CPA Now Blog Archive

Low bond yields and the chance of having a client's principal fall when interest rates increase make bonds increasingly unappealing. However, they do provide stability to a portfolio during times of stress for stocks, so they still are a necessary component to a balanced portfolio. So, how can a portfolio add bonds without subjecting them to losses as interest rates increase?

Recent spear phishing emails are masquerading as messages from the IRS tax return preparation software. To help practitioners identify and address spear phishing threats, the IRS Stakeholder Liaison is conducting two briefings the week of March 28 to show tax professionals what some of the most recent scam emails look like.

Students today have several pathways to obtain experience and find their direction in the accounting world. Launching a career at a small vs. large CPA firm can affect the path one eventually follows. But don't automatically discount the small-firm experience. There are unique benefits to launching a career at a smaller firm.

As CPAs finalize their clients' 2021 tax documents over the next few weeks, it is imperative not to lose sight of helping clients make tax plans for the remainder of 2022 and beyond. More regular monitoring throughout the year can help ensure they are on the right track and avoid unwelcome surprises in the future. This blog offers a few items to consider.

While the certified public accountant (CPA) credential continues to be the accounting profession’s “gold standard,” you may want to consider one of the many add-on certificates to further foster your skill set and improve your value. This blog looks at a few of the options you can add to your CPA credential.

The pipeline of CPAs entering the profession has slowed to a trickle: the number of accounting students pursuing the CPA credential is at a 10-year low. The PICPA, AICPA, and big firms have been working hard to change the prospects for the profession, but individual CPAs and small firms can help too. In fact, they can work together and move things forward more quickly than bigger entities.

Form 990 is an annual filing requirement for most tax-exempt organizations, even though these organizations may not pay federal taxes. One of the form's schedules, Schedule O, is not only a requirement, but also a great way for a tax-exempt organization to communicate its mission and annual accomplishments.

Busy tax practitioners can be susceptible to making errors regarding corporate-level tax and termination exposures affecting S corporations. But through familiarity with potential exposures and the exercise of due caution, steps can be taken to avoid unnecessary tax consequences.

Perhaps environmental, social, and governance (ESG) reporting is not yet on the radar at your firm or company, but that could soon change. Forthcoming ESG rules and standards could have a significant impact on the marketplace, and the PICPA wants to know where you stand.

The Gramm Leach Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, requires financial institutions to develop and implement steps to keep their customers’ personal information private and secure. And in case you were wondering, the GLBA does apply to CPA firms.

Virtual audits – driven to the forefront out of necessity during the pandemic – are primarily performed electronically, reducing the amount of face-to-face communication between auditors and client personnel. Advances in digital communication allow clients and auditors to interact in new and more effective ways. So, are the days of having auditors physically onsite performing final field work a thing of the past?

A company should always aim to settle a tax dispute at the lowest level. In some situations, however, an appeal may be prudent. This blog addresses the important factors to consider when deciding whether or not to challenge a state or local tax audit assessment.

Disengaging with a client is typically unpleasant, but it can be a practice management tool that increases firm profitability and creates a better situation for both the CPA and the client. Disengaging skillfully, however, is the trick.

CPAs absolutely should learn and understand all we can about the sustainability concept. It will impact, if it does not already, all the companies and firms we work with or will work with in the near future.

Too often, accounting practices do not grasp the extent of cyberthreats their organizations face or the impact they would have. Simply assuming “I will be fine” is a broken mindset. Would your organization survive financially or reputationally from a hack that stole client data? Can you afford to close your doors for two to three weeks or more while a cyberattack is investigated and remediation is performed?

For many clients, an important aspiration is supporting their families financially, however, doing so may have unexpected tax implications for them. This blog offers a few remedies so you can keep your clients on the path to supporting their families while not creating a huge tax burden.

Organizations that received more than $750,000 in COVID relief funds could be required to have a single audit or a program audit. This may result in about 10,000 new single audits nationally. If your clients received relief funds, it is important to research the applicable compliance requirements.

Approximately 44% of Pennsylvanians (about 2.1 million residents) have no access to an employer-sponsored retirement plan. Legislation now in the Pennsylvania House Commerce Committee would establish the Keystone Saves Program. Through the program, the state would embark on an auto-enrollment payroll deduction IRA.

As Pennsylvania inches toward loosening restrictions for patients seeking legal medical marijuana, there will be an increasing need for CPAs who understand how to keep cannabis businesses compliant. For example, one of the most basic rules that most CEOs -- and some unaware accountants -- don’t seem to understand is that, due to the fact that cannabis is still federally illegal, businesses in this sector are not able to take any deductions.

So, what makes for “good” tax policy as opposed to “bad” tax policy? If you think it is straightforward to design a simple, effective tax system, you would be mistaken. Economic and political pressures have enormous influence, so the characteristics of good tax policy are critical guiding principles.