Managing accounts payable is a critical task for every business. However, once in place, payment processes can get taken for granted. Don’t underestimate the impact of accounts payable on your company’s financial performance. Explore the potential benefits of early payment discounts, volume discounts or other incentives. Implement policies, procedures and systems to ensure that you properly vet vendors and negotiate the best possible prices and payment terms. And of course, regularly examine whether and how to upgrade your accounts payable technology to increase efficiency, reduce costs and shorten the time it takes to process invoices.
Contractors often seek damages when an owner’s actions delay a project. But what if an owner disrupts, rather than delays, a job? Proving disruption damages entails clearing a higher bar than that for delay damages. Generally, courts prefer the “measured mile” method, under which the contractor’s cost of work during the disruption period is compared to the cost of the same work during an unaffected period. An important contributing factor, though, is whether the contract includes a “no damages for delay” clause. It might protect the owner from delay liability, but such clauses usually don’t prevent claims for disruption damages. Still, legal counsel is critical. Contact us for more info.
Because of the soaring price of gasoline, the IRS has increased the standard mileage rate for qualified business driving for the second half of 2022 from 58.5 cents per mile to 62.5 cents per mile.
Is your company being transparent about contingent liabilities? In today’s uncertain conditions, reporting contingencies can be challenging. Here’s a refresher on the accounting rules for disclosing and estimating expected losses.
If your not-for-profit hasn’t conducted an executive search since before the pandemic, anticipate an altered search landscape. For example, the job market now is tighter and, given the prevalence of working from home, candidates may not want to consider relocating. A search committee of board members should keep comprehensive, up-to-date job descriptions for executive positions and list the knowledge, skills, abilities and attitudes required. Also, the committee will want to discuss compensation to ensure your nonprofit’s offer is competitive with those of similar organizations. Contact us for more information.
Exploring financial statement footnotes can be a rewarding endeavor, especially in today’s uncertain marketplace. Comprehensive disclosures appear at the end of reviewed and audited financial statements. They can provide valuable insight into a company’s hidden risk factors.
Donors may automatically assume they can deduct the full amount of any charitable contribution. But what if your nonprofit provides goods or services in exchange for donations?
Costs are rising at levels we haven’t seen for decades. As you factor the effects of inflation into your financials, look beyond the income statement. Other aspects of your financial statements that might be hit by today’s high rate of inflation include inventory, acquired goodwill, investments, foreign currency transactions, long-term leases and variable-rate loans. These changes may have income tax consequences. And inflationary pressures can even lead to going concern issues. Contact us for help anticipating how inflation is likely to affect your company’s financials and brainstorming ways to manage inflationary risks.
