FICPA Strategic Partners

The bewildering world of cash discounts and surcharging

133345 — Thu, 15 Aug 2024 18:30:40 +0000

The bewildering world of cash discounts and surcharging

133345 Thu, 08/15/2024 - 14:30

August 15, 2024

Credit card surcharging and the related programs have been a hot topic over the last few years and are only growing hotter. Some see the practice as a way of offsetting the cost of doing business with credit cards, while others consider it an undue toll levied on loyal customers and clients. The guidelines and laws surrounding these programs are unclear, ever-changing and vary by state and area. Regardless of geographic location, there are important tax implications, so it is critical that you are aware which of your clients are surcharging and receive the required paperwork to avoid an audit.

Traditional Surcharge Program

A traditional surcharge program adds a fee to all credit card transactions — excluding debit. The first challenge here is how to distinguish debit from credit. Some businesses assume that a debit card is any card processed with a personal identification number (PIN). That is not the case. PIN or not, a debit card is any card that takes money directly from a consumer’s bank account. This represents around 50% of all transactions.

The consumer may tell the merchant to run their debit card “as a credit card” without the PIN — regardless, it’s debit and illegal to surcharge under the Durbin Act. The only way to run a true surcharge-compliant program is to use a credit card machine or point of sale system that determines if the card is debit or credit before applying the fee. To complicate the issue further, some industries are tied to specific point of sale (POS) systems that do not have this ability. This is particularly true for those in the restaurant and hospitality sectors.

Cash Discount Program

Cash discount programs were originally designed as a way for processors to creatively add a service fee to all card transactions and then offer a discount for those paying by cash. Essentially, they changed the name of the program from “surcharge” to “cash discount” and added a fee, just to take the fee off. This is really a surcharge program in different packaging, which means it’s also illegal to offer a cash discount on a debit card. A true compliant cash discount program lists the actual price and takes a discount off the listed price if the customer pays with cash.

Compliance Regulations and Tax Implications

The practice of surcharging has an interesting track record in the state of Florida. Though a statute disallows surcharging on credit card transactions, this ban was found to be unconstitutional and unenforceable nearly a decade ago hinging on language finding surcharges to be analogous with discounts.

However, when implementing a surcharge program within Florida, proper protocol is compulsory. This includes the retailer registering the surcharge and disclosing it to customers in the form of signage, and on their receipts. And, like many other jurisdictions, the Sunshine State prohibits businesses from charging more than their processing costs (usually 3-4%).

To compound the confusion, the tax implications are also a bit fuzzy. Companies must let their merchant acquirer and relevant card networks know they are planning to start a surcharge program — and they will need 1099K paperwork from their processor come tax season. If the money accrued from surcharging isn’t reported correctly, there’s a good chance it will come up as a red flag as a possible mismatch. The 1099-K usually includes the surcharge amount, which never really made it to the merchant’s bank account. It needs to be reported and then deducted as an expense, so everything matches. The nuances become even hazier if a Florida-based company does out-of-state business or has locations in other states.

Best Practices

The safest way for a merchant to participate in a surcharge program is to use a true cash discount. There is zero need to involve a processor, and all a business needs to implement a true cash discount program is a well-priced merchant account.

It is vital to become more familiar with monthly statements — particularly potential hidden or junk fees — and use these data points to negotiate lower fees. This can happen through more vigilant auditing on a company’s part or working with an expert who can help decipher these confusing statements.

As your client’s accounting expert, it helps to consult with one of Merchant Advocate’s skilled analysists to ensure any surcharging program they choose is deployed correctly. Contact us for a FREE, no-obligation call to start the process.

Topics

FICPA Strategic Partners

Perfect your accounting firm playbook: 3 easy steps to improve profitability

133345 — Thu, 07 Dec 2023 18:06:56 +0000

Perfect your accounting firm playbook: 3 easy steps to improve profitability

Presented by CPACharge

133345 Thu, 12/07/2023 - 13:06

December 6, 2023

The accounting profession’s transition into the digital space has been ongoing for decades, but has recently reached exponential speed. Technological advancements improve each year, with new and better ways to boost your business. If you can’t keep up, you risk losing clients, talented staff, and profits.

To thrive, you must adapt. In this blog, we provide strategies for fine-tuning your accounting firm's profitability playbook to ensure a consistent cash flow—regardless of what the future holds.

How to Make Your Accounting Firm Profitable

Step 1. Align With Clients’ Needs and Stay Updated on Trends

Your first step in crafting a strong accounting firm profitability playbook is understanding your clients’ needs and goals. This solidifies your position as a trusted advisor and increases the likelihood that they will turn to you as their demands evolve. Additionally, knowing your clients’ most pressing wishes gives you a starting point for creating specialized services and providing proactive solutions.

Next, keep an eye on the emerging trends and profitability statistics within your specific niche. For example, client services have risen in popularity, particularly for midsize firms. According to Thomson Reuters, 93% of surveyed tax professionals report that their clients are looking for advisory services, which include:

Tax strategy (91%)
Business consulting (73%)
Financial planning (63%)
Decision support (46%)

Another significant trend among clients is the desire for convenient payment methods. In 2022, 60% of payments were made with debit, credit, or prepaid cards, per the Federal Reserve. By 2023, Fidelity National Information Services Inc. estimates that 91% of transactions will be digital.

With CPACharge, a leading payment software made for accounting professionals, you can save time by easily accepting digital payments and managing invoices all in one platform.

Step 2. Embrace Upskilling & Expand Services

As your clients’ needs evolve, you can stay attuned to these changes by upskilling and expanding your service offerings. Whether it’s including online payment technology, offering strategic advisory services, or providing comprehensive financial planning, expanding your skill set also allows you to stay aligned with clients as well as increase profitability through new or updated pricing.

There are three key benefits to upskilling and expanding your services:

A competitive edge: Clients will often seek out firms that offer a wide range of services. By diversifying your offerings, you and your firm will be more appealing to potential clients. In addition, you will stay competitive within the market while boosting your profitability year-round.
High-quality talent: A wider variety of services will draw in new and better accounting talent who are looking for firms with high profitability and growth potential. This can lead to a more experienced staff that is able to take on more complex projects and provide unparalleled services to your clients.
Added value: Expanding your services is a mutually beneficial endeavor; it adds value for your clients and increases the market value of your services. Recent reports reveal that 54% of buyers purchase accounting services in bundles or packages. Clients are also willing to pay 50% more for those bundled services. By offering more than tax preparation services, you become a valuable partner in their business and future—which can bolster your relationship.

Step 3. Price Properly

As your firm grows and expands, adjust your pricing to reflect the provided value. While increasing fees can be daunting or awkward, this measure ensures that you are compensated properly for your expertise and hard work. There are two ways to approach this: on your own or with a trusted partner like SmartPath—a pricing engine designed to calculate the ideal price for your services.

On your own, you’ll need to conduct a thorough analysis of the costs associated with all of your services. Calculate time, resources, and value margin for each one. Understanding the true cost allows you to make informed pricing decisions.

