Category: crisis management
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Managing the accelerating pace of economic change
The most difficult thing I deal with day to day is coping with the accelerating pace of economic change. The constant ‘whatever I said last is out-of-date now’ cycle of business life is stressful. We tend to focus our attention on financial change but of course there are always other significant forces driving the financial…
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Summarizing our current situation
Let’s summarize: 1) We have a housing shortage, a worker shortage, a skills shortage, a savings shortage, and a growing cash flow shortage for the majority of middle class people. 2) The wage and income gap, however measured, has been widening almost every year for more than 50 years. 3) Government debt continues to grow.…
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My long slow boring health journey
Those in my generation are aware of the dramatic shift in public health information over our lifetime. Much of what we believed 50 years ago is taboo today. We lived through fads of belief that tobacco was healthy, that processed food could substitute for raw foods, the three martini business lunch was sustainable, the crusade…
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My Greatest Fear
My greatest fear is that the world, and specifically the United States, is on an accelerated path of self destruction and there is little I can do to change this. A probabilistic analysis of current events, including yesterday’s ruling by the Supreme Court against the U.S. emission control plan, lead to a conclusion that we…
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Nontaxable gasoline reimbursement plan
The sudden rise in gasoline prices is causing employers and nonprofits to ask whether reimbursing gasoline expenses to employees and volunteers will help them continue efficient operations. This video overviews the major points to consider and offers practical tips on how to start a plan. Relevant tax code sections are 61 (gross income), 62 (exclusions…
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How to report PPP loan forgiveness on your 1040 tax return
IRS included little specific guidance on the reporting of tax-exempt income from the forgiveness of a PPP loan. Generic instructions are included in the instructions for Form 1040, however tax law is clear that we may not rely on IRS instructions in this format to be reliable. Tax software, so far, and to the extent…
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Is a small business tax crisis looming?
I am increasingly concerned about the possibility of a small business crash ahead. The early warning sign is the difficulty I see in so many small business client in making their last year’s tax payments. This year, more than half of my small business clients than ever before cannot currently meet their 2021 sales tax,…
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Millville CPA Announces $50,000 in Free Accounting Support to Community
Tony Novak CPA is pleased to announce exciting changes to nonprofit and micro-business accounting services for 2022. We all know that 2021 was a year that triggered us to reevaluate our internal business practices and adapt to cope with the new realities of the business world. This past year our firm was overwhelmed with the…
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Preparing for disaster
I’m not quite among those who are building bunkers1 for the coming apocalypse. But I am among those who plan for everything short of that: severe weather events, extended power outages, data loss, communication system outages, looting/rioting/lawlessness, trauma-induced cognitive or memory loss, and now: a breakdown of the food and energy supply. Yes, I think…
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Rules for CPAs who handle clients’ PPP loans
Last year the AICPA issued ethics guidance to CPAs who handle PPP loan application and forgiveness applications for their business clients. This has become a significant issue for me lately. The guidance reminds practitioners that assisting the client in this capacity is considered a nonattest service requiring application of the independence and related rules in…