PPP Loans Affect 2020 Business Taxes

Occupational fraud prevention & detection require a company to set up a reporting system, implement internal controls, & engage employees. In Part 1, we talked about three types of fraud, and the “fraud triangle”.  In Part 2 we will discuss fraud prevention and detection to reduce losses. Preventing fraud is much easier and less costly […]

Internal fraud is a universal and an “evergreen” problem across all industries and cultures. Failure of ethics and the struggles therewith are just part of human nature. A typical organization loses about 5% of its annual revenue each year due to employee fraud (2014 Report to the Nation on Occupational Fraud and Abuse, by the […]

Digital Transformation Post COVID-19 in the business world will see continued changes in digital transformation, DTC, platform model, brand building and digital marketing. Get Ready for the Post-COVID-19 Business Reality As more and more people are getting vaccinated in the US, and offices are starting to reopen beginning of this summer in 2021, it is […]

The US Congress rules that expenses covered by PPP loans are tax-deductible; second round of PPP loans have simplified application for loans under $150k. Expenses With PPP Money Are Tax Deductible Out of the window now: all IRS rules about not allowing deducting expenses with Paycheck Protection Program (PPP) loans on tax returns.  New rules […]

The IRS rules that payroll and business expenses that PPP loans helped to cover in 2020 are not deductible in determining 2020 business taxes. For businesses that took out PPP loans in spring 2020, the IRS does not allow “double dipping” by deducting business expenses associated with the forgivable portions of your PPP loan, as […]

Though the forgiven portion of a PPP loan is non-taxable, taxable income is also higher since payroll and other expenses are not deductible. The US Federal government doled out more than $500 billion forgivable PPP loans under the CARES Act to small businesses in order to help keep employees on payroll and pay for rent […]

This article is based on the book “Profit First”, by Mike Michalowicz, and a presentation by Gabriel Dutari about applying the Profit First principles (https://www.youtube.com/watch?v=a1XzaaJBmRQ&feature=youtu.be) About 99% new businesses are started not by financial experts, but by specialists or technicians such as engineers, architects, lawyers, chefs, artists, who are very good at what they do, […]

COVID-19 is changing the macroeconomic climates as well as impacting individual entities. Your annual, quarterly and monthly budgets and financial forecast during this uncertain time has become a moving target, as the economy shuts down, reopens, and recovers. Since April, 2020, we have experienced business shutdown, PPP and EIDL loans, and undoubtedly more uncertainties for […]

Covid-19 has forced many businesses to conduct daily operations online, including accounting and finance. A cloud based system can improve collaboration and efficiencies in financial and accounting consolidation, reporting and teamwork. There are different types of subscription-based Software as a Service (SaaS) for accounting, such as QuickBooks Online, SlickPie, Sage 50, Zero and Kashoo.  A […]

The Paycheck Protection Program  (PPP) loan program is scheduled to end June 30, 2020.  The new PPP legislation has changed the Paycheck Protection Program Loan to make it easier to qualify for forgiveness up to 100%: You now have up to a 24-week Covered Period (previously 8 weeks) to spend loan funds starting the date […]

As our economy is going through dramatic changes due to Covid-19, it is time to re-examine your company’s balance sheet and income statement to make adjustments or even changes in direction in order to survive and thrive.  This article addresses what you need to do in this regard, following my last blog where I talked […]

The world today is very different than it was 6 weeks ago. Before the Covid-19 lockdown, the U.S. economy was strong, the  bull market was high, and unemployment was low.  As our economy is slowly and gradually opening up, we are facing unprecedented unemployment, business closures, large numbers of people working from home, and many […]

In Part 1, we discussed CAC (customer acquisition cost), how to use it and its limitations. In Part 2 here, we will explain about CLV and CLV to CAC ratio. CLV – Customer Lifetime Value CLV (sometimes referred to as LTV) represents the total amount of revenue a business gets from a customer over the […]

