Auditing Standards Board Agrees to Defer SASs 134-140 For One Year

The Auditing Standards Board just issued Statements on Auditing Standards 141, which delays required implementation changes to auditor’s reports for audits and employee benefits plans from reporting periods ending from December 15, 2020 to December 15, 2021, with early adoption permitted.

These new reporting standards will change auditor’s reports and management’s responsibilities as follows:

Statement on Auditing Standards (SAS) 134, Auditor reporting and amendments, including amendments addressing disclosures in the audit of financial statements: The new standard makes significant changes to the layout and information to be included in the auditor’s report.  The new audit report will also provide for the option to report on key audit matters in the body of the report. The SAS standard was developed to better align reporting standards with those of the international and public company auditor reporting standards.

SAS 136, Forming an opinion and reporting on financial statements of employ benefit plan subject to ERISA: The new standard provides changes similar to those of SAS 134 to be included in the auditor’s report and will also eliminate the “disclaimer of opinion” as well as the reference to limited scope audits. The standard will also provide clarification on management’s required representations and responsibilities.

We will contact our clients to discuss how the additional auditor’s opinion requirements may be beneficial to the company’s overall financial statement reporting.

Spiegel is Working to Support Feeding America

Spiegel has teamed up with Feeding America in its effort to assist the millions of newly unemployed people in our communities who are turning to food pantries for help.

Your gift of $50, $75, $100, or whatever you choose to provide will help support local food banks in the Feeding America network as they work to meet the increased demand. Please give today.

Feeding America, the nation’s largest domestic hunger-relief organization, with a network of 200 member food banks across the country, established the COVID-19 Response Fund to help food pantires across the country as they support communities impacted by the pandemic.

The $2.65 million fund will enable food banks to secure the resources they need to serve the most vulnerable members of the community during this difficult time. Still, it is impossible for the Feeding America network to address this pandemic without public and government support, so that food banks can do what they do best — feed people in need within their communities.

Did You Really Qualify For PPP?

Did you receive money through the Paycheck Protection Plan that you’re not entitled to? There are ramifications if you actually do not qualify. The section, below, from a SBA document provides the answer.

Question: Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application.

Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.

Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.11

Source:

Small Business Administration in partnership with the Department of the Treasury

4/23/2020

 

What You Should Know About the CARES Act

We’ve unpacked the information for you.

In response to the coronavirus pandemic, the CARES Act was signed into law on Friday, March 27, 2020.  The Spiegel team has compiled the necessary information within two separate documents regarding:

  • postponed dates for tax filings, payments and program contributions; and
  • resources for financial relief and assistance for individuals and businesses

There are time limits in which to take advantage of certain benefits.

We encourage you to review both of the attached information sources (links below) and contact us if you have any questions.
CARES Act Information
CARES ACT Overview of PPP and EIDL

BREAKING NEWS Regarding the 20% Pass Through Deduction

The Department of the Treasury issued its final regulations providing clarity to the pass through 20% deduction. The final regulations indicate that the origination of a loan is not treated as purchasing securities for the determination of “dealing in securities”. As a result, mortgage bankers qualify for the 20% pass through deduction since they are not a specified service trade or business. Consult your tax professional to ensure this benefit is maximized on your company’s 2018 tax returns.

2019 Mileage Rates

The Internal Revenue Service issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

58 cents per mile for business miles driven, down from 54.5 cents for 2018
20 cents per mile driven for medical or moving purposes, down from 18 cents for 2018
14 cents per mile driven in service of charitable organizations

SAC Ranks No. 4,270 on the 2017 Inc. 5000

Inc. magazine ranked Spiegel Accountancy Corp. NO. 4,270 on its 36th annual Inc. 5000, the most prestigious ranking of the nation’s fastest-growing private companies. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment— its independent small and midsized businesses. Companies such as Microsoft, Dell, Domino’s Pizza, Pandora, Timberland, LinkedIn, Yelp, Zillow, and many other well-known names gained their first national exposure as honorees of the Inc. 5000.

“This prestigious ranking is a tacit acknowledgement of a lot of hard work. The growth and success we’ve experienced over the last three years is a direct result of our team’s consistent efforts to be strategic, proactive and responsive to our clients,” said Jeff Spiegel, CPA, Principal at Spiegel Accountancy Corp. “We sincerely appreciate the recognition.”

The 2017 Inc. 5000, unveiled online at Inc.com and with the top 500 companies featured in the September issue of Inc. (available on newsstands August 16) is the most competitive crop in the list’s history. The average company on the list achieved a mind-boggling three-year average growth of 481%. The Inc. 5000’s aggregate revenue is $206 billion, and the companies on the list collectively generated 619,500 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000.

