Get Ready for the New Lease Accounting Standard

After several postponements, the updated lease accounting standard Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) is in effect for private companies. Late last year, the Financial Accounting Standards Board (FASB) voted unanimously against another delay. That means companies that follow U.S. Generally Accepted Accounting Principles (GAAP) must adopt the new standard for fiscal years beginning […]

Not-For-Profit News

Volunteer time increases to $29.95 per hour According to calculations performed by the University of Maryland’s Do Good Institute on behalf of the Independent Sector, the estimated national value of a volunteer hour has reached $29.95 per hour. The Do Good Institute, which is part of the university’s School of Public Policy, based the figure […]

Prevent the UBIT Trap of Corporate Sponsorships

Landing a corporate sponsorship is an accomplishment, especially in today’s economy. If you do get lucky, you will want to prevent unrelated business income tax (UBIT) from cutting into your new income. If you meet the requirements for a qualified sponsorship payment exception, you should be in good shape. What are the exceptions? Generally, “qualified […]

Five Steps to “Recession-Proof” Your Business

The manufacturing industry has enjoyed several years of prosperity. But no business is recession-proof. Proactive owners take steps, while times are good, to prepare for inevitable downturns in financial performance. Here are five strategies to consider. Monitor Cash Flow Shore up your cash flow management practices now. Project your cash flow three and six months […]

Newsbits: Giving Study Yields Disappointing Results

Giving Study Yields Disappointing Results A new study based on data gathered over 15 years from more than 9,000 U.S. families offers an in-depth look into charitable giving during that period. It also includes some discouraging data. The Philanthropy Panel Study is conducted every two years by the Indiana University Lilly Family School of Philanthropy […]

Four Signs of an Unreliable Budget

Every business should prepare an annual budget, but it is especially important in the capital-intensive manufacturing sector. Comprehensive, realistic budgets allow you to identify potential shortages of cash, production capacity constraints and other threats. They also can help you develop a strategic plan that takes advantage of opportunities to improve performance. Here are four signs […]

Critical Questions to Ask About Internal Controls

When fraud strikes manufacturers, the effects can be devastating. The median fraud loss in the manufacturing sector was $240,000, according to the 2018 Report to the Nations published by the Association of Certified Fraud Examiners. Internal controls are a company’s first line of defense in preventing and detecting fraudulent activity.

Strategies for Maintaining and Growing Donations Under the New Tax Law

When the economy improves, not-for-profits typically find that donations also grow. But, the latest economic swing comes on the heels of a sweeping new tax law that many fear will counter that effect. The Tax Cuts and Jobs Act may disincentivize charitable giving for all but the wealthiest contributors.

How to Put Financial Statements to Work for Your Business

Spring is the time of year that calendar-year-end businesses receive financial statements that conform to U.S. Generally Accepted Accounting Principles (GAAP). This year, take your financial statements beyond compliance and use it to develop a comprehensive business plan.

Smart Factories and Blockchain: Stay on the Cutting Edge of Technology

Most manufacturers have already applied classic business management concepts, such as just-in-time production and continuous improvement initiatives, in order to enhance cash flow and efficiency. However, these efforts might not be enough to stay competitive in a technology-driven marketplace. Smart factories and blockchain technologies are expected to revolutionize the manufacturing industry in the 21st century. […]

Combining Liquidity and Efficiency Metrics: Cash Conversion Cycle Can Be a Useful Management Tool

The cash conversion cycle is a financial metric that evaluates the time it takes your company to convert raw materials to cash collected from customers. This article tells how it is calculated and what it means.

Fraud and the Not-for-Profit Organization: How to Counter Your Vulnerabilities

Every organization, whether for-profit or not-for-profit, is at risk of falling victim to costly acts of fraud. Not-for-profit organizations, however, have some common characteristics that can make them particularly susceptible to fraud. This article discusses organizational weak spots and advises on ways to combat risks by implementing some simple controls. A Sidebar discusses the “fraud triangle” of conditions that can lead to fraud.

Six Simple Steps to Shrink Your Outstanding Receivables

When cash flow does not keep pace with work flow, manufacturers need to take a hard look at their billing practices to ensure that jobs do not fall through the cracks. This article outlines ways manufacturers can strengthen their collection processes. A Sidebar highlights a possible tax break for uncollectible accounts.

