Audit & Accounting Update: June 27, 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Changes to revenue recognition in the life sciences industry
Our white paper explains how a life sciences entity could be significantly affected by the FASB’s new revenue recognition guidance.

Update to long-lived asset impairment snapshot for ASU 2017-04
Our white paper has been updated to reflect the goodwill impairment model simplification introduced by ASU 2017-04.

Expected issuance of anticipated new standard on hedge accounting
The FASB recently voted to proceed with the new standard that is intended to improve and simplify hedge accounting.

Form AP tool for audit committees
The Center for Audit Quality recently issued a tool to help audit committees understand the Form AP requirements.

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Employee Benefits Update: June/July 2017

This issue’s topics include:

Is a safe harbor plan the right move?

This alternate approach can save headaches, but at a price
Many qualified retirement plan sponsors worry each year about whether their highly compensated employees will have “excess” salary deferrals returned to them because the plan failed the actual deferral percentage / actual contribution percentage (ADP/ACP) discrimination tests. Most small plan sponsors take advantage of “safe harbor” rules that, nearly always, eliminate the need to worry about passing these tests. This article looks at the pros and cons of this approach.

Read More

Avoid litigation with attention to common red flags

Any size retirement plan can run into serious trouble when sponsors aren’t careful. With some planning, though, a qualified retirement plan doesn’t have to be the target of ERISA litigation. This article reviews some of the most common red flags leading to litigation and reminds plan sponsors of the importance of regularly reviewing fees and expenses.

Read More

Employees who are approaching retirement age may be unaware of their required minimum distribution (RMD) obligations, which begin at age 70½ for both individual

Helping soon-to-be retirees understand RMD rules

IRAs and 401(k)s. This article summarizes what they need to know for financial and tax-planning purposes.

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IRS simplifies process for avoiding rollover penalties

The IRS has made it a lot easier for retirement plan participants (and IRA owners) to avoid penalties when they botch a rollover. This brief article discusses new IRS Revenue Procedure 2016-47, which allows participants to “self-certify” valid reasons to the receiving financial institution.

Read More

Compliance alert

This feature lists a few key tax reporting deadlines for April and May.

Read More

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact me directly.

Want to learn more?

Join our Employee Benefit Plan Resources group on LinkedIn for more frequent updates on recent developments and best practices and discuss related topics with your peers.

Join the Group

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Tax Update: July 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Is state tax reform coming in waves?
Contending with several quarters of weak growth in overall state tax collections, between 25 and 40 states are facing revenue shortfalls. The budget season is heating up with a flurry of legislation proposed to close those budget gaps for the 2018 fiscal year.
Read more

Personal tax planning in anticipation of reform: What you should know (and do)
Join us July 18 to learn about the implications of potential tax reform on income, estate and life insurance planning and the ways to prepare for it.
Read more

Tax Court holds taxpayer not liable for accuracy-related penalties
A taxpayer’s reliance on a tax professional to prepare accurate tax return was reasonable, thus taxpayer was not liable for penalties.
Read more

Economic sales and use tax nexus laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.
Read more

Canada identifies US partnerships that it will treat as corporations
Canadian Revenue Agency provides list of factors considered when determining certain U.S. partnerships should be treated as corporations.
Read more

Net operating losses: One size does not fit all
Proper diligence when it comes to the state application of net operating losses can help maximize tax benefits and minimize errors.
Read more

What business owners need to know about value before selling
Learn how to view the value of your business through the eyes of a buyer and what you can do today to plan for a successful transaction.
Read more

Employers with self-insured health plans owe PCOR fee by July 31, 2017
Read more

Tax planning for ESOP-owned S corporations
Read more

Navigating nuances in transfer pricing
Read more

Apportionment of net recognized built-in gains in California
Read more

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Working with Checks in QuickBooks

Online banking may get all the headlines, but a lot of small businesses still prefer paper checks. QuickBooks can accommodate them.

“I don’t write checks anymore,” you hear a lot of people say these days. Debit cards, smartphone payment apps, and online banking have replaced the old paper checkbook for a lot of consumers.

That’s fine if you’re at Starbucks or the grocery store, but many small businesses still prefer to issue paper checks to pay bills, cover expenses, and make product and service purchases. QuickBooks provides tools that help you create, print, and track checks.

But you don’t just head to the Write Checks window every time something needs to be paid. There are numerous times when you would record a payment in a different area of the program. For example, if you’ve already created a bill in Enter Bills, you’d go to the Pay Bills screen to dispatch a check.

Once you’ve recorded a bill in Enter Bills, you need to visit the Pay Bills screen to dispatch a check. The image above shows the bottom of that screen.

Other examples here include:

  • Issuing paychecks (click the Pay Employees icon),
  • Submitting payroll taxes and liabilities (Pay Liabilities icon), and
  • Paying sales taxes (Manage sales tax icon).

