Deciphering the CoronaVirus Relief Bill for PPP2 (Part II)

Expansion of Definition of Eligible Costs  The new bill had widened the net of cost eligible for Paycheck Protection Program (PPP) loan forgiveness. In addition to payroll, rent, covered mortgage interest and utilities, the following costs are also potentially forgivable: Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 [...]

2021-01-27T20:02:41-06:00February 1st, 2021|Accounting, COVID-19|

Deciphering the CoronaVirus Relief Bill for PPP2 (Part I)

Tax Deductibility of Expenses  COVID-19 relief bill passed on December 27, 2020 provides the much-awaited pronouncement on treatment of expenses paid out of the forgiven portion of the Paycheck Protection Program (PPP) loan amount (Revenue ruling 2021-02 obsoletes Notice 2020-32 and Rev. Rul. 2020-27).  The Act retroactively amends the CARES Act to provide that no [...]

2021-01-27T19:55:29-06:00January 29th, 2021|Accounting, COVID-19|

PPP Loans for Partnerships

What are the rules for partnerships to participate in the new round of PPP under the new COVID-19 relief bill passed on December 27th, 2020? That’s what we are going to address in this article.  Under the CARES Act, income from partnership was not considered self-employment income for applying PPP loans. Partnerships could apply loans [...]

2021-01-27T19:46:27-06:00January 28th, 2021|Accounting, COVID-19|

Retirement Plans for Small Businesses

Generally, there are two types of qualified retirement plan: Defined contribution plans and Defined benefit plans. Defined contribution plans include profit sharing, stock bonus and money purchase plans in which a separate account is provided for each employee covered by the plan. The employee retirement’s benefit plans are based on the contribution to the account, [...]

2021-01-27T15:31:00-06:00October 21st, 2020|Accounting|

New FAQs Address PPP Loan Forgiveness & EIDL Issues

The new ​FAQs​released as of August 11, 2020 are divided into four sections addressing different aspects of the process and calculations PPP borrowers should use to determine how much of their loan is forgivable. Following is a brief description of each section and highlights from the guidance provided. General loan forgiveness:​The first FAQ of this [...]

2020-09-25T16:13:28-05:00October 16th, 2020|Accounting|

Invoicing and Accounts Receivable in QuickBooks

For business owners, getting business in the door is only part of the challenge, receiving payment for the work is another. It’s easy to focus on generating revenue and lose track of the fact that you haven’t been paid for the work - until you realize that there is a cash flow issue and wonder [...]

2020-09-25T15:58:23-05:00October 14th, 2020|Accounting|

Fraud Schemes Series – Part I: Bust Out

When engaged to investigate a fraud examination, a forensic accountant has to be aware of the multiple fraud schemes that may have been employed by a fraudster. One such coom scheme is a bust-out. Bust-out occurs when a company obtains goods from creditors and sells those goods for cash with the intention of never repaying [...]

2020-09-25T15:55:52-05:00October 9th, 2020|Accounting|

Depreciation on Leasehold Improvement

The purpose of this article is to discuss the definition of leasehold improvements, qualified improvements and the depreciation method for tax purposes. Leasehold improvements are major improvements or enhancements done by a tenant to make the leased property fit for his use. The examples of improvements can be: Installing furniture and fixture; Carpeting or tiling [...]

2020-09-25T15:52:49-05:00October 7th, 2020|Accounting|

Credit Card Transactions and your Business

Credit cards are a convenient tool for businesses to use in everyday operations; they allow a business to build or expand their credit history, as well as track spending. However, it’s easy to lose sight of how much (and what) is actually purchased on those credit cards if the data is not correctly or timely [...]

2020-09-25T15:49:03-05:00October 2nd, 2020|Accounting|

Why There is No Need to Rush for PPP Forgiveness

Although forgiveness for Paycheck Protection Program (PPP) loans is a foremost topic on the minds of borrowers, there are several reasons why borrowers should not rush to apply for forgiveness. Long-expected FAQs expected to clarify many PPP-related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. In addition, the loan forgiveness [...]

2020-08-26T18:31:21-05:00September 18th, 2020|Accounting|
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