Joint Costs: The Right Way to Allocate

With so much attention these days paid to fundraising ratios, many not-for-profit organizations feel pressure to minimize their fundraising expenses. This makes allocating joint costs appealing. Joint costs are costs associated with activities that have both fundraising and other functions. However, before you take the step of allocating joint costs, be certain that you are […]

Why Deal Structure Counts: Comparing and Contrasting Asset and Stock Deals

The merger and acquisition market is picking up along with the performance of the manufacturing sector. This blog discusses how deal structure can have a major impact on expected cash flow and exposure to potential liabilities after the dust settles.

When is Income Taxable?

A 501(c)(3) organization generally is required to pay tax on income that is not related to its exempt purpose — even if that income is critical to the financial support of the organization. This unrelated business income (UBI) is something to watch closely, because if the not-for-profit is ever audited, the IRS will likely scrutinize its records to see whether it has accurately reported UBI. This blog describes the kinds of activities that generate UBI, along with some exceptions.

Is an Online Freight Marketplace Right for You?

A new generation of online businesses wants to cut the transportation middleman out of the warehousing and distribution equation. These new online marketplaces offer manufacturers and distributors greater convenience and efficiency by directly matching them with freight carriers, cutting down on red tape and lag time. This blog discusses how these online marketplaces work and how to avoid potential pitfalls.

Use E-Verify to Confirm Employment Eligibility

Federal law requires employers to hire only U.S. citizens or foreign citizens who have the necessary authorization to work in the United States. Employers normally verify employment status with Form I-9, “Employment Eligibility Verification.” But how does a company know a new employee isn’t lying or providing counterfeit documents?

Happy Days Are Here Again

With industry data showing that the upward trend of American manufacturing output seems sustainable for the foreseeable future, manufacturers should reassess their business strategies. This article discusses renegotiating loans and leases, reinvesting in human resources and facilities, and retooling pricing, marketing and public relations.

Diversity on Not-For-Profit Boards

Board members are a not-for-profit organization’s ambassadors to the constituencies it serves. But a lack of diversity — whether physical, societal or economic — can signal an underlying problem: a disconnect from the community. A not-for-profit can improve its funding and program effectiveness when it reflects the population it serves, as well as the community in which it operates. This article offers suggestions for improving diversity, while a sidebar shows there are ways to mix it up beyond just the board of directors.

An Ounce of Prevention for Non-Profits

You don’t need to look hard to find an example of a company that has been victimized by employee theft. Just pick up the newspaper, scan the Internet or watch the news and you will likely find a story or two about a business being victimized by fraud. Charitable organizations are no exception, especially smaller ones, which can be frequent targets because they often lack the appropriate number of personnel in the finance area to segregate responsibilities.

Don’t Double Down With Event Documentation

It’s that time of year when charitable organizations start planning their annual fund raising events, many of which consist of formal sit down dinners, cocktail parties, silent auctions and casino nights. However, the tax deduction allowed by the IRS for these events can vary based on the type of contribution received from your donors. But we would not recommend to doubling down with them.

Not-For-Profit Group Newsletter – Spring 2023

ORBA’s Not-For-Profit Group’s 2023 Spring Newsletter highlights what steps not-for-profit organizations should take in order to prepare for a possible ERC audit and reviews what factors they should consider once their board meets the state’s size requirement.

Manufacturing and Distribution Group Newsletter – Winter 2023

ORBA’s Manufacturing and Distribution Group’s Winter Newsletter discusses how waste impacts a manufacturer’s bottom line and advises business owners on strategies to reduce occupational fraud.

Not-For-Profit Group Newsletter – Winter 2022

ORBA’s Not-For-Profit Newsletter provides an overview of what not-for-profit lessees need to know about Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) and covers how the use of automatic enrollment has pushed participation in 403(b) retirement plans to the highest level since 2008.

Manufacturing and Distribution Group Newsletter – Fall 2021

ORBA’s Manufacturing and Distribution Group’s Fall 2021 Newsletter looks at how automation can reduce a company’s human resource headaches, decrease costs and provide optimal solutions for your workforce woes, and reviews the deductibility of domestic travel expenses.

Manufacturing and Distribution Group Newsletter – Spring 2021

ORBA’s Manufacturing and Distribution Group’s Spring 2021 Newsletter reviews how manufacturers can potentially lower their company’s state tax liability and covers the Employee Retention Credit under the CARES Act and its expansion by the Consolidated Appropriations Act in late 2020 and the American Rescue Plan Act in 2021.

Manufacturing and Distribution Group Newsletter – Winter 2021

ORBA’s Manufacturing and Distribution Group’s Winter 2021 Newsletter summarizes the key provisions of the Consolidated Appropriations Act and highlights seven tips to consider to manage cash flow.

