Audit & Accounting Update: March 22, 2018

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.

Accounting

FASB clarifies certain hedge accounting matters
The FASB recently clarified the opportunity to transfer prepayable held-to-maturity securities to available-for-sale.

FASB clarifies guidance in ASU 2016-01
ASU 2018-03 provides clarifying amendments for recognition and measurement of financial assets and financial liabilities.

Financial Institutions

Webinar: Practical methods smaller community banks can use for CECL
A recent webinar provides methods smaller, less complex financial institutions may use in their implementation of CECL.

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: March 2018

What does the Tax Cuts and Jobs Act mean for pass-through entities?
Listen to our recorded webcast on the impact on pass-through entities.

Tax reform impact on executives of alternative investment funds
Learn how the recent tax reform affects executives, founders and general partners of alternative investment fund structures.

Meals and entertainment expenses after tax reform
Employers must change their systems and processes for the new rules.

Wealth transfer planning after TCJA: If not now, when?
The stars are aligned for wealth transfer, but the sooner the better.

Use stat sampling to increase meals and entertainment deductions
Statistical sampling eases the burden of identifying eligible M&E expenses through three-year extrapolation of expenses.

Navigating multistate unemployment tax reporting and remittance
Businesses with multistate employees should understand the reporting and remittance nuances of a complex unemployment taxing regime.

India proposes draft Master File and CbC reporting rules

Now is the time to know what an ESOP is

Bobbleheads spring into Ohio sales and use tax

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

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.

Tracking Time in QuickBooks, Part 2

Tracking Time in QuickBooks, Part 2

We’ll be continuing the two-part series we started last month.

Last month, we learned about getting QuickBooks ready for time-tracking by activating it in Preferences. We also created a record for a service item. This month, we’ll actually use that record in the two ways you’ll be using it in QuickBooks: to pay employees for their hourly work and to bill customers for services.

Recording Employee Hours

There are two ways to enter hours for your employees who provide services to customers and are paid by the hour. The first is to create a work ticket for a single activity. Click Enter Time on the home page, and then Time/Enter Single Activity to open this window:

Single-activity work tickets for employee hours are especially useful if you need to set a timer.

First, check the date to make sure it displays the day when the work was actually done, not recorded. Click the arrow in the field next to Name and select the employee’s name from the drop-down list that opens, then do the same in the Customer:Job field below. The Service Item field needs to display the name of the service performed by the employee.

If you want to time a period of activity, use the Start, Stop, and Pause buttons under Duration. You can also replace the 0:00 that appears by default with the number of hours and minutes that were worked.

In the middle column, you’ll select the correct Payroll Item from the drop-down list. You can add a new employee if necessary without completing his or her entire record, but be sure to go back and complete it before your next payroll.

Hidden behind the drop-down menu is a field titled WC Code, which stands for Workers’ Compensation Code. It will only appear if you’re using QuickBooks Enhanced Payroll and have that feature turned on.

Tip: If these two fields do not appear, you’ve selected an employee who isn’t timesheet-based.

In the upper right hand corner, you’ll see a field labeled Billable. Be sure you click in the box to create a checkmark if you’ll be invoicing a customer for the work done.

Save the activity record when you’ve completed it.

Using Timesheets

You can enter employees’ hours directly on a timesheet instead of creating a single activity record.

QuickBooks offers a second option for entering employee hours: timesheets. You’ll notice that there’s a Timesheet icon in the toolbar of the Time/Enter Single Activity window. If you click on it with a completed record open, a new window opens containing a graphical representation of a paper timesheet.

If you enter employee hours in a single activity record, they will appear on a timesheet, and vice versa. There are two advantages to entering hours directly on the timesheet, though. The first is that it’s faster. And secondly, you can click the Copy Last Sheet icon if you’re just going to duplicate an employee’s previous pay period’s hours. If you want to go there straight from the home page, click Enter Time | Use Weekly Timesheet.

Billing Customers for Time

QuickBooks makes it very easy to transfer billable hours worked by employees to the corresponding customers’ invoices. After you’ve entered blocks of time spent on services, open an invoice form and select the customer. This window will open:

Once you’ve entered billable hours worked by an employee, simply open an invoice form and select that customer to open this window.

By default, Select the outstanding billable time and costs to add to this invoice? is checked. When you click OK, a new window opens displaying a grid that contains all of that customer’s billable time. You can Select All or click in front of each entry you want to include. You’ll notice here that there are also tabs on the grid for Expenses, Mileage, and Items that can be billed back to the customer.

