4 Ways to Control Seasonality Problems

4 ways to control seasonality problems

The No. 1 cause of business failure is poor cash flow management. Cash Flow Corner gives you tips to help you master this business fundamental.

Large swings in revenue throughout the year brought on by holiday shopping, weather and other annual events can make it exceptionally difficult for seasonal businesses to plan and sustain a positive cash flow.

business data in charts to effectively manage seasonality cash flow changes

The following tips can help seasonal businesses cope with downturns and effectively manage cash flow throughout the year:

  • When times are good, get a line of credit. The best time to set up a line of credit is when you don’t need it. Not only will you have the extra time it may take to secure a loan from a bank, you’ll also gain peace of mind knowing that it’ll be there when you need it.
  • Leverage your supplier relationships. The goodwill you build up with your suppliers will likely make them more inclined to help you out with alternative terms that keep cash in your pocket during low sales periods. For instance, your suppliers may agree to hold a portion of your inventory and accept payments upon release, instead of requiring upfront payment for the entire lot. Long-term suppliers will help as they know your business and that you will not be ordering from a competitor. You benefit by aligning your supplier payments closer to when you will be selling the product.
  • Create a labor strategy that optimizes your cash flow. Consider giving your employees time off during low seasons and incentivizing them by offering higher pay during peak seasons. You may also minimize your need to hire extra staff or pay overtime during peak season if you’re able to shift some of that work into the downtime months when your employees are light on tasks.
  • Partner with your customers. Your customers can help you maintain a steady cash flow throughout the year if you give them the right opportunities to do so. Incentivize them to make purchases during your low season by offering worthwhile discounts that expire before the peak season.

Contact us for a review of your company’s cash flow management plan.

As always, we hope you find our tips and news for businesses valuable, and look forward to receiving your feedback. Companies focused on growth have sought the help of Insero & Co. for more than 40 years. During that time they have consistently experienced the peace of mind that comes from knowing their CPA firm takes the concept of integrity seriously. Should you have any questions, please contact us directly.

 

Hiring temporary employees? Here’s what to consider

Hiring temporary employees? Here’s what to consider

 

Are you considering hiring temporary staff? Accepting an employee on a temporary basis is not only helpful in a pinch, it also allows you to evaluate that person’s skills, performance, personality and general fit with your company before making an offer of employment.

If you decide to work with a recruiting/employment agency, it will often test an employee’s skills, perform background checks and verify employment history. In addition, the agency typically handles payroll expenses, withholding taxes, unemployment insurance and workers’ compensation.

In most cases, you won’t provide a benefits package for temporary staff, so these employees may cost less over the short term. However, be aware that agencies often charge commissions in addition to hourly rates and may charge a separate fee if the temporary worker is hired permanently.

business women holding computer with considering options for hiring temporary employees

 

If you’re considering hiring one or more temporary employees for your business, here are a few helpful suggestions:

 

  • Know what your business needs. Start by determining what kind of tasks must get done and what specific job skills someone will need to effectively complete those tasks. Push yourself to define your business needs.
  • Prepare detailed job descriptions. Your temporary worker should know precisely what’s expected of them. Document the scope of their responsibilities, payment terms and confidentiality agreements. The more definitive the details of the role, the more prepared the temporary hire will be when they begin.
  • Vet your employment agency. If possible, find an employment/recruiting agency that understands your business and specializes in the kinds of staff you need. Discuss your goals and nail down all pertinent contract provisions including benefits (if any) to be paid, as well as who will make final hiring decisions, and how contracts will be terminated.
  • Understand your temporary workers’ rights. While there are several rules you need to follow to avoid misclassifying contractors, temporary workers fall under many of the same laws as full-time employees. These include statutes against discrimination and harassment. So take care to provide a safe and respectful work environment for your temporary workers and develop a plan to have your current staff make them feel welcome.
  • Plan early, if possible. It may be hard to predict when you’ll need temporary help in situations like a medical emergency or leave of absence. However, if your company has a busy season that requires extra hands every year, make hiring temporary workers part of your annual plan. Let agencies you’re working with know that you’ll be looking for workers during a certain period of time so they can start recruiting candidates.
  • Consider repeat temporary staff. Welcome back temporary workers who do a great job. This can ease the learning curve and cut down on training time because they will already be familiar with your business and its needs.

Having a helpful temporary employment strategy can really help your business.

As always, we hope you find our tips and news for businesses valuable, and look forward to receiving your feedback. Companies focused on growth have sought the help of Insero & Co. for more than 40 years. During that time they have consistently experienced the peace of mind that comes from knowing their CPA firm takes the concept of integrity seriously. Should you have any questions, please contact us directly.

 

IRS Tax Notes: Phishing still a threat, etc.

Phishing still a threat on “Dirty Dozen” list

The IRS warns taxpayers to remain vigilant when it comes to fake emails and other internet phishing scams used in an attempt to steal personal information. If you get an unsolicited email or social media message that appears to be from either the IRS or an organization closely linked to the IRS (like the Electronic Federal Tax Payment System), you should report it by sending it to phishing@irs.gov.

