October 1, 2019
With more than 1.4 million accounting jobs in 2018, according to the Bureau of Labor Statistics, there are many different uses for accountants and their skills. With the need for accuracy and transparency in private and public accounting, one important concept to explore is absorption, or full costing. Absorption or full costing is an accounting method that is used by businesses to determine the complete cost of producing products or services. When it comes to calculating the full cost, there are three main categories taken in account: Direct Costs – How much material, labor, machinery, etc. it costs to produce each product. Total Amount of Fixed Costs – Examples include monthly rent payments, tax payments, base salaries, etc. These are […]
September 1, 2019
Sustaining Excellence in Medicaid Act of 2019 (HR 3253) – This bill authorizes appropriations through fiscal year 2024 and makes changes to several Medicaid programs and funding mechanisms. Some of the provisions include allowing state Medicaid fraud control units to review complaints regarding noninstitutionalized patients; temporarily extending Medicaid eligibility to protect against spousal poverty for recipients of home and community-based services; repealing the requirement for drug manufacturers to include the prices of authorized generic drugs when determining the average manufacturer price (AMP) of brand name drugs; and excluding manufacturers from the definition of “wholesalers” for purposes of rebate calculations. The legislation was sponsored by Rep. Debbie Dingell (D-MI). It was introduced on June 13 and signed into law by the […]
September 1, 2019
Coming out on the winning side of a lawsuit as a plaintiff can be a gratifying feeling, especially if there is a financial settlement involved. There is likely a sense of both relief and vindication. Unfortunately, far too often people are in for a shock when they realize that they must pay taxes on the award. You can even be taxed on your attorney fees! However, a little tax planning can go a long way, especially if you do it before the settlement is finalized and the award is substantial. Below are the five key rules to know so you can make the right move. The Origin of the Claim Largely Determines the Tax ConsequencesThe taxation of legal settlements is […]
September 1, 2019
If you have a relative who recently died and left you in charge of his or her finances, you are not alone. You probably have colleagues at work in the same boat. A neighbor or two (or 10) and even your millennial yoga teacher might very well be working through a quagmire of wills, probates and assets nobody can find. You are definitely not the only one. The internet has made it much easier to keep track of our checking, savings and investment accounts. But the elder generation generally missed out on the convenience of dashboard consolidation and app trackers. What most of them leave behind are file cabinets full of bank statements and old bills, bookshelves of file folders […]
September 1, 2019
Biometric technology has been on the rise as it promises to make the authentication process more secure and convenient. Unlike passwords and key cards, biometrics are something you will always have, can’t share and can’t forget. This makes the biometric approach convenient and at the same time it has lower password management costs. Biometrics also are said to be difficult to steal or hack; difficult, but not impossible. Any technology can have loopholes that can be exploited, and that’s why you need to understand it well and take precautions if you decide to use this approach. The use of biometrics is not new, but its increased presence in the public domain such as banks makes it a topic of interest. […]
September 1, 2019
When it comes to an employer’s responsibility for non-exempt workers, according to the U.S. Department of Labor, there are many requirements businesses must follow related to payroll. In one example, there are strict regulations on what information employers must document for each non-exempt worker. While there’s no requirement on how the information is recorded, there are three main categories. Personal details: This should include the employee’s name, complete address, Social Security number, date of birth and gender. Job details: This must include the worker’s job description and hours clocked in each day and week. Pay details: The employee’s hourly wage based on straight time, and how employees are compensated – be it hourly, weekly, project or item-based. It should include […]
September 1, 2019
Just when you’ve finished spending a bunch on swimsuits and stuff for grilling out, summer’s over and it’s time for the kids the head back to school. How did this happen? Here are some ways to cut expenses while shopping for all those inevitable, seemingly never-ending things that the season demands. Create a Budget This might seem like a no-brainer, but it’s worth mentioning and well worth it before you enter headlong and breathless into the frenzy of a superstore. Make a list of the things you need before you leave the house, then let your fingers do the walking and check prices online. If all this seems daunting, never fear, there’s an app to help: EveryDollar. It will walk […]
