News and Events

The new tax laws in the US and the subsequent tax code changes have caused much concern, confusion, and have even caused some to experience unwarranted tax penalties. With the massive overhaul of the tax codes and IRS guidance that has taken place over the past 24 months, there appeared to be quite a bit of “trial and error” taking place as the IRS scrambles to apply guidance and tax code to match the new tax laws. Recently in the news, the IRS announced it would waive tax penalties for more than 400,000 eligible taxpayers who underpaid on their 2018 tax returns.
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We hear a lot about the ‘cloud’ and have begun to frequently refer to our workplace data and storage as ‘the cloud.’ The term has become our metaphor for the Internet, and it is a blend of where we house our work and the processes of our work from software, to drives, to project management solutions. Xero, a New Zealand based accounting software, is one such solution to cloud-based software designed specifically for small businesses and accounting. The company has revolutionized project management, payroll, expense reports, inventory tracking, purchasing and much more.
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We all know the importance of keeping track of finances.  Personal, or business, keeping “good books” helps one avoid surprises, audits, and potential fines by the IRS or other taxing authority.  We also know it is always a good idea to have a professional accountant assist with one’s financial records.  In order to do this, we enter into a Financial Reporting Engagement.  Now, this is not the type of engagement which requires rehearsal dinners, flowers, and receptions.  A Financial Reporting Engagement is basically a Statement of Work (S.O.W.) agreement between the accountant and the client detailing what type of financial reporting will be done and can be broken into four main types: financial statement preparation, compilation, review, and audit.  In addition to this type of engagement, there are many other services a CPA firm can provide (payroll, tax preparation, etc.).
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**Update:  As of Monday, July 1, 2019, President Trump has signed the Taxpayer First Act into law.

A new, bipartisan IRS reform bill has just been signed into law by the President. The bill, called the Taxpayer First Act and championed by the Senate Finance Committee Chairman, Chuck Grassley (R-Iowa), promises to do just that: place the taxpayers first when it comes to the Internal Revenue Service (IRS). Here’s what the act will do for Americans now that it is signed into law.
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Lawhorn CPA Group wants to remind you that 2nd quarter estimated tax payments for 2019 are due June 17, 2019.
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On most accounts, there has never been a better time to take the leap towards entrepreneurship in America. After all, there are have been several new initiatives that were part of the Tax Cut and Jobs Act of 2018 that helped introduce a single and flat corporate tax rate, new pass-through tax deduction, 100% bonus depreciation, increased automobile depreciation limits, and more. It just seems like everyone is rooting for small business owners. So, while there are numerous amounts of articles you will inevitably encounter as you search for guidance in starting a business (including several million on choosing the correct business structure), this one has one goal: helping you choose the right business entity for your new company. Keep in mind that we use the term “right” quite loosely as there may be several options for you at this point in your business that would be the best choice, and still other options that may be better as you grow, hire and earn more revenue. With that out of the way, we’ll seek to find the best match for your business and its owner(s).
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As we settle into April, it may be that you received notice that your accountant filed a personal tax extension on your behalf. But, what does this mean for you and why would your accountant do that? There are many reasons for filing an extension and, don’t worry, are often to your benefit.
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Accountants are often asked the difference between tax preparers, such as H&R Block, Jackson Hewitt, and Liberty Tax Services, and Certified Public Accountants (CPAs) during tax time in the US. These roles are often seen as similar when it comes to tax preparation, and so it’s useful to know the difference between the two. As the 2019 annual tax season begins, here is what you need to know about H&R Block-like services versus a CPA.
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Once all of the steps are completed in the framework of the FASB Accounting Standard concerning the Revenue from Contracts with Customers, then businesses can completely recognize the revenue. This final step recognizes revenue when or as the performance obligations are completed.

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Previously, we addressed Steps 1, 2, and 3 of the Accounting Standard Update (ASU) No. 2014-19, Revenue from Contracts with customers. This post moves on to Step 4, allocating the transaction price to the performance obligations in the contract. This, and one final, step addresses when and how much revenue should be recognized from business contractual obligations.

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