Here’s what you’re looking for: CPA Trendlines Research

ABOUT US

Main Street Accountants See Turbulence Ahead for Small Business

The Avalara Accountants Confidence Report points to difficulties.

Via Avalara

Nearly 50 percent of accountants surveyed believe the outlook for over 80,000 small business clients they represent will turn sour over the next 1Avalara (PRNewsfoto/Avalara, Inc.)2 to 18 months, according to a new CPA Trendlines study conducted with Avalara, the sales tax automation provider.

FULL REPORT: Download (PDF)

Fielded during the 2024 tax season, the survey shows accounting professionals flashing warning signs around key business issues, leading with clients’ abilities to hire and retain employees, manage costs and price increases, and keep up with technology changes ushered in by artificial intelligence. READ MORE →

POLITICS & GOVERNMENT

IRS Still Unsure How to Measure Audit Rate

data table

Differing definitions are only part of the problem.

By CPA Trendlines Research

The Inflation Reduction Act endowed the IRS with almost $80 billion to improve customer service and beef up enforcement. Congress later reduced the amount to $57.8 billion, with $24 billion earmarked for enforcement.

In no time at all, there was misinformation bouncing around social media and conservative podcasts, claiming that the IRA would result in more audits of middle-class taxpayers.

MORE: Art Werner: Estate Planning Strategies | Quick Tax Tip | Art Werner: Post-Mortem Estate Planning | Quick Tax Tip | Pause to Praise the Tax Pro Volunteers | IRS vs. Fraudsters | Imagine! The National Tax Advocate Does | Art Werner: Maximizing Fringe Benefits | Is the IRS Mismeasuring Phone Service? | IRS Makes Big Progress But … | Business Booming, but Not as Much as Last Year | Busy Season Barometer Offers Clues for Better Business | Tax Practitioners Say Happy Days Are Here … Again | The IRS Is Coming! Get Your Clients into Compliance
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

 

The enforcement resources had no such designation. To allay fears, in 2022 the secretary of the Treasury directed the IRS commissioner not to use any of the additional resources to increase the audit rate of small businesses or households earning below $400,000.
READ MORE →

ADVISORY & CONSULTING

Risky Business: The Art and Science of Startup Company Valuation

balancing metal balls

Proven methods for staying out of trouble and getting the numbers right for founders, investors and regulators.

By Anthony Venette

Valuing startup companies accurately has long been a challenge for legal, financial and regulatory professionals because data is scarce and projections are inherently speculative. Take the recent case of Hyde Park Venture Partners Fund III L.P. v. FairXchange LLC. This case has garnered significant attention as The Delaware Court of Chancery was tasked with determining the fair value of FairXchange, a nascent company with a business model focused on revolutionizing the securities exchange landscape.

MORE: Non-Accountants in Accounting: A Game-Changer for the Profession | Allison Schlegelmilch: Leadership Lessons from Firm Mergers | CAS Can Play a Critical Role in Clients’ Vendor Selection | Artificial Intelligence: It’s a Matter of Time | AI Will Steal Your Job. And That’s a Good Thing | Allan Koltin: How Small Firms Can Thrive Against PE-Powered Competitors | The Power of Community in Accounting | Desperate CFOs are Outsourcing Accounting Functions | Does Firm Culture Still Matter? | Tax and Accounting Jobs and Salaries Show Strength | Tax Law is Driving Practice Development | Olympics of Outsourcing and Offshoring for Accountants
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

 

Valuing a startup is a nuanced exercise, often requiring a blend of creative thinking and rigorous financial analysis. Unlike established businesses that have predictable cash flows and extensive financial histories, startups have uneven cash flow and minimal operating histories. So, their valuation is typically based on future potential rather than past performance. The lack of historical data forces both investors and courts to rely heavily on projections and assumptions, which can vary significantly based on the valuation method used. If you’re working with (or for) a fast-rising startup, you don’t want to be cavalier about the company’s valuation.
READ MORE →

MANAGEMENT

Innovation through Wellness: You Can’t Grow without a “Well” Firm

“When we take good care of our people and ourselves, we can drive success at all levels.”

By Adam Herman
Market Leader, Wipfli LLP

Herman

Wellness is more than just a powerful tool for retention and recruiting—it’s one of the most critical issues for the accounting profession to tackle moving forward. It’s also a subject that I’ve been passionate about for many years.

So when I had the opportunity to participate in a panel discussion highlighting practical approaches to wellness at the Allinial Global Executive Team Conference in May, I jumped at the chance to share ideas and experiences with fellow panelists Demetrice Branch, Chief People Officer at Weaver, and Mike Giuli, CIO at Cherry Bekaert.

Our panel moderator, Donny Shimamoto, opened the discussion with an intriguing observation: innovation doesn’t always have to be driven by technology. Wellness is a way for firms to innovate. Keeping that in mind, we explored three different dimensions of wellness and how Allinial Global firms are incorporating these aspects into their wellness initiatives.

READ MORE →