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NEW REPORTING REQUIRED: Corporate Transparency Act Beneficial Ownership Information

January 13, 2022

Pam Bustos

Congress passed the Corporate Transparency Act (CTA) on January 1, 2021. Compliance is supposed to have occurred by January 1, 2022. However, it’s not quite ready yet. Here’s what we know: According to the United States Financial Crimes Enforcement Network (FinCEN), millions of corporations, LLCs, and other business entities are formed each year that are…

Benefits of Transitioning to QuickBooks Online (QBO) from QuickBooks Desktop (QBD)

January 11, 2022

By connecting with the internet in the Cloud, QuickBooks Online keeps you instantly and continuously aware of every aspect of your business’s accounting. To name a few benefits, and depending on which version you use, QBO is excellent for managing your inventory, overseeing sales channels, getting paid, shipping and tracking orders, or getting funding. Different…

Great News Found in the Final Ruling of SLFRF Funds!

January 10, 2022

The US Department of Treasury has issued their final ruling on SLFRF funds last week with much needed clarification and flexibility on various fund use. The main changes are as follows: Revenue Loss Category This category has added a second simpler option: A standard allowance of up to $10 million in aggregate, not to exceed…

FASB Votes Against Extending the Lease Accounting Standard Due Date

December 17, 2021

Private Companies and Non-Profits Must Comply by Original Deadline. The Financial Accounting Standards Board FASB rejected the Pennsylvania Institute of CPA’s (PICPA) request for a two-year extension of the lease accounting standard’s due date. The lease standard takes effect for nonpublic entities for fiscal years beginning after Dec. 15, 2021, and interim periods within fiscal years…

ERC Employee Retention Credit REPEALED for Q4 – Don’t Panic!

December 8, 2021

Introduction You have probably heard that the Infrastructure Investment and Jobs Act signed into law on November 15, 2021, eliminated the Employee Retention Credit for 2021 Q4. Especially if you were anticipating the receipt of the Employee Retention Credit, you’re wondering if there’s anything that will help. One thing is to keep in mind that…

US Department of Treasury Compliance and Reporting Guidance Update

December 6, 2021

UPDATES – U.S. Department of Treasury issued more guidance on June 17, 2021 related to Recipient Compliance and Reporting for the use of Coronavirus State and Local Fiscal Recovery Funds. The U.S. Department of Treasury has made updates to the compliance and reporting guidance to reflect change in reporting dates as well as clarifying reporting…

Retirement Plan Contribution Limits for 2022: 401(k) Limit Increases to $20,500

November 23, 2021

About this time every year, the IRS publishes the Retirement Plan Contribution Limits for 2022 for the following year. Keeping Up On November 4, 2021, the IRS announced that the sum individuals can contribute to their 401(k) plans in 2022 will increase to $20,500, up from the $19,500 maximum allowable in 2021 and 2020. For…

Failure-Proof Your 401(k) Plans – Make Sure You’re in Compliance

November 18, 2021

Don’t let your 401(k) plan fail the compliance tests! One excellent reason is to keep as much money in the plan as possible—especially for the Highly Compensated Employees (HCEs), which is probably you if you’re reading this. When we talk about the failure of a 401(k), it usually means the plan is not in “compliance,”…

10 Things to Consider When Selling Your Business

November 11, 2021

So much has happened in the past twenty months that some business owners wonder if they should stay in their businesses or sell that arguably largest asset. We asked LSL long-time friend Dora Lanza, a veteran mergers and acquisitions expert, for her thoughts. She is the co-founder and COO at 22-year-old Plethora Businesses. Here’s what…

For Government Agencies: 3 Tips for Consolidating Financial Report Footnotes

November 4, 2021

The Deadline for Compliance is June 30, 2022. A number of new debt and lease standards have been added to government agencies’ financial reporting requirements. For this post, we are zeroing in on the condition that government agencies are being required to add additional footnotes to their financial statements. With this new reporting requirement for government…

10 Things Manufacturers Can Do About Supply Chain Disruptions

October 31, 2021

You’ve seen the ships off the Ports of Los Angeles and Long Beach, stretching for miles. Your product’s machined parts are in the colored containers, piled high like Legos on the stalled cargo ships. There may not be a quick resolution to this one, and more interruptions caused by a variety of factors may occur…

10 Benefits to Automating Your A/P and QuickBooks Accounts Payable Through Software Apps

October 14, 2021

Accounts payable automation is an incredible tool to include in your accounting and bookkeeping processes. The A/P (Accounts Payable) software apps are intuitive and easy to use. Implementation is seamless, and the cost is relatively low. Your bank may have a bill pay system that connects easily to your bank account and accounting software, or…

Eliminate the ‘SALT’ Deduction Cap?

October 2, 2021

What does SALT stand for, and what are the Pros and Cons? SALT is an acronym for State and Local Taxes. The current cap on deductions for state and local taxes is $10,000 as enacted in the 2017 Tax Cuts and Jobs Act (TCJA). Since 2017 (and through 2025), as the current law exists, only…

Business Health Relies on Tight Inventory and Cash Control Systems

September 30, 2021

Inventory Control Tips for Manufacturers, Wholesalers, and Distributors Inventory management is a critical component of running a successful manufacturing, wholesaler, or distribution enterprise. Many great software programs, integrated scanning tools, and apps will provide the technology to record the details and create efficient workflows. But as with any tools, they need good input data to…

SBA 504 Loan Program Ran Out of Funds

September 24, 2021

What to Do if You’re Waiting Now or Will Need a Loan Soon LSL CPAs heard of this long-standing loan program’s situation and the effect on borrowers who have to wait for their money. We turned to long-time friend Matt Davis, President of Southland Economic Development Corporation, to give our readers some ideas on how…

Benefits of Monitoring 401(k) Plan Each Quarter

September 10, 2021

Large and Small Plans and a Handy Checklist! Administering a retirement plan carries a fiduciary responsibility for the employer. For those stakeholders (it’s your retirement, too), monitoring the plans quarterly is just good business. Two main benefits of quarterly 401(k) monitoring FIRST BENEFIT The participants gain from having the sponsor monitor their plan benefits on…

Robust Accounting Procedures Can Save Companies

August 23, 2021

We all know the importance of planning and having procedures in place to help manage our workflows, our families, and our lives. Procedures help us develop a routine. They save time. Let’s look at some aspects of procedures in the accounting field. When to use procedures in small and big businesses What the benefits are…

The July 2022 Season for 401(k) Plan Amendments Opens Soon

August 17, 2021

Running a retirement plan requires following all the IRS requirements to the T. Each year, the IRS issues a list of required amendments along with the general plan amendment deadlines to go with them. The IRS has amended the amendment. The New Determination Program Rev.Proc.2016-2037 is here. The rules may change according to the type…

What to Expect Your Controller to Do for You & Your Business

August 10, 2021

What Does a Controller Do? Almost like a doctor, they understand and protect your organization’s financial health. A controller takes a broad view of your business’s accounting processes. They develop and implement policies and procedures for your bookkeeping/accounting staff to follow to ensure that financial data are recorded accurately and in a timely fashion. So…

KPIs (key performance indicators) in Action

July 27, 2021

In part one, of our KPI series, we covered what KPIs (key performance indicators) are and how they guide business strategies. Now let’s take a sample KPI, break it down, and see it in action. Primary KPI = Number of Days in Accounts Receivable The number of days in Accounts Receivable affects your cash flow—and…

6 Ways a Budget Helps Your Business Plan

July 15, 2021

A budget helps your business plan stay on track. Budgets can be powerful tools to help you achieve your company’s vision and accomplish its mission. A budget can be used to plan, control, motivate, measure, evaluate, and communicate for both profit and non-profit organizations in any industry. 1. Plan A budget is a written plan…

Real Estate Investors and Owners may be eligible for Energy-Efficient Home Tax Credit

July 13, 2021

Section 45L Energy-Efficient Home Tax Credit Extended to December 31, 2021 The 45L tax credit was previously set to expire at the end of 2020. However, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 as part of the Consolidated Appropriations Act, 2021 extended this energy-efficient home credit to cover qualified new energy-efficient homes…

PPP Part XVI – Happy Fourth of July! Both Fireworks and Deadlines Approach!

July 2, 2021

Wow! Can you believe it’s been over 15 months since the CARES Act was passed? We know that some of you are saying it feels even longer. Besides the actual pandemic and the resulting government restrictions, you’ve had to deal with several major Congressional relief acts, ever changing guidance from Treasury and the SBA, and…

Why, How, & When to Reconcile Payroll and What the TPA Needs for Census

June 28, 2021

Payroll is one of your company’s biggest expenses representing 30 to 50% of all of your expenses depending on your industry. Your employees are one of your greatest assets. It is your company’s (or “plan sponsor”) fiduciary responsibility to ensure employees are paid correctly and that their retirement plan contributions are calculated appropriately and in…

Additional Guidance on the American Rescue Plan Act Funds: Recipient Compliance and Reporting

June 22, 2021

U.S. Department of Treasury issued more Guidance on June 17, 2021. This guidance is related to Recipient Compliance and Reporting. KEY REPORTING DATES: August 31, 2021 – Interim Report On May 11, 2021, the American Rescue Plan Act (ARPA) was signed into law, and many have received their first round of funding. Reporting requirements are…

What are Key Performance Indicators, and Why Should You Care?

