Is outsourced accounting right for your NFP?

| Business Briefs, Business Miscellaneous

By Chris Mennel     As your nonprofit strives to use its resources as effectively as possible, at some point, you might consider outsourcing the functions that fall under your accounting and financial umbrella. Nonprofits often outsource areas that require specialized knowledge or a significant number of hours, such as payroll processing and payroll tax preparation. Outsourcing accounting functions also can provide benefits – if it matches up with your organization’s needs and budget. Before Read more [...]

How can I make our 401(k) audit run smoothly?

| Audit and Accounting, Business Miscellaneous

Part 2 of 2 in the “How to survive a 401(k) audit” series By Justin Schwartz, CPA   Preparing for a defined benefit or profit sharing plan audit may seem like a daunting task; however, understanding which key areas the auditor may be testing should help put your mind at ease.  Auditors typically focus on three main areas:  participant data, employee/employer contributions and withdrawals from the plan.  We will focus on participant data and employee/employer contributions below. Auditors Read more [...]

Why must our 401(k) be audited?

| Audit and Accounting, Business Miscellaneous

Part 1 of 2 in the “How to survive a 401(k) audit” series By Evan Rauch, CPA     For generations, defined benefit pension plans were the retirement plan standard for just about every employer. However, these pensions became financially draining for employers as the life expectancy of their retired employees increased, making way for a new type of retirement plan – the defined contribution plan or a profit sharing plan.  Nearly 40 years later, defined contribution plans have become the Read more [...]

Want younger board members: Consider a second board

| Business Briefs, Business Miscellaneous

By Chris Mennel & Natalie Hopkins     If you have been around nonprofits for very long, you have discovered that recruiting new board members is an ongoing challenge. Finding the best mix of talent to fill their needs (finance, development, etc) within the right age demographic can be a struggle. Add to this mix the search for younger board members so the nonprofits can effectively plan their futures, and the challenge grows. To overcome this obstacle, an increasing number of organizations Read more [...]

Negotiations: tips from the trenches

| Business Miscellaneous

By Michael Alerding, CPA     We all exercise the art of negotiation many times each day.  We negotiate with family about weekend activities or plans for dinner and even who gets to take the dog out for a walk.  Negotiations are a natural part of our existence.  We usually don’t realize we are negotiating, but whenever two or more people endeavor to reach a conclusion that will satisfy the entire group, that’s called negotiation.  Conversely, if one person has the authority to make decisions Read more [...]

What can a valuation expert do for your succession plan?

| Business Briefs, Business Miscellaneous

Most business owners spend a lifetime building their businesses. And when it comes to succession, they face the difficult decision of whether to sell, dissolve or transfer the business to family members (or a nonfamily successor). Many complicated issues are involved, including how to divvy up business interests, allocate value and tackle complex tax issues. Thus, as you put together your succession plan, include not only your financial and legal advisors, but also a qualified valuation professional. Various Read more [...]

ESOP repurchase obligations are real

| Business Miscellaneous

By Mike Staton     All too often companies setting up an ESOP (Employee Stock Ownership Plan) concentrate on the legal documents, projections and banking arrangements without considering all of the long-term obligations. Not only do you have the cash flow requirements of the outside loan with the bank or the selling stockholders, you have future Repurchase Obligations to consider in an ESOP. Repurchase obligations are not required by GAAP to be recorded on the company’s financial statements, Read more [...]

Has your organization set a New Year’s resolution?

| Business Miscellaneous

By Chris Mennel and Natalie Hopkins   It’s that time of year - time to set workout goals and lose those bad habits that the holidays helped create.  We all know New Year’s resolutions serve as a way to challenge us as individuals, but perhaps that should be extended into our organizations as we move into 2017. Let’s explore three areas that are easy to bypass when running organizations on a day-to-day basis, but could be instrumental steps for success in 2017. Setting donor goals Many Read more [...]

Year-end payroll and information reporting

| Alerding Alerts, Business Miscellaneous

The year is quickly coming to a close and it will soon be time to prepare and file forms W2 and the related payroll tax returns.   We wanted to make you are aware that some fringe benefits provided to employees as well as 2% or greater shareholders are taxable and should be reported on W2 forms in order for them to be deductible business expenses.  Taxable fringe benefits include: Personal use of company vehicle (including shareholders’ use) 2% or greater shareholders’ health insurance Shareholders’ Read more [...]

DOL Final Overtime Rule Temporarily Blocked by Judge

| Alerding Alerts, Business Miscellaneous

A federal judge temporarily blocked implementation of the Final Overtime Rule, scheduled to go into effect tomorrow - December 1, 2016, which doubled the maximum salary a worker could earn and still be eligible for overtime pay. What does this mean for our business-owners and nonprofit clients? 1)    As a result of the ruling, employers currently do not need to comply by the December 1 effective date. 2)    The injunction is temporary pending further review by the court. 3)    Read more [...]