The knowledge you need

Companies that offer a retirement plan including defined benefit and contribution plans may be required by the Employment Retirement Income Security Act (ERISA) to perform an annual audit of the plan. While small plans are exempt from this requirement, generally speaking, plans with over 120 total participants throughout the year are required to have an audit completed.

Few things strike fear into the heart of an individual or business owner more than the idea of having to undergo an IRS audit. The mere thought of having an IRS agent sift through your personal and business financials, accounting and other records is intimidating and unpleasant. The discomfort can be intensified if the taxpayer is not familiar with the audit process, what to expect, and the steps they can take to prepare.

In February of 2016, the Financial Accounting Standards Board (FASB) released new standards to help businesses account for their leases. These standards, which were unveiled in Accounting Standards Update No. 2016-02, Leases, Topic 842 (ASU 2016-02), should be followed by any company that adheres to Generally Accepted Accounting Principles (GAAP). Interestingly, these new standards almost exclusively affect lessees; lessors have very little to worry about. The implementation deadline for these new standards is drawing near.

The potential for fraud exists in every company regardless of location and industry served. The unfortunate reality is some people will engage in behavior that takes money from the company and attempt to do so over an extended period.

Most business owners don’t spend much time thinking about taxes. The time, energy and resources needed to run their business, drive growth and enhance profitability usually monopolize their mind.

Fraud is an unpleasant reality of doing business, one every company, regardless of location, industry served and revenue size, faces. The threat that dishonest employees, vendors and others pose to the financial vitality of a company cannot be overstated

In May of 2014, a new set of revenue recognition standards were released by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). These two bodies worked together to publish codified guidelines for how companies should report the revenues they earn from contracts with customers.

Technology has had an impact on virtually every aspect of life from the checkout counter at the local grocery store, to how new keys are cut at the hardware store to how passengers check in for flights at the airport. The American landscape is littered with changes brought about by technology.

The first time a benefit plan (401k, 403b, pension, etc.) is required to have a benefit plan audit can be challenging and stressful. Generally speaking, once the plan has over 120 eligible participants at the beginning of the plan year, the IRS and Department of Labor (DOL) require that a plan audit is completed by an independent accounting firm.

For those in the entertainment industry, the music, films, books, video games or apps they create is the representation of their personal creative efforts – even though they often don’t take a “physical” form. These individuals typically rely on producers and distributors to share their work with the masses in exchange for a deferred “salary” in the form of royalty payments