| ACCOUNTANTS
CPA HARTFORD, LLC of CONNECTICUT William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor 46 Mildrum Road, Berlin, Connecticut 06037 Telephone: (860) 828-3269 Email: info@cpa-connecticut.com ACCOUNTING AND TAX
ARTICLES BY WILLIAM BRIGHENTI, CPA
|
| SFAS 123R
With the
implementation of SFAS123R, the
calculated value method is now required for nonpublic companies without
an internal market for its stocks or options, or for those unable to
identify similar public entities for which share or option price
information is available, to value its stock options. The
implementation of the calculated value method requires the use of an
option pricing model and a volatility measure of an appropriate
industry sector index. Herein is a comprehensive example of the
calculated value method, illustrating in minute detail each step in its
calculations of the valuing of a typical stock option of a nonpublic
company. |
| IPIC METHOD This articles illustrates the use of the Inventory Price Index Computation (IPIC) method, wherein the taxpayer computes an inventory price index (IPI) based on the consumer price indexes (CPI) or producer price indexes (PPI) published by the United States Bureau of Labor Statistics (BLS). |
| PERCENTAGE-OF-COMPLETION
ACCOUNTING This
article introduces the percentage-of-completion method of accounting to
contractors in simplified terms, including calculations and journal
entries. |
| QUICKBOOKS
CONTRACTOR EDITION An
introduction to preparing Completed Contracts and Work-in-Process
reports using the Quickbooks Contractor Edition. |
| CONSTRUCTION
TAX METHODS Choosing an
appropriate tax accounting method for a contractor is explored and
explained, listing the various methodologies available and the
respective requirements. |
| ACCOUNTING
METHODS FOR CONTRACTORS Internal
Revenue Service summary of the accounting methods for contractors,
including the cash, accrual, percentage-of-completion, and completed
contracts methods. |
| QUICKBOOKS
TRAINING William Brighenti,
Certified Public Accountant and Certified QuickBooks ProAdvisor, offers
classes, webinars, and one-on-one individualized training in
Quickbooks, whether you are an advanced, intermediate, novice. |
| LONG TERM CONTRACT
DEFINED The
Internal Revenue Service specifies a precise definition of a long term
contract. |
| COMPLETED-CONTRACT
METHOD Article explains and illustrates by way of journal
entries
the methodology of the Completed-Contract Method of Accounting for
contractors and manufacturers. |
| FADE
ANALYSIS Fade analysis is a
critical analytical tool utilized in reviewing percentage-of-completion
schedules and financial reports to detect unusual variances in gross
profits, job cost shifting, errors, and fraud. |
| HIRING
A
CONSTRUCTION CONTROLLER Before
hiring a construction controller through an employment agency, read
this article on how to save from $20,000 to $35,000 in recruiting fees!
You can do a better job hiring your own controller and save thousands
of dollars in the process. |
| WHY
PREPARE YOUR OWN WORK-IN-PROCESS (WIP) SCHEDULE? Also
known as work-in-progress or construction-in-process
schedules, contractors and manufacturers should always prepare these
schedules in-house before submitting their financial data to outsiders,
including their external certified public accountants, bonding agents,
and financial lenders. |
| HOW TO PREPARE
A
WORK-IN-PROCESS (WIP) SCHEDULE Don't
know
how to prepare a
work-in-process schedule? This article explains and illustrates the
entire process with various formats included. |
| SIMPLIFIED
EMPLOYEE PENSION (SEP) PLANS This
article
is directed to
the young, mom-and-pop business owner who is paying too much in taxes.