August 1, 2019
Emergency Supplemental Appropriations for Humanitarian Assistance and Security at the Southern Border Act, 2019 (HR 3401) – This legislation provides $4.5 billion in emergency supplemental appropriations to federal departments and agencies for humanitarian assistance and security to respond to migrants attempting to enter the United States at the southern border for the rest of the fiscal year. This funding is available for appropriations for U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, the Federal Emergency Management Agency, and the Department of Health and Human Services for the Administration for Children and Families. The bill also includes requirements and restrictions for how the funds may be used. It was introduced on June 21 by Rep. Nita Lowey (D-NY) and […]
August 1, 2019
There are three big tax issues that can derail an otherwise well-executed estate plan. These include Family Limited Partnerships, Revocable Trust Swap Powers and Trust Situs. Below we explore the pitfalls with each issue. Fixing FLPs Family Limited Partnerships (FLP) are often created to hold investments or business assets in order to leverage a valuation discount, exert control and provide asset protection. First, to understand the valuation discount, take the example in which an FLP owned a family business valued at $10 million. A straight 25 percent interest in this business would therefore be worth $2.5 million. However, due to valuation discounts for a non-controlling interest that would not be readily available for sale or able to control liquidation, the […]
August 1, 2019
Laws regarding retirement savings plans don’t change all that often or all that much. Occasionally, new regulations are issued mandating disclosures that no one ever reads – and inflation-adjusted contribution limits tend to inch up each year. However, there is one phenomenon that has been increasing over the past decade, and Congress is finally starting to address it. This phenomenon is that retirees are living much longer than in the past. According to Olivia Mitchell, Wharton professor of business economics and public policy, demographers have reported that the baby who will live to be 200 has already been born. Because few people plan on 40 years (or more) in retirement, increasing numbers of retirees rely solely on Social Security benefits […]
August 1, 2019
Accountants are no strangers to inventions. Known inventions such as the abacus, calculators and computers have helped complete tasks quickly and in less time. However, today’s technology is complex and is reshaping the world of accounting. Such new technologies include big data, cloud computing, artificial intelligence, block chain, payment systems, mobility and social collaboration, among many others. How Technology has Changed the Accounting Industry Accounting, a traditional field, has not been immune to technological innovations. Initially, an accounting department would rely on IT leaders to make its technology decisions. Today, CFOs are increasingly taking part in decision making when it comes to the implementation of new technologies. These changes are due to technological innovations in the accounting industry that have […]
August 1, 2019
When it comes to tracking incoming sales and outgoing expenses, there are many ways businesses can keep up with their invoices and implement strategies to reduce the time they spend on unpaid sales. Accounts Receivable Turnover Ratio Simply defined, the accounts receivable turnover ratio is a way of showing what percent of a company’s receivables or invoices are paid by clients. The U.S. Small Business Administration explains this ratio is determined by “dividing average accounts receivable by sales.” Determining average accounts receivable is done by adding the beginning and ending figures — be it a month, quarter or year, then dividing by 2. Determining the sales figure is calculated by taking the total sales still on credit and deducting any […]
August 1, 2019
It’s never too early to helps kids understand accounting – the concepts of earning and spending. Here are a few ways to teach your little ones about how money works and even have a little fun. Play Money Games One way to explain the principles is by playing games like Monopoly and The Game of Life. However, if you want to be more homegrown and less commercial, bake some cookies, bag and price them, and turn your kitchen into a store. You might even get a toy cash register and calculators to make the whole experience more authentic. Then record the earnings, expenses and profits. This will really give children a “taste” of accounting! Create a Family Budget When sharing […]
July 1, 2019