“The Inc. 5000 is the most persuasive evidence I know that the American Dream is still alive,” says Inc. President and Editor-In-Chief Eric Schurenberg. “The founders and CEOs of the Inc. 5000 tell us they think determination, risk taking, and vision were the keys to their success, and I believe them.”

The annual Inc. 5000 event honoring all the companies on the list will be held from October 10 through 12, 2017 at the JW Marriott Desert Springs Resort & Spa in Palm Desert, CA. Speakers include some of the greatest entrepreneurs of this and past generations, such as former Ford president Alan Mullaly, FUBU CEO and founder and “Shark Tank” star Daymond John, Dollar Shave Club founder Michael Dubin, researcher and #1 New York Times bestseller Brené Brown, and Gravity Payments’ founder and CEO Dan Price.

For more information, please e-mail info@spiegelcorp.com.

 

More about Inc. and the Inc. 5000

Methodology

The 2017 Inc. 5000 is ranked according to percentage revenue growth when comparing 2013 to 2016. To qualify, companies must have been founded and generating revenue by March 31, 2013. They had to be U.S.-based, privately held, for profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2016. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2013 is $100,000; the minimum for 2016 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Companies on the Inc. 500 are featured in Inc.’s September issue. They represent the top tier of the Inc. 5000, which can be found at http://www.inc.com/inc5000.

About Inc. Media:

Founded in 1979 and acquired in 2005 by Mansueto Ventures, Inc. is the only major brand dedicated exclusively to owners and managers of growing private companies, with the aim to deliver real solutions for today’s innovative company builders. Winner of the National Magazine Award for General Excellence in both 2014 and 2012. Total monthly audience reach for the brand has grown significantly from 2,000,000 in 2010 to over 18,000,000 today.  For more information, visit www.inc.com.

The Inc. 5000 is a list of the fastest-growing private companies in the nation. Started in 1982, this prestigious list of the nation’s most successful private companies has become the hallmark of entrepreneurial success. The Inc. 5000 Conference & Awards Ceremony is an annual event that celebrates their remarkable achievements. The event also offers informative workshops, celebrated keynote speakers, and evening functions.

For more information on Inc. and the Inc. 5000 Conference, visit http://conference.inc.com/.

 

SAC Forms New Professional Alliance with 5X Solutions

Spiegel Accountancy Corp.  has formed a professional alliance with 5X Solutions, a mortgage research, data analytics technology company. Spiegel Accountancy Corp. is the only accounting firm to have an alliance with the mortgage business intelligence company.

“Over the years our companies have enjoyed great synergies oftentimes working together for the same mortgage banker clients. We decided now was the perfect time to play off each other’s strengths and open the door to provide mortgage bankers with a wider variety of analytical tools coupled with the tax and audit intelligence of our experts,” stated Henry Chavez, Senior Audit Manager at Spiegel Accountancy Corp (SAC).

The collaboration combines SAC’s vast accounting acumen with 5X Solutions’ flagship business intelligence product, Telemetry MBI, to offer mortgage lenders unique financial solutions for optimized performance.

John Beneventi, Co-Founder, 5X Solutions said, “Having worked together in the past, our companies’ close relationship brings added service and benefit to our mutual clients.   We’re looking forward to leveraging our collaborative efforts by providing the mortgage lending community with advanced financial solutions that improve measurement, management, and performance.”

About 5X Solutions

5x Solutions, LLC is an industry leader in research, data analytics, and technology with specific expertise in the mortgage industry. It offers clients both advisory and technology services that optimize resources, improve profitability and increase scalability. Using its cloud based Telemetry MBI-application, clients have 24/7 access to critical key performance indicators, metrics, and financial reports needed to measure and manage their company. Learn more at http://www.5xsolutions.com or http://www.telemetrybi.com

SAC Forms Professional Alliance with Bedford Cost Segregation

Spiegel Accountancy Corp. announced today it has formed a professional alliance with Bedford Cost Segregation to assist its mortgage lending clients in applying research and development tax credits as a beneficial tax strategy.

While the R&D tax credit has been around since 1981, it was recently made permanent and the incentives were expanded upon to increase opportunities for those who develop “internal-use”  software, which broadens the types of businesses the credit may be applicable for. Now, certain mortgage lenders may benefit from this tax credit.

“We have partnered with the best, Bedford, to help our clients determine their eligibility for these incentives,” stated Jeff Spiegel, CPA, Principal, at Spiegel Accountancy Corp.

