounting for credit losses.

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