May 20, 2021

Key Performance Indicators (KPIs) are a way of measuring business data that will verify if you are on target to meet your strategic business goals. It reminds me of the game we played as children: “Hot and Cold.” The goal of the game was to find the hidden object and your clues would come as…

Newly Issued Guidance for the American Rescue Plan Act Funds

May 12, 2021

Fiscal Recovery Funds provisions, established by the American Rescue Plan Act (ARPA), identified four eligible uses in the statute. Respond to the public health emergency and its negative economic impacts Provide premium pay to essential workers Provide government services to the extent of eligible governments’ revenue losses Make necessary water, sewer, and broadband infrastructure investments…

CalSavers Requirements 2021 REMINDER for Mandatory 401K Plans

May 11, 2021

The Deadline for Businesses with > 50 Employees Is JUNE 30, 2021 CalSavers Requirements 2021 for Mandatory 401K Plans In January of 2020, an LSL CPAs blog introduced you to the new CalSavers Mandatory 401K Plan. CalSavers requirements are mandatory; a retirement savings program that began in July 2020 and that replaces its predecessor, Secure Choice….

PPP Part XV – AB 80 and California’s Taxation of PPP Loan Forgiveness

May 4, 2021

Is PPP Loan Forgiveness Taxable in California? Governor Newsom just signed Assembly Bill 80, California’s latest legislation enacted to address the issue of taxability of PPP loan forgiveness. This bill is being touted as a giant “tax relief” measure for small businesses hurt by the coronavirus pandemic. While we applaud the legislature’s attempt to provide…

If you received HHS funds, you may need an audit, and you may need to pay the funds back

April 20, 2021

Did you receive HHS funds? If so, you may need an audit, and you may need to pay the funds back. Understanding the Provider Relief Fund (PRF) Audit Requirements for For-Profit Entities The Department of Health and Human Services created the HHS loan as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act—the…

Accounting for operating leases is SIGNIFICANTLY changing: Are you ready?

April 14, 2021

You may have heard about ASC 842 Accounting for Operating Leases. Perhaps it’s something you think you don’t need to deal with now because the requirement deadline is off in the future and taking care of it seems costly. Or, you might even be tempted to avoid lease accounting all together and have your CPA…

SBA’s COVID Disaster Loan Repayments Deferred

April 10, 2021

SBA COVID Disaster Loan Repayments Deferred: 2020 loans start being due 24 months after the issue date. 2021 loans start being due18 months after the issue date. On Friday, March 26, 2021, the SBA announced that all disaster loans—including COVID-19 Economic Injury Disaster Loan (EIDL) program loans that were made in 2020—will start being due…

What You Can Expect Your Bookkeeper to Do for You & Your Business

April 8, 2021

Are you confident that your books are in order and up to date? If not, how do you get accurate books? The bookkeeper is your business’s financial foundation. And like a house, you can’t build on a shaky substructure! At the end of this blog, you should know what you can expect your bookkeeper to…

What to Expect Your CPA to Do for You & Your Business

March 23, 2021

What does a CPA do for you? The “P” in CPA Should Stand for Proactive. What about the “C” and the “A”? Let’s start back a step. Do you even need a CPA, a Certified Public Accountant? Certified means that the person has completed a field of study that makes them specialists in their area….

FEDERAL and CALIFORNIA 2020 Tax Filing and Payment Deadlines EXTENDED until MAY 17, 2021 for INDIVIDUALS ONLY

March 19, 2021

NOTE: Estimated taxes are still due on April 15, 2021 The extension is AUTOMATIC FOR INDIVIDUAL filers whose 2020 tax returns and payments were originally due on April 15, 2021. No late fees, interest, or penalties will apply if returns are filed and payments originally due April 15, 2021 are made by May 17, 2021….

COVID Workforce Reductions and Your Company’s 401(k) Plan

March 17, 2021

Don’t get caught with a partial termination issue when you have your 401(k) plan audited this year due to COVID! Look no further and learn below how you can get relief when it comes to COVID Workforce Reductions and Your Company’s 401(k) Plan. The Consolidated Appropriations Act 2020 was signed into law on December 27,…

The IRS Has Announced the Deadline for Reinstatement of Defined Contribution Plans

March 15, 2021

Lots to Know. Lots to Do. You have until July 31, 2022, to restate pre-approved defined contribution plans such as 401(k)s, profit-sharing, and money purchase pension plans. In case you are wondering, 403(b) plans and defined benefit plans each have their own six-year reinstatement cycles. The defined contribution plan carries the “Cycle 3” designation because…

How to Increase and Project Cash Flow

March 4, 2021

Why Cash Is “King” and Projecting Cash Flow is “Emperor”. It is crucial these days to know about projecting cash flow. Here’s why: During these uncertain times, how much longer can you survive in your business without going in the red? All too real is the many businesses that have less cash coming in due…

PPP Part XIV – A Quick Update: IRS Issues Additional ERC Guidance

March 3, 2021

A Quick Update: IRS Issues Additional ERC Guidance As we went to press on Monday night, so did the Internal Revenue Service. It released Notice 2021-20: IRS Issues Additional ERC Guidance. It’s primarily an update to the IRS’s previously published FAQ on the Employee Retention Credit. While the 100 page notice is welcome additional guidance,…

PPP Part XIV – Happy Saint Patrick’s Day! It’s About Much More Than Just PPP Forgiveness Now: Employee Retention Credit eligibility

March 2, 2021

More Than Just PPP Forgiveness Now: Employee Retention Credit eligibility It has only been 65 days since President Trump signed the final stimulus bill of 2020. With the exception of Patrick Begorra, who makes his home at Disneyland, we’ve never actually seen a leprechaun. However, the pot of gold at the end of the rainbow…

Tax-Free Payments to Employees to Cover COVID-19 Expenses Are Deductible

January 18, 2021

Often-Overlooked IRS Section 139 Provides Relief Can we deduct COVID-19-related expenses used to help our employees? This is an excellent question from some of our clients, and the answer is yes. It’s a small silver lining in this pandemic situation because not only is the expense deductible for the employer, but the payment to the…

Part XIII – PPP Loans Rounds 1 And 2: Happy New Year! Items For Your To Do List.

January 4, 2021

PPP Loans Rounds 1 And 2: When we last wrote, Congress had just passed the final stimulus bill of 2020. After a short delay, the President signed it on December 27th. So, what should you do now for PPP Loans Rounds 1 And 2? Take a deep breath. Be calm. Yes, 2020 was a year…

Part XII – PPP Loan Forgiveness: Merry Christmas Everyone! Good News, More Good News, and Even More Good News

December 22, 2020

As we draft this alert, Congress is still in Washington. And as you will read, that is a very good thing. Congress is spreading holiday cheer and we admit it’s affecting our mood too. On Monday night, Congress passed and sent to the President the 5,593 page Consolidated Appropriations Act [of] 2021 to which it…

CA Prop. 19 to Affect Parent to Child Real Estate Transfers

December 17, 2020

CA Prop. 19 passed With the recent news cycle mostly focused on federal level races including the Presidential election and numerous House and Senate rates, some propositions, like CA Prop. 19 have not received their fair share of time in the news. This may be because CA Prop. 19 disproportionately affects wealthier clients the most….

Part XI – PPP Loan Forgiveness: Sorry, Again No Surprises Today, But Still Some Good News and Some Bad

December 11, 2020

As we begin the holiday season, we hope that you and yours are staying healthy and safe. Sorry, No Surprises Today We still do not have the next stimulus bill. And Washington is moving very slowly. In fact, Congress is taking a week by week approach to funding the government. According to the AICPA today,…

Small Business Relief From State of California

December 7, 2020

More small businesses relief – this time from the State of California! Governor Newsom signed an executive order on December 1st that allows the California Department of Tax and Fee Administration to grant a three month extension, without penalties, for tax returns and payments for all businesses filing a return for less than $1 million…

How to Change Accountants

December 3, 2020

How to Change Accountants Changing accountants could very possibly be the best thing you do all year – let’s show how! It’s something that happens for several reasons, ranging from having an accountant retire to going through a change in your business that requires something more or different than what the present accounting firm offers….

What You Should Expect from Your CPA During an Audit | For Privately Held Companies

December 3, 2020

You’ve just been told you need an audit by your banker to satisfy covenants, or your Board of Directors is requiring that an audit be performed. Most CPA firms perform audits in accordance with Generally Accepted Accounting Principles (GAAP). During an audit, your CPA will perform a test of your financial data, analyze the information,…

Part X – PPP Loan Forgiveness: Bad News, Good News, and Sorry, No Surprises Today.

