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Accounting Firm For Trump Media Has Audit Deficiency History

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By Lydia Beyoud, Nicola M. White, and Amanda Iacone, Bloomberg News (TNS)

Donald Trump’s social-media company just became the most valuable publicly traded client of an accounting firm that has more experience auditing companies traded over-the-counter and has had a string of regulatory issues, including a 100% deficiency rate on audits reviewed by a U.S. watchdog.

Trump Media & Technology Group Corp. said in recent regulatory filings that it will keep BF Borgers, a Lakewood, Colorado-based accounting firm, as its auditor after starting to trade publicly late last month. A Canadian regulator said last year that BF Borgers violated its rules for auditors, while the U.S.’s Public Company Accounting Oversight Board found multiple deficiencies in every audit it reviewed from the firm over the past two annual checks.

Closely held companies often retain audit firms after going public through mergers with blank-check companies. But most of BF Borgers’s clients, such as Lingerie Fighting Championships Inc., a mixed martial arts league, are significantly smaller than Trump’s media business. Its deficiency rate from the PCAOB was worse than the industry rate of 40% in 2022, and the December enforcement action from Canada’s audit regulator prevents it from accepting new clients in that country until it makes certain improvements.

A representative for BF Borgers didn’t respond to multiple requests for comment.

Trump Media said in a statement that articles about BF Borgers’s record were partisan and “preemptively attacking our auditors before they’ve even begun their work for us as a public company.”

TMTG has used the firm since 2022 as it sought to go public by merging with Digital World Acquisition Corp., a special purpose acquisition company. PCAOB inspections haven’t yet covered BF Borgers’s audits of Trump Media.

Trump owns most of TMTG’s stock, and its listing on the Nasdaq netted the former president a multibillion-dollar windfall. After a surge in its share price the company is now valued at roughly $5 billion. Shares in the company fell 10% to $36.52 at 1:04 p.m. in New York on Monday.

Audit Report Card

Small or foreign audit firms often have high deficiency rates, and are typically only examined every three years by PCAOB inspectors. However, BF Borgers is a prolific auditor with more frequent examinations. Last year, it ranked No. 8 on a list of audit firms with the most publicly traded clients, with just nine fewer clients than midtier firm BDO USA, according to research firm Ideagen Audit Analytics. Among the 10 busiest auditing firms, Withum Smith+Brown had an 80% deficiency rate and BDO had a 66% rate in 2022, according to the audit regulator.

About 84% of BF Borgers’s clients were traded over-the-counter, meaning they don’t meet the listing requirements of large exchanges. Less than 30 traded on either the Nasdaq or the New York Stock Exchange, according to Ideagen.

The PCAOB said that BF Borgers more than doubled its clients between 2019 and 2021. But the company didn’t add more staff to handle the additional workload, the PCAOB said in an expanded inspection report, noting that just one person was responsible for 147 audits.

Deficiencies Found

Congress created the PCAOB to oversee the work of auditors and restore investor confidence in corporate accounting, tapping the Securities and Exchange Commission to appoint its members. The regulator’s inspections look at a small sample of client audits. They measure whether auditors had sufficient evidence to back up their assessments of companies’ financial statements, providing a performance gauge for corporate directors and investors.

Negative findings from the regulator indicate flawed processes or technical violations of the board’s rules.

The Washington-based audit regulator found problems with the firm’s testing procedures for bedrock measures such as revenue and accounts receivable, among other issues.

In 2022, the PCAOB placed a two-year ban on one of BF Borgers’ audit directors for failures on the audits of Chineseinvestors.com Inc., United Cannabis Corp. and China Pharma Holdings Inc. China Pharma’s shares are down 99% in the past three years.

With assistance from Bailey Lipschultz.

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©2024 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency LLC.

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Documenting Bookkeeping Processes and Procedures

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Documenting Bookkeeping Processes and Procedures

In today’s fast-paced business world, having clear and organized documentation for your bookkeeping processes is more important than ever. Whether you’re running a small business or managing the finance team of a growing organization, well-documented bookkeeping procedures help maintain consistency, reduce errors, and ensure smooth financial operations. From training new employees to passing audits with ease, proper documentation is a key part of strong financial management. This guide explores the best practices for documenting bookkeeping processes and how it can support your business’s long-term financial health.

Why Documenting Bookkeeping Processes Matters

Creating detailed bookkeeping documentation helps ensure that every task, no matter how small, is performed consistently. It provides a reference point for team members and serves as a safeguard against the loss of institutional knowledge. Without it, businesses risk financial disorganization, mistakes in reporting, and delayed month-end closings. Solid documentation also simplifies training, allowing new hires to get up to speed faster and with fewer questions.