Simple Steps

Let’s say you asked an employee to go to an office supply store to pick up some copy paper because you ran short before your normal shipment came in. If you knew the exact amount it would cost, you could write a check directly to the shop. But the employee agrees to pay for it and be reimbursed.

Click the Write Checks icon on the home page. If the BANK ACCOUNT that’s showing isn’t the correct one, click the arrow to the right of that field and select the right one. Unless you’ve written a check to that employee before, he won’t be in the Vendor list that opens when you click the arrow to the right of PAY TO THE ORDER OF. Enter his name in that field.

The Name Not Found window opens. If this was a new vendor that you would be working with again, you’d click Set Up and follow the instructions in the step-by-step wizard that opened. Since this isn’t the case, click Quick Add. In the window that opens, click the button next to Vendor.

Note: If you’re using a payroll application, you already have an employee record for that individual, which would have filled in automatically when you started typing the name. Since this is a Non-Payroll Transaction, it won’t get mixed up with his payroll records as long as you assign the correct account.

If you don’t want to create an entire record for the payee of a check, you can just click Quick Add.

QuickBooks will then return you to the check-writing screen, where you can verify the check number and date, and enter the amount. Fill in the MEMO field so you’ll remember the reason for the payment.

At the bottom of the screen, you’ll see a tabbed register. The Expenses tab should be highlighted and the amount of your check entered. Click the down arrow in the field under ACCOUNT to open the list, and select Office Supplies. The AMOUNT should fill in automatically. Not sure which account to select, and what the remaining three columns mean? Ask us.

Note: You would only enter the expense under the Items tab if you were buying inventory items or paying job-related costs.

Warning: If you’re planning to print the check, be sure to check the Print Later box in the horizontal toolbar at the top of the screen.

When you’re finished, save the transaction. Since you want to pay the employee right away, click the Print Checks icon and click in the field in front of the correct check to select it, then click OK.

Easy, But Tricky

QuickBooks makes the mechanics of writing checks easy. Simple as it is, though, a lot can go wrong if you, for example:

  • Issue a check from the wrong screen,
  • Classify a check incorrectly, or,
  • Skip a step.

We encourage you to set up a learning session with us if you’re new to check-writing in QuickBooks or are confused about any of its attributes. We’ll be happy to help ensure that your accounts payable activities will result in accurate record keeping.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Audit & Accounting Update: June 13, 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Quarterly accounting update webcast – Summer 2017
Our Quarterly accounting update webcast will cover recently issued guidance and developments in standard-setting projects.
Read more

Accounting for debt and equity instruments in financing transactions
Our guide is a resource for understanding relevant accounting guidance for debt and equity instruments issued in financing transactions.
Read more

Changes to revenue recognition for not-for-profit organizations
Our white paper discusses changes to the accounting for exchange transactions entered into by not-for-profit organizations.
Read more

PCAOB adopts auditor reporting standard
A new standard requires auditors to provide additional information in their reports on audits of financial statements.
Read more

PCAOB proposes standard for auditing accounting estimates
A PCAOB proposal would replace existing standards on auditing accounting estimates and fair value measurements with a single standard.
Read more

Proposal: Auditor’s use of the work of specialists
The PCAOB recently proposed amendments to auditing standards for the auditor’s use of the work of specialists.
Read more

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: June 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax reform is likely to curtail some credits and incentives
Businesses should understand how they may be affected by the elimination of some credits and incentives and the expansion of others.

Canadian Revenue Agency issues statement on US partnership taxation
CRA representatives shed light on Canadian compliance issues related to US LLPs and LLLPs, specifically mentioning Florida and Delaware.

Exorcise your ghost assets: Stop paying unnecessary property tax
Fully-depreciated fixed assets can haunt your property taxes for years. Identify and fully dispense ghost assets to avoid excess taxation.

Nebraska sales tax leaves contractors with questions
Construction contractors must be well-versed on the state’s classifications options to avoid over or under payment of sales and use tax.

Tax consequences of mergers and acquisitions
Tax planning is vital in an acquisition. Learn six federal, state and international M&A tax considerations that may shape your transaction.

The long-term care insurance decision – a very complex one indeed
Individuals who would like to explore how to cover the cost of long-term care can set the agenda for a productive discussion with an agent.

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

How to Keep Your QuickBooks Data Safe

You work hard to make sure your QuickBooks data is accurate. Make sure it’s safe, too.

Your QuickBooks company file contains some of the most sensitive information on your computer. You may have customers’ credit card numbers and employees’ Social Security numbers. An intruder who captured all that data could create tremendous problems for you and a lot of other people.

That’s probably the worst-case scenario. But other situations could also spell disaster for your business, which  involve losing your company data through fraud, hacking, or simple technical failures.

