CPA Now Blog Archive

The federal government and several states provide tax incentives to encourage R&D investment through the Credit for Increasing Research Activities, also known as the R&D tax credit. This credit can be used to offset a company’s income tax liability, but it can also be used to offset payroll tax if it meets the eligible qualified small business requirements.

Pennsylvania Commonwealth Court recently ruled that a corporate taxpayer was entitled to a refund of corporate net income tax when the use of net loss carryovers was limited by Pennsylvania’s percentage limitation for net loss deductions. It was the latest in a long line of Pennsylvania net loss deduction cases that illustrate the challenges of arriving at an appropriate taxpayer remedy.

The Public Company Accounting Oversight Board recently issued a proposal that would revise its auditing guidance. One part of the revisions includes the stunning proposal that would require finalizing audit documentation within 14 days of engagement sign-off, down from the current 45 days.

The 2017 Tax Cuts and Jobs Act made several changes to IRC Section 174 that took effect with tax year 2022. EPSA can help fill you in on what these changes are and what they mean to the R&D tax credit.

The Financial Accounting Standards Board released new guidance on accounting for related-party arrangements between entities under common control. This long-awaited ASC 842 guidance provides a practical expedient for arrangements between entities under common control.

Applying sales and use tax to software purchases in a multijurisdictional setting has long been perplexing to businesses and tax professionals alike. The complexity has only grown with the evolution of software. In Pennsylvania, the Department of Revenue has historically treated the purchase of software as the purchase of tangible personal property, but the sourcing has changed multiple times over the years and it can be hard to keep it all straight.

If you are a CPA, whether it be in public accounting, industry, government, or the nonprofit world, you have a crunch time ... which is right now for the tax folks. Instead of shutting down or beating yourself up during these difficult times, try using positive self-talk to build up your perceived ability and efficacy to successfully navigate challenging situations.

Making sure personal information remains safe is a vital issue of concern in today’s cyberlandscape. Websites serving commerce, government, banking, among others all require personal information to be entered, all of which can be stolen if an attacker breaches a website.

The IRS has raised several red flags for CPAs and business owners concerning third parties advising companies to claim the Employee Retention Credit (ERC) when they may not qualify. Form 3949-A can be used to report this illegal tax-related activity arising from "ERC mills."

A human resources business partner (HRBP) is professional who helps align an organization’s people strategy with its business strategy. They coach, advise, counsel, support, brainstorm, and implement processes with the business operations team leader. Do you have an HRBP or something less at your company?

More companies are providing formal environmental, social, and governance (ESG) reports to fortify company strategy, attract consumers and investors, and retain talent. It is a business dimension that offers a growth opportunity.

The finance department is often the unsung champion behind many financial projects. On the flip side, the department can feel a lot of heat too, especially when staffing goes down. The key to staff retention and keeping the heat down may be in recognizing when it is time to bring in external support.

At a Feb. 21, 2023, meeting, AICPA's Professional Ethics Executive Committee discussed a recently issued exposure draft from the International Ethics Standards Board for Accountants proposing revisions to the Code of Professional Conduct for Tax Planning. It is important to keep an eye on these discussions because the AICPA is a member of the International Federation of Accountants, so it is required to maintain substantially similar codes of professional conduct.

The pool of available accounting professionals will continue to tighten. Technology and automation is one of the ways firms can keep growing and meeting client needs without burning out staff.

For many professionals, networking events bring back unpleasant memories of middle school, feeling vulnerable, alone, and on the outside looking in at others who seemed to know everyone else. How do we make what seems so overwhelming – or just like torture – a successful endeavor?

Technology has vastly changed since the Gramm-Leach-Bliley Act's Safeguard Rule was first established in 2003, so the Federal Trade Commission amended the rule in 2022 to keep up with the times. Some of the changes took effect in late 2022, with the remaining changes to be effective as of June 9, 2023. Accounting practices of every size need to be aware of the changes.

Most who suffer from imposter syndrome believe that their achievements are the result of “luck,” living in fear that they will be discovered a “phony” by others. CPAs tend to possess certain personality traits that make them prone to imposter syndrome: they are detail-oriented, possess a strong work ethic, and are focused on integrity and accountability. Luckily, there is a way to keep imposter syndrome at bay.

Busy season in accounting can be a challenging time for teams facing heavy workloads and tight deadlines. The ability to motivate your team is becoming more critical than ever. But it is not always easy.

The benefits of a private equity infusion to a firm’s senior partners are almost immediate. Private equity entities often tender a lot of cash upfront to owners nearing the end of their careers, instantly returning a significant portion of the value built over years. No doubt, running through the minds of many younger firm owners who may have as many as 20 or more years of full-time work is a nagging “What’s in it for me?” concern.

Research shows that the sooner candidates take the CPA Exam after graduation the more likely they are to pass. If you are a recent or soon-to-be college graduate, consider the top four reasons why you should take the CPA Exam as soon as you can.