November 25, 2020

After nearly eight months, significant uncertainty about the Paycheck Protection Program Loans remains. The Bad News On November 18, Treasury and the Internal Revenue Service released Revenue Ruling 2020-27 and Revenue Procedure 2020-51. Both of these confirm their earlier position expressed in Notice 2020-32 that expenses paid with funds from a PPP loan which is…

Tax Planning 2020 – Part THREE

November 18, 2020

Part THREE: Required Minimum Distributions and 401(k)s SO much has happened this year and SO much has to be done before the year-end to help our clients make the correct decisions on their tax liabilities that we are starting our planning now, and we hope you will too. Most, but not all, of what we…

Tax Planning 2020 – Part TWO

November 12, 2020

Part TWO: The CARES Act, Net Operating Losses, and Cash Flow So much has happened this year and so much has to be done before the year end to help our clients make the correct decisions on their tax liabilities that we are starting our planning now, and we hope you will too. Most, but…

Tax Planning 2020 – Part ONE

November 6, 2020

Part ONE: The Pandemic (PPP loans), The Election, and Technology INSIDER’S TIP: Start Tax Planning NOW. Don’t Wait for December. INTRODUCTION TO THE SERIES So much has happened this year, and so much has to be done before the year end to help our clients make the correct decisions that will impact their tax liabilities….

Required Minimum Distributions RMDs under COVID-19

October 26, 2020

What Is an RMD (Required Minimum Distributions) and What You Need to Know As your accountants (and often financial advisors), we generally warn our clients against withdrawing from their retirement savings early. We feel having access to that cash in retirement or during a crisis could save people from borrowing money just when they’re trying…

Optimizing Tech Spending – What to Do About the Trends in Technology

October 7, 2020

What Your Business Needs Now Accounting and finance departments and their management teams will need better decision-making tools to address their companies’ survival, no matter how big or small the company is. There’s so much cool technology to aid companies with their myriad of choices that it’s hard to know what to do with it…

5 Things You Need to Know about BIG DATA

October 5, 2020

Can you afford to ignore it? Introduction: What is Big Data? Big Data as “an accumulation of data that is too large and complex for processing by traditional database management tools.” Big Data can be anything from numbers to text to voice and video data to photographs. And there’s more of it than can be…

Tax and Legal Impacts of Doing Biz Remotely in Other States and Abroad

September 3, 2020

Pay, Tax, and Work Laws for Remote Employees The pandemic suddenly made remote workers the rule rather than the exception. Here are a few tips for administering your payroll in “Remote-Land.” For the most part, it’s wisest to check with the local HR and accounting professionals, but here’s an excellent way to know what to…

Part IX – PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Not!

August 28, 2020

On Monday, Treasury and the SBA issued another Interim Final Rule. The Good News Owner-employees are treated less favorably than other employees when calculating potential loan forgiveness. For instance, in a 24-week covered period, a maximum of $20,833 in cash compensation may be included in payroll costs for an owner-employee. For a non-owner, the amount…

General Liability and Environmental Liability Coverages Are Two Different Things

August 26, 2020

Understand the Difference and Check Your Needs at Least Annually LSL Partner Ron Stumpf Talks with Sandra Denisac, Vice President, CIC, at McGriff Insurance General vs. environmental liability Ron: What is the difference between general liability and environmental liability coverage? Sandra: It sounds like a general liability policy would cover “everything”. But that’s not…

5 Cyber Security Musts for Your Remote Workforce

August 24, 2020

Check these boxes. Stay vigilant. It’s interesting to think that not even six months ago, working from home was a benefit. With the COVID-19 pandemic, it’s a necessity. For that reason, it is even more essential to ensure safe security practices for the entire company. A remote workforce can present unique challenges to today’s cyber…

Does Your 401(k) Plan Need an Audit? A Closer Look at the 80-120 Rule

August 19, 2020

Generally speaking, 401(k) plans with fewer than 100 participants at the beginning of the plan year are considered small employee plans and eligible for the Small Plan Audit Waiver. However, the Department of Labor (DOL) has identified the range of 80 – 120 participants (at the beginning of the plan year) as a grey area…

Part VIII – PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Not!

August 6, 2020

Earlier this week, Treasury and the SBA issued a 10 page FAQ on loan forgiveness. Congress is also considering another stimulus act. The Good News In general, payroll costs paid or incurred during the covered period may be forgiven. Payroll costs are subject to two limitations: one based on a reduction in FTEs; and, a…

What Level of Outsourced Accounting Support Is Right for You?

July 20, 2020

Three possible support levels are available to make accounting easier, decisions wiser, and the business owner happier. Quick! How much money do you have in the bank? This is not a trick question. For some business owners, the answer to the question is easy. We asked Andrew, a prospective client, this question, and he…

WHAT’S CHANGED in Business Lending Since COVID-19?

July 16, 2020

LSL Partner Ron Stumpf Talks with Matt Davis, President of Southland Economic Development Corporation (EDC) Business lending over the next several months Ron: We’ve been getting a lot of questions from our clients who are curious about business lending in this uncertain economy. What can you tell us? Matt: This is definitely a volatile…

The High Cost of 401(k) Plan Errors

July 14, 2020

Is YOUR Auditor Finding Them Before the DOL? The DOL (Department of Labor) works to make sure employees are treated fairly. Our job is to avoid having our clients undergo a DOL audit—especially a “bad” one. Prevention is always an excellent idea in the accounting world. And like the Scouts, we want to “Be Prepared.”…

Part VII – PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Yes! And Maybe?

June 26, 2020

Earlier this week, Treasury and the SBA issued their 20th Interim Final Rule. The Good News Treasury and the SBA have announced that a borrower may submit a loan forgiveness application before the end of the covered period. The Bad News This flexibility may have little practical effect. We believe that most borrowers will be…

More RMD Relief: The CARES Act Keeps on Giving!

June 23, 2020

Back in March, the CARES Act suspended all 2020 required minimum distributions (RMDs) from eligible retirement accounts. For taxpayers who turned 70½ during 2019, this includes the initial 2019 RMDs due by 4/1/2020, if the RMD was taken after 12/31/2019. RMDs may be deposited back into a retirement account within 60 days. Previously, the IRS…

What You Need to Know Regarding COVID-19 Single Audit Compliance Federal Funds Received

June 23, 2020

What You Need to Know Regarding COVID-19 Single Audit Compliance Federal Funds Received OMB issues M 20-26, a memorandum regarding the extension of Administrative Relief for Recipients and Applicants of Federal Financial Assistance Directly Impacted by COVID-19, dated June 18, 2020, which provides some clarification on “Administrative Relief Exceptions for COVID-19 Crisis” and specifies required…

Part VI – PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Not!

June 20, 2020

Treasury and the SBA have been quite busy since the passage of H.R. 7010. They have issued an updated Loan Forgiveness application, a new “EZ” application, instructions for both, and three more Interim Final Rules. The Good News With the extension of the covered period to 24-weeks, the cash compensation eligible for loan forgiveness is…

COVID-19: 401(k) Plan Employer Action List

June 15, 2020

COVID-19: 401(k) Plan Employer Action List The Families First Coronavirus Response Act “FFCRA” and Coronavirus Aid Relief and Economic Security Act “CARES Act” have impacted employee benefits and retirement plans in general. Here’s some of the many changes included in those acts that we want you to be aware of and suggestions for actions to…

Part V – PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Not!

June 4, 2020

Yesterday, the Senate passed the latest Paycheck Protection Program Flexibility Act of 2020, which is also known as H.R. 7010. We expect the President to sign this Act. The Good News With a little patience and a little more work, most borrowers should be able to have their entire PPP loans forgiven. How, you ask?…

Part IV – PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Not!

May 28, 2020

On Friday evening, the day after our last webinar, Treasury issued 45 pages of guidance on PPP Loan Forgiveness. The Good News As we hoped, the FTE Reduction Exceptions also apply to the Wage Reduction Limitation. Employees who fail to return from unemployment, are fired for cause, quit, or request a reduction in hours will…

Part III – PPP Loan Forgiveness: Good News, More Good News, A Little Bad News, and Oh, What a Surprise. YES!

May 17, 2020

On Friday night, Treasury and the SBA released the application for loan forgiveness, two supporting schedules, and instructions, eleven pages in all. In addition, the SBA plans additional guidance and regulations soon. The Good News The SBA said its form and instructions are designed to reduce compliance burdens and simplify the process for borrowers. Based…

Part II – PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Not!

May 13, 2020

Treasury and the SBA have issued precious little additional guidance since our last post on Thursday, May 7th. But there has been a little news about the SBA’s coming reviews of borrowers’ good-faith certifications. The Good News For loans of less than $2 million, borrowers will be deemed to have made their certifications in good…

PPP Loan Forgiveness: Good News, Bad News, and Oh, What a Surprise. Not!

