CPA Now Blog Archive

For those in the accounting profession to thrive and not just survive, a switch from a compliance mindset (helping clients comply with tax codes) to an advisory role may be necessary. As trusted advisers, CPAs can demonstrate superior tax expertise as they help clients accomplish their strategic business goals. To help transition into a greater advisory role, consider bringing on offshore talent for time-consuming routine work to free up senior staff to focus on high-value, client-facing advisory efforts.

A CPA firm looking toward an external succession via merger wants to know what they should expect to be paid for the firm. Conversely, a firm looking to acquire an accounting practice wants an estimation of what it will pay in today’s M&A market. For both players, firm value hinges on several factors.

The plan sponsors of employee benefit programs have a fiduciary responsibility to those plans and the participants. With an ever-changing regulatory landscape it can be tough to keep up with the rules. Three areas in particular -- late elective deferrals, plan terminations vs. plan mergers, and fidelity bonds vs. fiduciary liability insurance -- often confuse plan sponsors and could be traps that result in errors.

The state and local tax considerations of a remote workforce can be vast, extending to sales and use taxes, corporate income taxes, withholding taxes, and more. During the pandemic, states took varying approaches to tax nexus: some waived general nexus provisions, others overtly stated that they were not changing their positions, while others remained silent. Of the states that issued nexus waivers, such as Pennsylvania, those waivers were never intended to be indefinite. In fact, Pennsylvania’s nexus waiver ended June 30, 2021. So, as we stand, remote workers in Pennsylvania will now trigger nexus for state tax purposes.

The elimination of the lifetime “stretch” beneficiary IRA option has been much more than a minor inconvenience. The change calls for more surgical planning around a beneficiary’s cash flow needs and their tax bracket.

This year, we experienced a political unicorn in Harrisburg. Not only were the 2021-2022 state budget negotiations relatively painless, but also everything was voted on in an expedient fashion and the budget was wrapped well before the start of the new fiscal year on July 1. Adding to the overall ease of the process – and probably another political unicorn – was the state’s revenue surplus and unused funds received from the federal government for COVID relief.

Auditors, internal and those in public practice, had to find ways during the pandemic to complete their work without leaving home. They accomplished more than expected despite the limitations. In fact, because their effectiveness in providing assurance was better than expected, the savings have not gone unnoticed. Though there may be a temptation to embrace remote auditing, we shouldn’t. There is no substitute for being there.

A CFO should be an adviser, counselor, and confidant to the CEO – a consigliere or chief of staff. What are the attributes that make CFOs good advisers? Find out as this blog discusses those attributes as highlighted in Richard Hytner's Consiglieri: Leading from the Shadows and Chris Whipple's The Gatekeepers: How the White House Chiefs of Staff Define Every Presidency.

The Employee Retention Tax Credit (ERTC) was established to help businesses retain employees during the massive economic downturn of the COVID-19 pandemic. The Consolidated Appropriations Act 2021 and the American Rescue Plan Act extended ERTC deadlines, making it available for businesses to claim until Dec. 31, 2021.

The keys to succeeding and being promoted are hard work, technical prowess, leadership ability, and strong communication skills. This is true, of course, but there is a lot more to effectively positioning yourself to move up your company ladder.

Commercial real estate owners, developers, and investors have many tools with which to develop a strong tax strategy. Two examples include the Section 1031 exchange and accelerated depreciation, also known as cost segregation. We are now in a climate in which 1031 exchanges and cost segregation are best used together to create a more powerful tax strategy.

The health care industry saw billions of dollars in stimulus payments in 2020 through the Provider Relief Fund to help with the financial effects of the COVID-19 pandemic. The rollout, however, presented challenges. As organizations attempted to determine how to meet the grant’s terms and conditions, Health and Human Services issued guidance, but that guidance has evolved over time.

President Biden has proposed several tax changes, some of which are in the administration’s infrastructure proposal. The headliner is raising the corporate income tax rate above what was set by the TCJA. What is not often discussed is that this increase in the corporate tax rate would also have a negative impact on the value of R&D credits because of a required IRC Section 280C(c) adjustment.

Many organizations, having come to understand how much effort goes into producing and distributing financial and operational reports, are starting to rethink the processes. Seeing the need for change, some are undertaking what is known as a financial and operational data transformation initiative.

The annual post-audit meeting between an audit committee and its external auditors is an important part of good corporate governance. This year in particular, the audit committee must focus on several specific areas in light of the coronavirus pandemic and its impact.

The IRS made it clear that businesses not directly impacted by COVID-19 shutdown orders can still take advantage of Employee Retention Tax Credits (ERTC). However, as with all other COVID-19 financial assistance, the ERTC requires specific criteria to be analyzed to determine eligibility.

Since PPP loans can be used to cover multiple expenses among many businesses, there are many opportunities for fraud to occur. CPAs can be invaluable to their clients in keeping them out of trouble by properly supporting the expenses identified by the government in the proportions required.

More CPA firms are raising the practical considerations of establishing multiple accounting services in one engagement letter. While the benefit of combining multiple services on one letter as opposed to many appears obvious, there are important considerations that must be weighed beforehand.

Sun Lee, CPA, is a tax partner with KPMG LLP, where he leads the Pennsylvania business tax services corporate practice. Through his work with different companies, he has come across many inspiring stories. In this blog, Lee has a discussion on leadership with Frank Li of Alliance Pharma.

In January 2021, PICPA Council adopted a new member value framework with five key elements: peer-to-peer connections, advocacy, learning and development, career path, and business development. In conjunction with this, Council and the Board approved dissolving the existing chapter governance structure and revamping the PICPA committee portfolio.