Month: August 2016
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New rules for nonprofit financial statements
On Thursday August 18, 2016 the Financial Accounting Standards Board (FASB) issued new guidance on financial reporting for nonprofit organizations. The FASB is the governing body responsible for developing the financial statement standards used by the accounting profession. The new rules affect charities, foundations, colleges and universities, health care providers, religious organizations, trade associations, and cultural…
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My third favorite accountant
How I found a flaw in my marketing plan I’ve spent time recently and even posted a few prior blog posts on my struggle to realign the marketing of my 18-month-old accounting practice. I planned to have referrals as the primary source of new business so I’ve engaged myself in community groups, various board positions, networking groups,…
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‘Fiducuary rule’ claims first victims
Today a major national investment firm announced that it will no longer offer the choice of commission-based mutual funds in its retirement plan accounts. The change comes in response to the ‘fiduciary rule’ recently enacted by the Obama administration. This firm, Edward Jones, id the first to take such action. The firm hopes to convert the…
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Pricing of nonprofit accounting service worksheet
I created a new worksheet for calculating accounting service costs for small nonprofit organizations at http://www.wealthmanagement.us.com/pricing/ The intent is to show that the package of services can be provided at a lower price than the som of its individual parts. For more information on improving performance of nonprofit organizations, request a copy of my booklet “What…
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IRS does not pay ‘bounties’ to retirement plan auditors
I found this interesting exchange in the reader comments on Employee Benefits Adviser. I changed the names and of course can’t vouch for the authenticity of the writers. The article topic was the increased rate of audits of retirement plans since the IRS is aware that a high percentage of retirement plans have major deficiencies.…
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More warnings of crowdfunding fraud
“There was a time when a fool and his money were soon parted, but now it happens to everybody”. Yesterday GrindTV ran an article about more crowdfunding fraud. Investment without responsible independent financial oversight leads to disaster. That’s why the accounting profession exists. Investors simply need a healthy dose of reality here. The most basic…
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Aetna oddities
News is emerging that Aetna attempted to strong-arm the U.S. Justice Department last month before pulling out of the individual health insurance exchanges. That doesn’t seem like a smart strategy under any circumstance and of course it did not work. I recall sitting in an Aetna corporate strategy presentation in the late 1980s and recognizing…
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CPA licensing issues
In the aftermath of my recent unplanned involvement in investigating CPA license reciprocity issues, state licensing and peer review requirements, I conclude four things: 1) The stated intention of the AICPA’s mobility project is largely usurped by the states that do not wish to lose control and revenue from the practice of accounting within their…
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Arizona small business crowdfunding
Arizona joined the growing number of states that allow small business equity crowdfunding within its borders on terms that do not violate federal securities laws. The state’s new small business crowdfunding law went into effect this month. FundMyBusinessAZ.com is a site that operates under a new law signed by the governor that paved the way for…
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Another reason to stay clear of GoFundMe
In a post titled “Fraud in Crowdfunding” I’ve written about the ridiculously high rate of fraud on GoFundMe campaigns. Some third-party evidence suggest that the majority of campaigns on that site involve some type of fraud, deception or mismanagement. The scams reported target both the project sponsors and those who fund the projects. Simply put,…