Protect your personal info

To safeguard against identity thieves who continue to steal large amounts of data, the IRS urges taxpayers to take the following steps to protect personal information:

  • Use computer security software (including firewalls and malware protection).
  • Use strong passwords.
  • Be cautious of email attachments.
  • Avoid oversharing personal information on social media sites.
  • Keep old tax returns and records in a secure place.

safeguard against identity thieves who continue to steal large amounts of data with phishing scams


Reminder: 2019 alimony rule change

Alimony is no longer a tax deduction for those paying it, nor income for those receiving it. This rule change does not impact divorce agreements reached before 2019. Now is the time to review any prenuptial agreements and exercise caution when changing an existing divorce arrangement.

Second-quarter interest rates stay the same

Interest rates for the second quarter in 2019 have stayed the same since the first quarter. The rates are as follows: 6 percent for overpayments (5 percent for corporations), 3.5 percent for the portion of a corporate overpayment over $10,000, 6 percent for underpayments and 8 percent for large corporation underpayments.

As always, we hope you find our tips and news for businesses valuable, and look forward to receiving your feedback. Companies focused on growth have sought the help of Insero & Co. for more than 40 years. During that time they have consistently experienced the peace of mind that comes from knowing their CPA firm takes the concept of integrity seriously. Should you have any questions, please contact us directly.

The New Age of Accounting

The New Age of Accounting

Change has always been a constant in the accounting industry, from the days of calculators to the advent of the personal computer and Excel spreadsheets. But today is different: The pace of change is accelerating, and the tools and technologies available today are not simply advancing accounting but revolutionizing it.

 

There are tremendous opportunities in this new age of accounting. Accountants who keep adapting and learning can use the latest innovations, from machine learning to automation, to accomplish more in less time and benefit their organizations in previously unheard-of ways.

artificial intelligence

More Data, Deeper Insights

Many of the advancements in the digital era revolve around data—gaining visibility into more data, analyzing it quickly, and visualizing it in more insightful ways. Implementing the latest data analytics tools, including artificial intelligence (AI), can provide a significant competitive advantage by increasing productivity and improving decision-making.

 

AI may still sound like a new-age idea to some, but it has already been implemented successfully by leading accounting firms. Its applications will no doubt increase in the years to come, but already AI is being used to digest and analyze large volumes of data at speeds humans simply can’t match. That accelerates and expands data analysis, and it frees employees to shift from manual data entry and basic analyses to higher-level strategic planning and other mission-critical work.

 

In addition to AI, accountants can benefit from advances such as cloud-based accounting systems that streamline information and provide secure access, anytime and anywhere, to workers and clients. Integrated cloud-based systems can provide significant cost benefits compared to expensive on-site solutions, as well as accelerating decision-making and providing improved visibility into data from across the organization.

 

Next-Gen Accounting Skills

To take full advantage of the new age of accounting, accountants need to develop and focus on a new set of technical capabilities, as well as honing some old-fashioned skills.

 

First and foremost among the new digital skill requirements is the ability to understand and work with big data using the latest software and features. With masses of business-wide data now being analyzed in minutes, accountants need to be able to quickly assimilate all that information, interpret findings and trends, and make informed recommendations to the executive team.

 

At the same time that digital literacy requirements are increasing, some old-school skills are becoming increasingly valuable. In particular, modern accountants need to be highly skilled at both verbal and written communication to express complex concepts clearly and convincingly. The ability to collaborate, both in person and digitally, is also vital as the accounting team becomes more involved in making strategic business decisions.

 

Prepare for the Future

Accountants in today’s fast-paced digital world need to stay up-to-date with the latest tools and technologies. To be sure, that can be a challenging task given how quickly innovations are emerging. But, as with many other advances in today’s world, adapting to these innovations is not a choice but a necessity. Embracing the revolutionary changes underway right now is the only way to future-proof your organization and help it become more competitive and productive, both now and into the future.

Tax Update: May 2019

Trending in Tax

IRS offers further clarity in opportunity zone regulations
The new revenue guidance has cleared the way for businesses and investors to invest in opportunity zones and drive economic growth.

International tax considerations for the blockchain industry
Carefully consider international blockchain enterprise structuring in light of the Tax Cuts and Jobs Act.

The verdict is in: Weighing GILTI is key for multinational businesses
Understanding the impact GILTI will have on your multinational organization may maximize tax planning opportunities and minimize risk.

Exploring the undefined: Trade or business
The enactment of TJCA creates pressure on taxpayers to distinguish what qualifies as a trade or business for tax purposes.

Section 1202: Effects of capital contribution on closely held corps
Understanding the importance of section 1202 and consequences of capital contributions to closely held corporations.

Revisiting at-risk rules for partnerships
Proposed sec. 465 regulations provide significant guidance and detailed examples of the application of the at-risk rules for partnerships.

Qualified transportation fringe benefit under tax reform
Review the changes made to the qualified transportation fringe benefit and loss of deductions by the TCJA under tax reform.

