CalCPA Daily Clips
Tags: Accounting, Business, California, Taxes, Finance

Dec. 20, 2021

MEMBERS IN THE NEWS

(Rob Seltzer and Mike Ueltzen quoted.)

The big comeback: Tax pros look at returning to the office

It was supposed to have happened already (and for some workers in offices, it might have): full cubicles every workday, heads bobbing in the conference rooms, chats around the Keurig about the weekend.

AccountingToday

https://www.accountingtoday.com/news/the-big-comeback-tax-pros-look-at-returning-to-the-office

BUSINESS

Global M&A activity hits record high in 2021

Mergers and acquisitions worldwide had increased 63% this year as of Thursday, reaching $5.63 trillion and breaking a record of $4.42 trillion from 2007, according to Dealogic.

Reuters

https://www.reuters.com/markets/europe/global-ma-activity-smashes-all-time-records-top-5-trillion-2021-2021-12-20/

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Why setting work deadlines might not help

Setting a deadline for a task you need completed at work could backfire, particularly if the deadline is far into the future, a university study suggests. However, providing context for the assignment and sending reminders are useful.

Acorns Grow

https://grow.acorns.com/why-setting-deadlines-at-work-can-backfire-study/

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Cyberattack on HR business could have widespread impact

Ultimate Kronos Group, an HR company that works with Cleveland and other clients, has disclosed a ransomware attack that could affect operations for weeks. Some clients have turned to backup plans, such as issuing paper checks, while concerns about data privacy have emerged.

CNN

https://www.cnn.com/2021/12/16/tech/kronos-ransomware-attack/index.html

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M&A Is Better in Small Gulps

Doing two small or midsize deals a year around a specific theme tends to deliver higher returns than attempting large takeovers.

CFO

https://www.cfo.com/ma/2021/12/programmatic-mergers-acquisitions/

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Minimum wage is about to rise in California and other states, 35 localities as more embrace $15 an hour

A base wage of $15 an hour or higher, derided as the pipe dream of striking fast-food workers just a few years ago, is becoming commonplace. California’s minimum will reach $15 for the first time on Jan. 1 for large employers.

USAToday

https://www.usatoday.com/story/money/2021/12/20/minimum-wage-states-raise-15/8935133002/

PERSONAL FINANCE

The deadline for contributing to your IRA for 2021 isn’t Dec. 31. It’s April 22, 2022.

An IRA offers the chance to claim tax benefits for retirement savings, even if you don’t have a workplace 401(k) or you’d prefer not to use your employer-sponsored retirement account.

USAToday

https://www.usatoday.com/story/money/personalfinance/retirement/2021/12/20/when-is-the-deadline-for-2021-ira-contirbutions/49534969/

POLITICS & POLICY

Lawmakers, business leaders begin to raise alarms about dwindling federal aid, as omicron cases rise across U.S.

The swift arrival of a new coronavirus variant has rekindled economic anxieties in Washington, as congressional lawmakers, business leaders and consumer advocates begin to worry whether there is enough federal aid to shield Americans from another round of financial despair.

Washington Post

https://www.washingtonpost.com/us-policy/2021/12/19/congress-covid-omicron-stimulus-aid/

PROFESSION

The Future of Accounting: How a New Generation Can Tackle the World’s Biggest Challenges

As the tax and accounting landscape changes, it’s natural to wonder what that means for the profession.

BloombergTax

https://news.bloombergtax.com/tax-insights-and-commentary/the-future-of-accounting-how-a-new-generation-can-tackle-the-worlds-biggest-challenges

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ESG assurance opportunities likely to grow for CPA firms

Companies might need more rigorous assurance on environmental, social and governance data as regulatory obligations emerge. CPA firms possess the independent, ethical and quality control infrastructure to perform this work.

Journal of Accountancy

https://www.journalofaccountancy.com/news/2021/dec/esg-assurance-opportunities-cpa-firms-growth.html

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2022 Will Be The “Year Of The Management Accountant”

Competent management accounting teams are critical for responding to this changing environment in a way that instills confidence and helps organizations build strategies for the new paradigm.

Forbes

https://www.forbes.com/sites/jeffthomson/2021/12/20/2022-will-be-the-year-of-the-management-accountant/?sh=2f4c9f972e2d

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Top skills development tips from 2021

Focused learning, feedback loops and visualization of positive outcomes can help accounting professionals develop competencies they need to succeed.

FM

https://www.fm-magazine.com/news/2021/dec/more-top-skills-development-tips-2021.html

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Survey Shows Which Accounting Services Are More Profitable

Tax planning and advisory services are an important extension of tax compliance services. The avalanche of new tax legislation over the past five years and the impact of the pandemic on firms and clients has increased the need for these services.

CPA Practice Advisor

https://www.cpapracticeadvisor.com/tax-compliance/news/21250638/survey-shows-which-accounting-services-are-more-profitable

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Accounting firm SWOT analysis

The SWOT analysis identifies the strengths and weaknesses of an organization and the opportunities and threats from its external environment. It focuses concentration on things that are going well but could be better and things that are not going so well and how to reverse them.

AccountingToday

https://www.accountingtoday.com/opinion/art-of-accounting-accounting-firm-swot-analysis

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Pros and Cons of Remote Work From a Client’s View

Managers must consider the benefits and drawbacks of remote work from a client’s perspective when trying to decide whether to allow employees to work from home. While working remotely does increase the need for cybersecurity measures, it can actually make things easier for your clients and you by allowing more flexibility.

AccountingWeb

https://www.accountingweb.com/practice/practice-excellence/pros-and-cons-of-remote-work-from-a-clients-view

REGULATORY

New guidance on changing accounting methods

The IRS issued a new revenue procedure with guidance on how certain businesses can obtain automatic consent to a change in accounting methods.

AccountingToday

https://www.accountingtoday.com/news/irs-releases-new-guidance-on-changing-accounting-methods

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How to Avoid the Pitfalls of Meeting the FLSA

Employers should work with their accountants to ensure they meet the demands of the Fair Labor Standards Act.

AccountingWeb

https://www.accountingweb.com/practice/practice-excellence/how-to-avoid-the-pitfalls-of-meeting-the-flsa

TAX

2022 IRS Tax Refund Dates: When to Expect Your Refund

Most Americans who are expecting an income tax refund receive it by direct deposit in as little as two weeks after filing electronically.

CPA Practice Advisor

https://www.cpapracticeadvisor.com/tax-compliance/news/21250714/2022-irs-tax-refund-dates-when-to-expect-your-refund

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IRS raises some mileage rates for 2022

For business use and medical purposes, they’re up by at least 2 cents.

AccountingToday

https://www.accountingtoday.com/news/irs-raises-some-mileage-rates-for-2022

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Taxpayer data still at risk at IRS: TIGTA

The IRS continues to make progress with its information technology systems and policies, according to a new report, but risks to taxpayer data remain.

AccountingToday

https://www.accountingtoday.com/news/tigta-audit-finds-taxpayer-data-is-still-at-risk-at-irs

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Plan now for two major changes to R&D credits

On the horizon right now are two very significant changes to the world of research & development tax credits under Section 41, and wise taxpayers should be preparing now for that eventuality.

AccountingToday

https://www.accountingtoday.com/opinion/plan-now-for-two-major-changes-to-r-d-credits