Randy Banaria

As an accounting professional, you need tools to improve the efficiency of your practice.

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The Importance of Reasonable Compensation: In operating your business as an S corporation, while reducing your salary might seem attractive to increase pass-through income and the Section 199A deduction, you must pay yourself “reasonable compensation.” Failing to do so can result in penalties, increased taxes, and missed deductions.

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Companies and CPA firms continue to struggle with talent shortages and retention challenges. Not surprising, but based on this poll of accounting talent, the top 3 things that would make them stay at a job longer are 1)higher pay 2)more flexible work options & 3)feeling valued. Accounting Career Consultants & HR Career Consultants

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Great update today from the AICPA on the nonprofit industry! A few key takeaways… 1.      Processing of ERC refunds is taking at least 12 months or longer. If you filed an ERC claim prior to last September, you can call to check on the status to make sure it was received, but a 12 month wait is pretty common. 2.     Letters mailed to the IRS to request abatement of Form 990 late filing penalties are taking up to 9 months for the IRS to respond. 3.     IRS nonprofit focus of audits and inquiries: a.     Proper worker classification. There has been an increase in IRS audits of nonprofit organizations related to classification of workers as employees vs. independent contractors. b.     Backup withholding procedures. IRS wants to be sure that if a nonprofit is working with a contractor, and the contractor does not provide an appropriate EIN, then the nonprofit needs to withhold backup withholding for the contractor’s taxes. c.     Unrelated Business Income (UBI) is still a hot topic:             i.     If a nonprofit has a new revenue stream, be sure the nonprofit has performed an analysis to make sure the new revenue should not be reported on Form 990-T as UBI.             ii.     Siloing of UBI. Nonprofits that report UBI need to ensure they are reporting the revenues and expenses for each separate source of UBI on a separate Schedule A on Form 990-T.              iii.     Miscellaneous income amounts over $1,000 will be scrutinized as potential unreported UBI. d.     For insider and related party transactions, make sure the nonprofit and the Board have documented why the insider transaction is in the best interest of the nonprofit organization. Ensure this has been clearly documented in Board minutes before entering into the transaction. #nonprofitleadership #nonprofitmanagement

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The complexity of financial planning today calls for a collaborative approach among pros. @accountingtoday shares some collaborative strategies:

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Hybrid work is still the most requested benefit behind compensation. For accountants and bookkeepers, most work doesn't need to be done on-site. Do you have a preference on meeting your finance providers on Zoom or in-person? #hybridwork #remotework #accountingandaccountants

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If you're interested in finding out more about navigating R&D Tax Credit changes, check out this great new blog post from the San Jose-based MTS Professional Tax Service Inc. Just click below.

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Don’t be the Rookie Of The Year 🙅🏾‍♀️ -Proud Mama Moment 🖤 ———————————————————————- “Rookies use S-corps to put their children on payroll‼️🚨 We avoid that approach. Instead, I prefer to establish an LLC as a management company. I then add the kids to that LLC’s payroll. 👶🏾👧🏾 The S-corp pays the LLC a management fee, and from there, the children get paid through the LLC. This strategy avoids payroll taxes, and the kids don’t need to file tax returns. That’s how you manage it without incurring taxes.✅” @karltondennis #tax #businessowner #smallbusiness #scorp #llc #payroll #hireyourkids #karladennis

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Confused by Prepaid Expenses & Lease Accounting? Our new guide simplifies it ALL! ✅ Understand prepaid expenses & their impact on your balance sheet ✅ Learn the difference between prepaid & accrued rent under ASC 842 ✅ Discover when prepaid expenses hit your income statement Get the full breakdown here [https://bit.ly/3UeuYps] #leaseaccounting #prepaidexpenses #ASC842

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