July 1999 - Journal of Accountancy

EXECUTIVE SUMMARY THE CONSOLIDATION OF CPA FIRMS has taken the profession by storm. American Express, the first to start acquiring CPA firms, has since been joined by Century Business Services and HRB Business Services, formerly H&R Block Inc. TOGETHER, THE THREE CONSOLIDATORS have purchased just under 90 CPA firms. Other

EXECUTIVE SUMMARY MORE THAN EVER BEFORE, BOTTOM-LINE-CONSCIOUS companies are outsourcing HR functions by making use of professional employer organizations. PEOs perform a wide variety of tasks ranging from payroll management and employee benefit design and administration to tax filings and compliance with state and federal workplace legislation. GIVEN THE MYRIAD

EXECUTIVE SUMMARY A TRACKING STOCK is a special class of a corporation’s voting common stock that is tied to the earnings performance of a distinct business unit. Stock investors benefit from the earnings performance and growth characteristics of the targeted stock “company.” THE TRACKING STOCK can be a business division,

EXECUTIVE SUMMARY CPAs CAN PROVIDE VALUABLE ASSISTANCE TO THEIR clients by alerting them to the significant state tax implications of converting traditional IRAs to Roth IRAs. CPAs also should advise clients who converted in 1998 to consider the tax consequences of moving to another state within the next three years.

EXECUTIVE SUMMARY EFFECTIVE IN 1999, The Small Business Job Protection Act of 1996 introduced safe-harbor formulas for 401(k) plans that eliminate the need for companies to perform annual nondiscrimination testing. These changes should allow small employers to contribute higher amounts on behalf of highly compensated employees (HCEs). NONDISCRIMINATION TESTS effectively

EXECUTIVE SUMMARY EXPERIENCED HUMAN RESOURCE directors are implementing changes in performance management that not only make your job as the de facto personnel director easier but also usually improve the performance of the entire staff—making you look good. SOME HR DIRECTORS are introducing values-based systems that integrate the company’s mission

EXECUTIVE SUMMARY ALTHOUGH SBA-GUARANTEED bank loans are a low-cost alternative to traditional financing sources, a variety of programs exist and the application process can be complex. AN ESTIMATED 99% of all U.S. businesses are small enough to fall within SBA guidelines. Specific rules vary from one type of business to

EXECUTIVE SUMMARY LENDERS, INVESTORS AND MANAGEMENT FREQUENTLY depend on CPA-prepared prospective financial statements to answer questions and to help them make decisions about a company’s future. Such statements are helpful in evaluating start-up companies, mergers and acquisitions and expanding businesses. THE CURRENT AUTHORITY ON PROSPECTIVE FINANCIAL statements is SSAE no.