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Category Archives: Bookkeeping Services

What Can We Do For You?

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By Lee Byrd

Small business owners and nonprofit executives often wear many hats while managing their organization. Whether it’s day-to-day accounting or oversight of an internal accounting department, an accounting firm offers many services that will allow you to focus on the core strategies of your business. Here at Langdon & Company LLP, we offer a wide range of services from basic bookkeeping to acting in a CFO role to financial statement audits and tax return preparation. Often times you will find that the cost of hiring an accounting firm to perform these services is less than hiring an employee.

Bookkeeping Services

Many small organizations do not have the need or financial resources to hire a full-time employee to perform the day-to-day bookkeeping tasks. In such caserviceses, it may be helpful to seek the aid of an accounting firm that can provide services such as accounts payable and receivable, billing, payroll, bank reconciliations, general ledger entries and monthly financial reports. You will gain the knowledge of an experienced bookkeeper with access to CPAs within the firm at a cost effective rate.

CFO Services

Do you need the expertise of a Chief Financial Officer but can’t bear to add such a salary to your already tight budget? A CPA firm can offer the expertise of a CFO in tasks such as creating budgets, preparing financial statements, analysis of financial data, or review of your organization’s internal accounting personnel offering a greater segregation of duties. These services can be provided on a periodic basis, such as monthly or quarterly, or on a project by project basis, as needed throughout the year.

Audit and Attest Services

Whether it is at the request of a lender or required by the organization’s by-laws, many organizations feel the need for a higher level of review of the financial statements. CPA firms offer attest services that will provide the level of assurance needed. An Audit provides the highest level of assurance that the finaauditncial statements are free from material misstatement and includes the auditor obtaining an understanding of the client’s internal controls and assessing fraud risks. An audit is also the most costly level of attest service. While less costly, a Review is substantially narrower in scope than an audit and provides only limited assurance. A review consists mostly of inquiry and analytical procedures. If the audit or review services do not meet the needs of the organization, CPA firms also offer Agreed Upon Procedure (AUP) services. An AUP is an engagement in which an auditor is engaged to carry out procedures of an audit nature to which the auditor, the client, and any appropriate third party have agreed and to report on factual findings.

Tax and Consulting

In addition to day-to-day booking or more extensive oversight services, accounting firms also advise clients on financial strategies, such as lowering tax burdens, providing suggestions on a business plan, or suggestions on the most effective way to comply with third party regulations. CPAs can also assist with the preparation of state and federal tax returns.

Langdon & Company LLP is a full-service CPA firm committed to providing quality customer service in the highest professional manner. Contact us to see how we can help you!

Lee ([email protected]) is an Audit Manager with Langdon & Company LLP. She works with many not-for-profit and healthcare organizations.

The New Overtime Rule: Q&A

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by Kendall Tyson

If you are an employer, you should get ready for the new overtime and worker classification changes to the Fair Labor Standards Act (FLSA) that was recently published by the Department of Labor (DOL).  According the DOL, the rule, which goes into effect December 1st 2016, will:

  • Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
  • Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
  • Strengthen overtime protections for salaried workers already entitled to overtime.
  • Provide greater clarity for workers and employers.

Please visit the DOL’s Question and Answers section of their website for more detailed information.

Langdon & Company LLP is also available to assist business owners and help determine the impacts for their businesses.

Kendall ([email protected]) is a Manager in our tax practice.  She works with various types of clients according to professional standards and tax laws.

Year-end filing of 1099-MISC

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by Russell Barker

You might think 1099-MISC filing is a year-end job and does not need attention before that.  That couldn’t be farther from the truth.  You should always gather W-9 forms from applicable vendors whom you have paid year round.  A W-9 form is an IRS form in which the vendor provides name, address and tax identification number.  This number can either be a social security number or Taxpayor Identification Number (“TIN”). year-end-review-300x225

Generally, a 1099-MISC should be filed if the vendor is unincorporated AND amounts paid are:

  • at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
  • at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate
  • any fishing boat proceeds
  • gross proceeds of $600, or more paid to an attorney during the year, or
  • withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

The reason to start gathering this information is because at year end, you may not have contact with a vendor or cannot reach them.

What are the ramifications if you do not get this information and you should have?  The expense that you are trying to claim may not be valid and you might not have a credit on your books for the expense.  In some cases, this can cause an increase to your net income and more taxes you will have to pay at year end.

The old saying of an ounce of prevention is worth a pound of cure.  By obtaining and filing all W-9 forms, you will avoid a lot of unnecessary stress at year end. Langdon & Company LLP has a team of accounting service professional who are available to help with any of your Form 1099 questions.  Please contact our office for more information.

