While many businesses hire accountants when tax season comes around, too many overlook the year-round benefits that accountants can bring to the table. In reality, accountants can help grow your business in a variety of ways including strategic financial planning, legal structure evaluation, cash flow efficiency, debt management, and of course, tax planning. Strategic Financial Planning  Almost all successful growing businesses have one thing in common – a strategic financial plan. While this may be something you’ve pushed off or put on the back burner, strategic financial planning can si ..read more

In the early spring of 2020, many people were forced to make tough decisions regarding their living situations because of the COVID-19 pandemic. While many of these decisions were intended to be short-lived, this has not been the case for many. As the pandemic continues to drag on much longer than most expected, questions have begun to arise surrounding the potential effects on next year’s taxes. Who Could be Affected? Many people decided to move at the start of the pandemic, whether it be for financial, medical, or social reasons. One of the most common reasons for moving was the shift to rem ..read more

Tax and phishing scams have always been a risk for consumers, with the evolution of the internet constantly changing these scammer tactics. In recent years, these unethical tactics are becoming increasingly difficult to identify, resulting in many unsuspecting consumers paying the price – some without even realizing it.  Background on Tax and Phishing Scams According to Experian, 40% of consumers have been targeted for a scam at some point in their lives. While this number may seem shockingly high, these numbers are expected to continue rising as internet usage increases across generation ..read more

Over the last few months, there has been a hot debate surrounding the Paycheck Protection Program (PPP) Loan Forgiveness. The American Institute of CPAs (AICPA) made an official statement in early August following over 170 trade organizations and businesses speaking up. The AICPA joined forces in a letter to Congress, supporting expense write-offs related to loan forgiveness under the PPP.  Letter to Congress Supporting the Reversal of IRS Notice 2020-32 In early August, the AICPA partnered with over 170 organizations including the National Retail Foundation, International Franchise Assoc ..read more

Last week, the U.S. Treasury Department and the IRS issued an update regarding the Tax Cuts and Jobs Act (TCJA, P.L. 115-97), simplifying tax accounting regulations for small businesses. These new changes will apply to tax seasons starting in 2019 and 2020 and will be available to businesses that meet the requirements outlined below. Businesses That Qualify for TCJA Changes These modifications could greatly benefit small businesses, making tax accounting a much more simplified process. Eligible businesses will include taxpayers that meet the gross receipts test. This qualification means any bu ..read more

The Government Accounting Standards Board (GASB), recently issued a proposal seeking change in the way state and local governments report financial information. This initiative is led primarily under Joel Black, the most recently appointed chairman to GASB. Exposure Draft Updates The exposure draft marks the first significant proposal made under the new chairman, Joel Black. Improvements outlined in the Exposure Draft center around the efficiency and effectiveness of these financial reports, resulting in improved decision making. GASB summarizes this proposal stating: “The objective of this pr ..read more

In a press release on July 17th, the federal reserve board announced that the Main Street Lending Program will be extended to more nonprofits. History of the Main Street Lending Program The Main Street Lending Program was established in April of 2020 offering $2.3 trillion in loans. This financial support is meant to aid small to medium-sized businesses in surviving and recovering from setbacks caused by the COVID-19 pandemic. These loans are only available to businesses that were financially sound before the pandemic but are now struggling. Moving forward with the program, Federal Reserve Cha ..read more

In December, the AICPA shared the practice aid “Accounting for and Auditing of Digital Assets”.  This week the AICPA released new updates to the nonauthoritative guide. Background on Digital Asset Auditing Any records made utilizing cryptography can be referred to as digital assets. This includes activities and transactions using Bitcoin, Ethereum, and other cryptocurrencies.  As these digital assets become more common, the industry is adapting to provide guidelines for such records. This is crucial in helping accountants know exactly when and how to approach these digital assets.&nb ..read more

There is traditionally a lull in the accounting industry following the rush of each tax season.  Unlike other years however, 2020 will continue to stay busy for CPAs due to PPP loans.  The Paycheck Protection Program (PPP) was established in March of 2020 and designed to protect small businesses during the COVID-19 pandemic. This created quite the hustle and bustle in the industry, with an even busier tax season than usual.  The PPP Loans and the Accounting Industry The importance of accounting has remained true throughout the pandemic crisis as more and more businesses are seek ..read more

If you haven’t heard already, the tax deadline was extended to July 15 of this year as a means of providing extra time for taxpayers during the pandemic. The IRS recently announced that it will NOT be extending the July 15 deadline for filing 2019 taxes. If taxpayers fail to meet this deadline, they may face penalties and interest charges.  What If I Don’t File My Taxes on Time? If you miss the July 15 deadline, you will be penalized for 5% of the unpaid taxes for every month that the return is late – up to 25% of your unpaid taxes. This penalty applies for a full month, even if the retu ..read more