Create a Central Bookkeeping Manual

Start by building a centralized bookkeeping procedures manual. This should be a master document that outlines all your financial processes in one place. Include a detailed table of contents to make navigation simple, and break the manual into clearly labeled sections for tasks like bank reconciliations, accounts payable, payroll, and tax reporting. A centralized manual becomes the go-to resource for any bookkeeping-related question.

Use Visual Aids for Clarity

Not everyone learns by reading paragraphs of instructions. That’s where flowcharts and visual aids come in. Use diagrams to map out processes such as invoice approvals, payroll workflows, or monthly closing checklists. Visual aids make it easier to understand the steps involved and how different roles or systems interact. For team members who are new or unfamiliar with a process, these visuals can dramatically reduce confusion.

Document Daily, Weekly, Monthly, and Yearly Tasks

Break your bookkeeping responsibilities into routine timeframes. Clearly list which tasks must be done daily (like updating cash receipts), weekly (such as entering bills), monthly (like closing the books), and annually (including tax filings and 1099 issuance). For each task, include step-by-step instructions and examples when possible. Using screenshots from accounting software can also help clarify what specific steps look like in action.

Be Detailed but Simple

When writing instructions, use clear, simple language. Avoid technical jargon unless it’s necessary, and always explain terms that someone new might not understand. Write your documentation at a 10th-grade reading level so that it’s accessible to everyone on your team. Assume that the reader knows nothing about the task and guide them through the process like a tutorial.

Keep a Standard Format Across All Documentation

Use a consistent format and style throughout your documentation. This means applying the same headers, fonts, bullet styles, and terminology across all sections. Consistency makes the documentation easier to read and helps users find information quickly. It also helps when you need to make updates or train team members using multiple sections of the guide.

Include Technology and Software Instructions

Because most bookkeeping is now handled with accounting software, it’s essential to include documentation for the systems you use. Explain how to log in securely, run reports, handle backups, and connect software with banks or third-party tools. Document how systems like QuickBooks, Xero, or payroll platforms are used in your workflow. Be sure to include troubleshooting tips and contact information for software support if needed.

Schedule Regular Reviews and Updates

Your financial processes will evolve as your business grows. To keep your documentation useful and relevant, set a schedule to review and update it regularly—at least once every quarter or twice a year. During these reviews, check for outdated procedures, changes in regulations, or software updates that affect how tasks are done. Encourage your team to provide feedback if they notice anything unclear or missing in the documentation.

Make Documentation Easily Accessible

It’s important that your team can access the documentation easily, whether it’s stored on a shared drive, intranet, or document management system. Don’t let it sit buried in an email folder or personal computer. Assign someone to be responsible for maintaining the documentation and ensuring everyone knows where to find it.

Build a Culture of Documentation

For documentation to be truly effective, it needs to be part of your organization’s culture. Encourage all finance and accounting team members to document their processes and contribute to improving procedures. Make it a habit to update instructions anytime a process changes or a new one is introduced.

Documentation Is a Tool for Growth

Documenting your bookkeeping processes isn’t just a best practice—it’s a smart strategy for financial organization, accuracy, and efficiency. It supports continuity, improves training, and helps your business run smoothly even during staff transitions or periods of growth. With clear and updated documentation, your business will be better prepared to handle audits, close the books on time, and make informed financial decisions. Investing time in creating strong bookkeeping documentation pays off with fewer mistakes, faster processes, and a more confident team.

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Mark Cuban is The Maverick Entrepreneur Changing Business and Beyond

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Mark Cuban's journey embodies the American entrepreneurial spirit

From selling garbage bags door-to-door as a child to becoming a billionaire tech pioneer and beloved “Shark,” Mark Cuban’s journey embodies the American entrepreneurial spirit. His straight-talking approach and business acumen have made him one of the most recognizable business figures of our time.

Early Life and Education

Born in Pittsburgh on July 31, 1958, to working-class parents, Cuban learned the value of hustle early. His grandfather, a Russian immigrant, sold merchandise from the back of his car—perhaps planting the entrepreneurial seed that would define Cuban’s future.

After graduating from Indiana University in 1981 with a degree in business, Cuban didn’t follow a traditional career path. Instead, he moved to Dallas with just $60 in his pocket, sleeping on the floor of a friend’s apartment while working as a bartender.

Building His Fortune

Cuban’s first major success came in 1990 when he sold his computer consulting firm, MicroSolutions, for $6 million. However, his true financial breakthrough arrived during the internet boom of the 1990s. Cuban and his business partner Todd Wagner founded Broadcast.com, an internet radio company that streamed audio of sports events and other content.

In 1999, Yahoo acquired Broadcast.com for $5.7 billion in stock—a deal that instantly made Cuban a billionaire and cemented his place in tech history.

The Dallas Mavericks Era

In 2000, Cuban purchased a majority stake in the NBA’s Dallas Mavericks for $285 million. Under his passionate and sometimes controversial leadership, the team transformed from a struggling franchise into NBA champions in 2011.