Then, you can update your fee schedule to match. Instead of billing solely on hours worked, consider pricing based on the value you deliver. With hourly pricing, it’s easy to answer one-off questions here and there and miss out on billing the time correctly. With bundled pricing, you can guarantee you’re paid for every minute worked.

If such an audit seems overwhelming, consider using a tool like SmartPath—a pricing engine that can help you determine the ideal price for your services. SmartPath can streamline the pricing process, make it easier to communicate the added value to your clients, and justify the increase in price. SmartPath also offers the Perfect Pricing Template, which calculates the ideal fair cost for your clients while improving your accounting firm’s profit margins. Get the proper price in minutes, with the data to back it up.

Successful Solutions for a More Profitable Accounting Firm

Increasing your accounting firm's profitability is easier when you have a strategic plan in place. By aligning with your clients' needs and goals, keeping current with the latest trends, upskilling and expanding your services, and pricing accordingly, you can achieve sustainable profitability every year.

And remember: You don’t have to implement that plan on your own. Embrace solutions like CPACharge and SmartPath to support your revenue growth. With the right technology in place, your firm can flourish in any future.

Schedule a demo today and learn how CPACharge can empower your team to improve profitability

Topics

CPACharge

FICPA Strategic Partners

The power duo: 3 benefits for a CPA firm partnering with a marketing company

133345 — Mon, 27 Nov 2023 21:10:18 +0000

The power duo: 3 benefits for a CPA firm partnering with a marketing company

Presented by Anthem

133345 Mon, 11/27/2023 - 16:10

November 27, 2023

In today's competitive business landscape, Certified Public Accountant (CPA) firms face an uphill battle when it comes to attracting and retaining clients. The financial world is rapidly evolving, and with the proliferation of online tools and platforms, it's no longer enough for CPA firms to rely solely on their expertise in accounting and tax regulations. To stand out in the crowd and achieve sustainable growth, CPA firms must adapt to the changing times and embrace modern marketing strategies.

One effective way for CPA firms to navigate this new era of business is by partnering with a marketing company. By doing so, they can leverage the expertise and resources of marketing professionals to expand their reach, connect with potential clients, and ultimately grow their businesses. In this blog post, we'll explore three significant benefits that CPA firms can gain from such partnerships.

Targeted Marketing and Lead Generation

The first and foremost benefit of partnering with a marketing company is the ability to implement targeted marketing strategies and generate high-quality leads. Marketing companies specialize in understanding consumer behavior, market trends, and effective communication channels, which can be invaluable for CPA firms looking to expand their client base.

Market Research

Marketing companies excel in conducting comprehensive market research to identify potential clients who require CPA services. This research includes analyzing demographics, psychographics, and market trends, enabling CPA firms to understand their target audience better.

Effective Content Marketing

Crafting valuable and informative content is crucial for any CPA firm's marketing strategy. Marketing companies have the expertise to create content that resonates with the intended audience, providing insights into complex financial topics, tax changes, and industry-specific updates. This content can be distributed through various channels, including blogs, social media, and email marketing.

Lead Generation

Marketing companies use data-driven approaches to generate leads. They can create and execute targeted campaigns to capture the interest of potential clients actively seeking CPA services. These campaigns may include search engine optimization (SEO), pay-per-click advertising (PPC), and social media advertising, among others.

Email Marketing

Partnering with a marketing company allows CPA firms to leverage email marketing effectively. By segmenting email lists and sending personalized content, CPA firms can nurture leads and build long-term relationships with clients.

Social Media Engagement

In today's digital age, social media platforms are essential for brand visibility and engagement. Marketing companies can manage and optimize social media profiles, creating a strong online presence for CPA firms. They can also craft engaging posts, run targeted ads, and monitor performance to ensure a positive return on investment.

Enhanced Branding and Reputation Management

Building a strong brand and managing reputation are crucial for CPA firms to establish trust and credibility in the eyes of potential clients. Partnering with a marketing company can help CPA firms enhance their branding efforts and effectively manage their online reputation.

Logo and Website Design

Marketing professionals can assist CPA firms in designing eye-catching logos and user-friendly websites. A well-designed website serves as the firm's digital storefront, providing potential clients with a professional and trustworthy impression.

Consistent Branding

Marketing companies ensure consistency in branding across all online and offline channels. This consistency builds brand recognition and fosters trust among clients. From business cards to social media profiles, a cohesive brand image reinforces credibility.

Online Reputation Management

Maintaining a positive online reputation is essential in today's digital world. Marketing companies can monitor online reviews, respond to feedback, and address negative comments promptly. They can also help generate positive reviews and testimonials from satisfied clients, strengthening the firm's reputation.

Thought Leadership

Establishing CPA firms as thought leaders in their respective niches is a valuable branding strategy. Marketing companies can create thought-provoking content, such as whitepapers, webinars, and podcasts, to showcase the firm's expertise and industry knowledge.

Public Relations

Marketing firms often have connections and expertise in public relations. They can help CPA firms secure media coverage and participate in relevant industry events, further enhancing their visibility and reputation.

Time and Cost Efficiency

Running a successful CPA firm requires a significant investment of time and resources. By partnering with a marketing company, CPA firms can streamline their operations, reduce overhead costs, and focus on what they do best – providing top-notch accounting services.

Cost Savings

Hiring and training an in-house marketing team can be costly and time-consuming. Partnering with a marketing company allows CPA firms to access a team of experts without the overhead expenses associated with full-time employees. This cost-effective approach ensures a higher return on investment.

Expertise and Efficiency

Marketing companies have specialized knowledge and tools to execute marketing campaigns efficiently. They stay up to date with the latest marketing trends and technologies, ensuring that CPA firms benefit from the most effective strategies without the need for constant training and adaptation.

Time Allocation

Delegating marketing tasks to a professional firm allows CPA partners and staff to focus on their core responsibilities, such as financial analysis, tax planning, and client consultations. This leads to increased productivity and better client service.

Measurable Results

Marketing companies provide CPA firms with measurable results and key performance indicators (KPIs). These metrics help firms assess the effectiveness of their marketing campaigns and make data-driven decisions to optimize future strategies.

Scalability

As CPA firms grow, their marketing needs may change. Marketing companies can adapt to these evolving requirements, providing scalable solutions that align with the firm's goals and objectives.

Partnering with a marketing company can be a game-changer for CPA firms aiming to thrive in today's competitive business environment. From targeted marketing and lead generation to enhanced branding and reputation management, the benefits of such partnerships are undeniable. Moreover, the time and cost efficiencies gained by outsourcing marketing tasks can significantly contribute to a CPA firm's overall success.

In a world where the accounting profession is continually evolving, staying ahead of the competition requires a proactive approach. By collaborating with marketing experts, CPA firms can not only survive but also thrive in the digital age, ultimately attracting and retaining more clients while solidifying their positions as trusted financial advisors. The power duo of a CPA firm and a marketing company is a winning combination that unlocks endless possibilities for growth and success. The great news is Anthem Software is here to help. Anthem Software can come alongside any CPA firm and help them with everything listed above and so much more. Contact Anthem today to schedule your FREE virtual demonstration of what they have to offer.

