Accounting Insights
Stay in the Know: Tax Exempt Organization Update
As many not-for-profit organizations plan for a successful 2019, it’s important to stay abreast of changing regulations and trends in the industry. The following is a synopsis of major Internal Revenue Service (IRS) updates
Understanding your Composite Score
The importance of a composite score Introduced as an amendment to the Higher Education Act of 1965, a composite score is a tool used to measure the relative financial health of an educational institution.
How the New Accounting Standard for Leases Impacts Manufacturers
Leasing is an important source of financing used by manufacturing companies to acquire critical pieces of equipment or facility expansions, while avoiding a large initial cash investment. Whether a manufacturer has only one lease
Not-for-Profits: Identifying Conditions in Contributions
On June 21, 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-08, Clarifying the Scope and Accounting Guidance for Contributions Received and Made. The accounting standards update is intended to clarify the distinction between
FASB Proposes Accounting Standard Update
Proposed Standard Addresses Diversity in Accounting Practice that Exists Between the Application of the Definition of Collections On June 26, 2018, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standard Update (ASU) intended
IRS Takes Closer Look at Exempt Organizations Employment Tax Compliance
The IRS is adding new areas of focus for employment tax examinations and tax-exempt organizations are being closely considered. The IRS Tax Exempt and Government Entities, fiscal year 2018 Work Plan will scrutinize exempt organizations
Virtues of an Accountant: Freedom Edition
As Independence Day approaches, we often think of the founding of our nation, and all those who sacrificed and paved the way for us to live in this great country. The United States had a
2018 M&D Report: The Industry 4.0 Factor
2018 M&D Report: The Industry 4.0 Factor Industry 4.0 is more than a buzzword. It’s a competitive differentiator. Over 300 people have downloaded this report to receive key trends and insights; download Sikich’s 2018
Revenue Recognition Playbook
If you haven’t already, it’s time to start assessing how your private company will be impacted by the new Revenue Recognition Standard, known as ASC 606 on December 15th, 2018.
Side-by-Side Bank Reconciliation Tools in NetSuite 2017.2
NetSuite’s new release (2017.2), comes with enhancements to cash management, making bank reconciliation faster and easier than ever before. The release also will help users manage their cash positions in real-time while providing an
IRS Update on ACA Penalty Notices
By Brandon Soris, CPA On November 2, 2017, the Internal Revenue Service (IRS) updated its Questions and Answers page to provide information regarding employer shared responsibility payments related to the Affordable Care Act (ACA). The
ACA Extension granted for Issuance of Health Coverage Forms for 2017 to Individuals
The IRS announced that it has extended the due date for employers to provide 2017 health coverage information to individuals. Insurers, self-insuring employers, and other coverage providers, and applicable large employers now have until March
New Ohio Tax Amnesty Program Available Until February 15
The Ohio Department of Taxation oversees a variety of taxes within the state. The most common taxes include the Commercial Activity Tax (CAT), Sales and Use Tax, individual tax and non-resident pass-through entity withholding tax.
Cut Costs with Integrated Project Delivery (IPD)
Through an efficient, customized IPD process, stakeholders are able to keep everyone on the same page and focused on delivering an enhanced project outcome. Sikich leverages its IPD experience and talent to assist with the
On-Demand Webinar: Payroll and HR Best Practices
We invite you to view our webinar, "Payroll and HR Best Practices: What you Need to Know for Year-End and Beyond." By registering for this webinar, you will be able to view the on-demand webinar at your convenience
Sikich Series on Tax Reform – Tax Reform Legislation Moves Forward on Two Fronts
Tax reform took another step forward on two fronts on November 9, 2017. First, the House Ways and Means Committee finalized work on the “Tax Cut and Jobs Act” (“H.R. 1”). The committee approved this
Sikich Series on Tax Reform – Framework on Tax Reform Released by the Administration and Congressional Leaders
After several months of speculation, the Administration and Congressional leaders unveiled their tax reform plan on September 27, 2017. Tax reform has been in the works behind the scenes for months (and some parts of
Governor Signs Bill to Extend and Revise Illinois EDGE Tax Credit Program
With the recent news of the FoxConn multi-billion deal to start operations in Wisconsin, it became apparent to the Illinois legislature that having key incentives in place is an important factor to induce companies to
Considerations Regarding the New Partnership Audit Rules for 2018 and Beyond
BBA’s Changes Taking Effect Soon The Bipartisan Budget Act of 2015 (BBA, signed into law on November 2, 2015) covered a variety of items, but one of the most significant items was the enactment of
2017 Manufacturing Report
Trends and strategies to help manufacturers understand growth challenges and opportunities. Sikich is excited to announce the release of its third-annual "Manufacturing Report: Trends and strategies to help manufacturers understand growth challenges and opportunities."
