News & Insights

Inflation Reduction Act: Essential Insights for Effective Planning

Debates abound on whether the recently passed Inflation Reduction Act of 2022 will have any real influence on inflation, but what we do know is that the funding, credits, and changes included in the Act have the potential to impact many of the individuals and small businesses that we work with. Highlights from the Inflation Reduction Act The signing of the Inflation Reduction Action (IRA) into law includes changes that address environmental objectives and healthcare costs with funding for it coming from an expected increase in Internal Revenue Service (IRS) collections and an excise tax on stock buybacks. Credits for…

Adopting ASC 842 Lease Accounting is Not an Option: Jump Start the Process Now

An integral part of managing the operations of a business is making decisions of whether to lease or buy equipment, buildings, and vehicles. While you may have found those decisions easy to make, additional business practices must now be implemented to conform with current accounting standards. In 2016, the Financial Accounting Standards Board (FASB) issued its Lease Accounting Standard, ASC 842 (Accounting Standards Codification). Public companies were required to adopt the standard beginning in late 2019 and while the initial implementation date was deferred due to the pandemic for others, non-profits and privately held businesses who have fiscal years beginning…

The Employee Retention Credit – Get it Before it’s Gone!

No one willingly leaves money on the table—or at least we’d like to think that it’s the case. You have other priorities vying for your attention, but there are thousands of dollars at stake for your business for each employee that you employed in 2020 and 2021. Although all employers can benefit from the program, special emphasis was placed on helping small businesses. Those with less than 100 workers in 2020 or less than 500 workers in 2021 more easily qualify for funds than larger businesses. If you’re not certain that employee retention credits (ERC) were taken for every quarter…

Risk Alert: Review Advisory Fee Calculations for the 2021 Audit Season (before the SEC does)

The U.S. Securities and Exchange Commission (SEC) has publicly stated that advisory fees and how fees are assessed, calculated, and disclosed to potential investors in the offering memorandums or financial statements will be an area of focus for 2022. In November 2021, the SEC Division of Examination issued a Risk Alert dealing with deficiencies noted in the examination of several hundred retail advisors. The SEC Staff believe that the issue arose because of poor policies and procedures over the advisory fee calculation and billing area. Numerous errors in the calculation, and disclosure-related issues, were discovered in the advisory fee area. In…

Introducing: TaxCaddy

For years, you’ve trusted BKM Sowan Horan to provide tax and accounting services and expert guidance. As in previous years, we are providing you with a software solution that simplifies tax time and reduces your tax season stress. The solution is called TaxCaddy. TaxCaddy makes it easier for you to gather and submit your 1040 tax documents securely, communicate with your tax professional, answer your electronic questionnaire, and electronically sign documents such as your e-file authorization.   Here’s what you can expect (starting now): Electronic submission of tax documents by taking pictures with the TaxCaddy mobile app, uploading files, or manually…

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