Substantiating Business Expenses & Deductions in Audits

| Business Miscellaneous, Tax Briefs

Substantiating business expenses is a common problem for many businesses going through an audit with either the Internal Revenue Service (IRS) or their State Department of Revenue. You are probably like most business people. You don’t get up in the morning excited about keeping your tax records. But if you want to be in business and not suffer when the IRS audits your tax returns, you need to keep tax records. This takes a little time and requires some knowledge. Substantiating business expenses Read more [...]

“Bunching” medical expenses will be a tax-smart strategy for many in 2017

| Tax Briefs

Various limits apply to most tax deductions, and one type of limit is a “floor,” which means expenses are deductible only if they exceed that floor (typically a specific percentage of your income). One example is the medical expense deduction.   Because it can be difficult to exceed the floor, a common strategy is to “bunch” deductible medical expenses into a particular year where possible. If tax reform legislation is signed into law, it might be especially beneficial to bunch deductible Read more [...]

2017 Q4 tax calendar: Key deadlines for businesses and other employers

| Tax Briefs

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. October 16 If a calendar-year C corporation that filed an automatic six-month extension: File a 2016 income tax return (Form 1120) and pay any tax, Read more [...]

Critical connection: How costs impact pricing

| Business Briefs

As we head toward year-end, your company may be reviewing its business strategy for 2017 or devising plans for 2018. As you do so, be sure to give some attention to the prices you’re asking for your existing products and services, as well as those you plan to launch in the near future. The cost of production is a logical starting point. After all, if your prices don’t exceed costs over the long run, your business will fail. This critical connection demands regular re-evaluation. Reconsider Read more [...]

Bridging the divide with a mezzanine loan

| Business Briefs

In their efforts to grow and succeed, many companies eventually reach the edge of a precipice. Across the divide lies a big step forward — perhaps the acquisition of a competitor or the purchase of a new property — but, financially, there’s no way across. The money is just not there. One way to bridge that divide is with a mezzanine loan. These instruments (also known as junior liens and second liens) can bridge financing shortfalls — so long as you meet certain qualifications and can Read more [...]

Why you should boost your 401(k) contribution rate between now and year-end

| Tax Briefs

One important step to both reducing taxes and saving for retirement is to contribute to a tax-advantaged retirement plan. If your employer offers a 401(k) plan, contributing to that is likely your best first step. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year-end. Because of tax-deferred compounding (tax-free in the case of Roth accounts), boosting contributions sooner rather than later can have a significant impact on Read more [...]

How are 401(k) withdrawals like a relationship?

| Business Miscellaneous

Part 3 of 3 in the “How to Survive a 401(k) Audit” By Tyler Kleinschmidt, CPA     How can your company survive its 401(k) audit? How does one survive a relationship? Much like starting any new relationship, Part 1 of this series focused on a brief history of pension plans (What do you do, why are you here?). Then Part 2 moved onto “participant contributions” (What do you bring to this relationship and how much are you able to participate?). And finally, Part 3 will focus on the challenges Read more [...]

How profitable are your customers?

| Business Briefs

“We love our customers!” Every business owner says it. But all customers aren’t created equal, and it’s in your strategic interest to know which customers are really strengthening your bottom line and by how much. Sorting out the data If your business systems track individual customer purchases, and your accounting system has good cost accounting or decision support capabilities, determining individual customer profitability will be simple. If you have cost data for individual products, Read more [...]

Alerding CPA Group announces promotions and new staff appointments

| News

(INDIANAPOLIS) – The Directors of Alerding CPA Group, an Indianapolis-based certified public accounting firm, are pleased to announce the following staff promotions and new appointments: Sarah Gregory, CPA, CFE – promoted to Senior Audit Manager Chris Mennel, CPA – promoted to Senior Audit Manager Owen Pryor, CPA – promoted to Tax Supervisor Evan Rauch, CPA – promoted to Audit Supervisor Spencer King – new Staff Accountant Sarah Gregory, Senior Audit Manager and Certified Read more [...]