Best Practices Financial Q & A

Ever wonder about the best way to handle certain financial needs? Liz Weston for LA Times Business offers insight into these three situations: hospital bills, home ownership, and retirement savings. Read more for quick tips that can help you make the most of your money. For example, did you know that most hospitals offer financial assistance at low or no interest to patients who qualify?

Here’s why you shouldn’t put that huge hospital bill on a credit card

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

 

Discount Shopping at What Cost

Most people have shopped in a dollar store.  They are very prevalent and often in places that lack other types of businesses.  Even though these stores appear to serve needs for those with little access to retail, a veil of crime and violence hangs over many of the locations in urban areas. With low cost operating plans, these stores may staff only two employees at a time and lack hired security.

The True Cost of Dollar Stores

Teach Music Lessons Online

Over the last few months we’ve all adjusted to utilizing Zoom and other online meeting platforms on a daily basis.  From business meetings to book clubs, an array of groups have successfully moved their work and socializing online.  What about teaching private lessons?  Kathy Kristof for the Los Angeles Times reviews Lessonface, an Ap aimed at music teachers of all instruments. Registration is free and commissions/fees are low, 4% for your current students or 15% if they recruit them for you.  Check out more about Lessonface here: Review: There’s money to be made teaching music or acting on an app.

Midwest Retirement Plans

There are many large companies that brag of their attraction to America’s elite and how the states offer great places for families to live and raise their children. Some even boast of more women as part of the workforce than many other states but do any of these reasons explain why, as retirement plans everywhere have been reduced, Iowa and Minnesota remain on top?  Andrew Van Dam for the Washington Post considers these questions and more in, The surprising reasons these Midwest states are the last bastion of retirement plans.

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.

 

 

Living Off Your 401K?

Recently unemployed? Considering dipping into your 401K to stay afloat?  Here are some options to consider. Fees are waived for withdrawals made from 401K accounts. Taxes must be paid but can be spread over three years. These are some of the most lenient restrictions ever imposed. Even if you decide not take money out of your account, you may want to consider moving your 401K into an IRA.  Mark Miller for the New York Times in his article, Lost Your Job but Still Have a 401(k)? Here’s What to Do With It, offers advice and tips on best managing your retirement funds and money for daily living during this turbulent time.

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

Honesty in Spending

Financial Infidelity…

Have you ever been guilty of making a purchase and not telling your partner?  What about buying something and then altering the actual cost when forced to admit your indiscretion?

Many couples fall prey to these kinds of buying practices says Jancee Dunn for the New York Times in her article, Your Cheatin’ Wallet. Read more to see how important it is to move towards total financial transparency with your partner and what pitfalls may arise if you don’t.