Accounting for estimates

Not every financial statement item is able to be precisely measured. Often, your company will have to make a best-educated guess to account for items that are not able to be specifically determined. This is where accounting for estimates comes into play. Don’t miss: The future of auditing with artificial intelligence  Auditing standards define an …

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5 tips after changing your name due to marriage or divorce

So, you married the love of your life? Or maybe you left him in the gutter where you found him? Either way, the IRS wants you to know that whatever your name is, the name on your tax return must match the name registered with the Social Security Administration (SSA). Here are five things to keep in …

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New tax law changes: Taxpayer First Act

The Taxpayer First Act of 2019 was signed by President Trump on July 1, 2019. The purpose of the Act is to ultimately make taxpayers’ experience with the IRS easier and safer by improving customer service and adding safeguards during contact with the IRS. Included below is a list of some of the most interesting …

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What is ACP & ADP Testing?

When you have a 401(k) plan it can get a little overwhelming at times, especially when you start to worry about passing all the non-discrimination tests. These tests ensure a plan does not favor highly compensated employees (HCE) over non-highly compensated employees (NHCE) and mandates that corrections be made if one of these tests are …

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Accounting for payments and discounts to customers

Many companies sell to large, national retailers. Often, when selling to these retailers, these companies will need to make separate payments to these customers or have amounts deducted from the payments received on their invoices. However, many times we don’t see these accounted for appropriately. How should these be accounted for? It depends on the …

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Emotional Intelligence in accounting

We’ve all heard about IQ, as the measurement has followed us through school and in pursuing careers. However, what about EQ? Emotional Intelligence matters both in the workplace and in interaction with the public. So, what is it? Emotional intelligence is “the capacity to be aware of, control and express one’s emotions, and to handle …

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Help! I need an Uber, the IRS is coming!

After going public last year, Uber reported in its first quarter report to the SEC that they were currently under audit by the IRS. The 2013 and 2014 returns are being examined but no other information is available at this time. I know what you all must be thinking; can they really go back that …

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The auditor’s role in detecting fraud

“How did the auditors not catch this? Isn’t it the auditor’s job to detect fraud?” It is a common misconception that fraud is detected by external auditors. According to the Association of Certified Fraud Examiner’s 2018 Report to the Nations, tips are the most common detection method, at 40%, for occupational fraud while external audit …

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Plan terminations and partial plan terminations

Many plan participants may be surprised to learn that their employer can discontinue their 401k plan at their own discretion. The IRS considers a plan terminated once an official date of termination is established by the sponsor, the benefits and liabilities under the plan are determined, and all assets are distributed as soon as administratively …

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IRS installment agreements: how to pay your taxes

Have you been faced with a large tax bill and do not have the funds to pay the entire balance? Do you have prior tax returns that have not been filed and there are outstanding balances calculated by the IRS? There is a solution to this dilemma. The important thing to remember is that the …

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