FASB Issues a Proposed Standard To Clarify the Characterization of Grants as Exchanges or Contributions
Proposed Standard Addresses Diversity in Accounting Practice for Grants as Exchanges or Contributions and in Distinguishing Between Conditional and Unconditional Contributions. On August 2, 2017, the Financial Accounting Standards Board (FASB) issued a proposed Accounting
Advantages of a Cross-Tested 401k Plan
Your 401(k) plan can provide a benefit to more than just your employees; when designed properly, it can also benefit owners and targeted groups, such as key personnel and managers. If you are currently making
Late on Filing Health Insurance Coverage Forms? IRS Notices Require Prompt Action
The IRS recently released notices to Applicable Large Employers (ALE) who have failed to deliver employee statements to their staff and file them with the IRS. The IRS-issued notices address health insurance coverage employee statement
Wellness Plan Incentives Can Have Unhealthy Tax Consequences
As more companies seek to offer wellness programs or incentives to their employees, issues and confusion concerning the taxability of health-related programs emerge. Guidelines outlined by the IRS address the problem at hand, allowing employers
Auto-IRA Initiative in Illinois Meets Exemption Challenges
Illinois may face challenges during attempts to implement a binding, state-based auto-individual retirement account (IRA) program for private employers. During the initial proposal of a payroll-deduction auto-IRA, Illinois government officials aimed to create a state-run
High Times in the Workplace…What is all the Buzz About?
Although marijuana is still illegal at the federal level, as of today, at least 28 states have legalized the medical use of the drug, and eight states permit its recreational use. With more than half
Should a Retirement Plan Implement a Fee Policy Statement?
Like all other fiduciary actions, the value of a fee policy statement is a function of how well it is written and how consistently a plan sponsor describes or practices the process documented. For the
Illinois Tax Changes: The Good, The Bad, and The Ugly
The fallout from the recent passing of the Illinois budget consists of changes to tax rates and elimination of certain deductions, as well as a few taxpayer-friendly provisions. Below is a wrap-up of the tax
ACA Repeal Unveiled in the Senate Could Set the Stage for Some Early 4th of July Fireworks in Washington
After months of rumors and anticipation, the Senate finally unveiled on June 22, 2017 its ACA repeal bill; named the “Better Care Reconciliation Act of 2017” (BCRA). The Senate bill is similar, but not identical,
NFP Fraud is Often Hidden in Plain Sight…Is Your Organization At Risk?
If you’re a not-for-profit organization that depends upon the audit process to catch a dishonest employee or fraud that is occurring in your workplace, you may be setting up your organization for potentially disastrous consequences.
