The knowledge you need

Properly managing cash flow is essential for Atlanta contractors and construction companies. It provides the funding needed to start new projects, maintain existing ones, and pay for material, supply, labor, and other expenses. Concurrently, a strong financial position can help manage weather-changing economic conditions. With an expected decrease in new 2023 projects driven by rising interest rates, it’s essential to revisit cash flow management strategies. Implementing best practices now will permit the company to be in a strong position and prepare for the unexpected.

The temporary 100 percent business meal deduction expires on December 31, 2022. The incentive allows business taxpayers to completely deduct the full cost of business-related meal and beverage purchases made in a restaurant. The deduction is especially beneficial to law firms that rely on these interactions for business development and networking activities. Starting on January 1, 2023, the eligible deduction amount will revert to 50%.

Despite the return to “normal,” many companies are still experiencing residual effects from the pandemic. While Georgia’s economy grew by 10% in March of this year, continuing supply chain issues and rising interest rates have put a damper on the encouraging news. This does not even consider the effects of the Great Resignation, which triggered a 25% increase in the number of resignations. When coupled with the concern about a looming recession, organizations need to leverage every savings opportunity available.

FASB’s Statement on Auditing Standards (SAS) No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, provides revised guidance for the calendar year 2023 financial statement audits. The broad concept of improved risk assessment standards in SAS 145 will extend to other areas of an audit, like IT and material misstatements.

Cryptocurrency has become increasingly popular over the last few years. The most common cryptocurrencies include Bitcoin, Ethereum, Tether, and BnB. Despite some recent volatility, many individuals have not only used it for investment purposes, but also as an asset. In fact, many companies such as Microsoft, Home Depot, Whole Foods, and Virgin Airlines are among the major companies that accept it as a form of payment. This has only served to increase its popularity. However, accepting it as payment has opened the door to a new challenge – how to account for cryptocurrency?

Required minimum distributions (RMDs) are an important part of a beneficiary’s or heir’s tax planning since income tax is due on RMDs in the year the distribution is taken. Previous rules allowed beneficiaries to stretch payments over their lifetime or take the full distribution in later years after the account holder’s death. This approach provided for a more targeted tax plan. The SECURE Act changed how RMDs for inherited accounts work, but at the time failed to provide clear guidance. As a result, many taxpayers who were supposed to make RMDs in 2021 or 2022 did not.

Atlanta high-net-worth individuals and families have many considerations for charitable giving strategies as part of their estate plan. In a sea of options, two of the more common choices include either a donor-advised fund (DAF) or a private foundation. Both will provide certain tax benefits and help individuals and families further their legacy. However, depending on the situation, one may be a better option than the other. There are several factors to consider when deciding which approach makes the most sense.

Travel is an essential aspect of doing business for many Atlanta companies. The opportunity to meet face-to-face with clients, and prospects, and attend national events is an important function for many executives. Although the use of Zoom has increased substantially over the past two years, business travel still plays an important role in client management, training, and new business development efforts. The intangible impact of meeting in person simply cannot be replicated online.

For many Atlanta plan sponsors maintaining compliance with ERISA regulations is an important priority that is second only to serving participants. One component of compliance is an annual review of plan operations, including amendments that must be made to accommodate legal, and other changes. Throughout 2020, many were challenged by the fast pace of regulatory changes made that often required the adoption of new plan amendments. It was especially difficult because the needed guidance to implement the changes were often issued after the fact.

Risk in a financial statement takes on many forms. It can be a material misstatement or can manifest as an undefined intangible that’s highlighted in a footnote. Auditors spend the most time in financial statement audits on identifying and assessing material misstatements because of the impact on the company’s financial position. Yet, risk assessments made up 25 percent of audit deficiencies in 2020 peer reviews, so there’s clearly more work to do to shore up this aspect of financial reporting.