May 7, 2020

Treasury and the SBA have issued precious little additional guidance since our Webinar last Thursday, April 30th. But there has been a little news. The Good News For purposes of the headcount and pay rate reduction tests, if you offer to rehire a laid off employee and that employee turns you down, then that employee…

Coronavirus Emergency Funding and Single Audit Guidance

May 6, 2020

Coronavirus Emergency Funding and Single Audit Guidance As we are all aware, information related to Coronavirus changes by the hour. The financial ramifications of the economic shutdown in response to Coronavirus are expected to significantly, adversely affect individuals and the public and private sectors. To ease these negative consequences, the Federal Government has provided stimulus…

COVID-19 Resources for Government Financial Departments

May 5, 2020

COVID-19 Resources for Government Financial Departments The COVID-19 pandemic has affected local government nationwide. We understand there are numerous items keeping you up at night and everyone is trying to take one issue at a time. Unfortunately, during this time the budgets for next year are being made, with large amounts of uncertainties, and now…

Keeping Solid Internal Controls in a Remote Environment

May 4, 2020

Keeping Solid Internal Controls in a Remote Environment By now I am sure you have either already completed, are in the middle of, or are preparing for your interim audit fieldwork. Auditors’ use this time to assess and often times test your internal controls over financial reporting, checking levels of review and approval, safeguards over…

You Just Got Your PPP Loan Proceeds. Now What?

April 17, 2020

PPP Loan Proceeds We all just went through an incredibly difficult process of calculating and applying for our PPP Loan with the SBA. Our banks were just as confused as we were in what felt like a good old Oklahoma Land Rush. Would we do anything wrong that would push us to the back of…

Scammers Posing as IRS Soliciting Information for Stimulus Checks

April 13, 2020

Scammers Posing as IRS UPDATED APRIL 30, 2020 Beware! Scammers and criminals are out in full force now that President Trump has signed into law the CARES Act. Scammers are sending out emails similar to this one LSL Partner Pam Bustos received: The IRS will NEVER reach out directly to you via text, phone calls,…

The Employee Retention Credit: One More Bit of Relief from the CARES Act

April 13, 2020

Employee Retention Credit (ERC) If you did take out a Paycheck Protection Plan loan, you can stop reading. Congratulations! But, we’re sorry. This provision doesn’t apply to you. If you were ineligible, this provision grants you a credit of up to $5,000 per employee during 2020 (the Employee Retention Credit). The credit is applied first…

Tips for a Successful Remote Interim Audit

April 10, 2020

What a month it has been, right? We couldn’t have imagined our world and the way we work to literally change overnight, but we have seen just that. Local government finance departments saw priorities and “business as usual” change almost immediately. This time of year, priorities are usually focused on the upcoming fiscal year budget. …

GASB Standards Delay

April 10, 2020

Given the current circumstances surrounding COVID-19, the Governmental Accounting Standards Board (GASB) began a project to tentatively delay current and pending standards by up to one year, subject to due process. An exposure draft is slated for release within the next few weeks with a short comment period. The GASB has a goal of finalizing…

BIG Sales Tax Reprieve for SMALL Businesses: Sales Tax Reprieve up to 12 months

April 6, 2020

On April 2nd California Governor Newsom announced a one year reprieve on sales tax for small businesses.This effort is meant to provide business owners with the cash flow they need to meet current obligations and continue to stay afloat. What does this mean? Instead of business owners paying the sales tax they’ve collected through transactions…

Small Businesses with Less Than $1 Million in Taxes Owed to the CDTFA Now Have Extra 90 days to File and Make Payments

April 1, 2020

More relief for small businesses! Governor Newsom signed an executive order on March 30th that allows the California Department of Tax and Fee Administration to grant a 90-day extension, without penalties, for tax returns and payments for all businesses filing a return for less than $1 million in taxes. Highlights of the executive order: The…

Paycheck Protection Program Loans (PPPL): 20 critical questions answered

March 30, 2020

Please note: On April 8, 2020 we added the update below to this article originally published on March 30, 2020 Much has transpired since we wrote our original “20 Question Answered” piece. It has only been a little over a week but it seems like it’s been a year! After much guessing on the part…

Using Payroll Tax Credits for Coronavirus Paid Leave

March 27, 2020

Using Payroll Tax Credits for Coronavirus Paid Leave We want to make sure you know about the latest COVID-19 relief factors (payroll tax credits) for your businesses. For U.S. businesses with fewer than 500 employees, the Treasury Department, the Internal Revenue Service, and the Labor Department announced that these small and mid-sized employers could start…

CARES Act: $2.2 Trillion Coronavirus Relief Bill: Summary

March 27, 2020

CARES Act (Coronavirus Aid, Relief, and Economic Security Act) As you’ve been hearing, Congress has come to the aid of the ailing American economy and American public with a $2.2 trillion (yes, trillion) stimulus and relief bill called CARES Act. This aid package was passed unanimously in the Senate and is welcome relief to an…

The CARES Act & New SBA Loans Are Almost Here

March 26, 2020

First, the Good News The first legislative response to the Coronavirus was signed by President Trump on March 6th. It included $1 billion in new SBA Loans subsidies. Signed on March 18th, the second act included refundable tax credits to help businesses pay for expanded sick and family leave. Now, the Great News Congress is…

Accounting for Unexpected Costs Related to COVID-19

March 24, 2020

Unusual times can lead to unusual, significant, unexpected costs related to this pandemic we are currently experiencing. Accounting for these costs is understandably a concern for owners and those in a company’s accounting department. We want to help you understand how such expenses should be accumulated and recorded within an income statement. Unexpected Costs associated…

IRS Extends Federal Tax Filing Deadline: Tax Day Moved to July 15 2020

March 20, 2020

Tax Day Moved to July 15 2020 Treasury Secretary Steven Mnuchin announced on Friday, March 20, that “at President Trump’s direction, Tax Day Moved to July 15 2020. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” Although the tax filing due date has been pushed…

IRS Extends Tax Payment Deadline: 90 Extra Days to Pay

March 18, 2020

Due to the COVID-19 pandemic, individuals and businesses will have an additional 90 days to pay the IRS if they owe additional income tax for 2019, according to Treasury Secretary Steven Mnuchin on Tuesday, March 17, 2020. Based on the latest updates, individuals can defer up to $1 million of tax liability and corporations get…

Save Time and Money on the New Revenue and Lease Standards with Non-GAAP Alternative Method of Reporting

March 11, 2020

Financial Reporting Framework for Small and Medium-Sized Entities (FRF for SMEs) Introduction Save time and money with Non-GAAP Alternative Method of Reporting? Now that we have your attention let’s look at why the FRF for SMEs topic is exciting—for accountants and businesses, that is. Quite simply, the FRF for SMEs is a non-GAAP (Generally Accepted…

Lease Accounting Rules Are Changing – What You Need to Know About ASC 842

February 27, 2020

ASC 842 Companies using Generally Accepted Accounting Principles (GAAP) must comply with the new Accounting Standards Codification for lease accounting (“ASC 842”). The company balance sheet will be impacted for long-term operating leases. ASC 842 will impact both lessor and lessee accounting for non-public companies beginning January 1, 2021. It may seem like it’s far…

How to Select the Right 401(k) Plan Auditor for Your Company … and why you need one

February 20, 2020

What is the purpose of a 401(k) plan? A 401(k) plan is designed to guard and protect your employees’ retirement benefits. You, as the employer/sponsor must make sure funds are available to pay the retirement and other promised benefit obligations to your employees. Choosing the right CPA to audit and monitor the plan is a…

What You Need to Know* About the SECURE Act (*but were afraid to ask)

February 18, 2020

What It Is, and How Employers, Employees, and Investors Are Affected Introduction The SECURE Act snuck in on the coattails of the December 2019 $1.4 trillion federal spending bill. It is a significant, far-reaching piece of legislation that will affect plan sponsors (employers), participants (employees), and IRA owners (individuals). SECURE is an acronym that is…

CalSavers: Mandatory Retirement Savings Plans in California

January 14, 2020

Starts June 2020 for Companies with > 100 Employees CalSavers is a mandatory retirement savings program (formerly called Secure Choice) that phases in beginning in July of 2020 and entitles all eligible California employees to register for a retirement program. Employers with five or more employees have two choices. 1) They are required to provide…

Tax Planning — What, When, & Why

January 8, 2020

Tax Planning Tax planning is the process by which we make sure you are paying the right amount of taxes at the right frequency. Why? If you own your own business, you need to manage your tax liability, which means not paying too little, of course, but not paying too much either. Mostly we want…

Statement of Information California: What all LLC’s and Non-profits Need to Know

January 7, 2020

Statement of Information California The Statement of Information California is a business’s annual report and must be filed annually by every corporation and bi-annually by every LLC and nonprofit. There is a filing fee of $20 for LLCs and nonprofits, and $25 for corporations. Penalties of $250 is assessed for late filing. All California businesses…

GASB 87 Update: Lease Accounting

December 16, 2019

GASB 87 Update: Lease Accounting A year and half from now, governmental entities will be reporting leases in accordance with GASB Statement No. 87 (GASB 87 Update: Lease Accounting which is first effective for June 30, 2021, year ends). While it may seem like a long time, the time and effort needed to prepare for…

GASB 84 Update: Fiduciary Activities

December 16, 2019

As we wrap up our June 30, 2019 audits, we are now well into fiscal year 2020, which brings us a new, and potentially challenging accounting pronouncement: GASB 84 Update: Fiduciary Activities. In January 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 84, Fiduciary Activities, which establishes criteria for identifying and reporting fiduciary activities…

Are you wealthy enough for a virtual family office?

