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Recently Published
30 Second Ideas
- You’ve Got Two More Days to File Your Tax Return
- 2012 Standard Mileage Rates
- Taxpayers Beware: IRS Impostor Emails
Accounting Updates
- New Consolidation Standards — Who Put the VIE in Related-Party Lease Arrangements?
- Proposed Changes to Revenue Recognition Standards — Only One Proud Standard Rather than Dozens
- Proposed Changes to Lease Accounting Standards — The Classic Cookie-Cutter Standard Is Likely to Be Retired
Alerts
- Beware: New Form 8938 - Statement of Foreign Financial Assets
- Time to Come Clean with Cook County (and Chicago too?)
- SSAP 101 Adopted
Articles
- Beware: New Form 8938 - Statement of Foreign Financial Assets
- You’ve Got Two More Days to File Your Tax Return
- 1099-MISC Requirements for Landlords
Business Surveys
- Survey of Chicago Area Business Leaders, September 2009
- Survey of Advisors to Family-Owned Businesses
- Survey of Chicago Area Business Leaders, February 2009
Construction Edge
- Managing Indirect Costs Calls for a Keen Eye ... and a Plan
- An Escalation Clause Can Help Curtail Materials Cost Woes
- Four Ways Dishonest Employees Can Steal Your Money
Healthcare Edge
- Specialty Snapshot: Home Healthcare Services
- Is Your Healthcare Entity a Personal Service Corporation?
- Small Business Health Care Tax Credit
Insurance Edge
- SSAP 101 Adopted
- Organizing Reinsurance in Receiverships and Troubled Companies
- Redefining the World of Deferred Acquisition Costs (DAC)
Legal Talent
- Varying Rates for Contract Attorneys: Caveat Emptor!
- Top 10 Reasons to Hire Temporary Help in a Down Economy
- Five Organizational Tips for Staffing a Document Review Project
Manufacturing Edge
- A Year-End Planning Checklist for Every Manufacturing Company and Distributor
- Goodwill Impairment Testing — Simplification May Be Possible
- Ten Easy Ways To Improve Your Website and Bring In More Customers
Not-for-Profit Edge
- Insights from Not-for-Profit’s Accounting and Auditing Update 2011
- Benefits of Conducting a Fraud Risk Assessment
- A Formula for Sustainable Spending
Quick Links & Good Ideas
- Quick Links and Good Ideas, January 2011
- Quick Links and Good Ideas, November 2010
- Quick Links and Good Ideas, September 2010
Strategy Insights Blog
- Measuring the Success of Your Strategy, Starts with Asking the Right Seven Questions
- Leadership Lesson from the Military: Put Away Your Iron Fist and Empower Your Troops
- The New Digital Reality: Your Brand Is No Longer in Your Own Hands
Articles
Beware: New Form 8938 - Statement of Foreign Financial Assets
Certain U.S. individual taxpayers (as well as bona residents of American Samoa and Puerto Rico) holding financial assets outside of the U.S. must report those assets to the IRS for taxable years beginning after March 18, 2010. For most individual...
read moreYou’ve Got Two More Days to File Your Tax Return
For Tax Season 2012, the due date for “April 15 returns” for Tax Year (TY) 2011 is April 17, 2012. April 15 falls on a Sunday in Tax Season 2012, which under most circumstances would push the due date to...
read more1099-MISC Requirements for Landlords
In the past couple of years Congress has been active in modifying filing requirements for informational returns, especially 1099s. All of these changes have left informational return filing requirements misconstrued, especially in the case of landlords on their individual tax...
read moreWhere Do You Live? The Illinois Tax Edition
And why does it matter? It seems that Illinois residents have been asking this question more often since Illinois increased its individual income tax to five percent. How does Illinois define a resident? Illinois defines "resident" as: (A) an individual...
read moreSpecialty Snapshot: Home Healthcare Services
There are approximately 33,000 home care providers across the US with combined total projected revenues in 2009 of approximately $72.2 billion. This industry is highly fragmented, and the 50 largest companies generate less than 25 percent of the total revenue...
read moreIs Your Healthcare Entity a Personal Service Corporation?
A qualified personal service corporation (PSC) is a specific type of C Corporation, providing personal services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, and consulting. Many entities currently classified as PSCs could see substantial...
read moreDonations of Conservation Easements
A new Internal Revenue Service Audit Techniques Guide (ATG) on conservation easements gives taxpayers an outline for how IRS examiners will view charitable contributions of conservation easements. The purpose of a conservation easement is to preserve and protect property from...
read moreIllinois Tax Change: More Than Sears and CME
The passing of SB 397 and SB 400 in December has brought a lot of publicity to the tax breaks for Sears and CME Group. However, there are some significant changes for all Illinois residents and businesses. Most notably, the...
read more2012 Standard Mileage Rates
On December 9, 2011 the IRS released the standard business, deductible medical, and moving mileage rates effective January 1, 2012. The rate for business miles has remained unchanged since the 2011 mid-year adjustment. The medical and moving rate has decreased...
