The High Cost of Inventory Theft
When it comes to employee fraud, cash is by far the prime target. But inventory stolen from warehouses or showrooms accounts for about one in five thefts, according to the 2014 Report to the Nations on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners. And the median loss of non-cash assets is…
Is Investing in Art or Antiques for You?
Investing in art and antiques can be more enjoyable than other types of investing. But special expertise is necessary to make it profitable. Extra costs are involved in investing in arts and antiques, they are not as liquid as stocks and bonds, and tax treatment of profits is not as favorable. Investing in artwork can…
Which College Majors Translate into the Highest-Paying Jobs?
There’s a joke that goes: To the optimist, the glass is half full. To the pessimist, the glass is half empty. To the engineer, the glass is twice as big as it needs to be. But when it comes to salary compared to other professions, there’s no joke. The engineer’s glass is definitely full. In…
How CPAs Can Help Attorneys in Divorce Cases
In a matrimonial proceeding, a forensic accountant is an invaluable member of a valuation team working to determine a fair and equitable settlement, particularly if a business is involved. A forensic accountant can help negotiate or litigate a fair and equitable settlement for a client by analyzing a couple’s finances to uncover hidden assets. The…
Public Charity: Does Your Organization Pass the Section 509(a)(1) Test?
To be a public charity, an organization must meet one of the Internal Revenue Code (Code) Section 509(a) tests. This article focuses on the first listed test, Section 509(a)(1), and the ramifications for a charitable organization described in this section. However, to understand 509(a)(1), it is helpful to understand the alternative 509(a)(2) test. We will…
Hidden Liabilities Affect the Value of a Business
No business is perfect. Some liabilities or poorly performing assets are obvious and stated – debts and payables, uncollectable accounts receivable, obsolete equipment and warranty agreements. How the sale is structured will determine the new owner’s responsibilities regarding these issues. Unfortunately, even if everything looks fine on the surface, hidden liabilities can surface to impact…
Overview: Code Sections Relating to Private Foundations
Internal Revenue Code (Code) Section 501(c) lists 29 different types of nonprofit organizations. However, the vast majority of exempt organizations are those described in Code Section 501(c)(3) and have a charitable, religious, educational or scientific purpose. Every 501(c)(3) exempt organization must be further classified as either a public charity or a private foundation (PF). Some types…
Do You Need Embezzlement Insurance?
Depending on the justice system to restore embezzled funds is often a forlorn hope. Only 14 percent of businesses make full recovery from guilty parties. Standard business liability insurance doesn’t cover losses by theft. Fortunately there is special coverage available called crime or fidelity insurance. This type of policy typically covers both internal and external…
Avoiding Probate: How a Revocable Trust Helps
There are two kinds of probate at death: intestate and testate. An intestate probate proceeding means that the decedent had no legal last will and testament at the time of death. The attorney for the estate must file legal documents with the court. There are court filing fees, and a judge will appoint an executor…
New Management? How to Quell Employee Fears
Acquisitions, mergers and new leadership bring opportunities, but they also bring new threats. When the change is not handled skillfully, the costs to the organization can be enormous. Too often, businesses invest a lot of time and resources in the technological aspects of a merger or acquisition, while neglecting the human aspects. This is a…