Accounting Tips for Engineering & Architecture

Roth 401(k) vs. 401(k) – Which is Better?

The retirement plan landscape has changed dramatically in the last few years, with most plans now offering a Roth option. The Secure Act 2.0 passed in 2022 accelerated those changes by adjusting existing retirement plan rules. Among these is a feature that allows participants to treat employer-matching contributions as designated Roth contributions if the plan…
Read More

2024 Tax Deduction for Meals and Entertainment

The meals and entertainment deduction has gone through several revisions in recent years. Before 2018, meals and entertainment were eligible for a 50% tax deduction.  Beginning with the 2018 tax year, the Tax Cuts and Jobs Act eliminated the deduction for entertainment expenses altogether, while most meals remained 50% deductible. In 2021 and 2022, the Consolidated…
Read More

Roth for Kids and Young Adults

Setting up a Roth IRA for your child can be a smart financial move with long-term benefits. It can also help them get started saving for retirement or other life events early. For 2024, the maximum contribution is $7,000 for those under age 50.  Time is a powerful ally when it comes to investing. Even…
Read More

IRS Update on ERC Claims

IRS Commissioner Danny Werfel reported to the Senate Finance Committee that even with the moratorium since September 2023 on processing previous and new claims for the ERC, the IRS averages 20,000 new applications weekly. The IRS recently announced ERC that claims processing could resume by late spring depending on whether Congress extends the statute of…
Read More

Biden’s Budget and Potential 2nd Term Tax Legislation

Soon after The President’s State of the Union Address, the proposed fiscal year 2025 budget was released. This outlines how the administration would implement the President’s tax policy, indicating a gross tax hike of approximately $5.3 trillion from 2024 to 2034. Notable Provisions: Increased Taxes on High Earners: Increase income taxes for individuals earning more…
Read More

The Safest & Easiest Way to Make Tax Payments 

We’re past the April 15th deadline, which means many of you just paid balances due and first-quarter estimates. If you are still writing checks to make tax payments, there is a much better (and safer) alternative. Both the IRS and the State of Alabama have excellent platforms for making payments electronically via bank draft. A process…
Read More

How to Assist A Child Buying a Home

As housing prices and mortgage rates continue to escalate, many young people struggle to purchase their first home or upgrade. One option is for parents or family to finance the purchase of the house and hold a mortgage. The transaction is documented like a regular mortgage with monthly payments. Let’s look at the advantages: Favorable…
Read More

Navigating Expense Reimbursement Challenges: A Tech-Savvy Approach

Expense reimbursement remains a significant challenge for many businesses in the accounting landscape. Manual processes often lead to errors, delays, and employee dissatisfaction. To address these issues, businesses are increasingly turning to software solutions that streamline the reimbursement process and enhance accuracy and efficiency. Expense reimbursement problems are commonly rooted in paper-based systems, which result…
Read More

Estate and Gift Taxes – Plan Now for Reduced Exemption in 2026

For the past five years, taxpayers have enjoyed historically high gift and estate tax exemptions, thanks to the Tax Cuts and Jobs Act of 2017. This legislation doubled the exemption from approximately $5.5 million to $13.61 million per person (adjusted for inflation) in 2024. The annual gift exemption also increased to $18,000 per donee in…
Read More

The Benefits of Outsourced Accounting

    In today’s business environment, companies are constantly seeking ways to optimize operations and enhance efficiency. One strategy gaining prominence is outsourcing, particularly accounting functions. Outsourcing accounting services can offer a myriad of benefits, revolutionizing a business’s financial landscape. Firstly, outsourcing allows companies to tap into a pool of skilled professionals without the burden…
Read More