November 27, 2019

If you’re not, you can learn from them. What is a Virtual Family Office? A Virtual Family Office or VFO is an advisory team that you might share with a few other people. The team members may include an estate lawyer, financial planner, investment advisors, CPA, attorneys, and other consultants. And while you may already have…

Opportunity Zones Pave Yellow Brick Road with Tax Deferments

November 15, 2019

Opportunity Zones The Opportunity Zone Is the Latest Tool for Community Development and Capital Gains Tax Deferment For the maximum 15 percent step-up in basis, the investment must be made by the end of 2019. The Land of OZ (Opportunity Zones for our purposes) is not as far away as you think. The state of…

What Is the Qualified Business Expense (QBI) Deduction?

November 1, 2019

. . . and WHAT’S the RUCKUS? Here’s the ruckus: This deduction, created by the 2017 Tax Cuts and Jobs Act, allows non-corporate taxpayers to deduct up to 20 percent of their Qualified Business Income (QBI), plus 20% of qualified Real Estate Investment Trust (REIT) dividends and qualified Publicly Traded Partnership (PTP) income. It could…

Meet the Firms 2019

October 30, 2019

Monday, Sept. 16th – Biola; 6 pm – 9 pm Thursday, Sept. 19th – University of La Verne; 6pm – 9 pm Tuesday, Sept. 24th – Cal Poly Pomona; 6 pm – 9 pm Thursday, Sept. 26th – CSUF; 7 pm – 10 pm Friday, Oct. 25th – SAC State; 6 pm – 9 pm For more info contact Olivia…

What happens to your social media & online accounts when you die?

October 30, 2019

Perhaps you’ve heard the horror story: a loved one is incapacitated or passes away and the family can’t access and control their phone, social media and online accounts because they don’t know the passwords or have permissions to access them. Instead of the family having control, they are at the mercy of Facebook or Apple,…

Why Loading Up On Inventory to Beat a Tax Increase Can Be a Mistake

October 9, 2019

In late 2018, the United States government announced the new Excise Tax for products purchased from China. Many distributors and manufacturers raced out and purchased extra merchandise to avoid the Excise Tax for as long as possible. By purchasing excess inventory, they thought they would be saving money because they would have the inventory in…

CA Franchise Tax Board Now Allows ‘Drop and Swap’ Enabling Tax Deferment for Real Estate Transactions

September 12, 2019

Here’s some great news for California owners of real estate investment properties: As of September 1, 2018, the California Office of Tax Appeals (OTA) has issued a new position regarding “drop and swap” real estate transactions (defined below). The OTA ruled that drop and swap is an accepted business practice for changing ownership of real…

Webinar: What happens to your social media & online accounts when you die?

September 11, 2019

See our Recruiting Teams at the following Meet the Firms:

August 30, 2019

Monday, Sept. 16th – Biola; 6 pm– 9 pm Thursday, Sept. 19th – University of La Verne; 6pm – 9 pm Tuesday, Sept. 24th – Cal Poly Pomona; 6 pm – 9 pm Thursday, Sept. 26th – CSUF; 7 pm – 10 pm Friday, Oct. 25th – SAC State; 6 pm – 9 pm

Should I Buy or Lease My Vehicle?

August 19, 2019

When someone asks us if they should buy or lease their next vehicle, their real questions are: 1. Would buying or leasing provide the best deduction on my income tax return? 2. What’s the math involved, and do I need to consider anything besides the straight dollars and cents? CASE STUDY “Tom” has been Senior…

LSL is speaking at ADOMA “OASIS of Learning III” conference 2019

July 31, 2019

Our very own automotive accounting experts, Dave Myers and Dave Summers, will have the honor of presenting at the “OASIS of Learning III” educational conference presented by ADOMA. Join ADOMA for this empowering three-day education filled conference. Our exciting line up of sessions were designed to energize your performance and help you run your dealership…

If I do tax planning and you have no recommendations, do I still have to pay?

June 20, 2019

This is a great question that we receive from time to time. The answer is yes, and here’s why. Tax planning identifies future opportunities for you. Just because your accountant doesn’t come up with any immediate recommendations doesn’t necessarily mean that it wasn’t worthwhile going through the process. You might be taking advantage of all…

Simplify Rental Property Ownership with Delaware Statutory Trusts

June 17, 2019

If you are a real estate investor, you probably know there are several options when choosing how to invest in a property. However, there is an investment vehicle often unknown to investors: the Delaware Statutory Trust (DST). DSTs: great for long-term, hands-off investing If you want an investment where you know the plans and goals…

GASB update 2019: Key take-a-ways

May 29, 2019

GASB SoCal update: thanks for attending! from Lsl Cpas on Vimeo. GASB updates, Lease Accounting & ERP: many things were covered at the 2019 GASB update sessions in Northern and Southern California. Here is a list of key-take-aways put together by Debbie Harper for you: Implement this year – Current debt disclosures GASB 88 – Review your debt…

Insight When Considering a Cloud ERP Program / Service

May 21, 2019

So you’re considering moving to an ERP Program or Service in the Cloud. Here is some insight on the opportunities, the risks, and things to consider when considering a cloud ERP Program, or Service: The Opportunities and Benefits: Cost – Cloud computing eliminates capital expenses involved with hardware, software setup and upgrades. If the cloud…

Top 5 Things to Consider When Doing an ERP Implementation

May 21, 2019

ERP stands for Enterprise Resource Planning and refers to a suite of software applications that the organization use to manage activities. The key benefits include integration of systems across Organization departments and business functions into a common database and therefore promoting efficiency, improved control, and more streamlined processes. In today’s environment with increased computer data…

California State Association of County Auditors (CalSACA) SACA Spring Conference & Golf Tournament – April 15-18, 2019

April 16, 2019

Location: Resort at Squaw Creek, Lake Tahoe Speakers: Bryan Gruber, CPA and Ken Macias, CPA Also attending: Rich Kikuchi, CPA, Debbie Harper, CPA and Brandon Young, CPA Topic: TBA More info and to register: https://www.calsaca.org/calendar

If I do business in another state but don’t have a physical presence there, do I have to collect and pay that state sales tax?

April 4, 2019

Maybe. When you have a business presence in another state, you must charge and remit sales taxes in that state. This is referred to as ‘nexus’. Nexus impacts businesses that sell products and some services directly to the consumer. It’s a big deal because if you’re company does not remit sales taxes in the state…

California Society of Municipal Finance Officers

Webinar: Accounting and Reporting of Debt presented by Society of Municipal Financial Officers

April 3, 2019

Date & Time: Wednesday, April 3 2019 9:00 am PDT Presenters: Debbie Harper, Partner, LSL CPAs Patricia Song, Fiscal Services Manager, Irvine, CA Audience: finance professionals, especially those with responsibility for reporting on debt A government’s reporting and disclosure about its debt is one of the most scrutinized elements of its financial reporting. Learn what…

Do I have to come in for my tax interview?

March 27, 2019

There was a time when the individual tax interview was very much standard practice. You would pre-schedule your appointments with us throughout tax season to bring in your tax documents and discuss the transactions you had in the past year and any planned for the future. For some clients, they still prefer this type of…

FASB has issued an Accounting Standards Update – ASU 2016-18

February 4, 2019

If your Company has restricted cash, FASB has issued an Accounting Standards Update (“ASU”), which will affect your financial statement presentation. Restricted Cash ASU 2016-18 Statement of Cash Flows (Topic 230) focuses on restricted cash and its classification within the Statement of Cash Flows. Before this update, restricted cash was not required to be presented…

LSL CPAs attend the 2019 CSMFO Conference

January 11, 2019

The LSL CPAs Government Team is having some fun at the 2019 CSMFO Conference in Palm Springs, CA. Thank you to everyone who had the opportunity to drop by our booth! LSL CPAs wanted to take full advantage of this year’s Conference Theme: Guardians of the Finance Galaxy. Using Nerf guns, “contestants” had 4 opportunities…

LSL CPAs Co-Sponsors CSMFO Tennis Mixer with Bank of the West

January 10, 2019

As the CSMFO Conference gets kick started, some attendees got right into some action playing tennis with some Pros at the CSMFO BOTW 8th Annual Tennis Mixer. LSL CPAs always enjoys partnering with Bank of the West to co-sponsor and provide the lunches for the players and Tennis Pros. The gorgeous weather was the cherry…

Find LSL CPAs at the 2019 CSMFO Conference!