Auto Enrollment/Escalation in Retirement Plans – Its Success Often Depends Upon Employer Actions
There’s no disagreement that saving for retirement is something everyone needs to be doing. Yet, still today, not everyone is doing it. As companies continually look at ways to increase employee participation in their sponsored
401(k) Hardship Distributions Come With Strings Attached for Employers
Do You Have Appropriate Documentation and Protocols in Place for Safe Harbor Distributions? The IRS has indicated via memorandum the concern that not all employers properly substantiate that a hardship exists before granting a hardship distribution. With
House Passes Revised Legislation to Repeal and Replace the ACA
On May 4, 2017, the House of Representatives passed H.R. 1628, “The American Health Care Act of 2017” (AHCA) by a narrow margin. The bill now moves to the Senate where it faces more legislative
First Look at the Tax Reform Plan Proposal Released by the Trump Administration
Potential Impact to Individuals and Businesses Unveiled Touted by the Trump Administration as the “biggest individual and business tax cut in American history,” the highly anticipated tax reform proposal was unveiled this week. The plan,
“Herding Elephants” – Legislation to Repeal and Replace ACA Fails in the House
ACA Update 2.0 With the recent news of the failed attempt to repeal and replace the Affordable Care Act (ACA), many are wondering, “What now?” It’s important to review all that has happened, to predict
Deadline Extension Announced for Illinois EDGE Tax Credit
The Economic Development for a Growing Economy (EDGE) Tax Credit program has been extended until April 30, 2017. The state of Illinois created the EDGE incentive program with the intention of encouraging companies to locate
Lease Accounting Standard
Adopting the New Lease Accounting Standard After years of deliberation and numerous exposure drafts, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 – Leases (Topic 842) on February 25, 2016. Generally,
21st Century Cures Act for Small Businesses Signed into Law
Employees Now Eligible to Receive Medical Reimbursements President Obama signed the 21st Century Cures Act for qualified small business Health Reimbursement Arrangements (HRA) into law recently. The Act contains provisions which would allow eligible small
Proposed Changes, Clarifications and Additions to Deferred Compensation Agreements Under IRC Section 409A
Effective Immediately: Risks of 409A Penalties Exist for Taxpayers Not in Compliance with Proposed Regulations The American Jobs Creation Act of 2004, added section 409A to the Internal Revenue Code (IRC). Section 409A generally provides that if
Everything You Need to Know About SOC Reporting
There are some core principals with SOC reporting that will make the world of difference for the "end users" of the report. With three types of reports, you'll want to be sure to select the
The New Overtime Ruling and Implementation Considerations for NFPs
With an effective date of December 1, 2016, the new and final overtime ruling issued by the Department of Labor (DOL) leaves organizations with merely a few months to prepare for the impact of this
FASB Issues New Standard to Improve Not-for-Profit Financial Reporting
On August 18, 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements for Not-for-Profit Entities (Topic 958). The first of a two-phase project, the newly released ASU
Strategizing for Global Financial Changes: 8 Steps You Can Take Now to Prepare for the New Revenue Recognition Standard
In May 2014, six years’ worth of planning, meetings, deliberations and proposals finally resulted in the convergence of a revenue recognition standard acknowledged by both the Financial Accounting Standards Board (FASB) and the International Accounting
Are You Missing Out on an Opportunity to Claim the Work Opportunity Tax Credit?
Special Transition Relief Expires Soon! As you may know, the federal “Work Opportunity Tax Credit” (WOTC) was extended last December by the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act of 2015). The
How NFP General Partners Should Apply the Consolidation Guidance to For-Profit Limited Partnership or Similar Entity
On August 3, 2016 the FASB Board issued a proposed Accounting Standards Update (ASU) that would amend the consolidation guidance in Subtopic 958-810, Not-for-Profit Entities— Consolidation, to clarify when an NFP that is a general
Modified Rules on 401(k) and 403(b) Deferral Failures
The new change provides penalty relief for plans that commit an elective or automatic deferral failure. A deferral failure occurs when a plan sponsor fails to correctly implement an automatic deferral contribution per the plan’s
DOL Employee benefit plan audits webinar (Hub International)
What to Expect from Health and Welfare Plan DOL Investigations It’s not just the IRS that’s interested in the compliance status of your benefit plan. The Department of Labor is conducting audits of
Best practices for hiring a plan auditor article
The importance of hiring a qualified and effective plan audit firm cannot be understated. This was made clear in a recent Department of Labor study on the quality of plan audits over the past 4
Frank Jakosz Article on Fundraising Creativity for Not-For-Profits (Journal of Accountancy)
All the elements of a successful not-for-profit fundraiser come into play each year when the Eiteljorg Museum of American Indians and Western Art in Indianapolis holds its popular Quest for the West art show and
Stop school district fraud. A simple solution.
