At Machen McChesney we are committed to Returning Value to you through our monthly e-newsletter, The Value Report.

Here you'll find regular tips to help with your business and personal finances, as well as strategies to grow and more efficiently run your organization.  

Table of Content

1. The Chances of an IRS Audit Are Low, but Business Owners Should Be Prepared
2. Understanding and Controlling the Unemployment Tax Cost of Your Business
3. Internal Audit 2.0: Paperless and Continuous Auditing Trends
4. New Overtime Pay Rule Compliance
5. Nonprofits: New Alternatives for Reporting Goodwill & Other Intangibles
6. How to Treat Your Business Website Costs for Tax Purposes
7. Accelerate Depreciation Deductions with a Cost Segregation Study
8. Reasons Why Cash Is King
9. What's New at Machen McChesney

Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In the fiscal year 2018, the IRS audited approximately 0.6% of individuals. Businesses, large corporations, and high-income individuals are more likely to be audited but, overall, audit rates are historically low.

Understanding and Controlling the Unemployment Tax Cost of Your BusinessAs an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer taxed at a 6% rate would pay FUTA tax of $420 for each employee who earned at least $7,000 per year, while an employer taxed at 0.6% pays $42. Continue reading.

Internal Audit 2.0: Paperless and Continuous Auditing TrendsTechnology is altering the traditional approach to internal audits. Instead of reviewing reams of paperwork, today’s auditor is learning to use electronic records. In turn, going paperless facilitates a concept known as “continuous auditing,” where internal auditors continually gather data to support their procedures. Here’s how your business can modernize this process. Continue reading.

Nonprofits: New Alternatives for Reporting Goodwill & Other IntangiblesDid you know that the Financial Accounting Standards Board (FASB) recently extended the simplified private-company accounting alternatives to not-for-profit organizations? Many merging nonprofits, including educational institutions and hospitals, welcome these practical expedients. Here are the details. Continue reading. 

How to Treat Your Business Website Costs for Tax PurposesThese days, most businesses need a website to remain competitive. It’s an easy decision to set one up and maintain it. But determining the proper tax treatment for the costs involved in developing a website isn’t so easy. Continue reading. 

Accelerate Depreciation Deductions with a Cost Segregation Study

Reasons Why Cash Is KingIn financial reporting, investors and business owners tend to focus on four key metrics: 1) revenue, 2) net income, 3) total assets and 4) net worth. But, when it comes to gauging short-term financial performance and creditworthiness, the trump card is cash flow. Continue reading.

What's New at Machen McChesney?

Sponsorships, new hires, announcements
Continue reading. 

We hope you found value in The Value Report you've received this month. We look forward to finding even more ways to Return Value to you in the future.