FISCAL CLIFF AVERTED: 2012 TAXPAYER RELIEF ACT IMPACT ON BUSINESS

As everyone has heard the past several days, the “Fiscal Cliff” has been averted with the passing of The American Taxpayer Relief Act of 2012.  You’ve read so far about how individuals were impacted but what about businesses?  Below is a listing of the some of the key developments from the act which will affect businesses in the next few years:

Additional First Year (Bonus) Depreciation:  Bonus depreciation has been extended for qualified property acquired and placed in service prior […]

January 8, 2013 Accounting, Tax Read more...

Why Family Business Members Become Complacent (And How to Avoid It!)

Posting by Joel C. Susco, CPA, Principal

Family-owned businesses whether large or small, whether profitable or not, may eventually have to deal with the issue of under-performing or complacent family members who have lost their emotional attachment to the business.

Traditionally, family businesses are started by strong-willed, determined individuals who have the energy, vision and the drive to embark on a business of their own.  The founders often feel strong emotional attachment to the business which they’ve cultivated and grown with […]

January 3, 2013 Family Owned Businesses Read more...

Fiscal Cliff Averted: Summary of Changes Resulting From the American Taxpayer Relief Act of 2012

Posting by Kelly Lopez

The American Taxpayer Relief Act of 2012 was passed by both The Senate and Congress on January 1st, thus averting the now infamous “Fiscal Cliff,” which would have caused major tax hikes to take place as well as many favorable tax breaks to expire.

Here are some of the highlights of the Act:

Individual Income Tax Rates:  For the years beginning after 2012, a new 39.6% rate will apply to individuals with income above $400,000 for single […]

January 3, 2013 Tax Read more...

Up Close and Personal: Home Audits

Posting by Phil Vivirito

It happens to every payroll auditor: the payroll audit that is performed in a person’s home.  This usually occurs because the owner of the company, or the company’s accountant, only has a home office. Unfortunately, “home office” can be a loose term.  Sometimes the home office is an actual office in the person’s home; sometimes, it’s the kitchen table.

I’ve done my fair share of these audits over the years. To capture the quirkiness of these awkward […]

January 3, 2013 Payroll Audit Read more...

What are some signposts to look for to determine fraudulent financial reporting?

Your financial records and documents often are the places where fraudulent activity is covered up. What are some signposts to look for to determine fraudulent financial reporting?

Of the three types of occupational fraud, it’s not corruption or asset misappropriation, but fraudulent financial statements that have the potential to cause the greatest impact.

A monthly review of the company checking account and financial statements can reveal suspicious amounts or vendors.There are several ways financial statements can be manipulated, including:

Timing Differences […]

December 28, 2012 Forensic Accounting Read more...

How can e-mail, voicemail, GPS and other digital information be used in fraud cases?

Digital information such as e-mail, voicemail and GPS often seem to reveal key information, but how may these items be used in court?

One of the key benefits of having this type of information, first of all, is it can show intent. You can find out from emails what a person intended to do. One key point is there’s no such thing as an “accidental fraud.” Under the law it has to be intentional, so establishing intent can be […]

December 28, 2012 Accounting, Forensic Accounting Read more...

What would be a typical approach to a forensic accounting assignment?

Forensic accountants are called upon to many assignments where little is known at the beginning. What is the typical approach when handling a forensic accounting job?

The first thing we do in any such assignment is meet with the key people involved in the case and understand exactly what the project is – what is the problem, what are they looking for, what do they want us to find out for them?
The second thing we are likely to […]

December 28, 2012 Forensic Accounting Read more...

Benefit Plan Policies: Social Media

Larry Beebe, CPA

In this series, we are reviewing the written plan policies needed to help your benefit plan stay compliant and operate most effectively. For a full list of the necessary policies and why your plan should implement them, click here.

In the past few years, organizations have been developing social media policies to preserve the rights of employees (and trustees for employee benefit plans) to engage in social networking sites, blogs, bulletin boards and chat rooms, emails and other […]

December 22, 2012 Accounting, Benefit Plan Accounting Read more...

Full Disclosure: Challenges in Implementing 408(b)(2) Regulation for 401(k) Plans

Scott Price, CPA

As 401(k) plans have begun to implement the Department of Labor (DOL)’s new 408(b)(2) fee disclosure regulation, plans have discovered several challenges and nuances.  I had the opportunity to speak with the Washington Business Journal on this topic a couple of weeks ago.  As I state in the article, one of the biggest challenges will be for 401(k) plans to concisely and clearly provide service fee information to plan participants.  401(k) plan administrators should attempt to format […]

December 20, 2012 Accounting, Benefit Plan Accounting Read more...

What is the difference between investigative accounting and litigation support?

 

A forensic accountant may perform investigative accounting, or act as litigation support. What is the difference between these two?

First, investigative accounting is typically associated with investigations of criminal matters. An average investigative accounting assignment would be related to employee theft, securities fraud, insurance fraud, kickbacks and proceeds of crime investigations. Certified Public Accountants (CPAs) and Certified Fraud Examiners (CFEs) work on-site to uncover the truth by examining financial and source documents for fraud.

On the other hand, litigation support is […]

December 20, 2012 Uncategorized Read more...