The CAC metric and other related metrics of CLV and CLV to CAC ratio are used to measure companies’ internal operation and investment in marketing and sales, as well as by investors to assess scalability of recurring revenue business models, especially fast growing internet companies such as subscription-based SaaS companies and e-commerce, web-driven businesses.  The […]

As 2020 is unfolding, businesses are budgeting for the entire year. The budget process is more than predicting costs and profits. It is about planning ahead for all scenarios in case sales goals go up, down or remain the same. The importance of having an annual budget  Careful budgeting gives a realistic picture about how […]

Happy Holidays from a2zCFO and Rolf Neuweiler, Principal consulting CFO. Please make use of this Federal and CA Tax Information. As 2019 is drawing to a close, I hope the attached “Fast Tax Facts” with both Federal and CA tax information at a glance, – thanks to CalCPA, will make your tax preparation a little […]

In July 2019,  in Part 1, we discussed about detection of internal fraud and employee theft in a company. In Part 2  here we are discussing about ways for fraud prevention. Internal fraud and employee theft in a workplace can be catastrophic to any company, it can be life threatening to a small business with […]

In the book “The Seven Signs of Ethical Collapse” by Marianne Jennings, JD., these seven signs are listed for spotting an organization’s ethics crisis that can bring down corporations like Enron and other businesses and nonprofits: Pressure to maintain the business numbers  Culture of fear and silence  A “bigger than life” CEO and awe-struck direct […]

In our last blog, we talked about EBITDA and EBITDA margin, and stated that it is better to use both GAAP metrics and EBITDA to determine an organization’s financial health. Under the guidelines of GAAP (generally accepted accounting principles) requirements for corporate accounting, a profit margin is calculated using one of the three principles: gross […]

What is EBITDA? EBITDA is the abbreviation for “Earnings Before Interest, Taxes, Depreciation and Amortization.”  It is a measure of overall profitability of a business. How are EBITDA and EBITA margin calculated? EBITA = earnings before interest, taxes, depreciation, and amortization. EBITDA margin = EBITDA divided by total revenue.  EBITDA and EBITDA margin help determine […]

Internal fraud by employees in a workplace can be catastrophic to any company, it can be life-threatening to a small business with limited resources.  In Part 1, we will discuss about employee theft and fraud audit detection. Next month in Part 2 we will address prevention issues. Who steals from employers? According to the shocking […]

Wait until full retirement age will maximize benefits amount The general rule of thumb is that if you postpone taking social security benefits until after your full retirement age, you will receive a higher monthly benefit.  But after reaching full retirement age, there is no more gain from delaying claims. Remember, the earliest a person […]

Every day we get calls and receive emails from unknown sources and spammers. The following are not exhaustive lists of scams, as identity thieves are “evolving” with more sophisticated ways to breach cyber security. Here are the top 10 scams from Consumer Reports: Debt collection Fake government officials – IRS, Social Security, State Department, etc. […]

Many people reported that they have received IRS impersonators’ calls, and sadly some fell victims of various scam schemes after being intimidated into paying a fabricated tax bill. Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, […]

One thing is certain … CHANGE! Change is always happening; but now with more velocity than ever. We invite you to learn about changes in the law, fraud protection and the local and national economy at a presentation hosted by Mechanics Bank and Lafayette Professionals Group. Changes Join us at Mechanics Bank, 3640 Mt. Diablo […]

In January 2019, I talked about financial and management pitfalls for growing small businesses at a professional networking group meeting. Last month in Part 1 of the two parts, we first focused on potential pitfalls related to lacking strategic goals and skills. Here in Part 2 I am listing some pitfalls related to leadership, internal […]

Part 1 of 2: PITFALLS FOR A GROWING SMALL BUSINESS In January 2019, I talked about financial and management pitfalls for growing small businesses at a professional networking group meeting. Here in Part 1 of the two parts, we first focus on each potential pitfall related to lacking strategic goals and skills. In Part 2 […]