January 7, 2019

LSL CPAs is so excited to be attending the CSMFO Conference, AGAIN! Feel free to come say hello to us at our booth, we would love to meet you!

LSL CPAs is Excited to Announce Our NEW Partner, Adam Odom!

January 4, 2019

LSL CPAs is excited to announce our NEW LSL CPAs Partner, Adam Odom!

Meals and Entertainment Deductions since the Tax Cut and Jobs Act

December 27, 2018

Since the new tax law, also known as the Tax Cut and Jobs Act (“TCJA”), was enacted by Congress and signed into law in December of 2017, the IRS has begun to issue some clarifications on portions of the law. On October 3, 2018 the IRS issued Notice 2018-76 which provides further clarification as to…

The 18 Core Drivers that Impact Business Value – How to Increase the Selling Price of Your Company

December 18, 2018

Do you want to know how to increase the value of your business? Give the buyer (investor) what they want. And what does the smart investor look for when they are considering the purchase of a business? They look for a company that can achieve above average returns with limited risk. They want a turn…

GASB 89 – What You Need to Know About Interest Capitalization

December 12, 2018

Do you capitalize interest in your financial statements? If yes, a new GASB statement will impact your financial statements. In June of 2018, GASB statement 89, Accounting for Interest Costs Incurred before the End of a Construction Period, was issued. The statement was issued to address some concerns with consistency in financial reporting and to…

Franchise Fees – Meeting the New Revenue Recognition Standards

December 12, 2018

Does your franchise recognize fees from franchisees when a new location opens? Before FASB adopted the new revenue standard, this was the most common way for franchisors to recognize initial franchise fees. Under the new revenue recognition standards, which take effect for private companies in January 2019, franchisors will need to reconsider whether this approach…

How to Gain a Tax Benefit Using a Qualified Charitable Distribution (QCD)

December 11, 2018

How Tax Cuts and Jobs Act (TCJA) Effects Charitable Donations on Your 2018 Tax Return With the passing of the Tax Cuts and Jobs Act (TCJA), it’s estimated that the number of taxpayers who will itemize on their 2018 tax return will fall by more than half compared to 2017. This is NOT good news…

Do Operating Leases Belong on the Balance Sheet?

December 6, 2018

If you are automotive dealership or part of an automotive group, chances are that you have several operating leases that will soon (2020) be required to be recorded on the balance sheet as an asset due to FASB’s recently issued ASU No. 2016-02, Leases, Topic 842. This new professional standard requires you to record a…

2018 Year-End Tax Planning & Tax Update Conference

November 30, 2018

2018 Year-End Tax Planning & Tax Update Conference The year-end can be an intimidating time with the holidays, year-end tax planning, new year goal setting, etc. LSL wants to ease the stress by informing and preparing you with the information you need to succeed. Whether you are an individual invested in bitcoin cyber currency or…

Should I Do My Own Taxes or Hire a Professional?

November 17, 2018

Tax time is here again. How should you file your taxes? Should you file your own taxes or hire a professional tax preparer? This depends on the complexity of your tax history, how much time you have to invest in filing your taxes, and how much you are willing to spend. To illustrate this, let’s…

When Should I Start Taking My Social Security Benefits?

November 15, 2018

Deciding when to start taking Social Security benefits is an important decision that everyone needs to make at some point. There are four factors that can help you in making this decision: Will you work between age 62 and your full retirement age? Your life expectancy Your marital status Your desire to protect your purchasing…

Expansion of Small Contractor Exemption: Percentage-of-Completion Method for Long Term Contracts

November 8, 2018

Small Contractor Exemption The Tax Cuts and Jobs Act (TCJA) provides relief for small taxpayers by expanding the small contractor exception, thereby allowing more taxpayers to opt out of using the percentage-of-completion method for long-term contracts. Under the TCJA the exemption for small contractors increases from $10,000,000 in average gross receipts over the last three…

Social Security Wage Base Increases in 2019

October 31, 2018

Social Security Wage Base Increases in 2019 The Social Security Administration (SSA) announced that the maximum earnings subject to the Social Security component of the FICA tax will increase from $128,400 to $132,900 for 2019. This means that for 2019, the maximum Social Security tax that employers and employees will each pay is $8,239.80 ($132,900…

Benefits of Probate

October 23, 2018

What is probate? Probate is a court process which validates and executes the will that was left by the decedent. In certain cases, the decedent may have not created a will or trust to provide instructions for disposition of their estate. When this happens the probate process looks to state law to determine how property…

Santa Ana Partner, Jon Huckabay, CPA, speaks at SMB TechFest 2018

October 17, 2018

Santa Ana Partner, Jon Huckabay, CPA, is speaking at SMB TechFest 2018 about how the tax reform will impact the technology industry. Just as technology is forever changing, so are tax laws and regulations. Both are developing and changing simultaneously, and it is up to us to continue to keep up. The SMB TechFest 2018 is a…

Controls Over Cash Handling with Concession Sales are Crucial

October 16, 2018

Cash collection is the highest risk area of internal controls at any institution, especially a facility that has concession sales. Cash has no natural trail and is susceptible to many forms of fraud and theft. In general cash handling can be segregated into three stages: Receiving Depositing Reconciling Receiving The receipt of cash at a…

OCADA Annual Meeting

October 5, 2018

Every year the automotive accounting group at LSL attends the Annual OCADA Meeting. OCADA is the place where automotive dealers and accounting professionals can meet to discuss the latest developments in compliance, critical processes, and leadership. LSL’s Automotive Team is excited to listen to speaker and former Blue Angel, John Foley, as he discusses critical thinking…

Inventory in the Manufacturing Industry

October 5, 2018

In the manufacturing industry, the investment in inventory is significant. In many instances inventory in the manufacturing industry is financed by borrowings from a financial institution. Protecting inventory is a major factor in profitability and management is responsible for developing and maintaining adequate internal controls so that inventory items are safeguarded from theft or other…

SAVE THE DATE! Year-End Tax Planning + Tax Update Conference

October 3, 2018

Date: Thursday, November 29, 2018 Time: 8:30am – 12:00pm Location: Brea Community Center – 695 E. Madison Way, Brea CA 92821 Frequently Asked Questions: Is there a cost? NO Is there free parking? YES May I come for just part of the presentation? YES, but we recommend the entire part! Agenda coming soon! Contact Brea…

gifts, giving, donations, contributions, receipts

Tax Guideline to Charitable Donations

September 21, 2018

Not all charitable donations are created equal. Some donations are deductible on your income tax return, while others are not. The IRS also requires different supporting documentation for different types of contributions. We have separated this article into two parts, for easy reading: Part I: general issues related to charitable giving including what type of…

fraud, employee benefit plan, fraudulent, prevent fraud, Adam Odom, internal controls, employees, employee fraud

Prevent Fraud in Your Defined Contribution Plan

September 12, 2018

The AICPA Employee Benefit Plan Audit Quality Center published a document on actual fraud cases in employee benefit plans. This document showed the different fraud cases and how it was caught. We would like to go through a few of the cases and explain how to prevent fraud from happening: Distributions A payroll supervisor requested…

indirect costs, overhead, expenses, administrative, federal grants awards

Indirect Costs Allocation for Federal Grant Awards

September 6, 2018

Expenditures for federal grants can be from both direct and indirect costs. Direct costs are those that can be easily assigned to a federal award program, they include cost of goods and services directly related to the grant activity as well as compensation and related fringe benefits of employees who work on the federal grant…

Value in a 401(k) Audit

August 30, 2018

While cost is always a factor with any business transaction, the cost must provide the expected value. Therefore, a 401(k) audit performed by a qualified and competent auditor like LSL can reveal that value. It is a given the audit is required to comply with the reporting requirements of the Department of Labor for those…

tax projection, end of year, Qualified Business Income Deduction, tax planning,

Why a Tax Projection is More Important Than Ever

August 22, 2018

For most people the end of the year is usually a time for holiday parties, pumpkin spice flavored everything, and nice cool weather. For any tax accountants this time of year will be about one main thing, tax projections! The fourth quarter is a crucial time of the year for tax planning. Whether it is…

401(k), 401k, hardship distribution, bipartisan budget act, Maria Arriola, Santa Ana, Partner

What are My Tax Consequences if I Take a Hardship Distribution from My 401(k) Plan?

August 16, 2018

Need to take a hardship distribution? In the Bipartisan Budget Act (“Act”) passed in February 2018, Congress softened provisions on hardship distributions from 401(k) plans. Effective for plan years beginning after December 31, 2018, if a participant takes a hardship distribution from a 401(k), the participant will be able to continue to make elective deferrals…

Government compliance, compliant, websites, regulations, Bryan Gruber

Americans With Disabilities Act (ADA) and Government Websites: What You Need to Know

August 10, 2018

For government websites, ADA compliance must be more than a box on a to-do checklist. Since it was the government that put these regulations in place, it will be your visitors, as well as other public and even private sector entities, that will be looking to you to understand these guidelines. Read on for some…

risk assessment, local governments, green book, Bryan Gruber

Do I Really Need to do a Risk Assessment?

