There are many tax uncertainties to consider as we face the end of 2024. Chief among them is whether proposals from the new administration will affect our taxes, including changes that may be retroactive.
How Do Auditors Verify Account Balances and Transactions?
Posted by Aaron K. Waller, CPA on Dec 17, 2024
Audit season is just around the corner for calendar-year entities. Understanding the types of source documents your audit team might request can minimize disruptions during audit fieldwork and maximize your audit’s effectiveness. Here are some common sources of “substantive evidence” that auditors gather to help them form an opinion regarding your financial statements.
Posted in Audit & Assurance
Owners’ equity is the difference between the assets and liabilities reported on your company’s balance sheet. It’s generally composed of two pieces: capital contributions and retained earnings. The former represents the amounts owners have paid into the business and stock repurchases, but the latter may be less familiar. Here’s an overview of what’s recorded in this account.
Posted in Business Advisory
In today's evolving U.S. and global tax environment, the tax implications of business decisions are not always intuitive. Integrating tax considerations throughout the decision-making process can help businesses unlock potential tax savings and efficiencies as well as identify and mitigate tax risks. Whether shifting supply chains, pursuing mergers and acquisitions, implementing sustainability initiatives, or adjusting workforce strategy — embracing a total tax mindset while modeling the tax impact of these decisions can lead to better outcomes that add value to your organization.
Posted in Business Tax
It is more useful to contrast the distinct strengths and skills each of these groups represents. On one hand, lifers embody loyalty and rich experience. They have committed substantial time and effort to help their organizations thrive. Job hoppers, however, are often cultivated as a replacement source of fresh thinking at the cutting edge.
Posted in Payroll, HR & Benefits
With rising interest rates, inflation, and continuing market volatility, tax planning is as essential as ever for taxpayers looking to manage cash flow while paying the least amount of taxes possible over time. As we approach the end of the year, now is the time for individuals, business owners, and family offices to review their 2024 and 2025 tax situations and identify opportunities for reducing, deferring, or accelerating their tax obligations. The information contained in this guide is based on federal laws and policies in effect as of the publication date. This guide discusses tax planning for U.S. federal income taxes. Applicable state and foreign taxes should also be considered. Taxpayers should consult with a trusted advisor when making tax and financial decisions regarding any of the following items.
Posted in Individual Tax Planning
Healthy Savings: How Tax-Smart HSAs Can Benefit Your Small Business and Employees
Posted by Nick Wheeler, CPA on Dec 09, 2024
As a small business owner, managing health care costs for yourself and your employees can be challenging. One effective tool to consider adding is a Health Savings Account (HSA). HSAs offer a range of benefits that can help you save on healthcare expenses while providing valuable tax advantages. You may already have an HSA. It’s a good time to review how these accounts work because the IRS has announced the relevant inflation-adjusted amounts for 2025.
Posted in Business Advisory
As of Wednesday, 12/3, a federal judge in Texas issued a ruling suspending (temporarily) enforcement of the Corporate Transparency Act (CTA) nationally. The CTA created the Beneficial Owner Information (BOI) filing requirement for businesses. This ruling is not a repeal but a temporary stay of enforcement.
Posted in Business Advisory, Alerts
Chart a Course for Success With a Detailed Chart of Accounts
Posted by Chris Earnest on Dec 05, 2024
A chart of accounts is the foundation of accurate financial reporting, so it needs to be set up correctly. A disorganized chart or one that lumps transactions into broad, undefined “buckets” of data can make it difficult for management to evaluate financial performance and identify unmet customer needs — or open the door to accounting errors and fraud. Here’s some guidance on how to create a robust chart that’s right for your situation.
Posted in Accounting & Outsourcing
How Your Business Can Prepare for and Respond to an IRS Audit
Posted by Melissa Motley, CPA on Nov 20, 2024
The IRS has been increasing its audit efforts, focusing on large businesses and high-income individuals. By 2026, it plans to nearly triple its audit rates for large corporations with assets exceeding $250 million. Under these plans, partnerships with assets over $10 million will also see audit rates increase tenfold by 2026. This ramp-up in audits is part of the IRS’s broader strategy, funded by the Inflation Reduction Act, to target wealthier entities and high-dollar noncompliance.
Posted in Audit & Assurance