Journal of Accountancy articles from January 2004

Journal of Accountancy archives from January 2004

Preparing for success on the revised CPA exam: review course providers discuss getting ready for the test's new format and content.
January 1, 2004... In November the Uniform CPA Examination's paper-and-pencil format became history; the next group of candidates will take a computer-based test. The exam's modified form and content reflect not only technological advances but also the...

Stanley Person.(CPA, founder, and managing partner of Person and Co.)(Obituary)
January 1, 2004... 1934-2003 CPA Stanley Person, the founder and managing partner of Person and Co. in New York City, died on November 1, 2003, at the age of 69, after a long battle with heart disease. Person, who devoted much of his professional life to...

Catch the warning signs of fraud in NPOs.(nonprofit organizations)
January 1, 2004... With their high fund-raising and performance goals and with volunteers often handling money and keeping accounting records, nonprofit organizations can be prime targets for fraud, Here are some of the red flags CPAs can advise NPO employers and...

Working with a solicitor to get new business: how to use external marketers to expand your practice.(Cover Story)
January 1, 2004... EXECUTIVE SUMMARY * IN THEIR SEARCH FOR NEW CLIENTS, CPAs with wealth management practices may wish to pay outside marketers to solicit business on their behalf. Additional good referral sources include CPAs who don't themselves offer...

Improve the quality of investment advice: a volume of recommended practices shows CPAs how to deliver competent and objective financial tips.
January 1, 2004... The vast majority of the nation's investable wealth is in the hands of fiduciaries--more than five million men and women responsible for managing others' money. While corporate malfeasance has cost shareholders billions in losses, such damage...

Corporate governance and client investing: selecting top-notch money managers is key in a post-Sarbanes-Oxley world.
January 1, 2004... EXECUTIVE SUMMARY * AS CORPORATE GOVERNANCE ISSUES TAKE ON INCREASED importance in the value of a stock, CPAs should take the opportunity to get ahead of the curve and help clients monitor such issues. There is general agreement that the...

Facilitate your way to new business: here's how to be an effective facilitator and get work in this arena.
January 1, 2004... EXECUTIVE SUMMARY * FACILITATORS SHOULD ENJOY BEING IN FRONT of a group. Emotional maturity and the ability to think quickly on their feet are essential attributes of good facilitators. The major prerequisite for the job, though, is an...

Collaborate on spreadsheets: how to share Excel files with others on your network.
January 1, 2004... Would you like to be able to gather spreadsheet data from people throughout your organization, automatically producing detailed reports or summaries that then can be shared with colleagues? Or would you like a team of users to be able to work...

Make money with basic accounting software: clients who need help with entry-level programs represent a healthy market for CPA services.
January 1, 2004... EXECUTIVE SUMMARY * SMALL BUSINESS ACCOUNTING SOFTWARE is providing new client-service opportunities for CPA firms because clients need just as much help as ever, with basic installation and weekly bookkeeping to higher-value accounting,...

Integrity in action: our core values translate into actions that drive positive change.(accountants)
January 1, 2004... I have worked in the same community and in the same CPA firm, Robinson, Grimes & Co., for 28 years and have been fortunate to have been influenced by others who taught me about volunteering in my church, in education, in my profession and in...

Military call-up prompts focus on USERRA: the law gives job and benefits protection to reservists returning from active duty.(Uniformed Services Employment and Reemployment Rights Act of 1994)
January 1, 2004... EXECUTIVE SUMMARY * THE UNIFORMED SERVICES EMPLOYMENT AND Reemployment Rights Act of 1994 (USERRA) gives employees who take a leave of absence for active military service certain statutory rights--not only to reemployment but to specific...

FSAs and over-the-counter medications.(flexible spending accounts)
January 1, 2004... A recent ruling by the IRS has given individuals who have "cafeteria plans" at work and who elect to fund medical reimbursement accounts an opportunity to be reimbursed for a much wider range of health-related expenses (also see From the Tax...

New alternative minimum tax trap.(US Court of Federal Claims decision in Ventas, Inc. v. United States)
January 1, 2004... The alternative minimum tax was designed to make sure taxpayers who took advantage of loopholes and shelters paid at least some federal income tax. As regular tax rates decline, more and more Americans are finding themselves subject to the AMT....

No annual gift tax exclusion for gift of LLC membership units.(limited liability company)
January 1, 2004... Generally speaking, IRC section 2503(b) allows donors an annual gift tax exclusion on the first $11,000 (the statutory $10,000 adjusted for inflation for 2003) of gifts made to each person during the year. The code specifies that gifts of...

Questions and answers on "In the Money?".(followup to article in Journal of Accountancy, p. 73, November 2003)
January 1, 2004... The November 2003 Journal of Accountancy included a detailed account of how companies may benefit from a recent U.S. Court of Federal Claims decision in CSX Corp. by filing protective claims to recover Social Security and Medicare taxes on...

Who gets the exemption?(for child custody)
January 1, 2004... Generally a taxpayer must provide more than half the support for a person to claim that individual as a dependent for tax purposes. IRC section 152(e)(1) provides an exception for parents who (1) are divorced or legally separated, (2) are...

Excluding over-the-counter drug reimbursements: make medical reimbursements less of a headache.(from The Tax Adviser)
January 1, 2004... Revenue ruling 2003-102 held that an employee's receipt of a reimbursement from an employer-sponsored health flexible spending arrangement (health FSA) under a cafeteria plan, health reimbursement arrangement or other employer health plan for...