Reasons why cash is king
Posted October 20, 2019 / No comments
In financial reporting, investors and business owners tend to focus on four key metrics: 1) revenue, 2) net income, 3) total assets and 4) net worth. But, when it comes to gauging short-term financial performance and creditworthiness, the trump card is cash flow. If a business doesn’t have enough cash on hand to pay payroll,
Read MorePhased retirements can capture intellectual capital, help older workers
Posted October 20, 2019 / No comments
When retiring employees walk out the door for the last time, they often leave with more than fond memories. Many depart with vast amounts of “intellectual capital” — knowledge related to the organization and their jobs that no one else possesses. Unfortunately, few employers take the time to “debrief” retiring employees before they exit. Many
Read MoreUnderstanding and controlling the unemployment tax costs of your business
Posted October 19, 2019 / No comments
As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer
Read MoreWho needs an estate plan? You do!
Posted October 18, 2019 / No comments
Despite what you might think, estate planning isn’t limited to only the rich and famous. In fact, your family is likely to benefit from a comprehensive plan that divides your wealth, protects your well-being and provides a compass for your family’s future. Dividing your wealth Estate planning is often associated with the division of your
Read MoreLeave a philanthropic legacy with a charitable remainder trust
Posted October 16, 2019 / No comments
Let’s say you’re charitably inclined but have concerns about maintaining a sufficient amount of income to meet your current needs. The good news is that there’s a trust for that: a charitable remainder trust (CRT). This type of trust allows you to support your favorite charity while potentially boosting cash flow, shrinking the size of
Read MoreSetting up a Health Savings Account for your small business
Posted October 15, 2019 / No comments
Given the escalating cost of employee health care benefits, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). For eligible individuals, HSAs offer a tax-advantaged way to set aside funds (or have their employers do so) to meet future medical needs. Here are the key tax
Read MoreUse a Coverdell ESA to help pay college, elementary and secondary school costs
Posted October 15, 2019 / No comments
There are several ways to save for your child’s or grandchild’s education, including with a Coverdell Education Savings Account (ESA). Although for federal tax purposes there’s no upfront deduction for contributions made to an ESA, the earnings on the contributions grow tax-free. In addition, no tax is due when the funds in the account are
Read MoreShop carefully when looking for an EAP vendor
Posted October 11, 2019 / No comments
In today’s high-anxiety world, it’s not uncommon for employees to battle personal problems such as substance dependence, financial and legal woes, and mental health issues. These struggles can negatively affect their productivity and the working environment around them. Employers can help by offering an employee assistance program (EAP). This benefit seeks to assist at-risk employees
Read MoreNonprofits: New alternatives for reporting goodwill and other intangibles
Posted October 11, 2019 / No comments
Did you know that the Financial Accounting Standards Board (FASB) recently extended the simplified private-company accounting alternatives to not-for-profit organizations? Many merging nonprofits, including educational institutions and hospitals, welcome these practical expedients. Here are the details. Alternative for goodwill The first alternative accounting method allows for the amortization of goodwill on a straight-line basis over
Read MoreWatch out for tax-related scams
Posted October 8, 2019 / No comments
“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. Criminals can contact victims through regular mail, telephone calls and email messages. Here are just two of the scams the tax agency has seen in recent months. Fake property liens. A tax bill is sent
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