How entangled should your personal and business finances be? Many small-business owners may be put in a precarious situation if they commingle funds and then things go sour during the pandemic and ensuing recession. Paying your business expenses from your personal accounts puts you at risk for possible personal liability. Resist the urge to pay
Determining Reasonable Compensation for C Corps and S Corps
The reasonableness of shareholder and employee compensation is an important though often controversial income tax consideration for closely held corporations such as either a C corporation or an S corporation. When excessive amounts of compensation and benefits are provided to an individual, the IRS will treat the excess as dividends. This can result in double
What You Need To Know About The New 2020 W4
Were you one of those folks who didn’t have enough taxes withheld from their paychecks last year to cover the taxes they owed? To help avoid this problem going forward, the IRS changed the way to determine how much federal income tax an employer must withhold from an employee’s paycheck. As part of the fix,
Monthly Client Spotlight Don Brewer of Grand Funk Railroad
Not just “An American Band” but now an “American Legend,” Grand Funk Railroad’s drummer, vocalist, writer, and only constant band member, Don Brewer, is celebrating the 50th Anniversary of his band with a celebration tour! A Michigan transplant now living in Jupiter with his wife Sunny Quinn, Don no longer sports his signature afro, but
New Revenue Recognition Standards Prevent Fraud and Abuse
FASB’s new revenue recognition standards are now effective, but how well will the new standard prevent fraud and abuse? FASB had many goals in issuing the new Accounting Standards Codification Section 606, “Revenue Recognition from Contracts with Customers.” Concern about fraud was one of the original goals, but FASB also sought to remove inconsistencies in
Importance Of Internal Controls No Matter What The Size Of Your Entity
Think only big companies have a problem with internal fraud? Think again! According to a recent report form the Association of Certified Fraud Examiners, businesses with fewer than 100 employees account for almost 30% of internal fraud cases. Small business owners don’t always have the time or knowledge to properly design internal controls, and often
The Silver Tsunami Brings Exit Issues For Biz Owners
An “age wave” is hurtling toward our economy like a tsunami building strength before it hits land – but land it will, and it will affect small business owners, especially “Boomers,” for decades. Many in this generation are already looking to “exit” their businesses after years of building their entities, providing for their families, and
FASB Delays Effective Date for Lease Accounting Standards
The Financial Accounting Standards Board announced plans to delay the effective date for the new standard on accounting for leases for certain entities. This is great news for private companies, non-profit organizations, and smaller reporting companies lagging in adoption of the leasing standard updates. It seems FASB underestimated the time and resources needed for tracking
Doubts About Deleting Financial Documents
Document retention needs a system whether paper or digital. Storing financial records electronically is one of the only ways keeping them indefinitely seems realistic. But do you have to? Large corporations may have limitless storage capacity on servers and in the cloud, but what about individuals and small businesses that do not? Some folks still
Employing Family Members May Have Tax Benefits
Has your son or daughter gotten their diploma but not a job? Has your spouse recently lost their position due to a merger and offered to work in the family business? Has a parent recently retired and expressed an interest in part-time employment? One of the advantages of operating your own business is hiring family
