external confirmations
External confirmations are one of the simplest, but most effective, audit tools. Do you understand how they work?
Provide employee parking? Here’s what the IRS wants to know
Business owners: If you provide parking to employees as a fringe benefit, the IRS could scrutinize the arrangement during an audit. Key details here.
Promoting your nonprofit with your annual report
If you regard your not-for-profit’s annual report as a yearly obligation or even an unpleasant chore, the finished product probably isn’t much fun to read. Instead, embrace the opportunity to promote your mission and programs to a broad audience. Start by providing clear, easy-to-read standard sections, such as the Board Chair’s letter and financial statements. Then get creative with the report’s description of programs, goals and achievements. Include client profiles and testimonials to personalize your message. And whenever possible, use visual elements such as photos and infographics.
Evaluating “going concern” concerns
Is your business struggling? If you have “substantial doubt” about its ability to continue normal operations, you may encounter financial reporting issues. Here’s important information to review.
What revenue numbers can reveal about your nonprofit’s financial health
You don’t have to wait for the next scheduled audit to assess your nonprofit’s financial health. Instead, think like an auditor and review revenue numbers for negative trends. Here’s how.
Give your construction company’s bonding capacity a solid foundation
A high bonding capacity is a strategic objective of many construction businesses. How do you build it? With a solid foundation. For starters, ensure your financial statements are complete, accurate and timely. One critical indicator is profitability. Projects that suffer from “profit fade,” when gross profits shrink over the course of a job, often indicate weaknesses such as inaccurate estimating and sloppy management. Sureties also want to see strong working capital, which is defined as current assets minus current liabilities. To improve this, consider deferring year-end bonuses or refinancing short-term debt with long-term debt.
Businesses: Act now to make the most out of bonus depreciation
If your business plans to purchase bonus depreciation qualifying property, take action soon to realize a valuable tax break.
Remote auditing: A brave new world
Pandemic-related lockdowns have forced auditors to conduct many procedures off-site. That change may not necessarily be temporary. After realizing the potential benefits, remote audit procedures may be part of the “new normal” going forward.
Weathering the storm of rising inflation
Business owners: When it rains, it pours. Inflation may be putting a damper on economic optimism, but there are ways to brighten your horizons.
SDAT Raises Business Personal Property Exemption From $2,500 TO $20,000
SDAT Raises Business Personal Property Exemption From $2,500 TO $20,000
Reviewing revenue recognition for construction companies
Properly handling revenue recognition is critical for construction companies. Here’s a quick review of the three most used methods.
Is your nonprofit paying enough attention to Generation Z?
Ignore Generation Z at your peril. The latest cohort of young adults is socially conscious, financially generous and hands on. These individuals are more likely to donate to charity at an early age, participate in crowdfunding and contribute on Giving Tuesday. As digital natives, they prefer social media platforms such as TikTok and Snapchat, which may require your organization to create new, narrowly tailored content to get their attention. They’re also more receptive to digital ads than their parents. But they expect outreach to be narrowly tailored to their interests, so be sure you rely on good data to engage them.