Returning Value Blog

The month-end close is a pain point for many small to midsize businesses. While internal accounting teams often aim to wrap up the close within three days, a recent survey found that half the respondents actually take six days or longer to close the books. What can your organization do to help streamline this process? Leveraging cloud-based technology tools like QuickBooks® can be a game changer.

Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS steps in and reclassifies them. It could lead to audits, back taxes, penalties, and even lawsuits.

Payroll cards are cheaper for employers and can be more convenient for employees. However, some cards charge high fees to withdraw money and access account balances. The right payroll card might be a good solution, but it can’t be the only solution you provide.

In recent years, interest rates have increased and credit has tightened. Under these conditions, which are expected to persist in the coming months, securing a commercial loan can be challenging for businesses of all sizes. Whether you want to expand, stabilize your cash flow, or simply build a financial cushion, being loan-ready is more critical — and more complicated — than it’s been in the past.

For many businesses, accounts receivable (AR) are more than just a line item on the balance sheet. This account provides a key indicator of potential cash flow, customer relationships and overall financial health. So proactive AR management is critical. The AR aging report has long been a cornerstone of expediting collections and reducing credit risk, but it’s taken on greater significance with the implementation of new accounting rules for recognizing credit losses.

Even well-run companies experience down years. The federal tax code may allow a bright strategy to lighten the impact. Certain losses, within limits, may be used to reduce taxable income in later years.

Claim denials are a significant issue for healthcare, especially as they continue to rise: last year, 60% of medical groups reported a year-over-year increase in claim denials, and providers spend around $20 billion a year trying to overturn them. 

Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen as reasonable and deductible.

With new tariff structures looming and global trade relationships in flux, businesses face rising uncertainty in supply chain costs and inventory planning. As countries iron out the details of future U.S. trade agreements, companies must proactively manage their inventory to avoid margin erosion and supply disruptions. Here are six smart strategies to help safeguard your operations.

The key to success is to be thoroughly prepared. Succession will happen within families, but it is not always certain that it will be accomplished strategically. Succession planning calls for deliberate preparation, and it requires time— typically years or even decades—as well as forethought, commitment, diligence, and adaptability.