Topics

FICPA Strategic Partners

Why a CPA firm should use a complete digital marketing system

133345 — Thu, 26 Oct 2023 16:50:07 +0000

Why a CPA firm should use a complete digital marketing system

Presented by Anthem

133345 Thu, 10/26/2023 - 12:50

October 26, 2023

In today's digital age, traditional marketing methods alone are no longer sufficient to sustain and grow a successful CPA firm. To stay competitive in a rapidly evolving landscape, CPA firms need to leverage the power of digital marketing. However, simply having a website and a social media presence is not enough. To truly maximize their online presence and drive business growth, CPA firms should embrace a complete digital marketing system. Let’s explore the reasons why a comprehensive digital marketing system is essential for CPA firms and how it can benefit their overall marketing strategy.

Expanding Reach and Visibility

One of the primary advantages of a complete digital marketing system for CPA firms is the ability to expand reach and visibility. By utilizing various digital channels, such as search engines, social media platforms, email marketing, and content marketing, CPA firms can reach a larger and more targeted audience. With a well-designed website optimized for search engines, potential clients searching for accounting services can easily find and connect with the firm. Social media platforms provide opportunities to engage with prospects, share valuable content, and establish thought leadership. Email marketing allows firms to nurture leads, stay top-of-mind with clients, and provide personalized communication. Content marketing, such as blog posts, videos, and whitepapers, positions the firm as an industry expert and attracts organic traffic to the website. By utilizing a complete digital marketing system, CPA firms can significantly increase their online visibility, generating more leads and potential clients.

Building Credibility and Trust

Credibility and trust are crucial factors for any CPA firm. Prospective clients want to work with a firm they can trust to handle their financial matters with professionalism and integrity. A complete digital marketing system can help build credibility and trust by showcasing the firm's expertise and sharing valuable insights. Through thought leadership content, such as blog posts, webinars, and podcasts, CPA firms can demonstrate their industry knowledge and establish themselves as authoritative voices. Testimonials, case studies, and client success stories can be prominently displayed on the website and shared on social media platforms, reinforcing the firm's track record of delivering exceptional results. A well-crafted online presence, including a professional website, active social media profiles, and positive reviews, can further enhance the firm's credibility and instill trust in potential clients. By leveraging a complete digital marketing system, CPA firms can effectively communicate their expertise, track record, and commitment to client satisfaction, ultimately differentiating themselves from competitors and attracting more clients.

Targeted Marketing and Lead Generation

A complete digital marketing system allows CPA firms to implement targeted marketing strategies to reach their ideal clients. By utilizing data analytics and segmentation tools, firms can identify and understand their target audience better. This enables them to create personalized marketing campaigns and deliver relevant content that resonates with potential clients. Through pay-per-click (PPC) advertising, firms can target specific demographics, geographic locations, and search intent, ensuring their marketing messages reach the right people at the right time. Additionally, social media advertising platforms provide highly granular targeting options, allowing firms to deliver tailored ads to specific audience segments. By focusing their marketing efforts on the most relevant prospects, CPA firms can optimize their lead generation efforts and increase their conversion rates. A complete digital marketing system also enables firms to track and analyze the performance of their marketing campaigns in real-time. By monitoring key metrics, such as website traffic, conversion rates, and cost per lead, firms can identify areas for improvement and make data-driven decisions to optimize their marketing strategies. This continuous refinement ensures that CPA firms are consistently generating high-quality leads and maximizing their return on investment.

Enhancing Client Engagement and Retention

Digital marketing offers CPA firms a range of tools and techniques to enhance client engagement and retention. By leveraging email marketing automation, firms can create personalized and timely communication with clients, nurturing the relationship and keeping them informed about relevant updates, industry insights, and upcoming events. Social media platforms provide opportunities for two-way communication, allowing firms to engage with clients, respond to their queries, and address their concerns promptly. Moreover, CPA firms can use social media to share valuable content, such as tax tips, financial planning advice, and regulatory updates, positioning themselves as trusted advisors and fostering client loyalty. A complete digital marketing system also enables firms to gather feedback from clients through online surveys and reviews. This feedback can be used to improve service offerings, address pain points, and further strengthen the client-firm relationship. By utilizing digital marketing tools and strategies, CPA firms can increase client engagement, foster long-term relationships, and improve client retention rates.

Conclusion

In today's digital landscape, a complete digital marketing system is essential for CPA firms looking to stay competitive and grow their business. By expanding reach and visibility, building credibility and trust, implementing targeted marketing strategies, and enhancing client engagement and retention, CPA firms can effectively position themselves in the market and attract more clients. Embracing a comprehensive digital marketing system allows firms to leverage the power of various digital channels, optimize their marketing efforts, and achieve measurable results. It enables them to effectively communicate their expertise, connect with their target audience, and differentiate themselves from competitors. CPA firms that embrace digital marketing and utilize a complete digital marketing system will be well-positioned to thrive in the modern business landscape, establish themselves as industry leaders, and drive business growth. So, if you are a CPA firm looking to take your marketing to the next level, it's time to embrace a complete digital marketing system and unlock the full potential of your online presence. To learn more about the right digital marketing system for you, visit Anthem Software’s 120 Second Tour.

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FICPA Strategic Partners

The FTC’s Safeguards Rule just got stronger - are you ready?

133345 — Thu, 19 Oct 2023 14:37:56 +0000

The FTC’s Safeguards Rule just got stronger - are you ready?

Christophe Réglat, Coaxis

133345 Thu, 10/19/2023 - 10:37

October 18, 2023

The Federal Trade Commission (FTC) recently amended the Safeguards Rule, driving stronger regulations – most of which took effect on June 9, 2023 – requiring covered financial institutions to develop, implement, and maintain a written information security program (WISP) with administrative, technical, and physical safeguards to protect customer information. It defines a "financial institution" as any business that engages in financial activity, meaning CPA and accounting firms must comply with the new laws.

This information supports CPAs/Accountants in understanding how to better comply with the FTC’s new guidance by understanding the different types of protection and testing (such as Penetration Testing/Ethical Hacking) that are required to regularly monitor and assess the effectiveness of their firm's information security safeguards. Additionally, it will support understanding the new regulations and how to develop, implement, and maintain an information security program with administrative, technical, and physical safeguards to protect customer information. By learning the different types of protections and testing (Penetration Testing/Ethical Hacking) required, firms will then understand how to regularly monitor and assess the effectiveness of their information security safeguards beyond just the need to comply.

In an era of digital transformation and an increasingly interconnected business landscape, protecting sensitive customer information has never been more critical. Certified Public Accountants (CPAs) and accounting firms entrusted with vast amounts of confidential financial data face the dual challenge of complying with evolving regulations and safeguarding against sophisticated cyber threats. The FTC has recently issued new guidance that underscores the importance of robust information security safeguards, pushing CPAs and accountants to enhance their practices.

