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Managing Pay for Disqualified Individuals

The title of this article might have caught the eye of some readers, who may have thought it provides tips on managing pay for poor performers or offers a rationale for employing individuals without proper job qualifications. However, this article focuses on “disqualified individuals” in the context of IRS intermediate sanctions — IRC Section 4958 …..

Employee Retention Credit Paused Amid Growing Fraud Concerns

The Internal Revenue Service (IRS) has announced a moratorium on new claims related to the pandemic-era Employee Retention Credit (ERC, also known as Employee Retention Tax Credit).  The pause on new claims goes into effect immediately and will last until at least 2024.   When claimed properly, the ERC is a refundable tax credit designed to …..

Implementation of GASB Statement No. 96, Subscription-Based Information Technology Arrangements

Governments are required to adopt the provisions of the Governmental Accounting Standards Board Statement (GASBS) No. 96, Subscription-Based Information Technology Arrangements (GASBS 96 or the Statement) for fiscal years ending after June 15, 2023. GASBS 96 addresses accounting and financial reporting issues related to subscription-based information technology arrangements (SBITAs).  Background  SBITAs are frequently found in …..

IRS Drastically Expands Electronic Filing Requirement for 2023 Tax and Information Returns

The Internal Revenue Service finalized regulations on Feb. 23, 2023, significantly expanding mandatory electronic filing of tax and information returns that require almost all returns filed on or after Jan. 1, 2024, to be submitted to the IRS electronically instead of on paper.   Under the new rules, filers of 10 or more returns of any …..

IRS Drastically Expands Electronic Filing Requirement for 2023 Tax and Information Returns

Written by Paul Cheung, Norma Sharara and Joan Vines The Internal Revenue Service finalized regulations on Feb. 23, 2023, significantly expanding mandatory electronic filing of tax and information returns that require almost all returns filed on or after Jan. 1, 2024, to be submitted to the IRS electronically instead of on paper.   Under the new …..

Fed Pauses Interest Rates as Inflation Shows Signs of Slowing

On Wednesday, June 14, the Federal Reserve announced a pause in interest rate hikes for the first time since March 2022. The decision comes after promising economic indicators show that relief from historic inflation may be coming.   Inflation Falls from Peak  In a good sign for consumers, the Bureau of Labor Statistics announced on Tuesday …..

IRS Announces Record High Bumps to HSA Contribution Limits

If you’ve been thinking about ways to save on medical expenses, now may be the perfect time to open a Health Savings Account (HSA). Thanks to persistent inflation, the IRS recently announced historic bumps to contribution limits for HSAs, making planning for health savings more beneficial than ever! What is an HSA? Established in 2003 …..

Other Items to Note – Nonprofit Standard

STORM-RELATED SINGLE AUDIT EXTENSIONS Under the Stafford Act, the following were declared major disaster areas: Puerto Rico, Alaska, Florida, South Carolina and North Carolina. Consistent with these declarations, the Office of Management and Budget (OMB) has announced on the Federal Audit Clearinghouse site that is has granted a six-month extension for all single audits that …..

Navigating FEMA’s COVID-19 Appeals Process

The Federal Emergency Management Agency (FEMA) deadline for submitting COVID-19-related costs for final determination is Dec. 31, 2022. As FEMA completes reviews and renders decisions on approvals, many applicants may see notices of denials of costs due to one or multiple eligibility issues. The pandemic as a nationwide disaster event has presented many issues for …..

7 Steps to Start a Business

The idea of starting your own business is inherently romantic, if not exhilarating: You get to run the show, flesh out your ideas, and live your dream. But where do you begin? Here are seven smart steps to get you started – and help improve your chances of success. Come Up With a Concept What’s …..

New Data on Nonprofit Challenges and Opportunities: Benchmark Yourself Against Industry Peers

BDO released its annual Nonprofit Standards benchmarking survey of more than 270 nonprofit organizations. The new data reveals nonprofit leaders’ strategies for dealing with economic uncertainty, meeting the needs of the populations they serve, increasing revenue, expanding impact and approaching fundraising. Find out how they plan to support their missions and build resilience into 2023 …..

How To Use Natural Language Processing to Improve the Efficiency Of Accounting Processes

Natural language processing (NLP) is a technology that allows computers to understand and process human language. Processing of natural language is necessary when you want an intelligent device to follow your instructions. NPL is an artificial intelligence (AI) component with many real-life applications. As technology advances, business leaders have to figure out how to tap …..

GASB Statement No. 101, Compensated Absences

In June 2022, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 101, Compensated Absences (GASBS 101 or Statement). The Statement updates the accounting and financial reporting requirements for compensated absences and associated salary-related payments to better align the recognition and measurement guidance under a unified model which results in a liability for compensated …..

Understanding the Latest Modifications to Form 1099-K Reporting Requirements

There has been updated guidance on how and when tax filers must file and report Form 1099-K, Payment Card, and Third-Party Network Transactions in 2022 and 2023. According to the December IRS release, new income and transaction reporting requirements for so-called third-party settlement organizations (TPSOs) have been delayed for one year. A TPSO, according to …..

Presentation and Disclosure Examples for FASB ASU on Contributed Nonfinancial Assets

In the Fall 2022 edition of the Nonprofit Standard, Matt Cromwell outlined the implementation requirements of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. As noted in the article, the ASU is effective for annual reporting periods beginning after …..

Understanding the Weighted Average Cost (WAC) Method for Inventory Valuation

When it comes to businesses and their inventory and accounting methods for managing it, there are a few different ways to approach the task. The three different options to value inventory/implement cost flow assumptions include Last In, First Out (LIFO); First In, First Out (FIFO); and Weighted Average Cost Accounting (WAC). This article will focus …..

Defining an Impaired Asset

When it comes to defining an impaired asset, its fair market value is worth less than the original cost of the asset – or more formally, its carrying value. As a company re-evaluates its assets’ value, and when it determines there’s a discrepancy between the book or original value and the current market value, impaired …..

How Will CECL Affect Your Not‑for-Profit?

In 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Subsequently, FASB has issued ASUs 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-03 and 2022-02 to clarify ASU 2016-13. All components are codified in the Accounting Standards Codification (ASC) …..

Why You Might Not Need a New Budget for the New Year

So, we’re a month into 2023 and the sheen might’ve dulled from all your shiny, New Year’s resolutions. Though diet and exercise are the top things you might want to change, there’s one you might not need to touch – your budget. Here’s a discussion about who does and doesn’t need to revamp their finances. …..

Handling Talent Shortages in Tech Departments

Technology advancement has brought about great digital transformation. Unfortunately, this has come with a global tech talent shortage. IT executives highlight the shortage as a huge barrier to the adoption of emerging technologies, as reported by this Gartner study. It is estimated that the demand for tech talent will keep increasing, and this could result …..