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Returning Value Blog

How to Treat Your Business Website Costs for Tax Purposes

Posted by Nick Wheeler, CPA on Oct 17, 2019

These days, most businesses need a website to remain competitive. It’s an easy decision to set one up and maintain it. But determining the proper tax treatment for the costs involved in developing a website isn’t so easy.

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Posted in Business Tax

Nonprofits:New Alternatives for Reporting Goodwill & Other Intangibles

Posted by Lesley L. Price, CPA on Oct 15, 2019

Did you know that the Financial Accounting Standards Board (FASB) recently extended the simplified private-company accounting alternatives to not-for-profit organizations? Many merging nonprofits, including educational institutions and hospitals, welcome these practical expedients. Here are the details.

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Posted in Business Tax

New Overtime Pay Rule Compliance

Posted by Murry Guy, CPA on Oct 10, 2019

New Rule will affect millions - After the 2016 regulation (which had a much higher threshold) was invalidated by a U.S. District Court, a new regulation was finalized on September 24, 2019, by the U.S. Department of Labor.  However, changes in the regulations do not formally take effect until January 1, 2020. Because of that, employers still have time to make the adjustments necessary to be in full compliance.

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Posted in Business Advisory

Internal Audit 2.0: Paperless and Continuous Auditing Trends

Posted by Aaron K. Waller, CPA on Oct 09, 2019

Technology is altering the traditional approach to internal audits. Instead of reviewing reams of paperwork, today’s auditor is learning to use electronic records. In turn, going paperless facilitates a concept known as “continuous auditing,” where internal auditors continually gather data to support their procedures. Here’s how your business can modernize this process.

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Posted in Audit & Assurance

Understanding and Controlling the Unemployment Tax Cost of Your Business

Posted by Murry Guy, CPA on Oct 08, 2019

As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer taxed at a 6% rate would pay FUTA tax of $420 for each employee who earned at least $7,000 per year, while an employer taxed at 0.6% pays $42.

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Posted in Business Tax

The Chances of an IRS Audit Are Low, but Business Owners Should Be Prepared

Posted by Lisa Albritton on Oct 02, 2019

Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In the fiscal year 2018, the IRS audited approximately 0.6% of individuals. Businesses, large corporations, and high-income individuals are more likely to be audited but, overall, audit rates are historically low.

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Posted in Business Tax

Why Do Companies Restate Financial Results?

Posted by Aaron K. Waller, CPA on Sep 20, 2019

Every year, research firm Audit Analytics publishes a study about financial restatement trends. In 2018, the number of public companies that amended their annual reports increased by 18%.

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Posted in Audit & Assurance

The Untouchables: Getting a Handle on Intangibles

Posted by Jessica L. Pagan, CPA on Sep 18, 2019

The average company’s balance sheet understates its value by 80%, according to Sarah Tomolonius, co-founder of the Sustainability Investment Leadership Council. Why? Intangible assets aren’t recorded on the balance sheet under U.S. Generally Accepted Accounting Principles (GAAP) unless they’re acquired from a third party.

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Posted in Audit & Assurance

5 Ways to Withdraw Cash from Your Corporation While Avoiding Dividend Treatment

Posted by Lesley L. Price, CPA on Sep 17, 2019

Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” But it’s not deductible by the corporation.

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Posted in Business Advisory

Budgeting Is Key to a Successful Start-Up

Posted by Nick Wheeler, CPA on Sep 16, 2019

More than half of recent college graduates plan to start a business someday, according to the results of a survey published in August by the American Institute of Certified Public Accountants (AICPA). Unfortunately, the AICPA estimates that only half of new businesses survive the five-year mark, and only about one in three reaches the 10-year mark.

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Posted in Business Advisory

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