This information is a compass for CPAs and accountants navigating this complex terrain. It offers a comprehensive exploration of how to comply with the FTC's new guidance and exceed the minimum requirements by understanding the various layers of protection and testing. We delve into advanced methodologies such as Penetration Testing and Ethical Hacking, shedding light on their pivotal role in regularly monitoring and assessing information security safeguards' effectiveness.

Moreover, we demystify the intricacies of the new regulations, providing a roadmap for developing, implementing, and maintaining an information security program fortified with administrative, technical, and physical safeguards. Beyond compliance, we emphasize the strategic imperative of safeguarding customer information in an environment rife with cyber threats. By mastering the diverse facets of protection and testing, CPAs and accounting firms will meet regulatory obligations and fortify their data defenses, ensuring trust, integrity, and resilience in an ever-evolving digital landscape.

Under the FTC’s Safeguard Rule, CPAs/Accountants regularly monitor and assess the effectiveness of their firm's information security safeguards. Penetration Testing, commonly known as ethical hacking, involves an authorized attempt to gain unauthorized access to a computer system, application, or data. These "white hat hackers" aim to duplicate the strategies and actions of malicious attackers to expose and remedy weaknesses in an organization's IT infrastructure.

Penetration testing is a crucial cybersecurity practice that provides a proactive element that complements annual security audits. While security audits are essential for assessing compliance and identifying potential vulnerabilities, penetration testing takes a more hands-on approach by actively attempting to exploit those vulnerabilities to determine their real-world impact.

Here's how penetration testing complements annual security audits:

Identifying Vulnerabilities
Security audits typically involve a review of policies, procedures, and configurations to identify potential vulnerabilities in an organization's IT infrastructure. Penetration testing goes further by actively seeking out vulnerabilities through simulated attacks. This proactive approach helps discover vulnerabilities that might be missed during a routine audit.

Real-World Testing
Penetration testing mimics the tactics of real attackers, attempting to breach systems and networks just as malicious hackers would. This real-world testing provides a practical assessment of an organization's security posture, whereas audits often rely on documentation and interviews.

Risk Assessment
Penetration testing not only identifies vulnerabilities but also assesses the potential impact of these vulnerabilities when exploited. This helps organizations prioritize their security by focusing on the most critical risks. Audits, on the other hand, may not always provide such a detailed risk assessment.

Testing Security Controls
Penetration testing evaluates the effectiveness of security controls and incident response mechanisms. It tests how well these controls can withstand actual attacks. In contrast, security audits may focus more on policy adherence and may not adequately assess the operational effectiveness of controls.

Timeliness
Annual security audits provide a point-in-time snapshot of an organization's security posture. However, cyber threats evolve rapidly, and new vulnerabilities emerge continuously. Penetration testing can be conducted more frequently, allowing organizations to adapt to changing threats and technologies in a timely manner.

Compliance Validation
Penetration testing can help validate the effectiveness of security measures required by regulatory standards and industry best practices. This can be especially important for organizations subject to strict compliance requirements.

Incident Response Preparation
Penetration testing can also serve as an opportunity to test an organization's incident response plan. It helps organizations understand how well they can detect, respond to, and mitigate security incidents in real time.

Developing, implementing, and maintaining an effective information security program with administrative, technical, and physical safeguards to protect customer information is crucial for organizations today.

This process involves several key steps:

Assessment and Planning
Begin by assessing your organization's current security posture and identifying the types of customer information you collect, process, and store. Determine the relevant legal and regulatory requirements (e.g., GDPR, HIPAA, etc.) that apply to your firm and location. Establish a security team or designate responsible individuals to oversee the program.

Policy and Procedure Development
Develop comprehensive information security policies and procedures that cover data classification, access controls, encryption, incident response, and more. Ensure that these policies align with industry standards.

Risk Assessment
Conduct a thorough risk assessment to identify vulnerabilities and threats to customer information. This includes assessing both internal and external risks. Prioritize risks based on their potential impact and likelihood and develop mitigation plans.

Access Control and Authentication
Implement strong access controls, limiting access to customer information on a need-to-know basis. Utilize multi-factor authentication (MFA) to enhance user authentication.

Data Encryption
Encrypt customer data both in transit and at rest to protect it from unauthorized access or theft. Implement robust encryption protocols like TLS for data in transit and strong encryption algorithms for data at rest.

Security Awareness Training
Train employees on security best practices and make them aware of their role in safeguarding customer information. Conduct regular security awareness programs and tests to reinforce good security behaviors.

Incident Response Plan
Develop a comprehensive incident response plan to promptly address data breaches or security incidents. Establish clear procedures for reporting and responding to security incidents, including notifying affected customers and regulatory authorities when necessary.

Physical Security Measures
Implement physical safeguards such as secure access controls, surveillance, and alarm systems to protect customer information stored in physical formats (e.g., paper records). Ensure that data centers and server rooms are secure and monitored.

Monitoring and Auditing
Employ security monitoring tools to detect suspicious activities and potential breaches. Conduct regular security audits and assessments to ensure ongoing compliance with policies and procedures.

Documentation and Reporting
Maintain thorough documentation of security policies, procedures, risk assessments, and incident reports. Report security incidents and breaches as required by regulations and notify affected customers promptly.

Continuous Improvement
Review and update your information security program to adapt to evolving threats and technologies. Stay informed about emerging security risks and implement necessary changes.

Third-Party Assessments
If you use third-party vendors with access to customer information, ensure they meet security standards and regularly assess their security practices.

Developing, implementing, and maintaining an information security program with administrative, technical, and physical safeguards is an ongoing process that requires commitment, vigilance, and adaptability. Organizations can better protect customer information and maintain trust in an increasingly data-driven world by following these steps and staying attuned to the ever-changing threat landscape.

Companies should regularly monitor and assess the effectiveness of their information security safeguards for many reasons beyond mere compliance with regulations and standards.

These reasons are crucial for safeguarding their data, reputation, and overall business continuity:

Dynamic Threat Landscape
The cybersecurity landscape continually evolves, with hackers developing new attack methods and exploiting emerging vulnerabilities. Relying solely on static compliance requirements can leave an organization vulnerable to these constantly changing threats. Regular monitoring and assessments ensure that security measures are up-to-date and resilient against evolving attack vectors.

Proactive Threat Mitigation
Waiting for a compliance audit or a security breach to identify weaknesses is a reactive approach that can be costly and damaging. Regular assessments allow companies to proactively identify vulnerabilities and security gaps, enabling them to address these issues before malicious actors exploit them.

Effective Incident Response
Timely detection and response to security incidents are crucial for minimizing the impact of a breach. Regular assessments help organizations fine-tune their incident response plans, ensuring they can quickly and effectively respond to security incidents, thereby reducing downtime and damage.

Data Protection and Trust
Beyond compliance, companies have a moral and ethical obligation to protect their customers' and stakeholders' sensitive information. Demonstrating a solid commitment to data protection through continuous monitoring and assessments helps maintain trust, which is especially critical in industries that rely on customer confidence.