Proposed regulations contain key foreign tax credit transition rules
Changes to the international tax system will require U.S. taxpayers to navigate important foreign tax credit transition rules.

 

person sitting by computer holding pencil

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 as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Why Insero?

Why Insero?

We get it: Outsourcing your accounting tasks is a big decision that requires a great deal of trust. The firm you choose should earn that trust by proving that they have extensive experience and a dedicated team that will give you the expertise and service you deserve.

 

To that end, here’s a brief primer on Insero & Co., which is one of the premier firms in New York, providing audit, tax, outsourced accounting, and business advisory services.

 

Insero Experience

Insero has been providing outsource accounting services for more than 20 years and has served hundreds of clients, from small nonprofits to large corporations. We’ve worked with more than 200 organizations across New York State, meaning we have experience working inside organizations just like yours.

 

What does all that experience mean for you? It’s not just that we’ve seen it all and can help you through everything from budgets to bookkeeping. It’s that we’ve learned from every engagement and have refined our processes, so you can count on us to deliver what you need, when you need it, with no surprises along the way.

employee picture

A Team You Can Trust

The people on your team will be full-time employees of Insero—that makes a big difference in continuity. You won’t be working with temps looking elsewhere for employment or professionals doing this as a side gig, so you can relax knowing that staff turnover is not a concern.

 

Your dedicated team will include employees with high-level accounting knowledge and expertise. Instead of cookie-cutter solutions, our experts will tailor their services to your needs, adjusting as they go to make sure you’re getting exactly what you need.

 

Every firm says they’re dedicated to client service, so what does that mean? It means we invest heavily in developing the highest level of service, including training everyone in the firm on how to deliver it. We also ensure that every client is receiving regular communication and follow-through, as well as the personal attention that sets our firm apart.

 

The Insero Difference

Of course, the best way to get to know Insero & Co. is to talk with us. What you’ll find is that our people are both knowledgeable and personable, and the firm as a whole is large enough to provide the resources our clients need, yet still small enough to provide flexible, relationship-based service. Contact us today to discuss your needs and find out if we have the experience and team you’re looking for to handle your outsource accounting needs.

Tax Update: April 2019

Trending in Tax

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

District Court decision uploads imposition of willful FBAR penalty
Court imposes substantial “willful” penalty for failure to file FBAR where taxpayer fails to consult tax advisor regarding foreign account.

Structuring deals in the era of TCJA and BEPS
Legislation relating to the Base Erosion and Profit Shifting (BEPS) Action Items has resulted in expanded tax due diligence engagements.

Top tax considerations for manufacturers in 2019
Tax planning in an evolving marketplace can be challenging. What are the top tax issues and new rules that manufacturers should focus on?

man point to a printed chart with computer and calendar out

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 as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Audit & Accounting Update: April 2019

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 for federal government contractors
We recently published a white paper to assist federal government contractors in understanding the guidance in ASC 606.

Proposed changes to disclosure requirements for income taxes
If finalized, a recent proposed Accounting Standards Update would modify the current disclosure requirements for income taxes.

ASC 842: Lessee transition
We have published a white paper to assist lessees in identifying and understanding the applicable transition guidance in ASC 842.

Treatment of cumulative dividends on preferred stock
Our article addresses questions often raised regarding how and when cumulative dividends should be recognized on preferred stock.

FASB updates the definition of “collections”
Collection-holding entities should be aware of a change to the definition of “collections” and new required disclosures.

Critical audit matters: PCAOB guidance
The PCAOB recently issued guidance related to the requirement for auditors to communicate critical audit matters.

Amendments to modernize and simplify Regulation S-K
The SEC recently issued amendments to modernize and simplify some of the disclosure requirements in Regulation S-K.

 

patrons at an art gallery as the FASB updates the definition of collections for nonprofits, museums

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 2019

Trending in Tax

U.S. Supreme Court to hear Kaestner trust tax nexus case
High court to decide whether in-state beneficiary of nonresident trust is sufficient for the Due Process Clause. The U.S. Supreme Court will revisit state tax nexus for the second year in a row after granting North Carolina’s petition for certiorari in North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust.

Opportunity zone investors can’t forget about local tax incentives
To make opportunity zone projects financially viable, developers need to consider state and local tax credits beyond QOZ incentives. Numerous programs offer developers tax abatements, deferrals and incentives in the same economically distressed areas as QOZs. These extra incentives will make opportunity zone projects more attractive to investors and may bring new capital deeper into the areas that need it most.

New election may provide enhanced interest deduction to multinationals
Special election in new interest regulation may benefit CFCs. The Tax Cuts and Jobs Act (TCJA) enacted a limit on the deductibility of business interest expense (the section 163(j) limitation).

What US companies need to know about Making Tax Digital
US companies with VAT obligations in the United Kingdom should understand and prepare to comply with Making Tax Digital. The transition to Making Tax Digital represents one of the most fundamental changes to the United Kingdom (UK) tax system in a generation.

Supreme Court of the United States to hear Kaestner tax nexus case

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 as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.