CPA Blog

Few changes to retirement plan contribution limits for 2017

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Published: Tuesday, 03 January 2017 09:23

Written by Phillip Strickler, CPA.CITP

Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2017. The only limit that has increased from the 2016 level is for contributions to defined contribution plans, which has gone up by $1,000.

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Build consensus before you buy business software

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Published: Tuesday, 03 January 2017 09:00

Written by Phillip Strickler, CPA.CITP

Business owners get to make executive decisions. It’s one of the perks of the job. But acting unilaterally when buying business software can be a risky move. Because new technology affects the entire team, the entire team (or at least key members) should have input on the choice. And while it may be impossible to please everyone, it’s possible to come close.

Management feedback

Certain kinds of new business software (or upgrades) may appear no-brainers. But you’d be surprised. Managers may see a lot of bells and whistles in a just-released product, but few useful features. You also have to consider the software’s compatibility with your company’s other applications.

So begin by gathering feedback from your management team. In particular, note which features are “must haves” and which ones are “just wants.” Then work with your IT and financial departments (or advisors) to target the right software within a specific budgetary range.

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Why making annual exclusion gifts before year end can still be a good idea

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Published: Monday, 19 December 2016 08:55

Written by Phillip Strickler, CPA.CITP

A tried-and-true estate planning strategy is to make tax-free gifts to loved ones during life, because it reduces potential estate tax at death. There are many ways to make tax-free gifts, but one of the simplest is to take advantage of the annual gift tax exclusion with direct gifts. Even in a potentially changing estate tax environment, making annual exclusion gifts before year end can still be a good idea.

What is the annual exclusion?

The 2016 gift tax annual exclusion allows you to give up to $14,000 per recipient tax-free without using up any of your $5.45 million lifetime gift tax exemption. If you and your spouse “split” the gift, you can give $28,000 per recipient. The gifts are also generally excluded from the generation-skipping transfer tax, which typically applies to transfers to grandchildren and others more than one generation below you.

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Your company’s balance sheet makes great reading this time of year

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Published: Monday, 19 December 2016 08:49

Written by Phillip Strickler, CPA.CITP

Year end is just about here. You know what that means, right? It’s a great time to settle in by a roaring fire and catch up on reading … your company’s financial statements. One chapter worth a careful perusal is the balance sheet. Therein may lie some important lessons.

3 ratios to consider

In a nutshell, a balance sheet summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time. Its objective: To provide an accurate snapshot of the financial standing of the business.

Yet a balance sheet can do so much more. There are a number of ratios you can draw from this report, which can help you lay out strategic plans for next year. Here are three to consider:

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