As the economy recovers from the COVID-19 pandemic in 2021, audit committees are faced with new challenges in their oversight roles and responsibilities. The following four steps can help to ensure your committee’s effectiveness. 1. Focus your audit on the basics As you finish with financial reporting for fiscal year 2020, it’s worth revisiting your…

To complement a will, many people choose to transfer specific securities to a revocable living trust. Assets transferred to the trust generally aren’t required to go through the time-consuming and expensive probate process. In addition, they can be managed by professionals and are usually protected from creditors. Used correctly, a living trust helps to ensure…

The EBSA Disaster Relief Notice 2021-01, recently issued by the U.S. Department of Labor (DOL), clarifies the duration of certain COVID-19-related deadline extensions. As these deadline extensions apply to health care benefits plans, they should be of interest to employers. Deadline extensions will continue The COVID-19 outbreak period is defined as beginning March 1, 2020,…

As tax-filing season rolls around, you’re probably focused on your income or business tax returns—however, there’s also another type of return you may have to file. If you’ve made substantial gifts of wealth to family members in 2020, you may also need to file a gift tax return. How to file a gift tax return…

Data security is an important piece of the audit risk assessment. In the case that your financial statements are audited, your audit team will specifically investigate critical cyber risks and your internal controls’ effectiveness, and will assess your practices to identify any weaknesses that might require additional inquiry, testing and disclosure. Making cybersecurity a priority…

If you’re considering launching a business with partners, you may be wondering what type of entity to form—and an S corporation could be the most suitable form for your new business to take. Here are a few of the reasons why. The biggest advantage of forming an S corporation (as opposed to a partnership) is…

On March 11, President Biden signed the $1.9 trillion American Rescue Plan Act (ARPA) into law—and while relief provided to individuals is perhaps the best known part of the ARPA, there are also several financial benefits and tax breaks and for businesses. Here are a few of the tax implications of the ARPA. Extension of…

The statement of cash flows might be the most underappreciated and misunderstood piece of a company’s annual report—in essence, the statement of cash flows informs you of cash entering and leaving a business. This can be important information, since even a business that reports positive net income on its statements might not have enough cash…

Although the COVID-19 pandemic has forced many businesses to close, there are still some entrepreneurs who have started new small businesses this year—and many begin by operating as sole proprietors. If this describes you, here are a few tax rules and considerations. QBI deductions You’re eligible to claim the pass-through or qualified business income (QBI)…

Leaving a legacy for your children, grandchildren, and future generations is one of the most important goals of estate planning—and there’s no better way to do that than helping to provide for their educational needs. A 529 plan allows you to fund tuition and other educational expenses—and to do so on a tax-advantaged basis. However,…

Bad news for people who are accustomed to using the optional standard mileage rate to calculate the deductible costs of operating an automobile for business: the permissible deduction rate decreased by one-and-one-half cents, to 56 cents per mile, this year. This might lead you to claim a lower deduction for vehicle-related expenses in 2021 than…

When it comes to restricted cash, your company’s financial statements need to be transparent. Make sure your reporting practices are compliant with the current accounting guidance. What is restricted cash? Restricted cash is a type of “cash and cash equivalents” that can’t be used for general business operations or investments. Restricted cash comes in many…