SEP plans offer big tax savings, with an even bigger retirement
account, so you can retire at 59-1/2 and enjoy life. |
| IRS INSTALLMENT
AGREEMENT
AND PENALTY ABATEMENT REQUEST Can't pay
your taxes? Has the Internal Revenue Service
charged you penalties on failure to file a tax return or failure to pay
your taxes? File these two forms and obtain relief and save thousands
of dollars in taxes. |
| FREE
MARKET
DATA FOR YOUR BUSINESS PLAN Why
pay hundreds or thousands of dollars for market data of your
competitors in order to prepare a business plan, which you are
submitting in order to obtain a small business loan? In this article is
explained how and where you can obtain the market data for free. |
| TAX
DEDUCTIONS FOR TEMPORARY ASSIGNMENT WORK Have you
been
recently been laid off like so many Americans,
and have accepted temporary work assignments as an independent
contractor, and if so, are you aware of the many tax deductions
available to you? |
| CASH FLOW SCHEDULE BY
CONTRACT An analytical tool to spot cash
flow problems on
contracts, projects, and jobs and to anticipate liquidity problems for
manufacturers and contractors. |
| ROLL OVER
AS BUSINESS STARTUP | ROBS Rolling over a 401(k) plan to
purchase a franchise or finance the startup of a business may invite
scrutiny from the Internal Revenue Service. Recommendations are
provided in the implementation of a ROBS program. |
| SHAREHOLDER
BASIS IN S CORPORATION The
shareholder basis in S corporation is a function of both basis in stock
owned as well as loans provided to the S corporation. The calculation
of stock and loan basis of a closely-held small S corporation is
explained with examples. |
| LOSS ON SALE OF HOME Considers the tax implications of renting
a home
before selling it, using a hypothetical example. |
| MARRIED
BUSINESS PARTNERS ELECTION
NOT FILE AS PARTNERSHIP Wish to save on the
needless tax return preparation fees of filing Form 1065, U.S. Return
of Income, and its accompany state informational return? Elect not to
file the partnership return as a qualified joint venture. Read how you
can make this simple election. |
| UNIFORM
CAPITALIZATION RULE SECTION 263A Learn
how to apply the UNICAP rule to include additional Section 263A costs
in inventory using the simplified production method and the simplified
service cost method. |
| HOME OFFICE QUALIFICATION CRITERIA
Want to know if you as an
employee or a small business owner can claim
your home office as a significant deduction on your tax return? |
| ACCOUNTING AND TAXES SIMPLIFIED BLOG Have an accounting or tax question? Interested in perusing various articles on accounting and taxes? Have something to say about accounting and taxes? Please visit our blog. All are welcomed. |
| HOW TO FIGURE YOUR HOME OFFICE DEDUCTION Be certain to deduct all of those home office expenses on your tax return by reading this article. |
| EMPLOYEE VERSUS INDEPENDENT CONTRACTOR Is your worker an employee even though you engaged him as a subcontractor? Are you entitled to unemployment insurance even though you were hired as an independent contractor? |
| HOME BUYER TAX CREDITS On November 6, President Barack Obama signed into law a new home buyer tax bill, extending $8,000 tax credit for the first-time home buyer and providing a $6,500 tax credit for repeat home buyers |
| DEDUCT YOUR NEXT CRUISE Do you wish to deduct your next cruise? You may be able to deduct thousands of dollars of travel expenses on a Caribbean cruise. |
| HOW
TO CALCULATE YOUR OFFER IN COMPROMISE If
you do not determine your "Reasonable Collection Potential" correctly,
your Offer in Compromise is destined to be rejected by the Internal
Revenue Service. |
| PARTIAL PAYMENT INSTALLMENT AGREEMENT
Enacted in 2005, this agreement allows a taxpayer to settle his tax
liability for the full amount; however, it has an "open door" policy,
allowing the IRS to change your installment payments every two years. |
| INSTALLMENT
AGREEMENTS OR OFFER IN COMPROMISE How do you know which
agreement is right for you
to settle your tax assessment? A wise choice may save you
thousands of dollars and aggravation. |
| 2009 NET OPERATING LOSS CARRYBACKS The Worker, Homeownership, and Business Assistance Act of 2009 (WHBA), enacted on November 6, 2009 amends ยง 172(b)(1)(H) election of the Internal Revenue Code to allow all taxpayers to elect to carry back an applicable net operating loss (NOL) for a period of 3, 4, or 5 years, or a loss from operations for 4 or 5 years, to offset taxable income in those preceding taxable years. |
| GENGHIS KHAN AND THE
CONTROLLER Are you an employer, hiring one controller after
another? This article is meant for you, Genghis Khan. |
| THE MEANING OF
"ORDINARY AND NECESSARY EXPENSE" What precisely does this tax
phrase in Section 162(a) of the Internal Revenue Code mean? |
| THE MAKE DEPOSITS
FEATURE IN QUICKBOOKS If you are having difficulty doing bank
reconciliations in QuickBooks, try using the Make Deposits feature when
entering cash receipts and credit card transactions in
QuickBooks. Bank reconciliations that might require an inordinate
amount of time to complete are greatly simplified, allowing a ready
comparison of amounts posted in QuickBooks to deposit amounts shown on
your bank statements. |
| QUICKBOOKS CHART OF
ACCOUNTS
Do you know how to set up your chart of accounts in QuickBooks?
Does your chart of accounts in QuickBooks need to be modified?
It's easy to do, when you understand the mechanics. |
| QUICKBOOKS QUICK
TRICK TO RECONCILE PAYROLL BANK ACCOUNT Are you experiencing
difficulty reconciling your payroll bank account in QuickBooks?
Here is a trick and some tips that you may find helpful. |
| REQUIRED DOCUMENTATION FOR CASH AND NONCASH CONTRIBUTIONS
Be advised that the IRS is scrutinizing charitable contributions very
carefully. Consequently, meet all of its documentation
requirements in order to claim cash and noncash contributions, avoiding
penalties and other expenses. |