Small businesses often use the cash-basis method of accounting. As businesses grow, they usually convert to accrual-basis reporting for federal tax purposes and to conform with the U.S. Generally Accepted Accounting Principles (GAAP). Starting this tax year, the Tax Cuts and Jobs Act (TCJA) has increased the threshold for businesses that qualify for the simpler cash method for federal tax purposes. Here’s how these accounting methods compare and how the TCJA could affect your financial and tax reporting decisions.
Strategic planning is key to ensuring every company’s long-term viability, and goal setting is an indispensable step toward fulfilling those plans. Unfortunately, businesses often don’t accomplish their overall strategic plans because they’re unable to fully reach the various goals necessary to get there. If this scenario sounds all too familiar, trace your goals back to their origin. Goals that are poorly conceived typically set up a company for failure.
To avoid interest and penalties, you must make sufficient federal income tax payments long before your April filing deadline through withholding, estimated tax payments, or a combination of the two. The third 2018 estimated tax payment deadline for individuals is September 17th. If you don’t have an employer withholding tax from your pay, you likely need to make estimated tax payments. But even if you do have withholding, you might need to pay estimated tax. Read More
The United States Congress recently signed the Tax Cuts and Jobs Act, and it is the most important tax reform legislation that is beneficial to business in the country particularly construction firms. But what is the tax reform all about? Read More
Effective for your fiscal years beginning after December 15, 2018, all non-public entities will need to implement the new revenue recognition standards as outlined in Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). The standard requires all companies to take a look at their revenue recognition, measurement of revenue, financial statement disclosures, systems, processes and internal controls to ensure they are in compliance with this new standard. Read More
Financial statements help investors and lenders monitor a company’s performance. However, financial statements may not provide a full picture of financial health. What’s undisclosed could be just as significant as the disclosures. Here’s how a CPA can help stakeholders identify unrecorded items either through external auditing procedures or by conducting agreed-upon procedures (AUPs) that target specific accounts. Read More
Are you nearing retirement age and the prospect of retiring overseas is something that you are entertaining? Before you decide to go overseas to finally settle into your new life, it would be a good idea to consider the tax implications of retiring abroad. Read More
Global Intangible Low-Tax Income – Working Example. Executive Summary
Does your Corporation own greater than 50% of a business established in a foreign country?
Beginning January 1, 2018, US entities will be subject to a tax on Global Intangible Low-Tax Income (GILTI) of their subsidiary controlled foreign corporations (CFC).
The income and tax associated with GILTI is eligible for certain deductions and foreign tax credits for US Corporations only. Read More
The Tax Reform Act’s Impact on Manufacturers
How much will the tax law changes actually impact your manufacturing business? As you probably are aware of the purpose behind the tax law was to reduce taxes across the board and to level the playing field for international business. So what will the impact be for you and your bottom line? That will depend on how your business is structured for U.S. tax purposes. Below are descriptions of some of the more prominent federal income tax changes which will impact manufacturers for 2018 and beyond. Read More
The construction industry is experiencing a wide variety of risks due to the complexity of its project environment.
Risk is defined as the probability of setback, injury, loss, or disadvantage for a particular entity. In the construction market, risk entails the failure to achieve what is feasible as well as the predicted measures. Although there are many definitions of the word “risk” and how it relates to the construction industry, it is important to seriously take them into consideration when it comes to making decisions.