Launching a business? How to treat start-up expenses on your tax return While the COVID-19 crisis has devastated many existing businesses, the pandemic has also created opportunities for entrepreneurs to launch new businesses. For example, some businesses are being launched online to provide products and services to people staying at home. Entrepreneurs often don’t know […]

5 steps to streamline the month-end close Many companies struggle to close the books at the end of the month. The month-end close requires accounting personnel to round up data from across the organization. Under normal conditions, this process can strain internal resources. However, in recent years the accounting and tax rules have undergone major changes — […]

PPP Flexibility Act: How It Impacts Businesses & PPP Loans The PPP Flexibility Act includes a number of major changes to loan forgiveness and terms under the Payroll Protection Program.  For those who already have PPP loans, you may be wondering how this will effect what you owe and what the funds can be used […]

Paycheck Protection Program Flexibility Act of 2020 Signed by President Trump Highlights: The 8-week period for PPP loan expenditures can be extended to 24 weeks. All new PPP loans are subject to a 24 week eligibility and forgiveness term. The 75% payroll requirement reduced to 60%. New deadline to restore the work force - December […]

Student loan interest: Can you deduct it on your tax return? The economic impact of the novel coronavirus (COVID-19) is unprecedented and many taxpayers with student loans have been hard hit. The Coronavirus Aid, Relief and Economic Security (CARES) Act contains some assistance to borrowers with federal student loans. Notably, federal loans were automatically placed […]

Revenue recognition and leases: FASB gives certain entities more time Private companies and most nonprofits were supposed to implement updated revenue recognition guidance in fiscal year 2019 and updated lease guidance in fiscal year 2021. In the midst of the novel coronavirus (COVID-19) crisis, the Financial Accounting Standards Board (FASB) has decided to give certain […]

Businesses revise sales compensation models during pandemic Economists will look back on 2020 as a year with a distinct before and after. In early March, most companies’ sales projections looked a certain way. Just a few weeks later, those projections had changed significantly — and not for the better. Because of the novel coronavirus (COVID-19) […]

Non-GAAP measures can be misleading Not all companies follow U.S. generally accepted accounting principles (GAAP). Many smaller businesses, for example, have adopted the AICPA’s Financial Reporting Framework for Small and Medium-Sized Entities because it’s easier to follow. Other businesses may use non-GAAP measures because they don’t believe GAAP provides readers of financial reports with enough […]

IRS releases 2021 amounts for Health Savings Accounts The IRS recently released the 2021 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of […]