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Question: Our organization sponsors both health and retirement plans that must comply with the Employee Retirement Income Security Act (ERISA). We recently received a request from the U.S. Department of Labor (DOL) for plan-related documents. Is this an audit? And if so, what should we expect? Answer: A request for plan documents usually signals the beginning of […]

Financial statements are a must-have for any organization. The balance sheet reveals how much its assets and liabilities are worth based on historic costs. The income statement tells investors and lenders how profitably and efficiently the company has performed during the accounting period. The statement of cash flows details sources and uses of cash from […]

Let’s say you have an unincorporated sideline activity that you think of as a business, including an activity involving horses. If you have a net loss (deductible expenses exceed revenue) on that activity and you think you can deduct that loss on your personal federal income tax return, think again! In IRS audits and in […]

Even successful businesses occasionally incur losses. Start-ups and expanding businesses often have unprofitable years, and unexpected events like pandemics can knock companies that have been financially healthy for years for a temporary loop. One potential upside is the ability to deduct such losses, thereby reducing taxes. However, business loss deductions are subject to several limitations. […]

Every stage of life has its own distinctive financial planning and insurance needs. Retirement is no different. If your life insurance policy hasn’t changed in 20 years, the coverage it provides may no longer be well-suited to your stage in life. That doesn’t mean you should drop the coverage, but you may want to revise […]

If you’ve reached an age when you really want to start working on your estate plan, one arrangement to consider is a revocable living trust. Perhaps you’ve heard of one, but you’re fuzzy on the details. Here are the basics. You create a revocable living trust while you’re alive and can cancel it at any […]

A gradual decline in expected gross profits over the course of a project is known as “profit fade.” It not only undermines the financial performance of construction companies, but also may raise red flags with sureties and lenders. For these reasons, contractors face an operational imperative to recognize why profit fade happens and know what steps they […]

A business can enjoy a healthy additional revenue stream by owning commercial property and renting out space to other companies. However, it’s important to remember that a commercial real estate lease, like any other contract, can be negotiated — something your tenants will likely let you know right away. This is why you probably shouldn’t use a […]

Do you own real estate that will produce a big capital gain when you sell it? Fortunately, you may be able to realize significant tax benefits by negotiating an installment sale of the property. However, there are several potential tax traps to avoid. How do you qualify for installment sale reporting? It’s relatively easy. All […]

Payroll fraud is a threat to any business that pays employees or contractors. Unfortunately, this type of financial crime can go undetected for months — even years — and inflict significant losses. Findings from Recent Study The Association of Certified Fraud Examiners (ACFE) defines payroll schemes as, “A fraudulent disbursement scheme in which an employee causes […]