Despite persistent reports of financial mismanagement embarrassing school district leaders across Illinois and mounting financial pressures forcing districts to get more done with less resources, many school districts still lack necessary and fundamental oversight of
Financial Statements of Not-for-Profit Entities
Tentative FASB Board decisions are provided for those interested in following the Board's deliberations. All of the reported decisions are tentative, do not change current accounting and may be changed at future Board meetings. Official
10 Facts Not-for-Profits Should Know About Penetration Testing
Penetration testing is one of the most effective forms of cybersecurity for not-for-profit (NFP) organizations. It can simulate a real-world attack and uncover areas of vulnerability within a network. As prime targets for cyber attacks,
The Story Behind the Numbers: How Financial Information Showcases Your Impact
Storytelling plays an integral role in our lives, whether it’s teaching a lesson, illustrating a point, or selling a service. Great stories spark creativity and cause people to view the world differently. Your organization’s financial
10 Steps to a Successful Audit
If preparing for your upcoming audit seems daunting, you’re not alone. Many of us feel a sense of dread at fiscal year-end. We’ve compiled our best tips to help you have a smooth audit: 1.
Financial Statements of Not-for-Profit Entities (Phase 1) Continued FASB Redeliberations
On March 23, 2016, the Financial Accounting Standards Board (FASB) met to continue redeliberations on the proposed Accounting Standards Update, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of
New FASB Standard Eliminates Fair Value of Financial Instruments Disclosures for NFPs
The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments-Overall (Subtopic 825-10 Recognition and Measurement of Financial Assets and Financial Liabilities). Although broad in scope in addressing certain aspects
A Board Member’s Checklist for Succession Planning
There has been an increase in demand for business succession planning services as the baby boomer generation retires and ownership of business interest transitions. Many of the planning issues that are important to for-profit businesses
Redeliberations on Phase 1 of FASB NFP Financial Statement Exposure Draft Project
On December 11, 2015, the Financial Accounting Standards Board (FASB) discussed the following issues in Phase 1 of redeliberations of the proposed FASB Accounting Standards Update, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic
Update on FASB NFP Financial Statement Exposure Draft Project
On October 28, 2015, the Board discussed the FASB staff’s summary of feedback received on the proposed Accounting Standards Update, Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of
Client Spotlight: Abbey Paving Co.
Abbey Paving, founded in 1983, is a full-service site construction company that does anything from resurfacing parking lots to multi-million site developments. The company self-performs asphalt paving and concrete work, and also does in-house excavation.
Client Spotlight: Capital Industries
Joe McKinley, owner of Capital Industries, explains how Sikich helps his company grow through tax planning, financial management and access to a wide range of business strategy resources.
Updated FASB Guidance Clears Up Complexity Issues for Measuring Inventories
Lower of cost or market, a required accounting principle, is a well-known method used to measure inventories. Yet, under this accounting guidance determining the market portion of an equation is complicated, since “market” has several
Manufacturing Report 2015: Overcoming the Five Barriers to Business Growth
Fast Paced Shifts in Technology An industry once isolated from technology is now experiencing fast-paced shifts, from advancements in 3D printing to the emergence of the Internet of Things (IoT). In fact, the next
Higher Education at Risk of Increased Cyberattacks
These days, it seems as though news outlets are reporting every other day on new cyberattacks, highlighting the fact that retail, health care and government aren’t the only industries vulnerable to data breaches. One nationally
Proposed FASB NFP Accounting Standards Update
FASB Issues Second Question & Answer Document on the Not-for-Profit Entities Financial Statement Exposure Draft July 2, 2015 On June 30, 2015, the Financial Accounting Standards Board (FASB) issued a second in a series of
How Sustainability Challenges in Local Governments are a Going Concern
Everything we need for our survival depends on the sustainability of the environment. How we work to maintain our environment and economy will directly affect our future generations and their ability to meet essential needs.
Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities
On April 22, 2015, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) intended to improve existing standards for financial statement presentation by not-for-profit organizations (NFPs). Why is the FASB Improving
Proposed FASB NFP Exposure Draft has Significant Effects
At its March 4 meeting, by a vote of 5 – 2, FASB decided to move ahead with issuance of an exposure draft (ED) on its longstanding Financial Statements of Not-for-Profit Entities project, which it
Develop an Implementation Plan for OMB Changes
In late 2013, the U.S. Office of Management and Budget (OMB) announced comprehensive grant reform rules titled “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).” The new requirements supersede and
Key Factors to Consider When Implementing GASB Statement No. 68
In June 2012, the Governmental Accounting Standards Board (GASB) issued two new statements impacting how state and local governments report their participation in pension plans. Statement Number 68, Accounting and Financial Reporting for Pension Plans
Is Your Construction Company’s Accountable Reimbursement Plan Compliant?
Not long ago, the IRS released Revenue Ruling 2012-25, which serves as a reminder of the rules to employers whose accountable reimbursement plans may have fallen out of compliance. The ruling largely focuses on the
Recent FASB Update on Not-for-Profit Organizations Project – Issues and Status of Exposure Draft
On February 5, the FASB provided an update on the Not-for-Profit Organizations Project. The board has substantially completed its deliberations on this project, which is focused on refreshing the now 20-year-old not-for-profit financial statement model.
What You Need to Know about Implementing GASB Statement No. 67
In June 2012, the Governmental Accounting Standards Board (GASB) issued two new statements impacting how state and local governments report their participation in pension plans. Statement Number 67, Financial Reporting for Pension Plans (an amendment
Establishing an Investment Policy for a Nonprofit
Nonprofit organizations should have a written policy for investing excess cash. The objective of this policy is to assist the organization in effectively supervising, monitoring and evaluating its investment assets. The organization’s board of directors,
Payroll Best Practices
Become knowledgeable on the changes for year-end reporting by attending this year's payroll webinar, "Payroll Best Practices: What You Need to Know for Year-end and Beyond.” This webinar will address important aspects of payroll
FASB Issues Guidance on Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items
The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. Subtopic 225-20, Income Statement—Extraordinary and Unusual Items, required that an entity separately
Should You Merge with Another Non-Profit?
It’s no secret that non-profit organizations have faced great challenges since the economic downturn began in the late 2000s. In fact, some have even faced the possibility of closure due to financial reasons. If your
Client Spotlight: T&W Corporation
Learn how Sikich provides quality financial financial statement review and advisory to Indianapolis's T & W Corporation.
Client Spotlight: Jenner Sales Corporation
Jenner Sales an agricultural equipment sales company, discusses how Sikich helps the company with accounting, audit and tax-related challenges, particularly when the IRS selected Jenner for an unplanned audit.
Non-Profit Budgeting: Handling Your Cash Flow
Most non-profits have recently experienced unpredictable economic trends that could cause those organizations to worry about meeting their financial obligations. As a non-profit leader, you can have the confidence to plan and take necessary actions
Owning Your GASB Story
Watch this on-demand webinar and come away with not only a better understanding of Governmental Accounting Standard Board's (GASB) new standards on financial reporting for pension plans, but also guidance on how to best communicate to media and
Business Owners Can be Personally Liable for Unknown State Taxes & Penalties
A few years ago, the 75 percent shareholder and president of a corporation visited the Chicago restaurant owned by the corporation to find it in disarray. Its manager was nowhere to be found and a
Non-Profits: Rules for Entering a Joint Venture Arrangement
For decades, non-profit organizations have been looking for ways to increase revenue in order to better achieve their charitable (or exempt) purpose. One way they have found to do this is by entering into a
GASB Statements 67 and 68
In June 2012, the Governmental Accounting Standards Board (GASB) issued two new statements impacting how state and local governments report their participation in pension plans. Learn about the changes being brought about in the industry
5 Key Business Credit and Incentive Categories
While highly publicized and touted, tax credits and other incentives have a reputation of being difficult to obtain. Incentives are generally specific and designed to attract certain types of businesses. Being aware of the different
Non-Profits: How to Choose an Auditor
Being a part of a non-profit organization, you know how important it is to timely and accurately report your financial information. These include how much money you are receiving in donations and for what activities
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
