Insights 2017-10-13T11:00:56+00:00

Audit & Assurance Insights

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Framework on Tax Reform Released by the Administration and Congressional Leaders

By | September 27th, 2017|Categories: Uncategorized|Services: , |

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

By | September 19th, 2017|Categories: Uncategorized|Services: , |

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

By | August 28th, 2017|Categories: Uncategorized|Services: , |

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

By | August 15th, 2017|Categories: Uncategorized|Services: , , , , , , , , |

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." In

FASB Issues a Proposed Standard To Clarify the Characterization of Grants as Exchanges or Contributions

By | August 7th, 2017|Categories: Uncategorized|Services: |

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

Late on Filing Health Insurance Coverage Forms? IRS Notices Require Prompt Action

By | August 3rd, 2017|Categories: Uncategorized|Services: , |

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

By | August 3rd, 2017|Categories: Uncategorized|Services: , |

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

By | August 3rd, 2017|Categories: Uncategorized|Services: , , |

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?

By | August 3rd, 2017|Categories: Uncategorized|Services: , |

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?

By | August 3rd, 2017|Categories: Uncategorized|Services: , |

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

By | August 1st, 2017|Categories: Uncategorized|Services: , |

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

The Business Owner’s Guide for Replacing Accounting Software

By | July 20th, 2017|Categories: Uncategorized|Services: , |

The Business Owner's Guide for Replacing Accounting Software Replacing your accounting software is easier and more affordable than you may think. Fill Out the Details Below to Access

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ACA Repeal Unveiled in the Senate Could Set the Stage for Some Early 4th of July Fireworks in Washington

By | June 23rd, 2017|Categories: Uncategorized|Services: , |

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?

By | June 1st, 2017|Categories: Uncategorized|Services: , |

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

By | May 19th, 2017|Categories: Uncategorized|Services: , |

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

By | May 19th, 2017|Categories: Uncategorized|Services: , |

 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

First Look at the Tax Reform Plan Proposal Released by the Trump Administration

By | April 28th, 2017|Categories: Uncategorized|Services: , |

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

By | March 28th, 2017|Categories: Uncategorized|Services: , |

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

Lease Accounting Standard

By | January 13th, 2017|Categories: Uncategorized|Services: |

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

By | December 15th, 2016|Categories: Uncategorized|Services: , |

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

By | November 8th, 2016|Categories: Uncategorized|Services: , |

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

By | September 27th, 2016|Categories: Uncategorized|Services: |

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

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The New Overtime Ruling and Implementation Considerations for NFPs

By | September 16th, 2016|Categories: Uncategorized|Services: |

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

By | August 23rd, 2016|Categories: Uncategorized|Services: |

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

By | August 19th, 2016|Categories: Uncategorized|Services: , |

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

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Are You Missing Out on an Opportunity to Claim the Work Opportunity Tax Credit?

By | August 17th, 2016|Categories: Uncategorized|Services: , |

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

Modified Rules on 401(k) and 403(b) Deferral Failures

By | July 1st, 2016|Categories: Uncategorized|Services: |

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

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Best practices for hiring a plan auditor article

By | July 1st, 2016|Categories: Uncategorized|Services: |

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

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Frank Jakosz Article on Fundraising Creativity for Not-For-Profits (Journal of Accountancy)

By | July 1st, 2016|Categories: Uncategorized|Services: |

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

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Stop school district fraud. A simple solution.

