2015 - Page 2 of 3

Jun
03
2015

Dependents from a Tax Perspective: What is “Total Support”?

Is your child a student under the age of 24? Does your child not live at home? You may still be able to claim him or her as a dependent if you provided over one-half of their total support in a given year.

The following items are included in total support:

Food, clothing, and recreation.
Amounts received under the GI Bill for tuition payments and allowances.
Medical insurance premiums and medical and dental care.

May
26
2015

An Auditor’s Perspective: Basics of Inventory Controls

For many organizations, inventory is one of the largest assets carried on a company’s books, and as a result, it is important to maintain appropriate controls over these assets. Inventory controls help your organization to maintain accurate records and to fulfill promises to customers. Risks specific to a lack of inventory controls includes the potential for lost, stolen, misappropriated, or miscounted items during routine physical counts. Below are some quick tips on maintaining appropriate oversight and prevention of unexpected inventory shrinkage:

Physical controls: Keep your inventories in a secure location.

Apr
28
2015

The Importance of Separating Your Business and Personal Expenditures

As a business owner, it seems as though there aren’t enough hours in the day. As a result, it makes perfect sense to take shortcuts when you can find them. For example, you are paying business bills…it’s late, you’re tired, and you realize that your home mortgage is due. So you pay it using the business checking account. Another example is using the business credit card to pay for personal expenses, like trips to the grocery store or filling up your vehicle with fuel.

Mar
31
2015

Reminder: Payroll Taxes & DES Reporting

With 1st quarter payroll reports due in April, we would like to remind you of the Arizona Department of Economic Security (DES) reporting requirements.

In Arizona, most employers are required by law to pay unemployment tax on the first $7,000 in gross wages paid to each employee in a calendar year. Any wages paid to an employee over $7,000 are deemed “excess” wages and are not taxed. You must report to DES all wages paid when preparing your report.

Mar
07
2015

Stale-dated checks: What to do with them?

You have just finished reconciling your bank statement and you notice that a check you wrote six months ago has still not cleared your bank account. What do you do about it?

First, determine if it is a live check or not (such as an automatic withdrawal or credit card charge). Make sure that a replacement check was not cut or an order cancelled. If a replacement check was cut, then void the outstanding check.

Feb
26
2015

Keeping the Cash Safe – A Brief Control Overview

Whether you are a non-profit organization, a for-profit company, or an auditor, you have most likely encountered the need to understand what it means to have strong internal controls over cash, controls that are in place and operating effectively. So what exactly is an internal control (IC) and why does it matter?

An internal control is a financial process or procedure that enables the organization to safeguard its assets. When conducting an audit,

Feb
17
2015

10 Tax Season Tips and Tidbits

Now that the 2015 tax season is in full swing, we thought you might enjoy the following tax tidbits:

1. On August 5, 1861 the U.S. government levied the first income tax to help fund the Civil War. Income over $800 was taxed at a 3% rate. In 1895, the Supreme Court declared income tax unconstitutional. Sorry . . . don’t get your hopes up. In 1913, the 16th amendment was ratified and permanently established income taxation.

Feb
11
2015

Common Confusions on Net Asset Classifications

In the for-profit world, we use the concept of equity: “owner’s equity” in a sole proprietorship, or “stockholders’ equity” in a corporation. In the nonprofit world, we use the term net assets. Mathematically, net assets is total assets minus total liabilities, and is reported on the Statement of Financial Position. We think of net assets as the net resources available to the organization at any given point in time with which it can accomplish its mission.

Feb
09
2015

It’s tax season! A few reminders and helpful tips!

Tax season is officially upon us! We are in the full swing of things, and wanted to post a few reminders and helpful tips for you as we head into the 2015 filing season!

Our office hours have been officially extended, starting Monday, 2/9/15, through 4/15/15:

Mondays – Fridays: 7:30 AM – 5:30 PM
Saturdays: 8:00 AM – 12:00 PM

Please let us know as soon as possible if you have had a change of address and/or phone number;

Feb
02
2015

The Affordable Care Act (ACA) and Your 2014 Taxes

Beginning January 1, 2014, every individual in the United States was required to have “minimum essential health coverage” under the ACA, pay a penalty (called the “shared responsibility payment”) or qualify for an exemption. The term “Individual” includes both taxpayers who are required to file returns because of their income, and others including seniors and children who do not have an individual return filing requirement. An individual who files a return is responsible for the coverage,