If you choose not to carry billable hours over to the invoice at the present time, you can always add them by clicking Add Time/Costs in the invoice’s toolbar.

Questions? We’re always available to help ensure that you’re billing customers for all costs they incur – and to talk about any other element of accounting that affects your cash flow.

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: March 8, 2018

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 Lease Accounting Resource Center
Our new resource center provides information about the new guidance in Accounting Standards Update 2016-02, Leases (Topic 842).

Additional hedge accounting benchmark interest rate proposed
The FASB has proposed adding a fifth U.S. benchmark interest rate that would be permitted in the application of hedge accounting.

The FASB issued AOCI standard
ASU 2018-02 allows entities to make a one-time reclassification from AOCI to retained earnings for certain effects of the TCJA.

 

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: February 22, 2018

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.

Accounting

FASB addresses AOCI reclassification related to tax reform
The FASB will allow a one-time reclassification from AOCI to retained earnings for stranded tax effects as a result of the TCJA.

Simplifying the test for goodwill impairment
Our white paper provides information about the provisions of ASU 2017-04 as well as effective date and transition information.

Clarifications to land easements application guidance
A recent ASU addresses the application of ASC 842 to land easements, and permits a transition practical expedient.

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.

Tracking Time in QuickBooks, Part 1

If your company sells services, you can track the time spent providing them in QuickBooks.

When you sell a product to a customer, you know it. It goes away, and your inventory count in QuickBooks is reduced by one. This tracking helps you know what’s selling and what’s not, and it signals when a reorder is due.

If your business provides services to customers, though, you’re selling your employees’ time and skills. There’s no inventory count; you can sell as many hours as you have workers to fill them. Tracking time accurately and comprehensively, though, is as important as knowing how many hard drives or tote bags you’ve sold.

QuickBooks contains tools to help you record the hours employees spend doing work for customers, so you can bill them for services rendered. You can also use these same features to enter employee time for payroll purposes. The software offers two options here: single-activity records and timesheets.

Building the Foundation

We’ve discussed QuickBooks’ Preferences many times before. The software was designed to support small businesses with a wide variety of structures and needs, so it needs to be flexible. For that reason, we always recommend that you check in with your “Preference” options before you explore new features.

To get there, open the Edit menu and select Preferences. In the left vertical pane, click on Time & Expenses, then on the Company Preferences tab at the top. Here is a look at the top part of the window that opens:

The Company Preferences window for Time & Expenses displays multiple options.

To make sure that QuickBooks’ time-tracking features are turned on before you start, click the button next to Yes under Do you track time? Specify the First Day of Work Week by opening that drop-down list. If you know that all your time entries will be billable, click in the box in front of that statement.

There are other options in that window; we’ll talk about them next month.

Creating Service Items

Before you can start tracking billable time, you have to create a record for each service offered – just like you would for a physical product. Click the Items & Services icon on the home page or open the Lists menu and select Item List. The window that opens will eventually display a table containing all the items and services you’ve created.

To define a service item, click Item in the lower left corner, then New, to open a window like this:

You can create numerous types of items in QuickBooks; Service is one of them.

Click the down arrow in the field under Type to see your options here. There are many, ranging from Service to Inventory Part to Sales Tax Group. Select Service. In the field under Item Name/Number, enter a word or phrase and/or number that describes the service, and that won’t get confused with another.

If you had already created an item like “New Construction Services” and you wanted “Carpet Installation” to appear as a subitem of it, you’d click in the box in front of Subitem of to create a checkmark, then open the drop-down list below it and select “New Construction Services.”

Ignore the Unit of Measure section. If this designation is important to your business, talk to us about upgrading your version of QuickBooks. Connect with us, too, if the service you’re defining is used in assemblies or is performed by a subcontractor or partner, as these are more advanced situations.

Enter a brief Description in that box and your hourly charge—to the customer—in the field to the right of Rate. Click the down arrow in the field next to Tax Code to select the item’s taxable status.

It’s very important that you get the next field right. QuickBooks wants to know which account in your company’s Chart of Accounts should be assigned to this item. In this case, it would be “Construction Income.” If you’re not yet familiar with the concept of assigning accounts, let’s set up a session to deal with this and other basic knowledge you should have.

When you’re done, click OK.

Next month, we’ll talk about entering time items in records and timesheets.

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.

Not-for-Profit Update: January/February 2018

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 insights for not-for-profit organizations. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Nonprofit tax reform resource center
The recently enacted Tax Cuts and Jobs Act has produced widespread tax law changes for exempt organizations. Learn more about the latest updates in our resource center.

