Journal of Accountancy articles from March 2007

Journal of Accountancy archives from March 2007

'Getting it right'. (SEC chairman Christopher Cox) (Interview)
March 1, 2007... Since being sworn in as the 28th SEC chairman in August 2005, Christopher Cox has pursued an ambitious agenda of trying to protect the investing public while making government regulation more tolerable for industry. Cox served in Congress from...

Help clients get government contracts: quick, who is the biggest customer in the world?
March 1, 2007... EXECUTIVE SUMMARY * The U.S. government is the biggest buyer in the world. CPAs can help clients build business by learning the federal procurement process and advising on how to compete successfully for a share of government business. ...

Economics of scale: help clients step into the big leagues and your firm will benefit as well.
March 1, 2007... EXECUTIVE SUMMARY * Faced with a major piece of new business, many clients find they instantly need more equipment, space, inventory, people and working capital. They must obtain capital quickly while simultaneously managing the other,...

CPAs as trust protectors: helping clients build flexibility and additional oversight into their trusts is a manageable, meaningful new niche.(certified public accountants)
March 1, 2007... EXECUTIVE SUMMARY * Clients who want their beneficiaries to avoid probate often place assets in trust. Many CPAs are reluctant to take on being a trustee, which is a time-consuming responsibility. An alternative is to be a third-party...

Internal control guidance: not just a small matter.
March 1, 2007... EXECUTIVE SUMMARY * In its most recent guidance for compliance with Sarbanes-Oxley section 404 requirements for smaller entities, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) has provided principles and...

The power of arrays: the Excel tool that performs multiple functions in a single step.
March 1, 2007... One of the most powerful features of Excel is the array--a formula designed to act simultaneously on sets of two or more values in order to calculate other values. Yet, because arrays appear to be forbidding, few CPAs use them. This article is...

Choose the right health care account: stay well - and well-financed - with an array of savings options.
March 1, 2007... EXECUTIVE SUMMARY * Health spending accounts offer opportunities for employees to save and pay for health care with pretax contributions. Three basic types are flexible spending arrangements (FSAs), health reimbursement arrangements (HRAs)...

The choice-of-entity maze: tax and nontax issues make for complicated decisions.
March 1, 2007... EXECUTIVE SUMMARY * When advising clients on the choice of business entity, CPAs should consider the advantages and disadvantages of each type. If more than one entity is involved, CPAs should also determine whether clients can deal with...

CPAs volunteering at nonprofits.
March 1, 2007... Because of their business and financial acumen, CPAs are often asked to serve as board members or officers of nonprofit organizations. While this can be a satisfying experience, they should be aware of the numerous requirements applicable to...

Loan premium not liability.
March 1, 2007... Many taxpayers have been able to reduce their taxes in transactions involving contingent liabilities, leading Congress to change subchapter C and the Treasury Department to change the regulations under IRC section 752. In July 2006, a district...

Personal loan guarantee not basis.
March 1, 2007... Losses from an S corporation flow through to its shareholders, who can deduct them on their individual tax returns as long as they have sufficient basis to absorb them. Economic outlays such as capital contributions and loans by a shareholder...

Full deduction on meal reimbursements.
March 1, 2007... Under IRC section 274(n), employers generally may deduct only half their reimbursements to employees for meals and entertainment. But employee-leaseback arrangements--notably in the trucking industry--have mapped a route through the section's...