Russel Barker ([email protected]) is a Quickbooks ProAdvisor in our Accounting Services Department.  He works primarily with physician’s practices and other small businesses.

There is an App for that

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by Dwayne Murphy

Are expense reports frustrating to fill out? Can’t find that receipt you need? Keeping up with travel expenses can be a nightmare but with our technology today and smartphone capability, keeping up with travel expenses can be, and should be easy. There are a number of apps that will make the difficulty of expense tracking and reporting a thing of the past. Below is a brief description of just a few of the very many apps that that are available to help track and report expenses.

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  • Automated travel management app that requires little or no data entry. For example it gathers all of the information from the confirmation (e.g. airline, hotel, car rental & restaurant confirmations) when you email it to the app.
  • Organizes everything by day, trip and time and forms an itinerary that you can access and share with others.
  • Edit plans manually and sync with your calendar.
  • There is a free version and a paid version with the paid version including extra benefits such as flight tracking and reward program tracking.

BizXpense Tracker

  • This paid app records all of your expenses and provides a running total for each business trip you take and also has the ability to track time as well
  • Easy mileage tracking by entering total distance or start and stop odometer reading and will remember odometer readings for your next trip.
  • Remembers total mileage from previous trips and will pre-fill mileage when locations are entered.
  • Create and manage categories and sub-categories and mark as “reimbursed” or “submitted”.
  • Print finished expense reports in multiple formats.

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  • This free app lets you snap a quick picture of your receipt and select which report it goes on then Expensify does the rest.
  • Tracks your mileage through your phone’s GPS and allows time entry as well.
  • Easy report submission by use of email or the option to save to a PDF.
  • Integrates with any accounting, payroll, CRM or ERP solution including QuickBooks and ADP.

We all have enough to worry about and expense reports should not be one of them.  There are plenty of apps out there to make life easier and hopefully the list above can give you an idea of which one will be the perfect fit for you.

Dwayne ([email protected]) is an audit senior with Langdon & Company LLP.  He works with a variety of non-profit clients

3 Ways to Protect Yourself and Organization Against Cyber Threats

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by Meagan Bulloch

In light of recent data breaches at major retailers in the US, the public have been reminded just how vulnerable both their personal and organization’s data is to cyber-attacks.  This has left many companies scrambling to make sure the data they are entrusted with does not become the target of another round of headlines and lawsuits.identity_theft

While you are never 100% protected from hackers, here are five ways you can reduce your risk of falling victim to a cyber-attack:

  1. Strong Complex Passwords – It seems this advice has been given year after year and almost seems trite, however, for many; passwords are the first level of defense against a cyber-attack.  As such, it is ever more critical that passwords be lengthy, complex and changed often.  According to the SANS Institute’s sample password policy available at https://www.sans.org/security-resources/policies/general/pdf/password-protection-policy  a strong password is at least 15 characters in length.  For many, the deterrent to having a complex password or changing it often is the issue of remembering the complex password.  If this is a concern for you or your organization, you should consider implementing a password management tool such as RoboForm, Password Depot, and LastPass to assist in creating, storing and recalling passwords.
  2. Alternative Authentication Measures – If you have already tackled your passwords what else can you do?  As an additional layer of protection many are considering the use of alternative authentication measures such as fingerprint readers and key fobs.  Basic fingerprint readers can be purchased for only $35 in today’s market.  Using such devices can eliminate the need for a password to log in to a computer.  If the objective is to protect extremely sensitive data then the use of a multifactor authentication may be the best option.  This would involve an employee using both a password and something held in their possession – such as a code generated by a key fob- to log into a computer, application or website.   By requiring two forms of authentication you can greatly reduce the access a hacker could have to your system.
  3. Develop a formal policy for “BYOD.”  Often referred to today as “bring your own device” has created a new level of vulnerability for organizations.  In today’s environment it can be very beneficial for employees to be connected to an organization’s email and other network data through a mobile device.  The issue comes when this access is obtained informally by employees and not managed by the organization.  Often the organization has no way of knowing which devices are attached to their network and therefore, cannot take the necessary security measures to protect sensitive organizational data.  To protect your organization it is imperative to develop a formal BYOD policy that address security issues before an employee can connect their personal device to your network.  If devices have already been connected, you should implement a BYOD policy retroactively.  Regardless, each employee should agree to the policy and indicate so through a signature before they can access the organization’s network.  The BYOD policy should at a minimum include the following: the fact that the organization owns the data the employees will access, the procedure for erasing the organization’s data from the device in the event the employees leaves the organization, which type of websites and applications can be accessed, security measures the end user must implement as a condition of accessing the organization’s network, and the process for notifying appropriate organizational personnel in the vent a device is lost or stolen.  See sample policy template at http://www.itmanagerdaily.com/byod-policy-template/.

