Category: Accounting
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Who audits the State of New Jersey?
This blog post sprung from a discussion among members of the New Jersey Society of Certified Public Accountants at a meeting this week that carried over into online discussion. I present the topic with a focus on our local area of Cumberland County. New Jersey has 1,900 separate governmental units that are required to have…
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Are tax free gains in your future?
In general, it is more difficult to avoid capital gains taxes than ordinary income taxes. One simple way to avoid the capital gains tax is to gift the appreciated asset to a parent and inherit it back with a new, higher stepped up basis. But what is easy under the tax law might be more…
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Two tips for new nonprofit organizations
There are more than a million nonprofit businesses in the U.S. with more every day. State requirements that new cannabis companies be in nonprofit form bring more attention. Yet most nonprofit organizations are small volunteer-driven businesses with small budgets. They still need to make smart business management decisions, beginning with the business start-up. Starting out…
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Accounting for volunteer services provided to a nonprofit organization
The accounting treatment of services donated to a nonprofit frequently comes up in conversation. This blog post is meant to simplify three of the most common scenarios if those discussions: Should a nonprofit include the value of donated services in its reported revenue? No, unless the contributed service either: 1) creates a new non-financial asset,…
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Sample small business bill payment policies and procedures
Every small business – even one person firms where one person wears all the hats – benefits from having a well-considered bill payment policy. This sample policy is one that I drafted for a client with about $25,000 per month in expenses. The intent is to allow this to spark some ideas about how your…
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‘Assurance’ though a web app is not insurance
‘Assurance’ based on technology is nice but it does not include the financial risk shifting of insurance or the legal force of a contract. I recall writing a blog post years ago about how health insurance was morphing into a web app. Consumers seemed unaware or unconcerned of the distinction between a legal contract that…
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Initial thoughts on tax season wrap up and where to go from here
Initial thoughts on the wrap up of tax season: 1. OVERALL: It was the roughest tax season in my 30+ years, yet it was not as bad for me as many others tax professionals reported. Tax accountants’ online discussion groups are filled with stories of excess stress, it’s health impact, and threats of retirement from…
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Update on accounting business practices
In the normal course of business it is necessary to periodically update for changing trends, technology and legal and industry standards. This month I made the following six changes that will be reflected in future engagements: 1. Elimination of fax communications. Fax is just outdated, often insecure and inefficient. Instead, I encourage the use of…
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Business services checklist
While every small business has its own requirements for accounting services, this list compiles 20 of the most commonly requested help topics grouped in strategic groupings. Each contributes to overall success, but the needs typically vary over the life of a small business owner. The decision to perform each function internally, outsource or handle collaboratively…
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Butting heads on small business bookkeeping
I had unfortunate occasion to butt heads with an old-school bookkeeper. She is top quality with decades of experience. She knows her debits and credits and trial balances inside and out. She was quick to tell me that the accounting systems I use are worthless. The thing is: the world has changed. Not always for…