4Thought Blog

There's more to financial reporting than profits. The statement of cash flows can be a powerful management tool.

During an economic downturn, it's especially important for managers to monitor cash flows to detect — and correct — problems as soon as possible.

Here's an overview of how this underappreciated report works and what to look for as you review it.

If your nonprofit focuses most of its fundraising energy on donors who can contribute to your mission and programs now, you may have neglected legacy gifts.

Such gifts represent a portion of wealthy donors' estates that go to your organization on their death. Legacy gifts can help position your nonprofit for sustained growth well into the future.

Let's take a closer look at the hows and the whys.

Two things in life are certain: death and taxes. While you can't live forever, there are still some ways to collect tax-free income.

Here's a list of common federal-income-tax-free opportunities for individuals.

The Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act) recently became law as part of the CHIPS and Science Act of 2022.

Among other things, the new law provides more than $52 billion in funding for manufacturers to produce semiconductors, also known as chips. It also includes a temporary 25% tax credit for investments in chip manufacturing.

While the incentives themselves are narrowly targeted, the expansion of semiconductor production should benefit a wide range of manufacturers. Here's a summary of the two main components of the CHIPS Act: the funding initiatives and the new manufacturing tax credit.

Business borrowers aren't just facing higher interest rates today. The terms of new loans have also become more restrictive. Nearly a quarter of senior loan officers reported tighter standards for commercial and industrial loans in the Federal Reserve's second-quarter survey on bank lending practices.

As banks rein in their lending practices, it's important for business owners to put their best foot forward when they apply for credit. Here's how to position your business in the best possible light on a loan application and negotiate favorable loan terms.

Many contractors prioritize business financial management over personal wealth management. It's an easy trap to fall into given how competitive the construction industry can be.

Let's discuss some ways to manage your wealth while you run your business.

You've probably heard that the newly enacted Inflation Reduction Act of 2022 (IRA) includes a package of measures to fight climate change, including tax incentives for both consumers and businesses.

Among other things, the law extends and revises a tax credit for buying a "clean vehicle" through 2032. This was previously referred to as the electric vehicle (EV) credit.

The credit is worth exploring if you're in the market for a new car or expect to be in the future.

If your organization has met the IRS qualifications to be considered tax-exempt, the income you receive — such as donor contributions — is exempt from federal income tax.

However, it's still possible for nonprofits to follow the rules and experience adverse tax consequences. Here are five potential tax traps that could catch you off guard.

Your neighborhood ice cream shoppe no doubt operates under a simple fixed price, point-of-sale billing method. Construction companies don't have it so easy.

Because of the project-based, decentralized nature of construction work, contractors need to use various billing methods. Let's review the five most common in case you might be overlooking an approach that could better suit your business needs.

There are several tax policies geared at deducting major equipment purchases – such as Section 179 and Bonus Depreciation – but there’s another IRS rule McDonald’s Owners should know that applies to smaller expenditures for the acquisition or improvement of tangible property.

The IRS Repair Regulations are a way for McDonald’s Owners to deduct the costs of smaller purchases – such as muffin toasters, sweetener dispensers, etc., in the year acquired without impacting any accelerated depreciation limitation. But you need a specific accounting policy in place to take advantage of this benefit.

While repair regulation rules have flown under the radar since 100% bonus depreciation was passed as part of the Tax Cuts and Jobs Act at the end of 2017, it may be a useful tax planning tool again soon with bonus depreciation scheduled to begin phasing down each year starting in January 2023 and all the way to 0% by January 2027.