August 8, 2018

When you work in local government finance, it’s not a surprise that there is risk. But, is a risk assessment really necessary? And if so, what is it all about? Risk and Local Governments Local governments are complex organizations that often include many different business segments, divisions, and functions. Each area often having its own…

Change, reaction, employees, business development, Gary Cates

The 7 Dynamics of Change – What You Should Know Before You Implement Change in Your Business

August 6, 2018

Change At LSL, we’re always trying to share business development strategies to help our clients run a more successful business. These ideas and strategies have proven to be effective in many different types of businesses. However, for you and your team members to effectively implement these ideas you need to deal with a very important…

ERISA, lawsuits, 401(k) plans, retirement

Most Common ERISA Lawsuits

August 2, 2018

Are 401(k) plans sued? What are the most common ERISA lawsuits? According to the Center for Retirement Research at Boston College, there were 107 lawsuits filed in 2017 against 401(k) plans. It is important to understand the causes and potential consequences of these lawsuits, since 73% of workers in 2016 were offered a workplace retirement…

GASB 75 Webinar

August 2, 2018

Click HERE to listen to our GASB 75 Webinar presented by Partner, Debbie Harper.

GASB 75 – Are you ready for OPEB Accounting?

July 25, 2018

Now that we have pension accounting under our belt, it is time to take the same concepts and implement the Other Postemployment Benefits under GASB 75 guidance. There are important aspects to consider when implementing GASB 75 that will be a little different for most of the governments that implemented pension accounting. Plan types Lets…

Common Single Audit Findings

July 3, 2018

Now in its third year of implementation, most organizations should be at least familiar with the compliance requirements of the Uniform Guidance. Even so, certain compliance and internal control findings are still commonplace for many auditees. Some of the most common single audit findings fall into the following categories: Allowable Costs/Cost Principles; Procurement, Suspension, and…

5 Things to Consider for Your Debt Policies

July 2, 2018

Many local governments issue municipal debt to provide funding for various types of projects. It is something we all are very familiar with, but have you recently evaluated your debt policies? If the answer is no, you may be at an increased risk for financial and compliance issues. In working with local governments over the years, we have seen a variety of compliance and financial issues…

Airbnb Subject to Self-Employment Tax

June 15, 2018

Renting out empty rooms or your entire home on Airbnb can seem like an easy way to make money, especially if you have open space in your home. Renting homes from individuals has become a popular choice for vacationers compared to staying at hotels because it provides a home-like comfort that cannot be experienced at…

California Supreme Court of Los Angeles Redefines Independent Contractor Status

June 13, 2018

On April 30th 2018, the California Supreme Court formally issued their opinion of the highly anticipated case, Dynamex Operations West, Inc. v. Superior Court of Los Angeles County. The purpose of this case is to determine the most appropriate classification of a worker by using (a) the employee criteria established in Martinez v. Combs (2010)…

Uniform Guidance: Did You Update Your Purchasing Policy?

March 19, 2018

Are you on track to adopt required updates to your procurement policies for federal grants under the Uniform Guidance? Chances are, if you are like the majority, you have been putting it off. Well, you have been very fortunate in that the guidance has allowed for several additional grace periods to implement the new procurement…

California State Association of County Auditors (CalSACA) Accounting and Reporting Manager’s 2019 Spring Conference, hosted by Sutter County – March 8, 2018

March 9, 2018

Location: Governor’s Inn, Sacramento Speakers: Debbie Harper, CPA and Brandon Young, CPA Topic: GASB 87 Update More info and to register: https://www.calsaca.org/calendar

How Tax Reform May Affect Your Facility

March 8, 2018

On December 22, 2017, the New Tax Reform, also known as the Tax Cuts and Jobs Act (P.L. 115-97) was signed into law, and we at LSL are here to help. You may be wondering, “we work for a municipality and don’t pay taxes, how can this affect us?” With the new changes, there are…

Timely Remittance of 401(k) Contributions – What Every Employer Should Know!

March 6, 2018

Late employee 401(k) contribution remittances to a retirement plan can pose a major problem to employers. Employees normally contribute to their individual retirement funds through payroll deductions each pay date. If employers do not remit employee 401(k) contributions on time, the IRS requires businesses to take additional steps to correct and disclose this information. Why…

LSL’s Tax Reform Update Conference

March 5, 2018

Please join LSL CPA’s at our Tax Reform Update Conference. It will be a morning packed with essential tax information to use personally and/or for your business! Date: Thursday, May 17, 2018 Time: 8:30 AM-NOON Place: Brea Community Center, Community Hall — 695 E. Madison Way, Brea, CA 92821

New Form 5472 Filing Requirements: Reporting obligations of foreign-owned U.S. disregarded entities

February 20, 2018

Effective December 13, 2016, the United States Treasury issued the final regulations that treat a domestic disregarded entity wholly owned by a foreign person as a reporting entity separate from its owner for the purpose of record maintenance and associated compliance requirements that apply to 25% foreign-owned domestic corporations under Code Sec. 6038A. As a…

Bank Feeds, cloud, cloud accounting, small business

Bank Feeds Help Automate Accounting Processes

February 16, 2018

One of the biggest benefits of moving your books to the cloud is the ability to utilize bank feeds to speed up your accounting and monthly closing processes. What are bank feeds? Bank Feeds are downloaded, cleared transactions from your bank or credit card company that is imported into your accounting software. Here’s how they…

Tax Cuts and Jobs Act Update: Individuals

January 29, 2018

On December 22, 2017, the Tax Cuts and Jobs Act Update (P.L. 115-97) was signed into law. This will mark a fundamental change in the way you and your businesses calculate your federal income tax bill, and the amount of federal tax you will pay. Here are a few changes effective in 2018 that will…

Tax Cuts and Jobs Act Update: Businesses

January 29, 2018

On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law. This will mark a fundamental change in the way businesses will calculate taxable income, and subsequently affect the amount of federal tax you will pay. Here are a few changes effective in 2018 that will affect your business returns this…

business handshake, deal made. self-rental rule, self-rental, real estate

How to Avoid the Pitfalls of the Self-Rental Rules

January 16, 2018

Self-Rental Rule Many business owners that own operating businesses also own the office building or commercial building used in the business. The operating business is owned by the individual(s) through one entity, then the real estate is owned by the same individual(s) through a separate entity. The operating business pays rental expense to the real…

LSL CPAs specializes in accounting and business advisory for automotive clients throughout California

I Didn’t Know That was in My Prepaid Account!

December 7, 2017

Prepaids I was at lunch last week with an automotive banker and we were discussing various issues relating to the automotive industry and within dealerships. When the issue regarding Prepaids, or a prepaid account, came up, the banker said, “We just consider it an expense.” Unfortunately, the details related to Prepaids (and Accruals) still seem…

Are You a Baby Boomer?

December 6, 2017

Are you a baby boomer? Well, if you were born in the years soon after WW II, then you are. Birth years starting early to mid 40’s and ending about 1964 put you in this category. Not an exact science for sure. You are probably familiar with all the forecasting that is directed at you…

Tax Reform and How It May Affect You

December 6, 2017

Tax Reform is upon us and we at LSL are here to help. Classic tax planning typically involves acceleration of tax deductions and deferral of income. However, with tax reform on the loom, tax planning will look different than before as there are many deductions that will be limited or even eliminated altogether. There are…

2017 League of CA Cities Municipal Finance Institute

November 28, 2017

LSL will be attending the League of California Cities Municipal Finance Institute Conference December 13th & 14th. LSL’s Partner, Bryan Gruber, will be speaking on The Role of Finance Department in Fraud Prevention. League of CA Cities Municipal Finance Institute December 13-14 Newport Beach Marriott Hotel Newport Beach, CA

2017 The Digital CPA Conference

November 28, 2017

LSL is always looking for ways to help our clients improve accounting systems and management using the latest technology. Partner, Gary Cates, will be attending the Digital CPA Conference on December 5-6. The Digital CPA Conference 2017 Sponsored by AICPA December 5-6, 2017 San Francisco, CA

business development, business application, business app, small business help.

Top 4 Small Business Cloud Accounting Apps

November 27, 2017

In my previous article, “The Top 5 Reasons to Move Your Books to the Cloud”, I discussed how anytime, anywhere cloud access is the future of small business accounting systems. One of the reasons cloud accounting is taking off is the availability of inexpensive, yet robust, specialized applications that will create a full feature accounting…

Supplemental Property Tax

November 21, 2017

Buying a home for the first time can be a very overwhelming process. You finally close escrow and you think, wow we are finally done. There are no more papers to sign, no more document requests from your loan officer, and no more open houses – but now what? You move in, start hanging up…

How to know it’s time to downsize your home?

