CPA Now Blog

As more individuals become vaccinated against COVID-19, questions around return to work could become a more pressing for employers. But issues involving strategy, workplace culture, and human fulfillment could ultimately define how well your company survives and thrives in the months and years ahead.

The COVID-19 pandemic resulted in significant challenges for schools throughout the country, and the federal response had a significant impact on their financial operations. Schools must be aware that any new funding source is potentially federal-originated and should develop processes to affirm from potential grantors whether any funding is partially or fully federally funded.

Traditional business valuation approaches need some tailoring to account for the unique circumstances of the COVID-19 pandemic. While there are no hard-and-fast rules that valuation professionals must employ in the COVID-19 age, this blog highlights several considerations to review to arrive at realistic estimates.

Much of politics is local, to paraphrase former U.S. Speaker of House Thomas P. O’Neill, and Pennsylvania voters in May 2021 will determine who will vie for positions in the county courthouse, townships, boroughs, and school boards. This year’s primary election, however, has added significance with proposed amendments to the state constitution.

It is no secret that small and medium-size businesses are favorite targets of hackers. Too many CPA firms, however, make the mistake of assuming that “the bigger the entity, the bigger the risk.” The reality is that small to medium-size firms are more attractive targets for criminal hackers.

Many of the proposals floated during the presidential election season and since would increase various taxes for high-income individuals and corporations. This blog shares some of the most likely changes that will affect your clients, which you should be mindful of when financial planning.

Political action committees get a lot of bad press. A quick google search brings up terms like “dark money” and “slush fund,” but this could not be further from the truth. The Certified Public Accountants Political Action Committee, for example, specifically supports the mission of the PICPA by helping to elect bipartisan, respectable candidates who support strong fiscal policy and other positions favorable to CPAs.

Experts on damages are often asked to assume causation on the part of a defendant and prepare an estimate of damages. However, this is not necessarily an area the expert can simply assume without investigation. Experts have to properly assess and weigh the components of proximate cause: transaction causation and loss causation.

The FBI is called to more than a few organizations that had invested substantial time and money developing a system of internal controls but were still victimized by a fraudster or embezzler. Often, their exposure occurred when critical controls were relaxed, either for convenience or to prevent an awkward situation with a subordinate who, they assumed, would “never do anything to harm the company.” Famous last words.

Early retirees in their 50s and early 60s have life expectancies that could be another 30 to 40 years. They must plan carefully to ensure their nest egg can support them throughout their retirement. But because these retirees no longer have earnings from employment, most will be in lower tax brackets. If they are in a low tax bracket, they can use this to their advantage.

Establishing solid money habits doesn't just emerge from establishing solid life habits. Saving money involves sacrifice and delaying gratification. This can be difficult for our children growing up in an “I want it now” world. Of course we want the best for our kids, but there must be a balance in our approach or they will grow up with unrealistic expectations. Consider these steps: Delay it, play it, say it, and display it.

It is rare when the stars align in Harrisburg, but when they do it is an impressive process to watch unfold. The PICPA was a key contributor to just such an occurrence when the state House and Senate lawmakers agreed to expedite legislation championed by the PICPA that addresses three problematic tax issues. A victory for the public, a victory for CPAs, and a victory for PICPA!

The AICPA is working with the National Association of State Boards of Accountancy to enhance CPA licensure through the joint CPA Evolution project that aims to transform the licensure model by recognizing the changing skills and competencies accounting requires today and into the future. This new licensure model will continue to place the CPA profession in the best position to meet the needs of firms, organizations, clients, and the public. It is also flexible enough to evolve as market needs and roles change.

As the U.S. vaccination effort makes headway, perhaps you are wondering what the “new normal” will look like or which changes you’ve implemented during the crisis will become permanent. Some observers think that, even as things normalize, there will continue to be significant risks to the accounting industry.

For many CPA firms across the country, the coronavirus lockdown put the brakes on their respective succession planning strategies in addition to potential mergers. Several schools of thought have emerged regarding M&A and succession planning within the current accounting landscape.

As tax season comes to a close, it is important to not lose sight of those issues tied to cryptoassets. With the price of bitcoin (among others) experiencing a substantial run-up during the last few months of 2020, and with more individuals gaining exposure to cryptoassets via apps like Robinhood, potential tax issues are substantial.

KPMG titled a blockchain technology survey for retailers, Blockchain-Enabled Digital Tokenization Is Poised to Transform Commerce. But what, exactly, is being transformed? This can be a tricky area because the misapplication of this technology can lead to irreversible results.

Buy-Sell LLCs preserve the best traits of traditional buy-sell agreements while offering a new way forward for business owners seeking more tailored strategies. They avoid the seemingly unavoidable limits of traditional buy-sell arrangements while accentuating their best attributes.

The deregulation of certain licensing requirements has been a concern for the CPA profession. While the main focus of these efforts has not been on licensees such as CPAs, engineers, doctors, and lawyers, there is always a risk of collateral damage with the legislative process.

Remote work is here to stay for many businesses, but so too are other technologies such as data analytics, automation, and business intelligence. These strategies will be more critical as we move forward, and it’s well past time to embrace technology if you haven't done do.