Financial tips for starting a business

You are disruptive. You are SoLoMo (or is that MoSoLo?). You are ready to take your market by storm. But have you laid the accounting and tax groundwork for future success? A few simple things upfront can pay big dividends later, or cause huge headaches if they aren’t done. Here are a few financial tips …

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Utilization of service organizations

Service organizations exist to assist companies of all sizes in performing certain tasks that the company is not capable of performing or would rather outsource to a third-party. Examples of service organizations include: Payroll providers 401(k) record-keepers IT backup and cloud services And more But do companies understand and review the controls within the service …

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Tax myths, lies and untruths as told by your CPA

So, as frequently happens, taxes come up in conversation. Well, at least, when I am around, they come up in conversation. But, there are some strange things out there that have been said about taxes or tax preparation that leave tax preparers, both seasoned and unseasoned, scratching their heads. Here are just a few tax …

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FASB revises definition of a business

With its first Accounting Standards Update of 2017 (ASU 2017-01), the FASB revised the definition of a business under U.S. GAAP. This update was issued to provide more clarity to entities in determining whether transactions should be classified as an acquisition (or disposal) of assets or businesses. Stakeholders had communicated to the FASB that the …

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Statement of cash flows: restricted cash presentation

The Financial Accounting Standards Board (FASB) recently released Accounting Standards Update (ASU) 2016-18 regarding specific guidance on the presentation and classification of restricted cash in the statement of cash flows. The ASU notes the following items: The statement of cash flows is required to explain the change during the period in the total of cash, …

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New overtime law update: delayed for now

A Texas U.S. District Judge has filed an injunction, blocking implementation of the Department of Labor’s (DOL) new overtime law. Previously we had discussed the updated overtime law, which the DOL had set to begin December 1, 2016. This law would have doubled the maximum salary an employee earned before becoming exempt from mandatory overtime …

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Effective audit committee member habits

An audit committee is a crucial component of a company, whether it has to do with the company’s balance sheet, or their 401(k). They have the responsibility of keeping an objective point of view when it comes to the legal and compliance aspects of the financial statements. Recently, in an Accounting Today article, Dr. Lola …

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Voluntary fiduciary correction program

Throughout the administration of 401k plans, employers may at times run into fiduciary violations under the Employee Retirement Income Security Act (“ERISA”). If this happens, you may be eligible to apply for voluntary relief from enforcement actions, including assessments of civil monetary penalties through the Voluntary Fiduciary Correction Program (“VFCP”). The VFCP was designed to …

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Importance of Minutes as Evidence of Corporate Governance

Corporate governance is how a company polices itself and employees. It is intended to increase the accountability of the company, serve as a preventative measure, and help build transparency and trust. Corporate governance as it relates to plan administrators involves meeting your fiduciary responsibilities. Under the Employee Retirement Income Savings Act (ERISA), meeting your fiduciary …

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