November 9, 2017

Are you considering downsizing as you head into retirement? If you are aged 55 and older, there is a tax break you can qualify for in California that allows you to keep your property tax base as you relocate. California voters approved a pair of propositions in the late 1980s that would help empty nesters downsize…

IRS Announces 2018 Retirement Plan Contribution Limits

November 7, 2017

On October 19th the Internal Revenue Service (IRS) announced IRS 2018 Adjusted Retirement plan contribution limits inflation-adjusted figures for retirement account savings for 2018. 401(k)s: The amount you can contribute to your 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan, increases to $18,500 – a $500 boost over 2017. 401(k) Catch-Up: The limit for…

Real Estate Ownership: Community Property with Right of Survivorship Better than Joint Tenancy

November 6, 2017

There are several traditional methods of holding title to property, including: tenancy in common, joint tenancy, or community property. In addition, California allows married couples to hold property as “community property with right of survivorship.” Each method has its own advantages. You may want to hold title differently for different parcels of real estate, depending…

Maria Arriola discusses the benefits of a financial statement review or audit

November 2, 2017

An audited financial statement is a financial statement that has been prepared in accordance with generally accepted accounting principles and has been audited by an independent certified public accountant in accordance with generally accepted auditing standards and includes footnotes to the financial statements. It’s the audit team’s duty to review the company’s documents, processes and procedures…

Are You Getting the Most Out of Your Business Expenses?

October 25, 2017

Employees are generally required to substantiate their business expenses for travel, entertainment, business gifts, and the use of listed property (including cars) by adequate records as to amount, time, place, and business purpose. In the cases of entertainment and gifts, the business relationship of the expense must also be substantiated. The taxpayer does not always…

LSL’s Year-End Tax Planning Conference

October 19, 2017

Please join LSL CPA’s at our Year-End Tax-Planning Conference. It will be morning of essential tax information to use personally and/or for your business! Date: Thursday, November 9, 2017 Time: 8:30 AM-NOON Place: Brea Community Center, Patio Room — 695 E. Madison Way, Brea, CA 92821 Topics will include: Retirement Plans and Planning, presented by…

Employee vs Independent Contractor

October 5, 2017

Employers – be careful in classifying workers! The difference between an “employee” and an “independent contractor” is critical. As employers know, if the worker is an “independent contractor” the benefits are many: no payroll taxes, no employee benefits, no workers compensation insurance, no medical insurance worries, etc. That is fine as long as the worker…

The Equifax Data Breach – What to Do

September 13, 2017

On September 7th, Equifax, one of our nation’s 3 credit reporting agencies, announced they experienced a data breach. There’s a good chance you’re one of the 143 million Americans whose sensitive personal information was exposed. According to Equifax, the breach was from May through July. During this time, hackers were able to access people’s names,…

Beware of Public Wi-Fi Hotspots

September 12, 2017

Public Wi-Fi hotspots can be dangerous. How many times do people connect to free Wi-Fi at a restaurant, on an airplane, or a hotel to name a few? Follow these basic security tips to decrease the chances of identity theft or data-loss: Pick the correct network – Beware of signing into a network with a similar name. Wi-Phishing…

Like-Kind Exchanges

September 6, 2017

General The name of the game is to defer, defer, defer, and hopefully never pay the tax on your appreciated property. The vehicle often used to achieve this is the “like-kind exchange”. You might be able to dispose of appreciated property without being taxed on the gain by exchanging it rather than selling it. You…

Beware of 2018 W-2 Email Phishing Scams Warns the IRS

September 6, 2017

Attention Employers: Back in February, the IRS warned of a W-2 phishing scam that is a continuation of a scam which hurt multitudes of taxpayers last year. The scam’s consequences and reach have drastically intensified and expanded. Here’s what you need to know to protect your business and employees: Employers should review their policies for…

Ron Stumpf Discusses Estate Planning for Real Estate Owners

August 30, 2017

President Donald Trump’s tax plan has been placed on the back burner and tax reform for estate tax appears to be a low priority in Washington DC. Estate tax is here to stay and our clients need to plan based upon the current income tax law. A married couple may have assets up to $10,980,000…

10 Ways to Improve Cash Flow

August 18, 2017

Improving cash flow is not about improving one “BIG” thing. It’s about doing a lot of little things consistently to manage inflows and outflows. Here are my top 10 tips that will help any business: 1. Make preparing invoices your highest priority – If you’re like me you have plenty of fires to put out…

Profit Drivers – Keys to Profitability and Growth

August 9, 2017

Profit Drivers I’ve often said, focusing on the bottom line in business is like playing tennis with your eye on the scoreboard. To be successful in today’s marketplace you must keep your eye on the underlying factors, the drivers that create profitability. The following is a list of nine elements that impact the profitability of…

How to File a Statement of Information in California

August 3, 2017

The Statement of Information is a business’s annual report. In California, it must be filed annually by every corporation and bi-annually by every LLC. There is a filing fee of $20 for LLCs and $25 for corporations. Penalties of $250 can be assessed for late filing. All California businesses must file their first Statement of…

The 4 Ways To Grow Your Business Article #4- Strategies for Increasing Your Effectiveness

August 1, 2017

This is the final article in a series on the four ways to grow your business. Again, those four ways are: 1. INCREASE THE NUMBER OF CUSTOMERS (OF THE TYPE YOU WANT) 2. INCREASE THE BUYING FREQUENCY 3. INCREASE THE AVERAGE DOLLAR VALUE OF A SALE 4. INCREASE THE EFFECTIVENESS OF OPERATION In previous articles…

4 Ways To Grow Your Business Pt. 3 – Strategies for Increasing Average Sale Value

July 26, 2017

This is the fourth in a series on the four ways to grow your business. Again, those four ways are: 1. INCREASE THE NUMBER OF CUSTOMERS (OF THE TYPE YOU WANT) 2. INCREASE THE BUYING FREQUENCY 3. INCREASE THE AVERAGE DOLLAR VALUE OF A SALE 4. INCREASE THE EFFECTIVENESS OF OPERATION In this article we’ll…

CPA who's an expert in International Tax

ITIN expiration – What foreign nationals and business owners need to know

July 25, 2017

First a bit of context to make certain that you are in the affected group. The IRS has defined the need for ITIN’s thusly: “ITINs play a critical role in the tax administration system and assist with the collection of taxes from foreign nationals, resident and nonresident aliens and others who have filing or payment…

Jon Huckabay featured in the Orange County Business Journal Accounting Issue – How will tax reform change your tax bill

July 24, 2017

How will tax reform change your tax bill? Donald Trump and the Republican-led Congress have been touting tax reform for the past two years. They have said that our federal tax system is too complicated, taxes are too high, and that we need to reduce the tax burden for all Americans. However, a reduction in…

Statement of Auditing Standards 130….Timing is Everything!

July 21, 2017

In the May issue of the CSMFO magazine, I had written an article entitled “The Viewpoint from the Managing Partner of a CPA Firm”. This was an article that was written from the heart and was sparked by the numerous and recent incidences of fraud occurring in local governments. In that article, one key point…

The 4 Ways To Grow Your Business Article #2- Strategies for Increasing Buying Frequency

July 17, 2017

This is the third in a series on the four ways to grow your business. Again, those four ways are: 1. INCREASE THE NUMBER OF CUSTOMERS (OF THE TYPE YOU WANT) 2. INCREASE THE BUYING FREQUENCY 3. INCREASE THE AVERAGE DOLLAR VALUE OF A SALE 4. INCREASE THE EFFECTIVENESS OF OPERATION The previous two articles…

4 Ways To Grow Your Business – Increasing Number of Customers – Pt. 2- Customer Retention

July 11, 2017

This is the second in a series of articles on the four ways to grow your business. There are two components to expanding your customer base: customer acquisition and customer retention. In my first article, I focused on strategies for improving customer acquisition. In this article, I’ll explore some specific strategies for reducing customer turnover….

Airbnb and Occupancy Taxes

July 11, 2017

Rental’s Taxable Entity Renting out a second home on self-rental sites such as Airbnb can be very lucrative in high traffic vacation areas. I recently stayed at an Airbnb home in Palm Springs, California. As a guest it was a very enjoyable experience that I would highly recommend but as an accountant, it made me…

Protect your privacy on your Smartphones

July 6, 2017

Here are some tips on how to protect your personal data: Read privacy policies – Always read the terms of service agreements, including privacy policies. If you see language that implies your data could be shared then opt against using the service. Research company business models – If you’re using a product that doesn’t charge…

President continues to pledge he will eliminate the federal estate tax, which he referenced as the “death tax”

July 5, 2017

Sherry Radmore Discusses Whether Trusts Still Matter If The Estate Tax Is Repealed There’s been quite a bit of chatter about President Trump’s proposed tax plan. On June 21st President Trump covered a wide range of topics at the U.S. Cellular Center in Cedar Rapids. The The “death tax” was a serious issue when the…

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