News & Insights
2022 tax calendarTo help you make sure you don’t miss any important 2022 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them. 
The ABCs of activity-based costingActivity-based costing (ABC) is commonly used by manufacturers and contractors to learn which products and customers are profitable, identify and eliminate waste, and more accurately price products or bid jobs going forward. With ABC, you assign cost codes to each activity completed based on the resources consumed. Cost codes define the activity; the equipment, materials and labor used to complete it; and how long it takes to finish the task. This information can provide insight into real-time job performance, excessive spending and growth opportunities. Software solutions can help shorten the learning curve. Contact us to learn more about ABC. 
Let your financial statements guide you to optimal business decisionsBusiness owners: No matter how busy things get, don’t overlook the informative value of your financial statements. Assuming you follow U.S. GAAP or similar reporting standards, yours will have three major components: 1) The income statement, which shows revenue and expenses over the accounting period. 2) The balance sheet, which tallies assets, liabilities and net worth to take a snapshot of your financial position. 3) The statement of cash flows, which shows cash inflows and outflows from operating, financing and investing activities. Financial statements contain a wealth of data that can allow you to identify trends, both good and bad, affecting the business. Contact us for help. 
Big, small or in-between: Your nonprofit’s board size is up to youWhen a nonprofit is new, it may struggle to find an adequate number of board members. But as it grows, its board is also likely to grow — sometimes, to an unwieldy size. The question is: How many directors does your organization need to effectively pursue its mission? 
Handle your nonprofit’s restricted gifts with careMost not-for-profits encourage donors to make unrestricted contributions that will give the organization flexibility to use the money where it’s needed most. But there will always be some donors who place restrictions on their gifts — and these require a higher level of responsibility. 
3 steps to a more financially resilient futureIt’s a new year with new opportunities for your not-for-profit to boost its financial resilience. Although COVID-19 continues to make forecasting difficult, your staff and your board’s finance committee can take steps to negotiate obstacles. Here are three. 
Looking for a 2022 safety net for your business? Act on EIDL funding before year endAs the new year approaches, the future of the Build Back Better Act (BBBA) — and the strength of the economic recovery — remains uncertain. One thing that’s not uncertain when it comes to your business is the impending deadline to apply for COVID-19 Economic Injury Disaster Loan (EIDL) funding, some of which needn’t be repaid. 
IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact PaymentsIRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience 
Rolling forecasts provide flexibility in uncertain timesForecasting how your company is likely to perform over the next year can be challenging, especially when it’s unclear where the markets are heading. But accurate forecasts are critical when managing a business. As the COVID-19 pandemic persists, many companies have responded to these challenges by switching from static forecasts to rolling ones. 
A credit card use policy can help prevent abuseDuring the busy holiday season, not-for-profit executives may rely on staffers to purchase gifts and holiday party supplies for the organization. But before you hand over a credit card, you need to make sure that the employee is trustworthy and understands your nonprofit’s credit card use policy. 
Established nonprofits must continue to build and growIf your not-for-profit was well-established before 2020, it has probably weathered the pandemic and economic stress of the past year-and-a-half better than younger organizations. But as you transition out of “survival” mode, challenges remain, including those faced by most nonprofits, such as finding staffers and fundraising in an inhospitable environment. Then there are obstacles specific to mature nonprofits. Here are some to watch for. 
10 financial statement areas to watch for COVID-related effectsThe COVID-19 pandemic is still adversely affecting many businesses and not-for-profit organizations, but the effects vary, depending on the nature of operations and geographic location. Has your organization factored the effects of the pandemic into its financial statements? You might not have considered this question since last year if your organization prepares statements that comply with U.S. Generally Accepted Accounting Principles only at year end. As we head into audit season for 2021, it’s time to evaluate whether your financial situation has gotten better — or worse — this year. Here are 10 financial statement areas to home in on. |
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