If you paid $10 or more in gross royalties or $600 or more in rents or compensation to a person who is not an employee or to an unincorporated business you are most likely required to report the amount on a Form 1099. The payments have to be made in the course of your trade or business during the calendar year. Generally, any person, including a corporation, partnership, individual estate, and trust which makes reportable transactions must file a Form 1099. The type of reportable transaction determines the specific Form 1099 which must be filed. One of the most common forms 1099 issued is Form 1099-MISC. Form 1099-MISC is required for each person to whom you have paid during the year:
On February 25, 2016, the Financial Accounting Standards Board (FASB) released new guidance on leases. The amendment goes into effect for fiscal years beginning after December 15, 2018, including interim periods within these fiscal years. This is an important change to be aware of, as it places most leases on the balance sheet and stops companies from only including them as footnotes.
This could be a major adjustment for manufacturing companies, especially for those with operating leases on equipment that they use on a day-to-day basis.
The main goal for a construction contracting company is to carry out a construction project’s work in a way that meets the project’s objectives, at a high level of quality. It is up to the project manager to meet these objectives, which can be occur through the completion of four phases: initiation, planning, execution and closing. Once these phases are finished, the contract is deemed complete.
Together, these four phases are known as the contract life cycle. One important aspect that runs across the four is effective management. Aspects of management that include communication, documentation and budgeting are all critical to a successful project.
Here, I’ll explain each of the phases of the life cycle in greater detail, along with a discussion of some of the benefits of using life cycle management.
In business, trust gives you a true competitive advantage over your competitors, for some pretty obvious reasons. But often, organizations don’t pay attention to building and maintaining that level of trust with their clients, prospects, and vendors. They allow their employees to remain too focused on being the technical experts they believe their clients need, or worse, laser focused on making a profit.
Creating that critical trust isn’t difficult. But it does require a mindset change, at least in the beginning. Your employees need to step out of their comfort zones, to show customers and prospects how you are just what they need, when they need it. You must also be open to the fact that this expanded role may not always include the primary service you provide. You, and your employees, want to become the first place an organization thinks to contact when they have a question or a concern, or place an order.
Change – Some people say that’s what our country wants, and the accounting standard setters have delivered!
The change is related to accounting for warranties. The good news is that the differences between accounting for warranties under current generally accepted accounting principles and the new revenue standard are minimal. Warranty accounting itself remains unchanged, but warranties will need to be accounted for as separate performance obligations under the new standard, if they provide the customer with additional services. (A performance obligation is defined as a promise to transfer a good or service.)
Have you thought about how giving business gifts, as we head into the end of the year, can strengthen your relationships with your clients and even your vendors?
Hopefully you’re providing services throughout the year that meet your customers’ needs, and you are also communicating with them regularly so they remember you when they need what you offer.
But in case you haven’t talked to them in a while, that doesn’t necessarily mean you’ve lost the relationship. Sending the right business gifts at the end of the year can provide several benefits.
If you own a cemetery that sells pre-need contracts, you are familiar with the regulations that require you to place the funds into a trust. But did you know that several states allow you to distribute any surplus from the trust to your business? The regulations, which differ by state, refer to this situation as “excess income within the trust.”
Proper accounting of pre-need contracts for financial reporting often clouds the picture of the operations of a cemetery. Typically, management needs to review other metrics, such as cash flow, pre-need, sales volume, and call volume, to assess the true health of the business. An excess income audit could let you know if an excess income distribution is an option to alleviate your cash flow constraints. Or, it could be useful if you have plans to expand by acquiring another property or building a new mausoleum, by letting you know if you have the funds for these investments.
Operating a successful business is hard work. It takes sweat and planning and involves much more than making, marketing and selling your product or service. Have you and your executive team mapped out what success means to you in 2017, both operationally and financially? How does that picture differ from what you’ve experienced or planned for in 2016?
Proper billing is an important aspect of both job management and cash flow management. Without proper billing, and by that term I mean billing that is sent out on time and is correct and complete, how can you expect to receive proper payment for all of your work?
A 2014 survey by the American Psychological Association delivered some pretty startling statistics around employees and trust:
- 25 percent of those surveyed (employed adults over 18) didn’t trust their employers; and
- Only about 50 percent believed their employers were open and upfront with them.
All employers should take notice of these numbers, even those companies that believe they are open and honest with their employees. Lack of trust, real or perceived, affects employees in a variety of ways, and employers often see it in their employees’ increased use of their sick time, poor performance and higher than expected turnover.
Increasing your company’s transparency can positively affect your customers and prospects, as well as your vendors.