Unlike traditional team owners, Cuban sits courtside at games, openly criticizes referees, and maintains close relationships with players. His hands-on approach revolutionized NBA ownership culture and turned the Mavericks into a billion-dollar franchise.

Beyond Business: Media and Philanthropy

Cuban’s charismatic personality made him a natural fit for television. Since 2011, he has been a main investor on ABC’s “Shark Tank,” where his no-nonsense approach and investment savvy have helped launch numerous successful startups.

Behind the public persona lies a dedicated philanthropist. The Mark Cuban Foundation supports various causes, including entrepreneurship programs for at-risk youth and research into treating rare diseases. Following the COVID-19 pandemic, Cuban launched Cost Plus Drugs, aiming to dramatically reduce prescription medication prices for millions of Americans.

Looking Forward

Today, Cuban continues to disrupt industries through his forward-thinking investments in AI, cryptocurrency, and healthcare. Despite his billions, colleagues describe him as remarkably approachable and genuinely passionate about helping entrepreneurs succeed.

Cuban remains focused on making healthcare more affordable through Cost Plus Drugs and exploring new frontiers in digital technology. His commitment to transparency in business practices and creating opportunities for others forms the cornerstone of his ongoing legacy.

For aspiring entrepreneurs, Cuban’s advice remains consistent: follow your passion, outwork the competition, and always be learning. As he often says, “Work like there is someone working 24 hours a day to take it all away from you.”

Mark Cuban’s journey from selling garbage bags to building a multi-billion-dollar empire proves that with determination, innovation, and a willingness to challenge the status quo, extraordinary success is possible.

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Technology

Quantum Computing is Transforming Industries, Security, and Future Technologies

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Quantum Computing is Transforming Industries, Security, and Future Technologies

Quantum computing is rapidly emerging as one of the most transformative technologies of the 21st century. Unlike classical computers, which use bits to process information as either 0s or 1s, quantum computers leverage qubits, allowing them to exist in multiple states simultaneously. This property, known as superposition, along with entanglement and quantum tunneling, enables quantum computers to solve complex problems exponentially faster than traditional systems. As this technology advances, industries across the board are exploring its potential to revolutionize computing, security, and data processing.

Real-World Applications of Quantum Computing in Industries

Several industries are already benefiting from quantum computing’s capabilities. In healthcare, quantum algorithms are accelerating drug discovery by simulating molecular structures at an unprecedented scale, significantly reducing the time required for pharmaceutical research. Financial institutions are leveraging quantum computing to optimize trading strategies, portfolio management, and risk assessment. In manufacturing, quantum simulations enhance material science, leading to the development of stronger and more efficient materials. The logistics sector is also utilizing quantum computing to optimize supply chain management, reducing operational costs and improving efficiency.

Key Developments from Tech Giants in Quantum Research

Leading technology companies such as Google, IBM, Microsoft, and Intel are at the forefront of quantum computing research. Google made headlines with its claim of achieving quantum supremacy in 2019 when its quantum processor completed a calculation in 200 seconds that would take a classical supercomputer thousands of years. IBM continues to advance its quantum computing roadmap with cloud-accessible quantum computers and the development of a 1,000-qubit processor. Microsoft is investing heavily in topological qubits, a novel approach aimed at creating more stable quantum processors. Meanwhile, Intel is working on silicon-based quantum chips, striving to make quantum computing more scalable and accessible.

Quantum Cryptography and Its Potential to Redefine Security

As quantum computers advance, they pose a significant threat to current encryption methods. Traditional cryptographic techniques, such as RSA and ECC encryption, rely on the difficulty of factoring large numbers, a challenge that quantum computers can overcome almost instantly. Quantum cryptography, particularly quantum key distribution (QKD), offers a solution by leveraging the principles of quantum mechanics to create theoretically unbreakable encryption. Governments and cybersecurity firms are actively researching post-quantum cryptographic solutions to safeguard sensitive data against potential quantum attacks.

Challenges in Scaling Quantum Technologies

Despite its immense potential, quantum computing faces several challenges before it can become widely adopted. One of the biggest hurdles is qubit stability, as qubits are highly sensitive to environmental disturbances, leading to errors in computations. Error correction mechanisms are still in their early stages, requiring significant advancements before quantum computers can handle large-scale, practical applications. Additionally, quantum hardware is expensive and requires extreme cooling conditions, making commercialization difficult. Researchers and tech companies are actively working on solutions to address these challenges, but widespread implementation remains years, if not decades, away.

Conclusion

Quantum computing is poised to revolutionize industries by solving complex problems beyond the reach of classical computers. From pharmaceutical research and financial modeling to secure communications and logistics optimization, its applications are vast and transformative. However, challenges related to scalability, stability, and cost must be addressed before quantum computers can become mainstream. With continued advancements from tech giants and research institutions, the future of quantum computing holds immense promise, paving the way for groundbreaking innovations in computing and security.

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