Business Continuity
Cyberattacks can disrupt operations, leading to financial losses and reputational damage. Adequate security measures, validated through regular assessments, help ensure business continuity by reducing the likelihood and impact of security incidents.

Cost-Efficiency
Addressing security vulnerabilities early in their lifecycle is often more cost-effective than dealing with the aftermath of a breach. Data breaches' financial and reputational costs can be substantial, far exceeding the investment in regular security assessments.

Competitive Advantage
Companies that prioritize security not only protect their assets but can also gain a competitive edge. Customers and partners are more likely to trust organizations prioritizing data protection and cybersecurity, potentially leading to increased business opportunities.

Adapting to Regulatory Changes
Data protection regulations and cybersecurity standards are subject to changes and updates. Regular assessments ensure that security measures comply with current legal requirements, reducing the risk of non-compliance penalties.

Third-Party Relationships
Many companies collaborate with third-party vendors and partners. Regular security assessments can verify that these third parties also adhere to necessary security standards, safeguarding the organization against vulnerabilities introduced by these relationships.

Cultural Emphasis on Security
Regular monitoring and assessment contribute to building a culture of security within an organization. Employees become more aware of security risks and their role in mitigating them, making security a shared responsibility.

While compliance is a crucial starting point, it should not be the sole focus of an organization's security efforts. Regularly monitoring and assessing the effectiveness of information security safeguards are essential for staying ahead of emerging threats, proactively addressing vulnerabilities, and maintaining trust with customers and stakeholders. An ongoing commitment to security helps protect sensitive data and contributes to the organization's long-term success and resilience in an increasingly digital and interconnected world.

The evolving landscape of data security and the recent guidance from the FTC underscores the critical need for CPAs and Accountants to go beyond mere compliance when safeguarding customer information. This article has shed light on the multifaceted approach essential for CPAs and firms in understanding and implementing comprehensive information security measures.

By comprehending the diverse types of protections and testing methods, such as Penetration Testing and Ethical Hacking, CPAs are better equipped to meet regulatory requirements and proactively secure sensitive data. The significance of developing, implementing, and maintaining an information security program with administrative, technical, and physical safeguards cannot be overstated. It is a box-checking exercise and a strategic imperative to safeguard clients' trust and uphold professional integrity.

Furthermore, staying informed about evolving regulations and continuously assessing the effectiveness of security safeguards is not just a regulatory obligation; it is a prudent business practice that can mitigate risks, enhance resilience, and bolster the competitive advantage of accounting firms.

In an era where data breaches are increasingly common, CPAs and accountants are pivotal in ensuring customer information's confidentiality, integrity, and availability. Embracing a proactive security mindset, adopting best practices, and leveraging advanced testing methodologies are essential for compliance and building a robust foundation for the future of accounting in a digital age.

Christophe Reglat is President/CEO of Coaxis Hosting, an endorsed program for the FICPA. Coaxis provides CPA firms with an affordable Compliance Portal designed to create and managed the FTC’s required Written Information Security Program (WISP) and Continuous Penetration Testing. For more information call 850-391-1022 or email [email protected]">[email protected]

Topics

Coaxis

FICPA Strategic Partners

Future-proof your accounting practice: 4 effective strategies for year-round cash flow

133345 — Thu, 07 Sep 2023 13:46:56 +0000

Future-proof your accounting practice: 4 effective strategies for year-round cash flow

Presented by CPACharge

133345 Thu, 09/07/2023 - 09:46

September 7, 2023

Maintaining a competitive and successful accounting practice involves an ongoing process of learning and adapting in a rapidly changing landscape. One critical aspect of leading a thriving accounting practice is effectively managing cash flow throughout the year. By adopting modern tech solutions, accounting professionals can streamline cash flow as well as boost their revenue, expand services, and provide additional value to clients.

In this blog post, we will explore the best strategies that accounting professionals can use to prepare for the future and maintain a strong cash flow year-round.

How to Improve Cash Flow for Your Accounting Firm

1. Expand Your Services

Consider building your services to address clients’ needs throughout the year—beyond tax preparation. According to Sage: The Practice of Now, 82% of accountants say clients are more demanding today in terms of wider service offerings. Some service expansions can include:

Bookkeeping: Comprehensive bookkeeping and accounting services can include monthly or quarterly financial statement preparation, general ledger maintenance, and bank reconciliation. Position yourself as a trusted partner who assists clients in maintaining accurate financial records throughout the year.

Financial Planning and Forecasting: Financial planning services help clients set achievable goals, create budgets, and forecast future financial performance. By helping clients make informed decisions about investments, savings, and cash flow management, you become an indispensable resource throughout the year.

Business Advisory Services: Strategic accounting advisory services, including performance analysis, benchmarking, and accounting-specific insights act as a consultant to help clients optimize their operations, identify growth opportunities, and navigate challenges.

Client Advisory Services: A structured framework for delivering ongoing accounting advice and support to clients is an excellent benefit to clients. Regularly schedule check-ins with clients to review their financial performance, address concerns, and provide specialized advice. Consider providing customized reports that reveal real-time insights into their financial health that they can use to make informed decisions.

2. Invest in Tech Solutions

Technology has revolutionized the accounting industry, improving efficiency and creating limitless opportunities for innovation. According to Sage, 83% of accountants believe that they need to keep up with the pace of technology adoption to gain a competitive edge in the market.

The newest technological advancements can help accounting professionals prepare for the future. Here are a few key areas to focus on:

Cloud-based Accounting Software: Transitioning to cloud-based accounting software enables real-time access to financial data, facilitates collaboration with clients, and automates routine tasks. This reduces the risk of errors, saves time, and enhances productivity.

Automated Processes: Implementing automation tools can significantly reduce manual effort and improve accuracy. Automated processes can handle tasks like data entry, report generation, and reconciliation—freeing up time for accountants to focus on higher-value activities.

Data Analytics: Using data analytics tools, like CPACharge’s reporting capabilities, can provide valuable insights into client trends, identify opportunities for cost savings, and enable proactive decision-making. By harnessing the power of data, accounting practices can optimize their operations and provide strategic advice to clients.

3. Revamp Payment Processes

Streamline your payments process to manage cash flow more effectively, which can increase your revenue and eliminate time-consuming tasks. Additionally, a flexible, convenient payment solution like CPACharge can encourage clients to seek out and pay for accounting services. Some frictionless payment processes to improve cash flow include:

Online Payments: Allow clients to pay online with a credit, debit, or eCheck—giving them the freedom to choose how they pay, and the flexibility of paying from any location. Additionally, you can then accept payments from anywhere and don’t need to wait for the client to manually deliver cash or a check. Digitized payments have the additional benefit of remaining consolidated in one centralized location, so you can easily access and review your past payments.

Flexible Options: Increase the number of clients you serve by offering flexible payment options. For example, CPACharge’s Scheduled Payments feature allows clients to pay for services in installments over time. CPACharge also offers accounting fee funding through Affirm, which then handles the entire collection process while you receive the full invoiced amount upfront.

