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Now that the pandemic has passed almost all these programs are no longer available. In fact, the recently enacted Infrastructure Investment and Jobs Act called for an early end to the Employee Retention Credit. The only remaining program is the Economic Injury Disaster Loan (EIDL) which is set to expire at year-end. Earlier today, the SBA announced new guidance to help small businesses that are considering applying for a new loan, targeted advance, or supplemental advance.

During the closing months of the year, many Atlanta individuals look for opportunities to reduce federal income taxes. It is a common practice to review both federal and state tax credits and deductions to identify where opportunities may exist. In fact, 2021 appears to be the last year to leverage many of the now-expired federal COVID-19 tax credit programs. Despite the options, many taxpayers reduce taxes simply by contributing to a tax-deferred retirement plan such as a 401(k), 403(b), 457, or a Thrift Savings Plan. Often increasing the elective deferral amount and accelerating contributions at year-end can go a long way towards tax planning goals. However, it is necessary to be aware of the annual contribution maximums.

The Research & Development (R&D) tax credit helps Atlanta and Georgia companies offset the cost of qualifying research and experimental activities with a dollar-for-dollar federal credit worth anywhere between 6 and 20 percent, depending on the calculation method and circumstances. It is a valuable tax planning tool that reduces federal income tax liability, improves cash flow, and encourages further investment in technological advances. Each year, the IRS reviews thousands of R&D tax credit claims worth millions of dollars.

Atlanta businesses required to undergo an annual financial statement audit will notice several new changes to the auditor’s report. Outlined in the Statement on Auditing Standards (SAS) 134 – Auditor Reporting, the modifications are designed to increase the value of the report to management. The changes have been years in the making – going back to 2011 when the Accounting Standards Board began the path to more consistent auditing standards for all entities. In 2015, the Public Company Accounting Oversight Board (PCAOB) and the International Accounting Standards Board (IASB) made changes to auditor report requirements, which paved the way for SAS 134. Much like other standards updates, the changes outlined in SAS 134 will help to make the auditor’s report more useful and transparent to financial statement users.

Many Atlanta businesses have already started the process of complying with the new ASC 606 Revenue Recognition standard. Originally scheduled to become effective earlier, the Financial Accounting Standards Board (FASB) voted to delay the implementation one year due to the COVID pandemic. As the implementation deadline approaches many businesses are working through the steps of examining contracts to identify where revenue recognition changes may need to be made. While there has been extensive guidance and information made available on how to identify, assess, and report revenue recognition changes, including the 5-step process, fewer details are available on how to account for revenue-generating contracts in a business combination.

After two years of implementation delays, construction contractors, other private companies, and certain not-for-profits must now implement a new accounting framework for revenue recognition. The comprehensive changes outlined in Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, Topic 606, is designed to improve the consistency of financial reporting of businesses across different industries. The standardization is meant to help external stakeholders better understand a company’s financial position and compare data across industries.

Fraud is a persistent threat that severely impacts the financial performance of an enterprise. When it is discovered a trusted employee, staff member, or executive has been stealing money, products, or services, it can have a lasting effect. This can manifest in the form of damage to the brand, or worse yet, adversely impact employee trust. For this reason, many companies in Atlanta and across Georgia regularly update fraud prevention programs. To help with this task, the Association of Certified Fraud Examiners (ACFE) published the 2020 Report to Nations – Global Study on Occupational Fraud.

The auto industry is undergoing a painful period where chip, foam, and rubber shortages are forcing many car manufacturers to severely limit the number of new cars produced. The effect is evident with the news both Ford and GM have temporarily suspended production at domestic locations, while Toyota has slashed production at 14 factories overseas. The limited amount of inventory has forced many consumers to consider purchasing a used car rather than wait for new models to become available.

For many years there has been concern about the accuracy, consistency, and quality of ERISA plan audits. Originally introduced as part of the Employee Retirement Income Security Act (ERSA), the audits are designed to ensure plans comply with established governance, financial reporting, and other standards. The depth of the problem came into focus when the DOL published, Assessing the Quality of Employee Benefit Plan Audits in 2015. In the report, it was found that 40% of audits contained major deficiencies. The report was full of such unfavorable findings which called into question the effectiveness of both the audit standards and firms providing the service.

The arrival of the pandemic was so unexpected and jarring that many were caught off guard when restrictive government orders were issued. Many Atlanta businesses were forced to shut down while others could only operate in a limited capacity. Financial conditions for many business owners were dire, but desperately need help came in the form of federal COVID-19 relief programs through the Small Business Administration (SBA). One of the most popular has been the Employee Retention Tax Credit (ERC) which has provided both tax relief and refund payments throughout the pandemic. In other words, it has been an essential lifeline for those struggling to survive. In fact, in 2021 alone, more than 30,000 small businesses claimed more than $1 billion in credits.