The R&D tax credit was designed to encourage economic stimulation and is an incentive for businesses of all sizes to invest in research and development activities and increase technological growth and competitiveness. The U.S. federal tax law provides a benefit up to 20% in the form of a non-refundable tax credit for mortgage companies that engage in qualified research and development activities. The credit, if used, can create immediate cash flow by reducing tax liability dollar for dollar. Mortgage companies that create new or improved products, processes or select technologies have the potential to take advantage of the credit.

Greg Bryant, Managing Partner at Bedford Cost Segregation said, “We’re excited about our partnership with Spiegel Accountancy Corp. and the wealth of opportunities our collaboration offers mortgage lenders.”

About Bedford Cost Segmentation

Bedford is an independent professional services firm specializing in cost segregation and innovative tax and energy solutions for the commercial real estate industry. Its tax team consists of seasoned professionals, who are well versed in the various aspects of tax law pertaining to depreciation, capitalization and expense provisions. More information can be found at https://www.bedfordteam.com/.

SAC Ranks No. 4,270 on the 2017 Inc. 5000 with Three-Year Sales Growth of 61%

Inc. magazine ranked Spiegel Accountancy Corp. NO. 4,270 on its 36th annual Inc. 5000, the most prestigious ranking of the nation’s fastest-growing private companies. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment— its independent small and midsized businesses. Companies such as Microsoft, Dell, Domino’s Pizza, Pandora, Timberland, LinkedIn, Yelp, Zillow, and many other well-known names gained their first national exposure as honorees of the Inc. 5000.

“This prestigious ranking is a tacit acknowledgement of a lot of hard work. The growth and success we’ve experienced over the last three years is a direct result of our team’s consistent efforts to be strategic, proactive and responsive to our clients,” said Jeff Spiegel, CPA, Principal at Spiegel Accountancy Corp. “We sincerely appreciate the recognition.”

The 2017 Inc. 5000, unveiled online at Inc.com and with the top 500 companies featured in the September issue of Inc. (available on newsstands August 16) is the most competitive crop in the list’s history. The average company on the list achieved a mind-boggling three-year average growth of 481%. The Inc. 5000’s aggregate revenue is $206 billion, and the companies on the list collectively generated 619,500 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000.

“The Inc. 5000 is the most persuasive evidence I know that the American Dream is still alive,” says Inc. President and Editor-In-Chief Eric Schurenberg. “The founders and CEOs of the Inc. 5000 tell us they think determination, risk taking, and vision were the keys to their success, and I believe them.”

The annual Inc. 5000 event honoring all the companies on the list will be held from October 10 through 12, 2017 at the JW Marriott Desert Springs Resort & Spa in Palm Desert, CA. Speakers include some of the greatest entrepreneurs of this and past generations, such as former Ford president Alan Mullaly, FUBU CEO and founder and “Shark Tank” star Daymond John, Dollar Shave Club founder Michael Dubin, researcher and #1 New York Times bestseller Brené Brown, and Gravity Payments’ founder and CEO Dan Price.

For more information, please e-mail info@spiegelcorp.com.

More about Inc. and the Inc. 5000

Methodology

The 2017 Inc. 5000 is ranked according to percentage revenue growth when comparing 2013 to 2016. To qualify, companies must have been founded and generating revenue by March 31, 2013. They had to be U.S.-based, privately held, for profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2016. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2013 is $100,000; the minimum for 2016 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Companies on the Inc. 500 are featured in Inc.’s September issue. They represent the top tier of the Inc. 5000, which can be found at http://www.inc.com/inc5000.

About Inc. Media:

Founded in 1979 and acquired in 2005 by Mansueto Ventures, Inc. is the only major brand dedicated exclusively to owners and managers of growing private companies, with the aim to deliver real solutions for today’s innovative company builders. Winner of the National Magazine Award for General Excellence in both 2014 and 2012. Total monthly audience reach for the brand has grown significantly from 2,000,000 in 2010 to over 18,000,000 today. For more information, visit www.inc.com.

The Inc. 5000 is a list of the fastest-growing private companies in the nation. Started in 1982, this prestigious list of the nation’s most successful private companies has become the hallmark of entrepreneurial success. The Inc. 5000 Conference & Awards Ceremony is an annual event that celebrates their remarkable achievements. The event also offers informative workshops, celebrated keynote speakers, and evening functions.

For more information on Inc. and the Inc. 5000 Conference, visit http://conference.inc.com/.