Website Payment Integration: Integrate payment features directly into your website to bolster confidence and create a frictionless path for clients to pay. With this CPACharge feature, clients can access all the information they need, communicate with you, and submit payments all from one starting point.

4. Invest in Professional Development

Stay ahead of industry trends and continuously upgrade your skills to remain competitive. Sage reports that additional skills are needed in the accounting industry, specifically technology literacy, relationship building, and business advisory. Here are a few ways to invest in professional development:

Continuing Education: Encourage accountants within your practice to pursue continuing education courses and certifications, and attend relevant seminars or conferences. This ensures that your team is equipped with the latest knowledge and expertise to provide exceptional client service.

Technology Training: Provide training on new technologies and software relevant to the accounting industry. Empower your team to leverage technology effectively, maximizing productivity and enhancing service.

Mentorship and Collaboration: Foster a culture of mentorship and collaboration within your practice. Encourage experienced accountants to mentor junior staff and facilitate knowledge sharing—strengthening the collective expertise of your team.

As the accounting industry continues to evolve, it is imperative to modernize your accounting practice in order to bolster cash flow year-round. By embracing tech solutions, strengthening client relationships, adopting proactive cash flow management strategies, and investing in professional development, accounting practices can navigate the future with confidence.

Take your accounting practice to the next level with CPACharge, a software solution that goes beyond just payments. Revolutionize your workflows with consistent, reliable payments and robust features made for accounting professionals. Schedule a demo today to discover how you can maintain a profitable business year-round.

Topics

FICPA Strategic Partners

CPACharge

What is employee self-service and how can it increase HR efficiency?

133345 — Tue, 29 Aug 2023 16:57:15 +0000

What is employee self-service and how can it increase HR efficiency?

Presented by Paychex

133345 Tue, 08/29/2023 - 12:57

August 25, 2023

An effective employee self-service (ESS) technology platform may help HR teams focus on more critical aspects of the business.

If your HR team spends a considerable amount of their workday responding to routine employee requests or inquiries around payroll, benefits, and personal information updates, consider how this could be impacting time and resources, as well as burdening them with tasks that can dilute their focus from strategic planning. Maybe the time is right to implement HR self-service tools.

The adoption of an effective employee self-service (ESS) technology platform is one change that may allow HR teams to focus on more critical aspects of the business. An ESS tool may also gain widespread acceptance among employees – whether working remotely, in-office or a mix of both – who increasingly prefer online access to information such as frequently asked questions and benefits and enrollment forms.

What Is Employee Self-Service Technology?

Employee self-service technology makes information and tasks accessible on internet-connected devices enabling employees to perform a variety of HR-related tasks on their own without needing to file paperwork with or even contact HR. Depending on the ESS system, it can handle administrative tasks such as:

Benefits enrollment to update and administer changes to benefits plans and track progress with coverage.
Performance evaluation documentation to help keep employees on track and accountable.
Online training and professional development to offer targeted career growth opportunities and skills development.
Time and attendance tracking to enable better workforce optimization and reporting.
Generating product reports detailing company contributions to their 401(k) plan and employee use of the ESS portal that can help decision-makers evaluate the technology’s adoption and effectiveness.
Routine HR questions and tasks such as updating personal information, payroll preferences and employee access to how much leave they have.

What Are the Benefits of Employee Self-Service Technology for Employers?

The efficiency of ESS technology can be advantageous for HR departments and the business, and allow for a better allocation of resources, faster and more efficient service, and cost savings.

Improved Resource Allocation

Rather than dealing with administrative processes and communicating redundant information, HR professionals can use more time and resources to add insight and expertise to company management. Many HR leaders view their role as a strategic partner more frequently than that of an administrator. Self-service technology can help in furthering HR’s impact on the business.

Faster Service

An ESS portal allows employees to make changes quickly and update personal information (such as their home address) without the need to reach out to HR. Changes can be confirmed on-screen once they are input and received. Sending employee communications can also be quickly disseminated online to ensure prompt delivery. An ESS portal can save HR teams time while giving staff convenience and control.

Employee Engagement

Employee engagement levels can have a direct impact on turnover and the company’s bottom line. By empowering employees with 24/7 secure access to their company and personal information, you can help boost the level that employees are actively engaging with the company — which may positively impact retention and productivity levels. Enabling them to complete tasks without the burden of phone calls or paperwork can reinforce a positive culture for the business.

Cost Savings

Using self-service technology may save money on paper and postage for communications that are not required to be delivered in hard-copy form and may reduce administrative costs associated with incoming inquiries.

Improved Communications

ESS technology platforms can speed and ease the dissemination of important communications. Whether it’s benefits management, employee surveys, training, onboarding, or important company announcements, you can quickly and efficiently keep your employees in the loop in a timely way by sending communications direct to their online portal.

What Are the Benefits of Employee Self-Service?

A self-service tool can be especially helpful for organizations with offsite, remote, and hybrid workforces where it might be harder to access physical resources and information. Giving your workers a way to serve their needs and stay informed, regardless of their physical location, can help them feel confident and successful on the job.

How Employee Self-Service Can Increase Efficiency

An effective ESS portal can help your company reduce the workload for HR staff to free them up for other tasks. Moreover, many working individuals have come to expect self-service options to help them manage their compensation and benefits options. With an ESS system, employees typically could:

Access pay checks online;
View and print federal and state withholding forms;
View and update bank account information for direct deposit;
Confirm employer-initiated employment status, rate of pay, or other changes;
Update personal information such as address, phone number, and other profile details;
View federal, state, or local tax withholding information;
Access online training materials and other career advancement resources; and
Adjust benefits.

An ESS system is also an effective way to make a great impression on new hires, as it can house new-employee information, such as answers to basic questions about pay dates, leave and benefits eligibility.

Potential Challenges to Introducing an Employee Self-Service Tool

The convenience of an ESS may improve worker satisfaction with the company. However, to avoid the perception of disengagement and depersonalization and to encourage employee participation in automated services, businesses must implement self-service thoughtfully.

While user acceptance and system efficiencies can make the transition to ESS well worth the effort, there are certain initial challenges to consider. These being:

Cost of information technology resources: The initial costs associated with implementation must be planned and budgeted for in advance.
Data protection: When employee data is housed online, data security is paramount. The information must be protected, and employees must feel confident in the system's ability to store their personal data safely.
Areas for improvement: When a system is not designed with the end user in mind, it can become difficult to navigate. Errors can arise when employees are familiarizing themselves with new technology. Education sessions for new users, ongoing quality checks, and additional confirmation of benefits selections can help during the initial stages of a self-service tool’s implementation.

Help Employees With the Transition to Self-Service Software

When rolling out an ESS system, remember that some employees may not immediately adjust to accessing documents and information online and may instead feel more comfortable reaching out to HR. Counteract hesitation and maximize adoption by providing workers thorough training on the system and stressing the benefits of immediate access to information, as opposed to waiting for someone to respond to an inquiry. Built-in data analytics can also determine who among your workforce is not using the system or using it incorrectly and may benefit from additional training. If, after implementation, employees still reach out to HR for information available on the self-service portal, consider sending out reminders and offering as-needed training to keep this capability top-of-mind for employees.