Manufacturing and Distribution Group Newsletter – Summer 2020

Our Manufacturing and Distribution Group’s Summer 2020 Newsletter reminds companies to consider how net operating losses interact with two tax areas: consolidated group considerations and the business interest deduction election, and reviews the benefits of having a diverse workforce.

Manufacturing and Distribution Group Newsletter – Spring 2020

Our Manufacturing and Distribution Group’s Spring newsletter looks into how amending previous years’ tax returns can possibly free up cash, as well as provides four strategies for closing the skills gap.

Manufacturing and Distribution Group Newsletter – Winter 2020

Our Manufacturing and Distribution Group’s winter newsletter looks into why manufacturers underestimate their R&D expenditures and provides ways to help evaluate and manage the effects on your business.

Manufacturing and Distribution Group Newsletter – Fall 2019

Our Manufacturing and Distribution Group’s fall newsletter includes advice on how to properly value your business, as well as information on the new lease accounting rules.

Not-For-Profit Group Newsletter – Winter 2019

Our Not-For-Profit Group’s Winter 2019 newsletter discusses the importance of monitoring your organization’s financial statements, as well as newsworthy updates in the not-for-profit industry.

Manufacturing and Distribution Group Newsletter – Fall 2018

Our Manufacturing & Distribution Group’s Fall 2018 Newsletter explains the new limitations on business interest expense deductions, as well as the benefits of consulting employees for solutions regarding potential operating problems within your company.

Not-For-Profit Group Newsletter – Winter 2018

Not-for-profits must state on their IRS Forms 990 the number of independent voting members on their board of directors. Donors, state attorney generals and the media increasingly have been scrutinizing this reporting, believing that independent directors are a key ingredient of good governance.

Not-For-Profit Group Newsletter – Fall 2017

Is Board Member Compensation a Good Idea? BARBARA MILLER, CPA If your organization struggles each time it needs to fill a board vacancy and does not always come up with the candidates it desires, it may be time to consider creating a board compensation program. Add Up the Pluses and Minuses There are advantages to […]

Manufacturing and Distribution Group Newsletter – Summer 2017

ORBA’s Manufacturing and Distribution Group Newsletter is a quarterly publication focused on effective manufacturing and distribution management. The Summer 2017 issue includes two articles, “Deducting Travel and Entertainment Expenses with Confidence” and “Close-Up on Forensic Accounting Investigations.”

Manufacturing and Distribution Group Newsletter – Spring 2017

ORBA’s Manufacturing and Distribution Group Newsletter is a quarterly publication focused on effective manufacturing and distribution management. The Spring 2017 issue includes two articles, “Leases and Contract Revenue: Get Ready to Roll Out the New Accounting Standards” and “Do Not Overlook the Domestic Production Activities Deduction.”

Not-For-Profit Group Newsletter – Winter 2017

ORBA’s Not-For-Profit Group Newsletter is a quarterly publication focused on effective not-for-profit organization management. The Winter 2017 issue includes two articles: “The Not-For-Profit Organization’s Life Cycle: Mature Not-For-Profit Organizations Face Changing Priorities” and “Newsbits: Winter 2017.’”

Not-For-Profit Group Newsletter — Winter 2016

ORBA’s Not-For-Profit Group Newsletter is a quarterly publication focused on effective not-for-profit organization management. The Winter 2016 issue includes two articles: “Corporate Sponsorship Money: Is It Taxable?” and “Time to ‘Go to School’ Regarding the Use of Credit Cards.’”

Manufacturing and Distribution Group Newsletter – Spring 2014

ORBA’s Manufacturing & Distribution Group Newsletter is a quarterly publication focused on effective businesses management for manufacturers and distributors. The Spring 2014 issue includes two articles: Ratio Analysis and Industry Benchmarking Reveal Hidden Messages in Your Financial Statements and Manufacturing Contracts Face New Section 199 Rules.

Not-For-Profit Group Newsletter – Winter 2014

This edition focuses on two topics. The first article addresses how to manage and safeguard peer-to-peer fundraising efforts utilized to raise money for not-for-profits. The second article, “Newsbits,” discusses a court case, the concept of kaizen (continuous improvement) and results from a study focused on public support for community foundations.

Manufacturing and Distribution Group Newsletter – Summer 2013

Defenses Up!  Are You Doing All You Can to Prevent Fraud? KEN TORNHEIM, CPA, CFE As companies globally continue to slog through a challenging economy, they are also fighting the specter of fraud. Here is an eye-opening statistic: A typical organization loses an estimated 5% of its revenue to fraud annually, resulting in total losses of more […]