National Flood Insurance Program Extension Act of 2019 (S 1693) – This bill reauthorizes the National Flood Insurance Program, which was set to expire on May 31, through June 14. The bill was introduced by Sen. John Kennedy (R-LA) on May 23, passed the Senate and the House in one week and was signed into law by the president on May 31. Additional Supplemental Appropriations for Disaster Relief Act, 2019 (HR 2157) – This bill adds $17.2 billion to this year’s budget for supplemental emergency funding available to many federal departments and agencies for expenses related to wildfires, hurricanes, volcanos, earthquakes, typhoons and other natural disasters. This supplemental funding basically extends the National Flood Insurance Program until Sept. 30, at […]
July 1, 2019
Many tax advisors are very cautious when it comes to claiming hobby losses – and some would argue overly so. This conservative view stems from the impression that the taxpayer usually loses when challenged by the IRS. While technically true that the odds aren’t in your favor of winning a challenge, the overall risk often works out in the taxpayer’s favor over the long run. Below we’ll look at why tax advisors should start from the assumption of taking the losses. Always a Loser Taxpayers usually lose hobby loss cases. Typically, the odds are around 3-to-1 in favor of the IRS. So, on the surface it seems like the smart bet is to assume you’ll lose, but there are reasons […]
July 1, 2019
Members of the college graduating class of 2017 owed an average of close to $30,000 each in student loan debt. Imagine starting out adult life with that kind of debt load? The prevalence of this type of mounting debt for a 21- or 22-year-old is unprecedented in U.S. history – and all the more reason why young adults need sound financial advice. Financial advisors might not necessarily market to this demographic; instead, waiting until they’re older and have assets worth their while. However, if today’s young adults don’t get off on the right financial footing with regard to managing debt, saving, budgeting and investing for the future, there won’t be that many in need of financial advice once they hit […]
July 1, 2019
There is a lot of new technology being used to automate functions and save money in large corporations, but many small organizations are shut out of those advancements. This is largely because of the cost, training, knowledge and resources it requires to take advantage of such new technology. But while small business owners might not be able to afford such advances, it’s good to keep up with what’s going on in the tech world – particularly innovations that can help a business owner automate processes and save money on personnel expenses. One such advancement is how artificial intelligence (AI) can be used for human resources functions. For example, automated processes that adapt to situations can be useful with recruitment, onboarding […]
July 1, 2019
According to data from a U.S. Small Business Administration Office of Advocacy report from August 2018, businesses have varied longevity. Nearly 80 percent (79.8 percent) of business startups in 2016 lasted until 2017. Between 2005 and 2017, the SBA mentions that 78.6 of new businesses lasted 12 months. Similarly, nearly 50 percent lasted at least five years. While there are many reasons why a company goes out of business – one is profitability. Knowing when the business is breaking even and will start making a profit can be accomplished with a break-even analysis. Defining a Break-Even Analysis As the SBA explains, a Break-Even Analysis is a useful way to measure the level of sales necessary to determine how many […]
July 1, 2019
During its annual Worldwide Developers Conference (WWDC) on June 3, Apple introduced a lot of new technology. Here, we will have a look at iPhone iOS13 upgrades and the all-new Mac Pro. iOS 13 The main reason for this upgrade is to have a faster and more secure iPhone. Some of the new features that Apple has added to entice buyers include: New map tools that enable consumers to zoom in on a location and have a tour around the place. A dark mode color scheme that users can switch to, replacing the usual white background. The dark mode helps reduce eye strain that users might experience from using a brightly lit screen. Ability to customize your Memoji avatar. Apple […]
June 1, 2019
Target Practice and Marksmanship Training Support Act (H.R. 1222 – The Pittman-Robertson Act, passed in 1937, imposes an excise tax on the sale of firearms, archery gear and ammunition. Those proceeds are used to fund hunter education programs, land acquisition and improvement of wildlife habitat. This new bill allocates a higher portion of these federal funds to cover the cost for construction and expansion of public target ranges. The act is designed to encourage states to develop additional shooting ranges for marksmanship training. It was introduced on Feb. 14 by Rep. Ron Kind (D-WI), passed in both the House and Senate and was signed into law by the president on May 10. To Reauthorize the Bulletproof Vest Partnership Grant Program […]