Accounting & Finance
Special Report: How to Manage Cash Flow
No manager of a small or midsize business would argue about the wisdom of the timeworn saying, “Cash is king.” And that’s the underlying driver of any business, regardless of industry. The irony is that many managers fail to incorporate that essential commandment into their management philosophy. The proverbial bottom line is that businesses that…
Read MoreHow the Net Investment Tax Works
The net investment tax is a 3.8 percent surtax on a portion of your modified adjusted gross income (MAGI) over certain thresholds. You might be subject to it even if you manage to avoid paying significant income taxes on your investment income by using deductions and credits. Here is what the IRS says: You’re liable for…
Read MoreIt Is a Good Time to Convert to a Cloud-Based Financial System
In response to the COVID 19 pandemic, many businesses and their office operations have moved to the “remote world.” In a remote work environment, sustained access to data is crucial to continued business efficiency. Organizations fortunate enough to have received federal funds to assist during this situation—or that are in the process of applying for…
Read MoreUpdate – PPP Loan Forgiveness
Prepare to Verify Your Certification, Potential for Audit On April 28, the US Department of Treasury issued updated guidance regarding loan forgiveness. The Small Business Administration (SBA) will audit all Paycheck Protection Program (PPP) loans exceeding $2 million on submission of a loan forgiveness application. Subsequent updated guidance provides that the SBA will audit not…
Read MoreCPAs Can Help Protect Your Assets
Small business owners take note: the Association of Certified Fraud Examiners (ACFE) reports that 30 percent of all reported frauds occur at businesses with fewer than one hundred employees. And that overlooks all those businesses that never discover the fraud. Regardless of the size of your organization, a CPA can help you protect your organization’s…
Read MoreArizona’s New Limited Liability Company Act
Arizona has long had laws defining and regulating limited liability companies (LLCs) organized within the state. The first law was codified in the Arizona Revised Statutes in 1992, and it remained substantially unchanged until 2018. In 2018, the Arizona legislature enacted the new Arizona Limited Liability Company Act (ALLCA). The ALLCA will affect all Arizona…
Read MoreWill You Be Taking Advantage of the New 20% Pass-through Business Deduction This Year?
One of the most talked about changes under the Tax Cuts and Jobs Act is the new 20% deduction afforded to qualifying businesses. This deduction applies to income from pass-through entities and may provide a substantial tax benefit to individuals that qualify for the deduction. What exactly is the pass-through business income deduction? The deduction…
Read MoreDon’t let collaborative arrangements cause financial reporting headaches
Businesses often enter into so-called “collaborative arrangements” when they partner with another entity on a major project. Unfortunately, the current guidance for these types of arrangements under U.S. Generally Accepted Accounting Principles (GAAP) is somewhat vague. Here are some questions that may arise as participants report shared costs and revenue on their income statements, along…
Read MoreGAAP vs. tax-basis reporting: Choosing the right model for your business
Virtually every business must file a tax return. So, some private companies issue tax-basis financial statements, rather than statements that comply with U.S. Generally Accepted Accounting Principles (GAAP). But doing so could result in significant differences in financial results. Here are the key differences between these two financial reporting options. GAAP: GAAP is the most…
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