While each of these tools is important independently, a layered approach is truly the best defense against a cyber-attack for you or your organization.

Meagan Bulloch ([email protected]) is an audit manager at Langdon & Company LLP focused primarily on non-profit clients.

Upcoming NFP Changes: Accounting for Shared Services

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by Brittany Powellaccountant-real deal

In April 2013, FASB issued ASU 2013-06 – Not-for-Profit Entities (Topic 958): Services Received from Personnel of an Affiliate which requires not-for-profit organizations to recognize contributed services received from an affiliate that directly benefit the not-for-profit entity.  This means that a not-for-profit entity may have to record services provided by an affiliate that the affiliate does not charge the recipient not-for-profit entity for.  According to ASU 2013-06, contributed services should be recognized if they meet one of the following criteria:

  1. The services provided “create or enhance nonfinancial assets”, or
  2. The services provided “require specialized skills, are provided by individuals possessing those skills, and typically need to be purchased if not provided by donations.”

Typically, in accordance with ASU 2013-06, the contributed services should be recorded “at the cost recognized by the affiliate for the personnel providing those services.”  However, if recording the services at cost would significantly misstate the value of the services received, ASU 2013-06 allows the not-for-profit entity to elect to record the contributed services at either cost or at fair value.

ASU 2013-06 will be effective for fiscal years beginning after June 15, 2014, or in other words beginning with fiscal year ended June 30, 2015 for not-for-profit entities with a June 30 year-end.  Early adoption of ASU 2013-06 is permitted.

With the approaching implementation date of ASU 2013-06, please contact our office with any questions regarding the application of ASU 2013-06 or its applicability to your not-for-profit organization.

Brittany Powell ([email protected]) is a Senior Accountant with Langdon & Company LLP.  She specializes in audit, serving a wide variety of nonprofit organizations.

Accounting Services Requirements

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by Russell Barker

The accounting services department at Langdon and Company LLP utilizes a customized approach to serve many companies by providing varied aspects of a “backoffice” accounting department.  We can perform the following functions: accounts receivable, accounts payable, invoicing, payroll and financial reporting.  We communicate with the client to ensure that we have the needed documentation to properly record transactions.  We process transactions on a monthly or quarterly basis for general ledger processing based on the clients’ needs.  We also provide payroll services and offer direct deposit.  To efficiently and effectively perform these functions, great communication is required.  There is supporting information and documentation that is needed.

Typically, for a small business items such as bank statements, invoices, billing records, loan records, amortization schedules, credit card statements, etc. are required in order post to the general ledger.  For payroll, employee information, hours and pay rate is needed.  In order to properly maintain fixed asset records, invoices and applicable financing records are needed.

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With the client providing all appropriate documentation on a monthly basis and L&C recording proper transactions, this will enable our year end process to be more efficient, precise and timely in order for the tax department prepare the clients tax returns in a timely fashion.

 

Russell Barker is a QuickBooks Pro Advisor in the Accounting Services department at Langdon & Company LLP.  He specializes in periodic reviews for a variety of physician’s practices.

 

Special Rules Regarding Gifts In Kind

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Non ProfitThere are special IRS rules pertaining to gifts in kind for the recipient nonprofit and the donor.

The  recipient nonprofit organization can only acknowledge the date of receipt, description of the property, and its standing as a public charity eligible to receive donations from the public.  The assertion of the value of the property rests entirely on the donor.

The donor claiming a charitable deduction must comply with several steps. For any property donated with a purported value > $5,000, certain formalities must be followed in order to support the claiming of the charitable deduction by the donor.  These formalities fall to the donor to ensure full compliance and are summarized in the following steps: Continue reading Special Rules Regarding Gifts In Kind

Benefits of Outsourcing Accounting and Bookkeeping

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Accurate bookkeeping and accounting are not optional for successful businesses, but hiring a full time accounting staff to keep your company’s books can be expensive.

While every business needs the financial data that accountants and bookkeepers prepare in order to fulfill regulatory obligations and make solid business decisions, incurring the cost of a full time staff to prepare that data may not be a very good business decision at all.

Outsourcing this work to a Raleigh CPA firm can mean having the expert financial services that you need anytime while enjoying significant savings.

Continue reading Benefits of Outsourcing Accounting and Bookkeeping