In Brief The tax impact on investment income can be mitigated through the transfer of assets into retirement accounts. Not all accounts and investments are…
Evaluating the Financial Planning Services Business Model
Is It the Right Time to Start a Planning Practice?
Financial planning is a generic term for all of the services that CPAs perform that deal with a client's individual wealth. It is also a…
On the timeline of financial accounting history, 2018 may well be the “year of the nonprofits.” Accountants and auditors began applying FASB Accounting Standards Update…
U.S. Wages and Salaries Growth Wages grew by 4.16% during January 2019 versus the same period in 2018. According to Trading Economics, this is below the long-term…
Tax & Accounting Update is provided by Thomson Reuters and based on material published on Checkpoint, its online news and research platform. The Update is…
Functional Expenses by Nature and the Overhead Debate
Crafting an Alternative Approach to ASU 2016-14
FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, is in full effect with the close of the December 31, 2018, fiscal year. As implementation progresses,…
Most CPAs practicing in the not-for-profit sector understand what a donor advised fund (DAF) is and how it is used to benefit both donors, as…
Attest services rendered to not-for-profit (NFP) entities provide assurance to stakeholders as to the quality of the financial condition, results of operations, and internal controls…
The 2019 tax filing season was a missed opportunity for the CPA profession. This was the year to get ahead of the new tax laws…
Charitable Contributions by S Corporations
A Mismatch of Pass-through and Basis Adjustment
Many taxpayers oversimplify the rules surrounding the charitable contribution deduction. Most are aware that contributions to public charities were previously deductible up to 50% of…
Over the years, there has been much confusion about whether to treat certain types of transactions as contributions or as exchanges, especially when they involve…
On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by President Trump. Numerous revisions to the tax code, most…
To Audit or Not to Audit
Whether to Accept a Uniform Guidance Audit
For many public accounting firms, the client acquisition decision often follows a common cost-benefit analysis; beyond the consideration of additional revenue generated, scheduling constraints, opportunity…
Changes Affecting Connecticut Personal Income Taxes
A Refresher of Key Revisions
The Tax Cuts and Jobs Act of 2017 made significant revisions to federal personal income taxation. In response, the Connecticut General Assembly enacted legislative changes…
The Reporting Impact of ASU 2016-14
Painting the Picture from a Nonprofit’s Financial Perspective
In Brief The nonprofit landscape has changed significantly over the past 26 years, expanding in size and scope while facing new challenges and keeping up…
While the overall responsibilities of a nonprofit director have remained the same over the years, the increasing complexity of the business environment makes fulfilling those…
Since President Donald Trump signed the Tax Cuts and Job Act (TCJA) on December 22, 2017, not-for-profit and tax-exempt organizations have been analyzing the impact…
The New Yellow Book
What CPAs Need to Know
In Brief The Government Accountability Office recently released a new version of Government Auditing Standards, also known as the Yellow Book. The revised version has been…
Government contracting is big business. More than 4 million contractors serve the U.S. government, and they collectively receive more than $500 billion per year. While…
In Brief Not-for-profit organizations receive financial donations as a matter of course, but the accounting for that revenue depends on whether the transaction is classified…
I often ask myself whether we are doing enough to be good stewards for America's future. How will future generations be impacted by the actions…
Why have so many state and local governments accumulated massive debts, even as they claimed to balance their budgets every year? Political math. Wait, how…
In Brief Cause investing—the directing of one's investments to companies that directly promote or embody through their conduct a particular social good—is becoming more and…
Since the issuance 14 years ago of the current audit documentation standards [now AU-C 230 and PCAOB Auditing Standard (AS) 1215, respectively], which are more…
In Brief Key performance indicators (KPI), long familiar to corporate managers, are increasingly being used by financial managers at notfor-profit organizations to measure the effectiveness…
Not-for-profit organizations continue to face an ever-evolving and challenging landscape. Executives and audit committees must deal with concerns ranging from attracting and retaining donors and…
The advantages of evidence-based decision making are clear, but there are several reasons why data-driven decision making is a relatively new concept for many notfor-profit…
Should CPA Firms Be Worried about Data Breach Claims?
Hurdles to Establishing Standing and Demonstrating Economic Viability
Driven by unceasing news reports, CPA firms are growing increasingly concerned that data breaches are increasing in both frequency and severity. With this deluge of…
ISM Manufacturing PMI The most recent ISM Manufacturing Index increased 2.3% from December 2018, indicating expanding business strength fostered by stronger demand and output. The…
Tax & Accounting Update is provided by Thomson Reuters and based on material published on Checkpoint, its online news and research platform. The Update is…