As 2020 draws to a close, the topic of advisory services remains relevant to the accounting profession. At the recent Accounting & Finance Show USA, Intuit’s Jasen Stine explained how offering these services will make both you and your clients more successful in the face of the changes that resulted from the COVID-19 pandemic. Over the last year, one major … Read More
IRS Issues Tax Guidance on PPP Loans
The Treasury Department and the IRS have just released additional guidance on the tax treatment of forgiveness of Paycheck Protection Program (PPP) loans authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act. But is it enough? The CARES Act says PPP loans may be forgiven without any tax consequences. The new ruling and accompanying revenue procedure follow up … Read More
Get ready for the next merger wave in accounting
Between the pandemic, aging CPA firm owners, and staffing tensions, many in the accounting profession anticipate a huge uptick in firm mergers and acquisitions over the next 24 months. If the predictions and emerging trends are right, it’s important for firm leaders to plan accordingly. M&A is a profoundly serious matter, and you need to be prepared. Do not schedule … Read More
3 tips to break up your workday and improve your mental wellbeing
If you’re working from home, things can start to feel repetitive. This is a feeling that is being shared by millions, as people all around the world deal with working in the same place as they sleep, eat and raise their family. And it can be detrimental to your mental wellbeing. Columbia University neuropsychologist Sanam Hafeez says: “When our day … Read More
End-of-Year Tax Strategies for Investors
Busy season for accountants also, unfortunately, coincides with end-of-year tax planning. As you’re working on this with your clients, here are a few investment strategies from that may delight and help your clients save money next year. It’s none too soon to review investment strategies that will keep money in your pocket and out of the IRS’s till, which is, … Read More
How to Avoid Scams and Phishing
On Wednesday, November 4 the Security Summit reported that taxpayers are being targeted by a new series of text-message scams that impersonate state departments of revenue and tax relief organizations. In an Internal Revenue Service press release, the Security Summit explains that identity thieves are asking taxpayers to provide bank account information finalize a transfer of Economic Impact Payment funds. … Read More
IRS Announces Taxpayer Relief Initiative
The IRS announced a new program, the Taxpayer Relief Initiative, to help taxpayers who are unable to pay their taxes because of the pandemic. Taxpayers who owe taxes and could not pay have always had options such as installment agreements and offers in compromise, but now they have more options. The highlights of the Taxpayer Relief Initiative, according to the … Read More
Answering an Important Question from a Client
Andrew writes: “Hello Richard, What do you think a “safe” number for my company would be?” My answer: Three months of operating capital is a reasonable amount. It gives you time to react. You can obtain financing, implement operational changes, cut costs, react to market trends and conditions, and a whole host of other uncertainties. (COVID restrictions, changes in tax … Read More
Ignore the Hype! Read this before you apply for your PPP Loan Forgiveness
There are issues that have not been dealt with, perhaps the most important of which is the tax effect of loan forgiveness. The IRS has taken the position, and rightfully so, that if a PPP loan is forgiven, it is considered to be cancellation of debt, which is taxable. At issue is whether or not Congress passes legislation that will … Read More
Advice for Issues Businesses Owners Face Going Virtual
Reopenings begin with masks, conference rooms have gone Zoom, and businesses face a load of new questions — but for many, the future comes down to one: “How am I going to survive?” We all know that virtual does not replace face-to-face and many small businesses have been hurt. But how can we help these businesses transitioning to virtual? A … Read More