Why It Might be Time for Your Small Business to Migrate to Cloud Accounting

isler northwest, accountants, portland

Cloud accounting is a big idea that brings with it a lot of lofty implications, but if you had to distill all of that down to its bare essentials it would probably look at lot like this:

Right now, if you want to manage the financial side of your small business, you probably have to be in your office to do so. You have to be sitting in front of a very specific computer, because that’s where you installed your accounting solution in the first place. If you’re at home and you need to send an invoice or if you’re out in the field and just collected a payment, you have to wait until you get back to the office to actually reconcile that information.  Read more

isler northwest, portland

Nexpanding: The Ever-Evolving Shape of Nexus Rules

Article by Roger Russell | Found on Accounting Today

Nexus — the minimum amount of contact between a taxpayer and a state that allows the state to tax the business on its activities — is under attack by the states as they seek to broaden its reach in order to increase their taxing revenue.

States are challenging the traditional physical-presence standard as a basis for collecting tax from companies doing business in the state. While they previously collected taxes from companies having a physical presence in their state, they are now adopting a broader economic-nexus standard requiring businesses to pay taxes when they have earned revenue within a state above a certain sales dollar threshold.

At the heart of the issue are general nexus concepts, as different taxes have different nexus rules, and the different states have their own nexus rules. Read more

New Tax Rules for 2017

By Robert Trinz | Article Featured on AccountingToday

The new year promises to be an challenging one for tax practitioners, as President-elect Trump and Congressional Republicans have promised to enact a significant tax reform package in 2017. However, even if there is no new law, practitioners still will have to cope with a number of tax changes that go into effect for the first time this year or apply for the first time for tax returns filed this year.

This article is a roundup of these tax changes, other than indexing changes and changes created by Congress’s failure (as of now), to enact an extenders package to revive tax provisions that expired at the end of 2016. (You can see an abridged list of the new items here.) Read more

Year-end tax tips for charitable giving this holiday season

Article by Jeff Brown | Featured on CNBC.com

For most people, giving to charity is simply a matter of goodwill and generosity. But there are tax benefits, and they can be significant. Knowing how to get a tax deduction can allow you to give even more.

But you’ve got to follow the rules. And as with so many tax matters, common sense is not good enough.

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FASB Proposal Takes Aim at Immaterial Fair Value Disclosures

FASB Proposal Takes Aim at Immaterial Fair Value Disclosures

Article by Ken Tysiac | Featured on Journal of Accountancy

FASB is proposing new accounting standards designed to improve the effectiveness of disclosure requirements on fair value measurements by enabling preparers to omit immaterial information.

The board is seeking comments by Feb. 29 on Proposed Accounting Standards Update, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.

The proposed amendments, released Thursday, are part of FASB’s disclosure framework project, which seeks to improve the effectiveness of disclosures in the notes to financial statements by requiring clear communication of information that is most important to financial statement users.

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Non-Profit Financial Reporting Headed for a Change

Article by Larry Smith & Ken Euwema | Featured on Journal of Accountancy 

As a part of the response to the call for increased transparency and accountability among not-for-profit entities (NFPs), FASB has taken on a project to improve the existing NFP financial reporting model. The goal is to improve the usefulness of NFP financial statements by providing better information about an NFP’s liquidity, financial performance, and cash flows to the primary users of financial statements, governing boards, donors, grantors, creditors, and other stakeholders of NFPs.

The fundamental reporting model for NFPs has existed for over 20 years. During that time, NFP organizations have developed different methods of reporting their operating results in a way that conveys the connection between financial choices and mission execution because existing GAAP does not prescribe a specific way of reporting operating performance. Additionally, changes in endowment laws together with the existing framework for reporting restricted and unrestricted net assets, and the lack of required information about the liquidity of an organization, have contributed to the confusion in determining whether an NFP is in sound or poor financial condition.

On April 22, FASB issued an exposure draft, Proposed Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. In reaction to feedback from NFP constituents, primarily FASB’s Not-for-Profit Advisory Committee (NAC), FASB is proposing fundamental changes to both the presentation and disclosures in financial statements of not-for-profit organizations. This article explains the basic requirements of the proposal and the reasons for the proposed changes, and it describes the planned activities of the board and its staff to assess whether stakeholders believe the benefits of the proposal through improved financial reporting of NFPs justify the costs to implement it.

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