Have a proud and happy Juneteenth – Saturday, June 19! Juneteenth is the oldest nationally celebrated commemoration of the ending of slavery in the United States. On June 15, 2021 the Senate passed the Juneteenth National Independence Day Act, establishing Juneteenth as a federal holiday. Happy Father’s Day- Sunday, June 20 To all of the GS Dads, have a Happy Father’s Day!  We wish you beautiful moments of happiness and goodness with your children and family. First Day of Summer – Sunday, June 20 Sunday marks the first day of Summer. Get ready to enjoy the blissful sun, relax and take i ..read more

Congratulations to Shreedar Kothari, CPA; Karla Chavez Luna, CPA, MST; and Vaibhav Tandon, CPA, who were named Most Influential Minority CPAs by the Los Angeles Business Journal. In its annual special section, “Minorities of Influence: CPAs,” the news magazine features a list of Southern California’s outstanding accountants, along with highlights about their practices and recent accomplishments. An executive shareholder who joined Gumbiner in 1995, Shreedhar (Shree) Kothari focuses on helping growth-oriented companies get to the next level with proper audit and financial reporting requirements ..read more

Gumbiner Savett Inc. Managing Director, Audit & Accounting Shareholder Rick Parent was selected in the professional services category of the Los Angeles Business Journal’s most recent LA500 list honoring the most influential leaders and executives in Los Angeles. The most recent listing of forward-thinking professionals from the city’s business community highlights the work that took place and the progress that was made in the months before Covid-19, and also aims to serve as a reminder that L.A. is led by some of the brightest, most innovative and resilient business professionals from aro ..read more

Many companies are continuing to struggle financially during the COVID-19 pandemic. If cash is tight, what can your business do to shorten its cash cycle? The answer could lie in your outstanding accounts receivable. Here are five strategies to help convert receivables into cash ASAP. Establish a line of credit. A line of credit can help bridge the “cash gap” between making a sale and getting paid. Often credit lines are collateralized by unpaid invoices, just like equipment and property are pledged for conventional term loans. Banks typically charge fees and interest for securitized receivab ..read more

Are you thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved in providing a traditional pension plan? Two options to consider are a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended as an alternative to “qualified” retirement plans, particularly for small businesses. The relative ease of administration and the discretion that you, as the employer, are permitted in deciding whether or not to make annual contributions, are f ..read more

Owners of incorporated businesses know that there is a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Thus, if funds are paid as dividends, they are taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is only taxed once — to the employee who receives it. However, there are limits to how much money you can take out of the corporation this way. Under tax law, compensation can be deducted only t ..read more

During the pandemic, cash has been tight for many small businesses, which may make it hard to attract and retain skilled workers. In lieu of providing cash bonuses or annual raises, some companies may decide to give valued employees a share of their future profits. While corporations generally issue stock options, limited liability companies (LLCs) use a relatively new form of equity compensation called “profits interests” to incentivize workers. Here’s a summary of the accounting rules that are used to account for these transactions. What are classified as awards? Under U.S. Generally Accepte ..read more

On March 30, the Financial Accounting Standards Board (FASB) published an updated accounting standard on events that trigger an impairment test under U.S. Generally Accepted Accounting Principles (GAAP). This simplified alternative may provide relief to private companies and not-for-profit entities that have been adversely affected by the COVID-19 pandemic. Here’s what you should know. Clarifications for certain organizations Under GAAP, goodwill appears on a company’s balance sheet only when it’s been acquired in an M&A transaction. It represents what’s left over after the purchase price ..read more

Audit committees face many challenges in 2021. As the economy rebounds from the COVID-19 pandemic, there are new dimensions to the oversight roles and responsibilities of the audit committees. Consider taking these four steps to improve the effectiveness of your audit committee: 1. Back to the basics Once you’ve wrapped up the financial reporting process for fiscal year 2020, take the time to revisit goals and expectations to develop an agenda for 2021 that directs the audit committee’s attention focus on fundamentals. The committee is responsible for oversight of the following key areas: • Fi ..read more

New California Tax Rates New California sales and use tax rates take effect on April 1, 2021. The California Department of Tax and Fee Administration (CDTFA) has announced new rates that were approved by California voters in November 2020. The statewide tax rate is 7.25%. In most areas of California, local jurisdictions have added district taxes that increase the tax owed by a seller. The new tax rates apply only within the indicated city or county limits and range from 0.10% to 1.00%. The new rates, tax codes, acronyms and expiration dates will be available to download and view before April 1 ..read more