Category Archives: Financial Reporting|Strategic Guidance

What is the Difference Between an Audit, Review, and Compilation

Audit, review, and compilation are three different levels of services provided by accountants or auditors when examining financial information. Each level offers a varying degree of assurance regarding the accuracy and reliability of financial statements. Let’s explore the differences between an audit, review, and compilation. Compilation A compilation is the simplest and least extensive of

How to Handle IRS or other Tax Agency Notices

Receiving a notice from the Internal Revenue Service (IRS) or any other tax agency can be a stressful experience for most individuals. However, it’s essential to approach these notices calmly and systematically. Just because you have received a notice doesn’t mean you are in trouble. Understanding the Purpose of Tax Agency Notices Tax agency notices

Reasonable Compensation for S Corporation Shareholders

S-corporations are a popular choice among small business owners. They offer a range of tax benefits, such as avoiding double taxation and passing profits and losses onto shareholders. However, S-corporation shareholders must ensure they receive reasonable compensation for their services to the corporation to avoid triggering tax penalties from the Internal Revenue Service (IRS).  

How to read Financial Statements numbers

financial statements

Clients ask accountants quite often questions around the condition of their numbers. Business owners want to know what their financial statements are saying. There is a desire to understand what is going on with their business numerically, and how to make decisions based around that. Are my numbers good or bad? Do I need to

Lessons from a Less-than-Ideal Cost Segregation Analysis

A cost segregation study categorizes the component parts of a commercial property for tax purposes, which allows the owner to optimize depreciation claims. A textbook cost seg analysis takes place not long after a property is acquired or a new building is completed, so the owner can begin taking full advantage of depreciation in the

The Federal R&D Tax Credit is an Untapped Resource for Many Businesses

How much time and money does your business spend figuring out how to do something new or something better? We talk to businesses all the time who don’t know their activities could qualify for the federal research and development (R&D) tax credit. Meeting the requirements of the credit takes effort and planning, but a business

Approaches for Improving the Outlook of a Cash-Strapped Business

If your business is facing a cash crunch, you’re not alone. In good economic times and bad, businesses in every industry can find themselves struggling to maintain financial balance from month to month or even week to week. Cash challenges can come from a number of directions. Perhaps a key customer has stopped or delayed

To Understand Cost Segregation Studies, Start at the Beginning

Cost segregation—“cost seg” to a tax accountant—can be a potent strategy for owners of commercial real estate to take advantage of the faster depreciation schedules applicable to qualified components of their properties. The basic contours of today’s approach to cost segregation were established in 1997 by the United States Tax Court in its decision in