Freed Maxick CPAs | Summing It Up
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Freed Maxick CPAs, P.C. is one of Western & Upstate New York's largest public accounting firms, providing audit, tax & consulting services to private & public (SEC) companies. With Freed Maxick, you get the service you expect from a local firm, combined with the national & international resources to help your business expand nationally & internationally. Our 'Summing It Up' section..
Freed Maxick CPAs | Summing It Up
2w ago
Effective methods to allocate costs for informed decision-making
A significant challenge facing many not-for-profit (NFP) organizations involves determining how much of their resources and expenses to allocate to their services, programs, and initiatives. Not-for-profits do not necessarily see returns on investment in the same way as for-profit businesses so they must find other means for tracking the sustainability of their operations.
Cost allocation is a method of categorizing expenses to better understand where an organization’s resources are being utilized. It can be straightforward when ..read more
Freed Maxick CPAs | Summing It Up
1M ago
Not-for-profits can, and must, keep up with advancing technology
When thinking of technological innovation, the not-for-profit sector is not likely to be one of the first places that come to mind. Not-for-profits serve important missions, but they often do so with limited resources. Fortunately, many innovations can significantly improve not-for-profit organizations’ operations and support their missions at reasonable costs.
So how can you identify and leverage new technologies?
Frugal Technology Upgrades for Nonprofits
Cost is a factor for many not-for-profit organizations when purchasi ..read more
Freed Maxick CPAs | Summing It Up
1M ago
The cyber-attack on Change Healthcare has severely impacted healthcare providers' financial operations, disrupting claims processing, billing, and prescription services, and putting patient care at risk.
With services interrupted, providers face financial strain and have an urgent need for relief. Short-term aid could include advances and government support while potential long-term strategies could involve business interruption claims and litigation.
Regardless of the source of relief, it is critical that providers act now to maintain complete, accurate and contemporaneously documented data ..read more
Freed Maxick CPAs | Summing It Up
1M ago
New Update: Understanding Your Letter 6612.
The IRS escalated its verification efforts for Employee Retention Credit (ERC) claims. Businesses that submitted ERC claims are now under even closer scrutiny and are being asked to quickly submit detailed documentation to prove that they were rightfully entitled to the credit.
Issuance of Letter 6612 marks the start of an IRS audit into your organization’s tax filings, specifically items related to ERC claim verification. The IRS will place ERC claim refunds on hold until they get the results of this audit.
The IRS’s request spans a range of inform ..read more
Freed Maxick CPAs | Summing It Up
2M ago
On February 21, 2024 at 2:15am EST, Change Healthcare (Change), which is owned by Optum, initially reported that some applications were “currently unavailable”. Several hours later (5:05 am EST) Change provided an update and reported that they were “currently experiencing enterprise-wide connectivity issues”. Emerging details about the system disruption point to a cybersecurity issue.
In an SEC filing, UnitedHealth Group (parent company to Optum) identified "a suspected nation-state associated cyber security threat actor" on Feb. 21 had gained access to some Change IT systems. Updates provide ..read more
Freed Maxick CPAs | Summing It Up
2M ago
Newly proposed federal legislation will require ERC Promoters to disclose their clients to the IRS. This move increases audit scrutiny for all businesses, particularly those who sought promoter assistance for ERC refunds. Employers are advised to proactively verify their claims with an independent third party, ensuring compliance and preparing for potential audits.
Congress created the Employee Retention Credit (ERC) program in early 2020 as a way to encourage employers to keep employees on their payrolls during the COVID-19 pandemic. The credit covered specific periods in 2020 and 2021, but ..read more
Freed Maxick CPAs | Summing It Up
3M ago
APA can transform your internal financial operations
Managing cash flow is a vital part of running a business. It can also be one of the most challenging. Accurate data on how much money a business is bringing in (accounts receivable or AR) and how much it owes (accounts payable or AP) is essential for maintaining business operations. If not managed appropriately, a company could find itself without enough working capital to pursue its future goals or cash on hand to meet its immediate obligations.
What Is Accounts Payable Automation?
Countless businesses still have employees manually enterin ..read more
Freed Maxick CPAs | Summing It Up
3M ago
What is the Community Reinvestment Act?
The Community Reinvestment Act (CRA) was first enacted in 1977. CRA requires federal banking regulators to encourage financial institutions to help meet credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods. There are three federal banking regulators that are responsible for CRA:
Federal Deposit Insurance Corporation (FDIC)
Federal Reserve Board (FRB)
Office of the Comptroller of the Currency (OCC)
Implementation of the New CRA Rule in 2024 and Beyond
Provisions of the new rule that reflect t ..read more
Freed Maxick CPAs | Summing It Up
5M ago
The IRS has introduced a new withdrawal process for taxpayers looking to retract previously filed Employee Retention Tax Credit (ERC) claims. This move comes as part of the IRS's efforts to counter the surge in false ERC claims attributed to aggressive marketing tactics used by ERC mills. The moratorium on new ERC claims, initiated from September 14, 2023, until at least December 31, 2023, is aimed at sending a message to ERC promoters while giving taxpayers time to consult responsible tax professionals to review their ERC claims.
Why Withdraw an ERC Tax Credit Claim
Withdrawing an ineligible ..read more
Freed Maxick CPAs | Summing It Up
6M ago
How Ethan’s Thriving Practice Fell Victim to Data Loss from a Cyberattack
Ethan owned and operated an extremely successful Physical Therapy practice. Starting with a single office, Ethan was able to successfully grow the business, opening up nine additional offices over the last decade. His practice was thriving – serving just over six hundred patients each year. Little did he expect that his world would soon come crashing down.
The Call
One evening, Ethan received a call from Jason, one of Ethan’s very first patients. Jason was very aggravated. He had just been informed by a relative that do ..read more