The revenue recognition model known as Accounting Standards Codification 606 (ASC 606) has been in effect for some time now. But many of our clients request an overview of the standard to be sure they’re on the right track. Let’s start with the basics. What is ASC 606 revenue recognition? ASC 606, also known as the revenue recognition model, is an accounting standard created jointly by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). ASC 606 dictates how businesses should recognize revenues from contracts with customers. To put it more p ..read more

Construction businesses face a unique problem that few other businesses do: choosing the right accounting method for tax purposes. Of course, it should go without saying that all businesses need to choose the right accounting method. But the options for businesses in most other industries are simple and straightforward, while the methods available to construction businesses are more complex. Let’s break down your options. Once you settle on the right one, you’ll know that your tax return is accurate ..read more

The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act was signed into law in December 2022, bringing more than 90 changes to retirement plan and tax laws. Many of its provisions are little known and were written to roll out over several years rather than immediately taking effect. Here are several important changes that went into effect in 2024: Pension-Linked Emergency Savings Accounts (PLESAs). More than half of U.S. adults would turn to borrowing when confronted by an emergency expense of $1,000 or more, according to a Bankrate survey — a figure that has held stea ..read more

Every employer is required to report wages paid as well as the related withholdings on Form W-2 each year. If filing 250 or more Forms W-2 for 2015, employers must file Copy A in electronic format with the Social Security Administration. It is important to note that the IRS can grant employers a waiver of the electronic filing requirement upon receipt and approval of a written request. Form W-2 is a six part form that is to be distributed as follows ..read more

Employee stock ownership plans (ESOPs) can be thought of as supercharged defined benefit plans. Instead of providing your employees with cash they can pull out at retirement, ESOPs give your employees equity in the company. As we discussed in a previous article, ESOPs can satisfy a wide variety of needs. But before you set up your ESOP plan, make sure you do these three things first ..read more

Required minimum distributions (RMDs) are the minimum amounts you’re required to pull from your retirement accounts each year. The RMD rules apply to the following types of retirement plans ..read more

The ever-evolving world of ERC has a new and much anticipated major development – a voluntary disclosure program for those that have already received refunds ..read more

The Office of the Chief Accountant (OCA), Employee Benefits Security Administration (EBSA), U.S. Department of Labor (DOL), has completed its fourth assessment of the quality of audit work performed by independent qualified public accountants (IQPAs). This assessment focuses on IQPAs’ financial statement audits of employee benefit plans covered under the Employee Retirement Income Security Act (ERISA) for the 2020 filing year (plan years beginning in 2020 ..read more

The Public Company Accounting Oversight Board (PCAOB) is an important player in the audit world. It sets quality-of-work standards that accountants are required to follow when auditing the financial statements of publicly traded companies. Its ultimate goal is to protect the interests of investors and other stakeholders ..read more

In the past few years, the Financial Accounting Standards Board (FASB) has released a few key updates to US generally accepted accounting principles (GAAP). Although some of these updates have been in the works for years — like the lease accounting standard under ASC 842 — entities are still getting used to the new reporting requirements and tweaking their financials to be fully compliant. We’ve compiled a list of accounting standard updates that have recently gone into effect or will go into effect in 2024. Is your business ready ..read more