The Future of Business and the Role of Self-Service Technology

Ninety-five percent of HR leaders say they plan to invest in technology in the next 12 months to achieve their business, HR, and personal objectives, including ESS. As businesses look toward the future, technology will play a critical role in their business plans. Learn more about the benefits of employee self-service and consider leading HR technologies available on the market today.

Topics

Paychex

FICPA Strategic Partners

Top 5 cybersecurity threats of 2023: What you need to know

133345 — Mon, 05 Jun 2023 15:42:54 +0000

Top 5 cybersecurity threats of 2023: What you need to know

Presented by Coaxis

133345 Mon, 06/05/2023 - 11:42

June 5, 2023

“In this world, nothing can be said to be certain, except death and taxes,” wrote Ben Franklin 1789, nearly 200 years before the arrival of the internet in 1983. If Franklin was alive today, it is a safe bet he would add cybercrime to his list of certainties.

Cybercriminals are constantly evolving their attacks and innovating new ways to breach increasingly sophisticated cybersecurity defenses. Much like a game of whack-a-mole, CPA firms need to be equally diligent to identify and thwart these schemes wherever they pop up.

A good place to start is with this list of what we consider the top five cybersecurity threats in 2023:

1. Business Email Compromise Attacks

Responsible for nearly $2.4 billion in losses in 2021 alone, according to the FBI’s Internet Crime Complaint Center, business email compromise (or BEC) is a form of phishing attack where cyber criminals attempt to trick someone into transferring funds or revealing sensitive information. Unlike standard phishing emails that are sent randomly to millions of people, BEC attacks are crafted to appeal to specific individuals such as bank or credit card customers, making them even harder to detect. The National Cyber Security Centre recommends verifying important email requests using another method, such as a phone call or logging into an account, and being suspicious of urgent emails that contain a veiled threat such as “send these details within 24 hours” or “you have been a victim of crime, click here immediately.”

2. Malware and Ransomware Threats

Expect to see more of this type of activity, particularly related to the conflict in Ukraine and the associated sanctions, according to Forbes Advisor. “Russian state-sponsored organized crime teams that excel at ransomware will help sustain the war efforts.”

Due to the evolving and pervasive nature of malware and ransomware attacks, prevention must start with a cybersecurity risk assessment, according to BDO Digital, along with implementation of the following preventative measures:

Security software: Advanced anti-virus and anti-malware software is a must for all employee devices.
System updates: As malware attacks change daily, ensuring system software is always up-to-date and able to handle new challenges can protect against evolving threats.
Network security: Networks must be assessed regularly to identify weak points and scan for malware, and security must be upgraded regularly for maximum threat mitigation.
Employee security training: Data security breaches are often the result of human error. Educating employees about malware and how it enters computer systems can help them understand the risks and recognize malware attempts.

3. Zero-Day Attacks

A zero-day attack exploits a previously unknown hardware, firmware or software vulnerability before the vendor becomes aware of it. Since no patch exists yet, these attacks are more likely to succeed. Financial institutions are common targets for stealing sensitive financial information or carrying out fraudulent transactions.

Zero-day vulnerabilities can be challenging to detect. Telltale signs to look for include unexpected traffic or suspicious scanning activity originating from a client or service.

One recent example of a zero-day attack involved a vulnerability found in the popular video conferencing platform Zoom. Hackers used it to remotely access the PCs of users running an older version of Windows and, if the target was an administrator, they could completely take over their computer and access all their files.

4. Smishing

Smishing – a form of phishing that uses text messages or messaging apps instead of email – is on the rise in part because more people are shopping on their smartphones. Like phishing, it begins with an unsolicited message.

People are in the habit of opening each and every text message. But while most workplaces have sophisticated email systems that flag or quarantine suspected phishing emails, the same is not true for smishing. When these mobile devices are connected to a company’s network, the attacker can gain access, stealing customer and employee data.

Hackers have also found ways to get around two-factor authentication, explains a cybersecurity expert at the Healthcare Information and Management Systems Society (HIMSS). As an example, a user clicks on a text link that takes them to a decoy model of their bank’s homepage. As they begin entering their login information, hackers program software to simultaneously input the user’s login information into the real bank website. When the bank website responds with a two-factor authentication code via text, the victim will enter it into the fake website and then the software enters it into the real bank site to instantly gain access.

5. Configuration Mistakes

Even the most sophisticated cybersecurity systems are likely to contain at least one error in how the software is installed and set up. The digitally-native business insurance company Embroker reports 80% of external penetration testing reveals exploitable misconfigurations.

Not knowing whether deployed solutions are working as promised is a largely overlooked security risk, according to the pre-eminent research center dedicated to privacy, data protection and information security policy. The Ponemon Institute found that half of IT experts admit to not having a clear picture of their organization’s cybersecurity posture, meaning they are not performing regular internal testing and maintenance.

Cyber risk is on the rise. Today’s hackers are working relentlessly to develop innovative, more sophisticated cyber-attacks faster than organizations can update their protections. Recognizing and defending against these malicious threats as they emerge requires an ongoing strategy of both internal and external testing and maintenance.

Coaxis Hosting is an endorsed program for the FICPA that provides CPA firms with a fully hosted and managed network solution designed to remove the complexities of federal and industry compliances, curb the demands of maintaining an IT infrastructure, and greatly minimize the threat of cybercrime. The company partners with SXIPHER, a leading ethical hacking company that supports clients in shifting from a defensive to an offensive posture by providing in-house penetration tests. To learn more, visit www.coaxiscloud.com/ficpa or contact Lisa Bryant, executive vice president of corporate development, at (850) 391-1022 or [email protected]">[email protected].

Topics

Coaxis

FICPA Strategic Partners

Intuit: Working remotely? Hosting offers always-on access

133345 — Thu, 18 May 2023 13:38:53 +0000

Intuit: Working remotely? Hosting offers always-on access

By Intuit Accountants Team

133345 Thu, 05/18/2023 - 09:38

May 18, 2023

Once the norm, commuting, face-to-face meetings, and 9-5 workdays are no longer typical. Employees expect to work in any environment, on any device, and on their schedule. They want to be able to work anywhere while enjoying the freedom to attend family commitments, doctor’s appointments, and more, without sacrificing their work or ability to grow. With the right approach to attraction, retention, and technology, growing or managing your firm remotely can be a win-win-win for your business, employees, and clients.

When attracting remote employees, your offering should clearly indicate key attributes required to be successful, including organizational skills, time management, excellent communication, and the ability to work without direct supervision. In addition, being specific on how your firm handles remote work gives potential employees a sense of what to expect and makes it more likely to attract the employees you are trying to hire. Who wouldn’t want the best and brightest?

Elizabeth Manso, CPA, founder of Brigade, has found great value in providing potential employees the freedom to work how and when it works best for them—as long as they produce.

