As we are approaching the last quarter of 2017 and many of our clients are preparing for their annual events, it is always good to keep in mind the IRS substantiation requirements for contributions. The IRS requires donors to have contemporaneous written acknowledgement from the non-profit organization for each charitable contribution that exceeds $250 in […]
Updated travel per diem rates go into effect October 1. To simplify recordkeeping, they can be used for reimbursement of ordinary and normal business expenses incurred while employees travel away from home. Per diem advantages As long as employees properly account for their business-travel expenses, reimbursements are generally tax-free to the employees and deductible by […]
Income from endowment funds may be able to help your not-for-profit meet operating expenses, ease cash-flow problems and supplement next year’s annual budget. But you need to pay attention to several factors, including investment performance, inflation, operational changes and — the only factor you can truly control — your nonprofit’s spending policy. Know your restrictions […]
The liquidity and availability disclose requirements in ASU 2016-14 will likely be the most challenging for nonprofit organizations to adopt because it asks for information that the nonprofit organization has not typically had to disclose. The required disclosures include: 1. Qualitative Information (description) – how the organization manages its liquid resources available to meet cash […]
The changes to the statement of cash flows in ASU 2016-14 are probably the easiest to implement. Organizations will continue to have the option to use the direct or indirect method of reporting cash flows from operating activities. However, the previous requirement to present an indirect reconciliation if the direct method is used has been […]
One important step to both reducing taxes and saving for retirement is to contribute to a tax-advantaged retirement plan. If your employer offers a 401(k) plan, contributing to that is likely your best first step. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. Because of […]
One health care arrangement that has been soaring in popularity in recent years has been the pairing of a high-deductible health plan (HDHP) with a Health Savings Account (HSA). The good news is that not only does an HSA provide a tax-advantaged way to pay for health care costs, but it also can help you […]
The third major change that is a part of ASU 2014-16 relates to expense reporting. The new standard will require all organizations to report expenses by both functional and natural classification in the same place on the financial statements. The standard provides a few options for the presentation: 1. Present a statement of functional expenses […]
The second major change in ASU 2016-14 relates to investment return. The new standard will standardize the reporting of investment return across all nonprofit entities. 1. All external and direct internal investment expenses will now be required to be netted against investment return on the statement of activities. 2. There will no longer be a […]
There is a major change on the horizon for nonprofit financial statements, are you ready? Last August, the Financial Accounting Standards Board (FASB) issued ASU 2016-14, Not-for-Profit Entities (Topic 958) – Presentation of Financial Statements of Not-for-Profit Entities. This is the first major change to the nonprofit financial statement model in over 20 years. It […]
Our offices will be closed Friday, May 24 through Monday, May 27 to allow our staff a long weekend to celebrate the Memorial Day holiday.
It’s summer time and we want our firm members to have the opportunity to take advantage of the warm weather. Our offices will be closing at noon eve…
Squire, Lemkin + Company, LLP is a Rockville, MD accounting firm providing audit, tax, accounting and not-for-profit consulting services to companies across the East Coast. Our firm has expertise in not-for-profit Organizations, Entrepreneurial Businesses, Professional Service Firms, High Net Worth Individuals, Estates and Trusts, Employee Benefit Plans and Individual Tax Returns.
We serve clients from our office Rockville, MD. We serve the Maryland, Virginia and Washington, D.C. metropolitan area.