Category: Business Model

Bots vs. Humans

Covid-19 has led some companies to turn to automation to deal with growing demand, closed offices, or budget constraints. But for other companies, the pandemic has provided cover for executives to implement ambitious automation plans they dreamed up long ago.

There’s a new employee in town, R.P.A. (robotic process automation) is beginning to take hold in professions across the board, making life easier for some and costing jobs for others. The workers most at risk for being affected when companies turn to these programs for increased ROI are the highly educated. Read more here: The Robots Are Coming for Phil in Accounting

$15/Hour Minimum Wage?

Living wage, minimum wage, fair wage… There are many views on what these phrases mean and how best to apply them in the United States.  On Friday, 20 states and 32 cities and counties will raise their minimum wage. In 27 of these places, the pay floor will reach or exceed $15 an hour, according to a report released on Thursday by the National Employment Law Project, which supports minimum-wage increases. How will these increases affect small businesses and workers who may actually stand to lose their jobs because of the new rules?  Read more here, Once a Fringe Idea, the $15 Minimum Wage Is Making Big Gains.

Selling Marijuana, Don’t Forget to Pay Your Taxes

The IRS has dedicated a page on its website to Marijuana sales. Many states have approved the drug for medical uses and some for recreational use, but banks are still discouraged from doing business with these dispensaries and transactions are often made in cash.  Even though, just as other consumables, marijuana is subject to taxation and the IRS wants to make it clear to businesses what is expected for paying taxes.

From the site:   “The IRS understands this is a new and growing industry and provided frequently asked questions about record keeping, cash payment options, large cash amounts, and other related topics to help promote voluntary compliance in the industry,” said the IRS. “In addition to this page, the IRS also offers a wealth of general small business guidance and resources on IRS.gov.”  Want to know more? Visit https://www.accountingtoday.com/news/irs-adds-marijuana-industry-page-to-website

Business Tax Season During COVID

Thank you to the CPA Journal and Howard B. Levy, CPA for this detailed and helpful article about financial reporting, taxes, auditing and more for businesses as we approach our first tax season amidst COVID. The topics addressed include:

Use of estimates
Risk assessment.
Subsequent Events
Internal Control
Accessibility to Audit Evidence and Client Personnel
Disclosure of Risks and Uncertainties
Accounting Estimates
Valuation of receivables, inventories, investment securities, and deferred tax assets.
Impairment of goodwill, other intangibles, or long-lived assets.
Loss contingency accruals and disclosures.
Business interruption insurance recoveries.
Future operating losses.
CARES Act
Tax effects.
Government loans and other benefits.
Relief for financial institutions from certain GAAP provisions.
Revenue Recognition
Leases and Other Contract Modifications
Debt Covenant Compliance
Inventory Observations
EOM, Explanatory, and CAM/KAM Paragraphs
MD&A and Other Disclosures for Public Companies and Governments

Financial Reporting and Auditing Implications of the COVID-19 Pandemic

Some Practical Guidance

Helping Texas Businesses

Want to know more about what organizations are doing to help small businesses in Texas stay afloat during the time of COVID? Checkout this interview from the Federal Reserve Bank of Dallas with Janie Barerra, founding president and chief executive officer of San Antonio-based LiftFund. Created in 1994, LiftFund has one of the nation’s largest microlending portfolios. The nonprofit provides loans and management training to very small enterprises in Texas and seven other states.

LiftFund’s Microlending Helps Small Businesses Battle to Survive COVID-19

 

How Are Businesses Helping Employees During This Time?

During this unprecedented time, Just Capital has created a Tracker of America’s 100 largest public employers to offer a snapshot of what’s “happening on the ground.” Visit their site, https://bit.ly/36dx5A4 or one of these links to read more.

 

 

Employees vs Shareholders

Many workers have been laid off or furloughed since the beginning of the Corona virus pandemic.  As companies close stores, curtail production and shed employees, some are continuing to pay shareholders.  Even though this may be a “bigger” picture issue, the optics of these business practices is not likely to win support.  The Washington Post reports that Caterpillar, Levi Strauss, and Stanley Black and Decker have all chosen shareholders over employees.  Deciding who will bear the brunt of the current economic climate is tough, but should it be the workers?

U.S. companies cut thousands of workers while continuing to reward shareholders during pandemic

Make the Best of Black Friday

Want to get the best deals and save the most money on Black Friday?  Elissa Sanci for Smarter Living, The New York Times offers tips and shopping best practices in her article: 5 Things to Avoid on Black Friday
Black Friday is a money- and time-sucking vortex. Here’s what not to do this year.  She highlights her list with entertaining anecdotes of those who fell victim to the seemingly needed purchases and makes recommendations for how to avoid these pitfalls.

Flash in the Pan

When you hear the word Start-up, what do you think of?  Lots of venture capital raised quickly to create showy products that cater to a niche market? Almost daily we see the demise of these companies in the news and the reality of the “Fail Fast” model.  But this is not true for all start-ups, such as Evernote which opened in 2004. The company is currently facing the harsh reality of two options: slow death or a complete makeover. Erin Griffith for the New York Times offers a detailed look at Evernote as an example of a long standing, 15 years, start-up in her article, A Unicorn Lost in the Valley, Evernote Blows Up the ‘Fail Fast’ Gospel.

As American As…

In this holiday season many families gather around traditional meals to celebrate.  Sharing food that has cultural significance from recipes passed down through the generations.  One fascinating aspect of the American landscape is the (across the board) popularity of Chinese food on Christmas Day.  Lillian Li sheds light on this phenomenon in her article, Nothing Is More American Than Chinese Food on Christmas.  She explores the history of cultural diversity during a time in American history of great segregation, all centered around the Chinese restaurant.  During this time, many were open on Christmas because early immigrants from China were not Christian and saw no reason to miss a day of business.  What started as a simple monetary decision has made Chinese food part the Christmas, American fabric.