IT risk management for nonprofits: Securing your technology and data
Nonprofit organizations must understand how to implement strategies to protect technology and information assets.

IRS offers guidance on certain distribution from donor advised funds
The Treasury Department and the IRS are considering developing proposed regulations under section 4967 of the IRC.

What your nonprofit board members need to know about Form 990
A two-part white paper series to help board members develop a better understanding of why the IRS asks for the information contained in the Form 990.

The top 5 things nonprofits should expect from an outsourcing provider
Nonprofits need outsourcing providers who can not only help build a strategy for the future and help implement that strategy, but who can adjust and grow as your mission expands.

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

Tax Update: February 2018

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

The Tax Cuts and Jobs Act: Corporate tax considerations
Listen to our recorded webcast on the impact on corporate entities.

What does the Tax Cuts and Jobs Act mean for pass-through entities?
Join RSM on Feb. 14 as our presenters review key provisions of the Act and their potential impact on pass-through entities.

TRENDING IN TAX

Business planning: Why conduct a multiyear strategic financial plan
Learn how a comprehensive business plan helps company leaders define long-term objectives and the steps to take to achieve them.

Foreign indirect tax resource center
Managing indirect tax for electronically supplied services.

Meals and entertainment expenses after tax reform
Employers must change their systems and processes for the new rules.

Top 6 considerations for successful employee repatriation
Successfully repatriating employees needs thorough planning to ensure ongoing satisfaction for organizations as well as their expatriates.

New pass-through rules cut taxes for entrepreneurs large and small
Thousands of small and middle market businesses may see unexpectedly large tax cuts as a result of the Tax Cuts and Jobs Act.

 

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.

Employee Benefits Update February/March 2018

This issue’s topics include:

Identity theft threat puts plan participants and sponsors at risk

News of commercial database hackings involving millions of people’s personal information seems commonplace. While many of these stories focus on bank and credit card accounts, many plan sponsors and participants don’t realize that 401(k) plan assets may be at risk — which can be a problem not only for participants, but sponsors as well. While no sponsor wants to see participants sustain financial hits, this article covers when, depending on how a cybertheft unfolds, sponsors could be left holding the bag. A sidebar offers tips for avoiding being a victim of fraud.

Read More

Fiduciary rule’s tortured path to implementation

What this means for plan sponsors
Controversy, complicated legal wrangling and legislative maneuvering have been swirling around the Department of Labor’s “fiduciary rule” governing financial advice given to retirement plan participants. Delays, modifications, phased effective dates, and the involvement of the Securities and Exchange Commission have left confusion and headaches in their wake. This article briefly reviews what plan sponsors need to know.

Read More

Tax cut law a mixed bag for retirement plan sponsors

Despite early indications that Congress was prepared to do much more, the Tax Cuts and Jobs Act (TCJA) that was passed in December largely left retirement plans unscathed, save for changes pertaining to plan loans and IRA conversions. This article reviews areas that are affected, as well as what could be ahead.

Read More

2017 vs. 2018 retirement plan limits

This chart contains updated retirement plan limits for 2018.

Read More

Compliance alert

This feature lists a few key tax reporting deadlines for February through April.

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

LinkedIn RBG-01-01

Audit & Accounting Update: February 8, 2018

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.

Accounting

FASB Q&A documents address certain issues related to the TCJA
The FASB Staff recently issued Q&As to address certain issues related to accounting for the effects of the Tax Cuts and Jobs Act.

Proposed reclassification of certain tax effects from AOCI
A recent proposed ASU addresses the reclassification of stranded tax effects within AOCI to retained earnings.

FASB issues proposed amendments to ASC 842
The FASB recently proposed amendments to address certain difficulties encountered in implementing ASU 2016-02, Leases (ASC 842).

Update to our debt and equity guide related to down round features
We have updated our guide, Accounting for debt and equity instruments in financing transactions, to reflect ASU 2017-11.

Revenue recognition considerations for member-owned private clubs
Our white paper discusses topics member-owned private clubs should consider when applying the new revenue recognition guidance.

SEC

SAB 74 disclosures for new standard on lease accounting
Registrants are reminded to provide disclosure about progress toward implementation of ASU 2016-02, Leases (ASC 842).

Requirements for disclosure of tax-related non-GAAP measures
Registrants are reminded that disclosure of tax-related non-GAAP financial measures must comply with the SEC’s requirements.

Webcast

2018’s impact on your corporation
February 14

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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