-
Estate planning Q&A: Guardianship
If you’re the parent of a newborn, toddler or older child, you may be thinking about naming a guardian for him or her. This can be a difficult decision, especially if you have many choices or, on the other hand, no one you can trust. The following are answers to common questions about guardianship: Q.…
-
Now or later: When should your company implement the new crypto reporting guidance?
The Financial Accounting Standards Board (FASB) made favorable changes to the accounting rules for crypto assets in December 2023. The updated guidance benefits reporting entities and external stakeholders alike. It’s effective for fiscal years beginning after December 15, 2024, including interim periods within those years. Here’s what you should know — and why many companies are…
-
One from many: Why your nonprofit might want to federate
Federated not-for-profits are single corporate entities with multiple chapters. There’s no one definitive legal structure for federated organizations. But local chapters generally operate independently of their national headquarters and pay a certain percentage of income to their national office in exchange for the name, branding and other benefits. Many large organizations, including Boys & Girls…
-
Another court ruling on BOI reporting: Requirements are halted again
In a surprising turn of events, a federal appeals court has issued another ruling that suspends a requirement for businesses to file reports about their beneficial ownership information (BOI). This came just days after the same court issued a ruling that resulted in the federal government announcing that millions of small businesses did have to…
-
Estate planning for non-U.S. citizens requires extra care
Traditional estate planning strategies generally are based on the assumption that all family members involved are U.S. citizens. However, if you or your spouse is a noncitizen, special rules apply that require additional planning. Avoid costly tax traps by understanding how the U.S. gift and estate tax laws apply to noncitizens. Defining “domicile” Noncitizens can…
-
Enhance financial reporting by forging a partnership between internal and external auditors
Many calendar-year entities are currently preparing for the start of audit fieldwork. One proactive way to facilitate your financial statement audit is to encourage teamwork between your internal audit department and external auditors. Consider the following four tips to foster a more collaborative relationship. 1. Reach out regularly By scheduling meetings between internal and external…
-
How do external auditors evaluate audit risks?
As calendar-year entities wrap up financial reporting for the year, their external auditors work behind the scenes to prepare for audit season. Here’s what you can do to help facilitate the audit planning process. The audit risk assessment During fieldwork, auditors can’t test every transaction, recalculate every estimate or examine every external document. Instead, they…
-
5 reasons to outsource your bookkeeping
Running a closely held business is challenging. Owners usually prioritize core business operations — such as managing employees, serving customers and bringing in new sales — over tedious bookkeeping tasks. Plus, the accounting rules can be overwhelming. However, access to timely, accurate financial data is critical to your business’s success. Could outsourcing bookkeeping tasks to…
-
How to report contingent liabilities in your company’s financial statements
It’s critical for business owners and managers to understand how to present contingent liabilities accurately in the financial statements. Under U.S. Generally Accepted Accounting Principles (GAAP), some contingent losses may be reported on the balance sheet and income statement, while others are only disclosed in the footnotes. Here’s an overview of the rules for properly…
-
Beyond the numbers: 5 red flags that may indicate financial distress
Financial statements help managers, lenders and investors evaluate a company’s financial performance. But they tell only part of the story — and they might not reveal financial distress until it’s too late, especially for companies that issue only annual reports. So it’s critical to watch for these five common warning signs indicating a company may…
