4Thought Blog

While the federal tax reform act included a lot of new tax benefits for businesses, there were some reductions, as well. A significant one for many businesses is the loss of business entertainment expense deductions.

The tax reform bill was passed on December 22, 2017, and many of our clients and friends have been asking if there are things that they can or should be doing now to get a head start on the tax compliance that needs to be done.  Although we are awaiting more guidance with bated breath regarding many of the provisions in the new law, the accounting for entertainment and meal expenses is one area where businesses should take immediate action.

Controlling and monitoring your inventory is an essential part of maximizing gross profit. To control your inventory, you must have a system of checks, balances and procedures in place.

Here are several inventory control techniques business executives should consider to help improve gross profit:

Sufficient cash flow is incredibly important to the success of your business.

It’s a critical metric in business health. The amount of available cash your business has on hand at any given time affects both your daily and long-term operations.

Poor cash flow makes your day-to-day business operations more challenging and it also negatively affects your timeline on paying creditors.

Fortunately, there are ways to shorten your cash conversion cycle. Reducing the cycle length can even boost your bottom line through interest savings.

Pennsylvania Gov. Tom Wolf’s proposed 2017-18 budget contains no broad-based tax increases, but does include some important tax changes for the state’s businesses.

The $32.3 billion spending plan – which the Governor unveiled Feb. 7 to a joint session of the Pennsylvania General Assembly – includes about $1 billion in new, recurring revenues.

Overall spending increases by $670 million, or 2.1 percent, above the current 2016-2017 budget. The proposal includes increase spending for public education, special education, early childhood education, and higher education, but it also identifies a number of opportunities for cost savings and spending reductions of over $2 billion that appear to have bipartisan support.

When you think of research and development, you probably think of men in white lab coats, or sophisticated laboratories where cutting-edge technology is born.

However, the federal government offers a more flexible definition of research and development. The government definition is a process of experimentation to develop new or improved products or processes that are technological in nature.

This means that activities regarded as mundane or routine by many manufacturers may qualify for the federal Research and Development – or R&D – Tax Credit.

The fourth quarter of the year is an opportune time for businesses to purchase equipment to reap tax benefits.

There’s a lot of take advantage of this year. For larger equipment, there’s both Section 179 and Bonus Depreciation. The federal government extended both business benefits in late 2015, making this tax year a prime chance to take advantage of them.

April 15 may be the day most associated with accountants, but great CPAs know the fourth quarter is the most important time of year.

During the fourth quarter, business owners and CFOs can take action to minimize their tax impact come April 15 and evaluate budget and plans for the following year.

Below are five tax planning tips CFOs should consider in the fourth quarter:

There may be major state income tax changes coming for those who cross the Delaware River for work.

New Jersey Gov. Chris Christie last week announced that he plans to discontinue a long-standing agreement between New Jersey and Pennsylvania allowing taxpayers to pay income tax in the state where they live, not where they work.

The change is set to go into effect on Jan. 1, 2017, but Christie said he might reinstate it if the New Jersey Legislature fills a budget hole to reduce public employees' health-care costs, according to The Philadelphia Inquirer.