Financial Technologies & Management- E-Newsletter for January |
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Upcoming Live Webinars Dear {CONTACT.SALUTATION} We hope you find our monthly E-Newsletter useful for your nonprofit organization. We are pleased to provide you with access to our knowledge articles and live webinars!!
These live webinars will help Nonprofit Leaders, Treasurers, Executive Directors, Finance Directors, Finance Staff, and other Nonprofit Staff.
Our upcoming live webinars for financial management training are broken into the following areas. Please feel free to click on any of these areas to learn more and register for these upcoming financial management training.
Please contact us if you have any questions or feedback about our upcoming live webinars. Feel free to check out our FTM blog or book a meeting on my calendar.
Best Regards, James Simpson, CPA, CFE, CITP, and CGMA. |
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Year End is the best time for a financial assessment to review your year end closing and financial policies and procedures |
We have discovered that around fiscal year end might be the best time to document your financial policies and procedures. We are usually preparing and implementing budgets and starting our audit preparation so we are usually in the planning and reviewing mode. You can document your financial processes and see where you can make improvements. You can look to see where you can implement new software and automate systems to reduce manual processes.
You may believe that an audit will help your organization prevent fraud and increase controls. This is actually a common misconception. While auditors have a wealth of knowledge and recommendations that can help, an audit is not designed to catch fraud. In fact, in the recent Occupational Fraud 2022: A Report to the Nations, copyright 2022 by the Association of Certified Fraud Examiners, Inc. (ACFE), only 4% of occupational fraud was initially detected by an external audit engagement.
Instead of engaging auditors and hoping solutions come from it, organizations should consider conducting their own internal examinations focusing on processes and controls and working to resolve those identified vulnerabilities. Our firm can provide you with a financial assessment tailored towards the people, processes and technology that will help your organization make improvements to strenghten its internal processes and controls, improve segregation of duties, evaluate accouting staff and software, and determine where risks exists and how to mitigate them. The full article provides year end closing tasks and essential financial policies. |
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Implementing The New Lease Accounting Standard |
For most NFPs, the primary costs associated with implementing the new standard will be the additional time and effort required of staff (both operational and administrative) in educating employees about the requirements of the new standard and gathering the necessary information to properly implement the standard.
NFPs will need to gain a thorough understanding of ASC 842 and take necessary steps to ensure an efficient transition to the new lease reporting model. Key items for NFPs to consider include the following: - Identifying Leases Accurately
- Policies and Procedures
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Choosing the Discount Rate
- Lease Capitalization Policy
- Calculation of the Lease Liability
- Financial Statement Disclosure
- Impact of Bank Covenants
- Educate the Stakeholders including board members, donors, and funding sources
You should coordinate with external auditors for adoption of the new lease standard. The full article list the five criteria necessary to meet the requirement for a finance lease versus an operating lease. The full article describes in detail all the terms including short term lease exception, measurement of lease payments, lease term, measurement of the right-of-use asset and lease liability, discount rate, and initial direct costs.
The full article includes comprehensive information regarding implementing the new lease accounting standard.including a full example of an finance and operating lease with related journal entries. |
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1099-NEC, 1099-MISC, W2, & W3 due January 31st |
Employers and other businesses must file wage statements and independent contractor forms by Jan. 31st.
Certain Forms 1099-NEC, Nonemployee Compensation, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 1 of this form.
The early filing date means that the IRS can more easily detect refund fraud by verifying income that individuals report on their tax returns. Employers can avoid penalties by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms.
Hopefully, you collected your W-9 forms from independent contractors to whom you paid $600 or more this year. The information on W-9’s can help you compile the information you need to send 1099-MISC and 1099-NEC to recipients and file them with IRS. Here is a link to the Form W-9 that you would need to request your contractors and vendors to complete.
1099-MISC and 1099-NEC forms generally don’t have to be provided to corporate services providers, although there are exceptions. Corporate service providers would include C or S Corporation including a limited liability corporation (LLC). Please click the full article which includes links to forms and what to do to avoid information return penalties. |
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MIP Fund Accounting Update-Year End 1099 and W2 Training |
Providing Nonprofit Accounting Services Since 1999
Contact us to learn more about our comprehensive and customizable outsourced nonprofit accounting services, including: Bookkeeping Services
Accounting Services Controller Services
CFO Services Getting Ready for Year End!!
MIP Fund Accounting version 2022.2 is now available for download. As with any major release, if you own HR/EWS or Rest API you will also need to update those modules to the latest version. See below to download the release and for additional information: KB 28511
You will need to upgrade or we can help you upgrade your on premise license to 2022.2 to be able to produce your W2's and 1099's for 2022. Also, here are the user guides and FREE MIP Fund Accounting training video to assist you with year and glad to help or do this for your organization. 2022 1099-MISC User Guide
2022 1099-NEC User Guide
2022 W2 User Guide Please click for the full article for MIP Software Services. |
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