We can’t overstate the vital importance of protecting your QuickBooks company file, especially your customer and payroll information. Whether someone steals it or it’s inaccessible for another reason, it’s gone. Keeping your business going after such a loss would be very difficult – maybe even impossible.

Here’s what we suggest to prevent that.

Internal Safeguards

No business owner wants to believe that his or her employees could use their QuickBooks access to commit fraud. But it happens. Your company file contains credit card and checking account data that could be used for nefarious purposes. As we discussed last spring, you can restrict user access to specific areas  and actions of QuickBooks.

You can limit your employees who have QuickBooks access to certain areas and activities.

To get started, open the Company menu and select Set Up Users and Passwords | Set Up Users. The User List window opens. It should have at least one entry there, for you (Admin). Click Add User and enter the employee’s name and password in the next window that opens, then click Next.

Tip: Your QuickBooks license limits you to a specified number of users. If you’re not sure how many you’re allowed, click F2 to open the Product Information page. The number of user licenses you’ve paid for appears in the upper left.

On the next page of this wizard, click the button in front of Selected Areas of QuickBooks. The following screens will let you define that employee’s access permissions in areas like Sales and Accounts Receivable, Inventory, and Payroll and Employees. When you’ve clicked through every screen and reviewed the summary displayed, click Finish. Your user will now be able to sign in and access the areas you specified.

You can—and should—take numerous other steps to keep your QuickBooks data safe. If your company is big enough to have a dedicated IT expert, he or she will handle most of this. But there’s a lot you can do on your own to prevent data loss and theft.

Keep Your Operating System and Applications Updated

 

 

 

 

 

Don’t ignore this dialog box.

Software companies’ occasional updates offer more than just adding new features and fixing bugs. They sometimes refresh your software to ensure greater security based on new threats. Don’t forget about those all-important antivirus and anti-malware applications, as well as QuickBooks itself.

Keep Your Networks Safe

Just as a cold virus spreads around your office, so, too, can unwanted intrusions like computer viruses. Don’t allow an electronic epidemic to get started; take steps ahead of time to prevent it:

  • Discourage employees from excessive web browsing. This can be a hard rule to enforce, as
    some employees probably need internet access for research, timecard entry, and other work-related tasks. Create a firm policy legislating what workers can and can’t do on company-issued equipment (including tablets and smartphones) or any personal devices that use your wireless network.
  • Ask employees to refrain from using public networks on work equipment. Enforce the rules vigorously, and make compliance an element of performance evaluations.
  • Minimize app installations on business smartphones. Employees should ask for approval. Viruses and malware get in that way, as well as through some websites and email attachments.
  • Use monitoring software. If you can’t afford to pay for “managed IT” (a la carte, third-party IT services), install an application that alerts you to problems.

Use Common Sense

You can fight data loss and theft by being cautious. Be diligent about backups, and if you create them on a local, portable device, don’t leave them in the office. Cloud-based solutions are better. Shred papers that have sensitive information on them. Log out of QuickBooks when you’re not using it or when you leave your office. Be aware of who may be around you, looking over your shoulder.

We take data security very seriously in our own office, and we strongly encourage you to do the same. Contact us if you’re at all concerned with your own data safety, and we’ll come up with a plan together.

For more QuickBooks tips, tricks and info on training from our team of Certified QuickBooks ProAdvisors® subscribe to The QBC.

QuickBooks and QuickBooks ProAdvisor are registered trademarks and/or registered service marks of Intuit Inc.

Audit & Accounting Update: May 24, 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Stock compensation: Scope of modification accounting
ASU 2017-09 requires an entity to account for the effects of a share-based payment award modification unless certain conditions are met.
Read more

Customer of operation services in a service concession arrangement
Per the FASB, the grantor is the customer of the operation services for service concession arrangements within the scope of ASC 853.
Read more

FASB tentative decisions regarding down round features
The FASB recently completed its redeliberations regarding the accounting for certain financial instruments with down round features.
Read more

Questions regarding ASU 2015-12
Employee benefit plan administrators commonly have raised three questions related to the implementation of ASU 2015-12.
Read more

 

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Audit & Accounting Update: May 18, 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

New Revenue Recognition Resource Center goes live
RSM US LLP recently launched a Revenue Recognition Resource Center with information about the new guidance in FASB ASC Topic 606.
Read more

IRS permits self-certification for safe-harbor hardship distributions
Two recent IRS memorandums provide guidance on plan participant hardship distribution substantiation requirements.
Read more

Audit & Accounting Guide for employee benefit plans updated
The American Institute of Certified Public Accountants Audit & Accounting Guide, Employee Benefit Plans, was recently updated.
Read more

Proposed reporting on financial statements of plans subject to ERISA
A recent AICPA proposal addresses the auditor reporting model for audits of employee benefit plans that are subject to ERISA.
Read more

 

Audit and Accounting Updates for Business Owners and Financial Professionals

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/financial-reporting-insights.html

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

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