“We are results-oriented, and we make that clear to our candidates,” she says. “This means that we understand the need for flexibility, so as long as you get your work done and available for team meetings, you can take care of your personal, as well as your professional, responsibilities.”

With Hosting for Intuit® Lacerte® Tax and Intuit ProSeries® Tax, you create an “always-on” business with the flexibility to delegate, review, and collaborate, anywhere and anytime. With Hosting, you can work together with teammates on a return, using the same data at the same time, allowing your team to do their best work and maximizing the ability of your distributed team to produce results.

Of course, your firm must offer what job seekers are looking for, so how do you ensure they are a good fit for your organization, and what do you do when you realize they are not? Some time-tested rules for in-person hiring should be emphasized when it comes to remote employee attraction and management.

“The most important principle in any hiring situation is even more critical when it comes to remote staff,” said Manso. “Hire slow and fire fast! While this might sound harsh, it is reality. You need to be willing to accept when things aren’t working out, and take action to reduce the negative impact for your firm and all individuals involved.”

By engaging in the hiring process deliberately and interviewing thoroughly, you can better minimize risk to your business. Focus on your core values, mission statement, and expectations. Know who you are, who you serve, and how you serve. Be clear on what is important, find people who share the same values, then leverage technology and Hosting solutions to make the most of your remote team.

Without solid technology in place that allows you to manage work effectively across a distributed team, you invite risk in the form of unhappy or chronically frustrated employees who can be tempted to venture back into the remote hiring pool. Prioritizing the needs of remote workers, especially the ability to easily access and collaborate on the same projects, helps retain the top talent you work hard to acquire.

At Brigade, a results-oriented, incentivized culture embraces the power of technology to give remote associates freedom and flexibility, while the business strategy rewards performance. “Brigade also incentivizes our team,” said Manso. “For example, we offer a commission on clean-up projects and a new client bonus, so team members have the incentive to fit a new client into their roster and meeting timelines efficiently.” Brigade also awards quarterly bonuses based on team performance and provides annual bonuses based on tenure.

In addition to monetary rewards and flexibility, top talent is often seeking something more from their employer: growth, which Manso leverages as another incentive at Brigade.

“One of the key selling points we have for remote team members is that they really have no limit to their growth if they are willing to do the work necessary to excel. For high performing talent, the opportunity to work remotely and also have growth opportunities is a big plus.”

Hosting features automated backups and updates, and seamlessly integrates with your software for uninterrupted workflow. For you, that means less time spent managing software and IT issues, and more time to focus on your business. And it is secure. Hosting tax software in the cloud provides protection beyond the limits of your computer or local server. With Hosting for Intuit Lacerte and ProSeries, you gain layers of security measures, including data encryption, an enterprise firewall, no vulnerability of physical data storage, and the added confidence that it meets all IRS “Security Six” requirements.

By addressing the reality of a remote or hybrid workforce, the cloud allows firms to grow and optimize their business in new ways, while simultaneously prioritizing the needs of the team, customers, and business. When firms spend less time on IT management, they have more time to prioritize the things that are most impactful for their business to survive, such as growth, managing client relationships, and empowering employees to do their best work.

The Intuit® Accountants team provides ProConnect™ Tax, Lacerte® Tax, ProSeries® Tax, and add-on software and services to enable workflow for its customers. Visit us at https://proconnect.intuit.com, or follow us on Twitter @IntuitAccts. More from Intuit Accountants Team

Discover the advantages of the cloud for your practice and get more information on Lacerte and ProSeries cloud-hosting solutions.

Topics

FICPA Strategic Partners

Intuit

Paychex: Businesses have until 2024 to claim the Employee Retention Tax Credit retroactively

133345 — Fri, 28 Oct 2022 13:47:28 +0000

Paychex: Businesses have until 2024 to claim the Employee Retention Tax Credit retroactively 133345 Fri, 10/28/2022 - 09:47

October 28, 2022

Businesses can no longer pay wages to claim the ERTC, but they have until 2024 to do a look back on their payroll during the pandemic and retroactively claim the credit by filing an amended tax return.

Although the ERTC program has officially sunset, this does not impact the ability of a business to claim ERTC retroactively. Businesses have up to three years from the end of the program to conduct a lookback to determine if wages paid after March 12, 2020 through the end of the program are eligible.

What is the ERTC?

The ERTC is a refundable credit that businesses can claim on qualified wages, including certain health insurance costs, paid to employees.

How Do the Credits Work?

The American Rescue Plan Act stipulates that the nonrefundable pieces of the ERTC will be claimed against Medicare taxes instead of against Social Security taxes as they were in 2020. However, this change will only apply to wages paid after June 30, 2021 and will not change the total credit amount.

If the credit exceeds the employer’s total liability of the portion of Social Security or Medicare, depending on whether before June 30, 2021 or after in any calendar quarter, the excess is refunded to the employer. At the end of the quarter, the amounts of these credits will be reconciled on the employer’s Form 941.

What Employers Qualify for the Employee Retention Credit?

Most employers, including colleges, universities, hospitals and 501(c) organizations, could qualify for the credit. Previously, the Consolidated Appropriations Act expanded qualifications to include businesses who took a loan under the Paycheck Protection Program (PPP), including borrowers from the initial round of PPP who originally were ineligible to claim the tax credit.

Qualification is determined by one of two factors for eligible employers — and one of these factors must apply in the calendar quarter the employer wishes to utilize the credit:

A trade or business that was fully or partially suspended or had to reduce business hours due to a government order. The credit applies only for the portion of the quarter the business is suspended, not the entire quarter.
An employer that has a significant decline in gross receipts.

What Wages Qualify When Calculating the ERTC?

Wages/compensation subject to FICA taxes, as well as qualified health expenses qualify when calculating the ERTC. These must have been paid after March 12, 2020 and qualify for the credit if paid through Sept. 30, 2021 (Recovery Startup Businesses had until Dec. 31, 2021). The credit can only be taken on wages that are not forgiven or expected to be forgiven under PPP.

Are Tipped Wages Included in Qualified Wages?

IRS notice 2021-49 clarified that tips would be included in qualified wages if these wages were subject to FICA. If tips are over $20 in a calendar month for an employee, then all tips (including the first $20) would be included in qualified wages for the purpose of the retention credit.

What is the Interaction with Other Credits and Funding Sources?

There is no double-dipping for credits. Employers who take the ERTC cannot also take credit on those same qualified wages for paid family medical leave. If an employee is included for the Work Opportunity Tax Credit, they may not be included for the employee retention credit. Remember, the credit can only be taken on wages that are not forgiven or expected to be forgiven under the PPP.

Looking Forward

If employers have questions or need more information, they should work with their accountant and payroll specialist. Learn more about the Paychex ERTC Service here.

Paychex is proud to be the preferred provider of HR, payroll, and retirement services for the FICPA’s members. Contact Paychex at [email protected]" rel=" noopener" target="_blank">[email protected] and learn more on the ERTC by clicking here.

Topics

FICPA Strategic Partners

Paychex