By | June 21st, 2016|Categories: Uncategorized|Services: |

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

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Financial Statements of Not-for-Profit Entities

By | June 8th, 2016|Categories: Uncategorized|Services: , |

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

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10 Facts Not-for-Profits Should Know About Penetration Testing

By | May 10th, 2016|Categories: Uncategorized|Services: |

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,

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The Story Behind the Numbers: How Financial Information Showcases Your Impact

By | April 8th, 2016|Categories: Uncategorized|Services: , |

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

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Financial Statements of Not-for-Profit Entities (Phase 1) Continued FASB Redeliberations

By | March 29th, 2016|Categories: Uncategorized|Services: , |

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

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New FASB Standard Eliminates Fair Value of Financial Instruments Disclosures for NFPs

By | March 11th, 2016|Categories: Uncategorized|Services: |

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

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A Board Member’s Checklist for Succession Planning

By | March 3rd, 2016|Categories: Uncategorized|Services: , , |

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

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Redeliberations on Phase 1 of FASB NFP Financial Statement Exposure Draft Project

By | December 16th, 2015|Categories: Uncategorized|Services: |

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

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Update on FASB NFP Financial Statement Exposure Draft Project

By | October 30th, 2015|Categories: Uncategorized|Services: |

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

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Client Spotlight: Abbey Paving Co.

By | August 29th, 2015|Categories: Uncategorized|Services: |

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.

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Updated FASB Guidance Clears Up Complexity Issues for Measuring Inventories

By | August 25th, 2015|Categories: Uncategorized|Services: |

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

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Manufacturing Report 2015: Overcoming the Five Barriers to Business Growth

By | July 29th, 2015|Categories: Uncategorized|Services: , |

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

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Higher Education at Risk of Increased Cyberattacks

By | July 15th, 2015|Categories: Uncategorized|Services: |

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

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Proposed FASB NFP Accounting Standards Update

By | July 7th, 2015|Categories: Uncategorized|Services: |

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

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3 Tips for Restating Your Retirement Plan

By | June 11th, 2015|Categories: Uncategorized|Services: , |

Is your retirement plan ready for the next restatement deadline? Every six years, the Internal Revenue Service (IRS) requires all employers to update and resubmit their retirement plans, and the next restatement is due April

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How Sustainability Challenges in Local Governments are a Going Concern

By | May 19th, 2015|Categories: Uncategorized|Services: , |

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.

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Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities

By | April 23rd, 2015|Categories: Uncategorized|Services: |

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

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Proposed FASB NFP Exposure Draft has Significant Effects

By | March 31st, 2015|Categories: Uncategorized|Services: |

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

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Develop an Implementation Plan for OMB Changes

By | March 20th, 2015|Categories: Uncategorized|Services: , , |

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

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Key Factors to Consider When Implementing GASB Statement No. 68

By | February 20th, 2015|Categories: Uncategorized|Services: , |

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

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Is Your Construction Company’s Accountable Reimbursement Plan Compliant?

By | February 18th, 2015|Categories: Uncategorized|Services: , |

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

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Recent FASB Update on Not-for-Profit Organizations Project – Issues and Status of Exposure Draft

By | February 12th, 2015|Categories: Uncategorized|Services: |

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.

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What You Need to Know about Implementing GASB Statement No. 67

By | February 11th, 2015|Categories: Uncategorized|Services: , |

  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

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Establishing an Investment Policy for a Nonprofit

By | January 22nd, 2015|Categories: Uncategorized|Services: |

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,

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FASB Issues Guidance on Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

By | January 14th, 2015|Categories: Uncategorized|Services: , |

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

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Should You Merge with Another Non-Profit?

By | May 16th, 2014|Categories: Uncategorized|Services: |

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

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Client Spotlight: Jenner Sales Corporation

By | February 10th, 2014|Categories: Uncategorized|Services: |

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.

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Non-Profit Budgeting: Handling Your Cash Flow

By | February 4th, 2014|Categories: Uncategorized|Services: |

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

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Owning Your GASB Story

By | January 22nd, 2014|Categories: Uncategorized|Services: , , |

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

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Business Owners Can be Personally Liable for Unknown State Taxes & Penalties

By | July 24th, 2013|Categories: Uncategorized|Services: , |

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

By | May 1st, 2013|Categories: Uncategorized|Services: , |

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

5 Key Business Credit and Incentive Categories

By | February 12th, 2013|Categories: Uncategorized|Services: |

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

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Non-Profits: How to Choose an Auditor

By | December 13th, 2012|Categories: Uncategorized|Services: |

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

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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.

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