This is the last of three parts about cash flow problems and solutions for small businesses. In Parts 1 and Part 2, we discussed seven preventive strategies for all businesses: 1.) Get accounting books organized. 2.) Use a cash-flow budget. 3.) Get customers to pay quickly. 4.) Rein-in unnecessary spending and stay alert to potential […]

This is the second of three blogs about cash flow problems and solutions, particularly relevant to startups, and also for small businesses. In Part 1, we discussed the first three of seven preventive strategies for all businesses: 1.) Get accounting books organized. 2.) Use a cash-flow budget. 3.) Get customers to pay quickly. Here in […]

This is the first of three blogs about cash flow problems and solutions for small businesses. Cash flow management is key for a small business to succeed About 82 percent of startups and small businesses fail due to poor cash flow management. Businesses experience cash flow problems when they cannot timely pay employee salaries and/or […]

Common Accounting Pitfalls & Solutions for Small Businesses About 28 percent of companies go bankrupt due to problems with a company’s financial structure, according to a study undertaken by the Small Business Administration. Good bookkeeping and accounting practices not only can avoid many problems to make it easy for tax filings, new loans, and pitching […]

We all have heard these:  “Money doesn’t grow on trees.”  “Save money for a rainy day.” “Failing to plan is planning to fail.” However, about ⅔ of Americans do not budget. Many live paycheck to paycheck. Financial stress often spills into relationships and family life.   Budgeting is about intentional spending and mindful living. Budgeting […]

Failing to plan is planning to fail, that is why budgeting can help a business achieve financial success, predict profitability, provide a model for performance, formulate plans and strategies, and forecast income and expenditures. Planning and Forecasting A budget provides insight into a company’s financial position for the near future.  A budget is a tool […]

In the tax reform bill Congress approved last December, entertainment, amusement, or recreation or any expenses with respect to such a facility do not qualify for a tax deduction. Where does this leave “meals”? I have received many questions asking if meals are still deductible. Companies’ Holiday Parties: 100% Deductible Employee Only / Holiday Parties […]

Maximizing tax savings for a company and its owner requires teamwork between both its CFO and CPA, each contributing different perspectives, skills, and functions. However, many business owners believe that they do not need a Chief Financial Officer (CFO) when they have a tax CPA. There is good reason for this confusion as some CFOs […]

As with all business systems, accounting software and systems become outdated and inappropriate for a company’s growing needs.  There is always a great deal of excitement and anxiety when implementing a new accounting package.  Throughout my career I have been involved with many system conversions.  Time and time again these conversions often seem to be […]

Why do companies need timely and accurate financial statements? CEOs and business owners need to be always in the know about cash flow, sales growth, profit margin changes, and administrative costs. Managing a business requires its leaders to be constantly monitoring its “vital signs”. Financial Statements consist of Balance Sheet, Income Statement, and Statement of […]

Technical vs. Strategic CFO: From 80-20 to 20-80 Stage One: 80-20: Technical CFO, 80%: In the beginning, a technical CFO acts as a “financial fireman” due to messy books, audit, late payment, and other sorts of glitches and failures in a company’s financial system. About 80% of  the service is putting house in order, like […]

Announcing the birth of a2z CFO! With great pride, delight, and gratitude, I am introducing you to a2z CFO, a consulting CFO firm serving small to medium sized businesses, family offices, and non-profit organizations. I am Rolf Neuweiler, founder and principal consultant. With 30 years of financial experience, including Chief Financial Officer and Controller responsibilities, […]

For a large organization, a Chief Financial Officer (CFO) is a full-time financial leader, working side by side with its CEO. Think of a CFO as a “co-pilot”, and a CEO as the “captain” of a passenger airplane. They both focus their brains and eyes on moving the plane forward to its destination. A controller […]

In today’s electronic shopping world, businesses can purchase goods with a click of a button.  Many times, items are purchased from out of state vendors, thru the internet, or under sales tax exemption certificates resulting in the vendor NOT collecting sales tax.  However, with the concept of use taxes, you still may owe taxes to […]