The knowledge you need

In a year when businesses have overcome a variety of obstacles and challenges brought about by the COVID-19 pandemic, many are excited for the year to come to an end. During this time, management is analyzing overall sales, operational, and financial performance, while making plans and setting goals for 2021. Navigating a path through the pandemic has changed the strategic planning process requiring management to venture beyond traditional performance metrics.

In late September, the Financial Accounting Standards Board (FASB) published Accounting Standards Update (ASU 2020-07), Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.  The purpose of the new standard is to provide clear guidance on how nonprofits are to report donated nonfinancial contributions, non-cash contributions, on the financial statement.

When President-Elect Biden takes office in January, he will inherit a battered economy, historical national debt, and the ongoing public health crisis from COVID-19. He campaigned on promises to raise taxes for corporations and wealthy Americans and reinstate or expand tax credits and incentives for lower- and middle-income earners. But campaign promises and future reality are often two different scenarios. With 2021 right around the corner, many Atlanta taxpayers are wondering what changes they can expect to individual income taxes after Inauguration day. Important insights into the potential changes can be gleaned from the President-Elect’s proposed changes for individual income taxes.

Ahead of Inauguration Day next month, businesses are preparing for a wide-ranging possibility of tax changes and increases under the new Administration. He campaigned on a platform of tax increases for those earning more than $40,000 per year and rolling back select business tax cuts made in the Tax Cuts and Jobs Act of 2017 (tax reform). This includes an increase in the corporate tax rate to 28%, phase-out of the Section 199a deduction, 15% tax on corporate book income, and more.

One of the many lessons learned from the COVID-19 pandemic is the importance of cash flow and the need for cash flow planning. When the pandemic first arrived in Atlanta many businesses were scrambling to adjust to the various government orders including forced business closures. This meant some had to make challenging decisions to reduce costs when limited, to no revenue, was generated.  Congress stepped in offering a lifeline in the form of the CARES Act which not only created the Paycheck Protection Program (PPP) but also introduced the  Employee Retention Tax Credit (Credit).

As the end of the year quickly approaches there are only a few weeks left before the holidays. For many Atlanta businesses, this is a time to analyze financial performance, review operational benchmarks, assess vendor relationships, review financing and credit opportunities, and outline a path forward in 2021. There is little doubt that many plans for 2020 were interrupted by the COVID-19 pandemic requiring mid-year adjustments.

For many physicians, making it to the end of 2020 successfully is an achievement of perseverance, planning, pivots, and good business sense. An industry not traditionally associated with financial challenges was tested thanks to COVID-19 when in-office patient contact was restricted, elective procedures were all but halted, and ongoing medical care shifted to virtual. Many offices were forced to shut their doors or furlough staff, and the added cost of PPE and technology upgrades strained already-tight budgets.

U.S. independent auto dealerships started 2020 with a measured and slightly positive outlook and will be ending the year like most other industries: down. The coronavirus pandemic has shattered and reshaped outlooks for practically every sector, including auto dealerships. That is not to say that 2020 has not been without its opportunities, however, as there are several positive forward-looking trends that spell opportunity.

2020 has been a year of unique events and unexpected outcomes. For many, the pandemic has forced them to take things one day at a time. This is especially true for Atlanta businesses that have taken a loan through the Paycheck Protection Program (PPP). Since the PPP was launched as part of the CARES Act in March, there have numerous changes and updates including 2 separate frequently asked questions (FAQs) documents published and 26 interim final rules.

The COVID-19 pandemic created a host of new challenges and issues never before experienced by Atlanta business owners. It started with forced business closures and stay at home orders and has transitioned to new safety protocols, limits on gathering sizes, and more. Many businesses have elected to transition to a remote work environment to protect against virus transmission. Despite these measures,  it was recently reported the seven-day rolling average of new Coronavirus cases has increased 42% since October 2nd which likely means additional restrictions.