read moreCongress Extends the Reduced Social Security Rate for Employees
On December 23, 2011 Congress passed and President Obama signed into law the "Temporary Payroll Tax Cut Continuation Act of 2011." The two percent social security tax rate cut has been extended through February 29, 2012 for the employee side...
read more2011 and 2012 Increase to Federal Unemployment Taxes
Twenty states and the Virgin Islands will see an increase in their Federal Unemployment Tax (FUTA) for 2011 and 2012. Many state unemployment insurance funds borrowed from the federal government recently due to the economic downturn. When the loans remain...
read moreSmall Business Health Care Tax Credit
On March 23, 2010 the government passed the highly publicized Affordable Health Care for America Act that affected most Americans. Included in this bill were specific credits aimed to help small-business owners reduce their taxes by way of a credit...
read moreInsights from Not-for-Profit’s Accounting and Auditing Update 2011
Blackman Kallick’s Not-for-Profit professionals recently hosted a seminar to discuss tax and accounting updates that will affect not-for-profit organizations. The seminar discussed a variety of topics including ways to improve reporting on the 990, latest tax developments, measuring fair value...
read moreA Year-End Planning Checklist for Every Manufacturing Company and Distributor
As we approach the end of 2011, here is a list of items to consider as part of your tax year-end planning. Inventory Write-off (don’t assume all the reserves are non-deductible)It is time to consider looking at those inventory reserve accounts...
read moreGoodwill Impairment Testing — Simplification May Be Possible
Many organizations have goodwill on their balance sheets that is not being amortized for financial reporting purposes. Many years ago, accounting standards changed and organizations stopped amortizing goodwill (though it is still amortized for income tax purposes over a 15-year...
read moreIRS Updates for Inflation in 2012
Unlike previous years, the IRS has issued a change in many of the deductions and exemptions to account for inflation in the 2012 tax year. Below is a sampling of the changes in the numbers (IR-2011-103; IR-2011-104; Rev. Proc. 2011-52,...
read moreDeducting Out-of-Pocket Volunteer Expenses
Many taxpayers not only contribute money to their favorite charitable organization, they also give their time and incur other expenses related to the charity’s work. Although there is no deduction allowed for the contribution of services or the value of...
read moreBenefits of Conducting a Fraud Risk Assessment
Fraud is a risk to every organization whether large or small. Organizations should periodically assess their potential exposure to fraud and whether their exposure is mitigated through their internal controls. As auditors, we are often asked: we are often asked:...
read moreA Formula for Sustainable Spending
Today’s harsh economic climate has challenged nonprofit spending like never before. While investment-portfolio values may still be depressed from the financial crisis, spending needs are greater than ever. Continuing to spend at previous levels may appear unsustainable, but cutting spending...
read moreBoard Minutes — Back to the Basics
Board minutes can vary greatly from organization to organization. Some minutes contain a great deal of detail, while others leave the reader wondering what actually happened at the meeting and whether any decisions were made. Minutes document a chronology of...
read moreFASB Adds Two Not-for-Profit Agenda Projects
The Financial Accounting Standards Board (FASB) announced two agenda projects—a standard-setting project and a research project—intended to improve financial reporting of not-for-profit organizations. These projects are drawn from suggestions received at the FASB’s Not-for-Profit Advisory Committee’s September 2011 meeting. In...
read moreOne-Minute Thought — Selected Federal Income Tax Information for Consideration in the Upcoming Election Season
An article released by the Urban-Brookings Tax Policy Center contained some interesting information about the level of taxable income that it took for the average taxpayer to owe any federal income tax. Assumptions were made that the income was all...
read moreIRS Announces Voluntary Program to Reclassify Workers as Employees
Many organizations have workers whom they would classify as independent contractors but whose actual status per IRS rules is that of an employee. If the IRS audits a company and reclassifies workers from independent contractor to employee status, the company...
read morePhysician Acquisitions - Nothing Will Come of Nothing
Physician acquisitions and mergers continue to dominate the healthcare sector during 2011. Hospitals, in an effort to bolster their shrinking bottom lines, strive to replace volume decreases and continued expected reductions in reimbursements by partnering with physicians. Similarly, many physicians anxiously seek to remove the uncertainty facing their own reimbursements and volumes by aligning with hospitals. Partnering can mean many things, but most often a sale of a practice is involved.
read moreSpecialty Snapshot: Nursing Homes and Long-Term Care Facilities
There are approximately 75,000 establishments across the U.S. with combined total revenues of approximately $185 billion. This sector covers many types of institutions including nursing homes, assisted living facilities, continuing care retirement communities, community-based residential facilities, residential care apartment complexes,...
read moreTo Be or Not to Be – a Doctor
Becoming a doctor used to be tops on the career totem pole. If you were a physician you were part of a distinguished profession, inherent with the respect and dignity the lengthy education and responsibility deserved. That was then, this is now. Now a doctor is the “bad guy” bringing in six figures, while the rest of us wait for months for an appointment.
read moreTo Capitalize or Expense? That Is Now the "Repairs and Maintenance Cost" Question
In August of 2009 the Internal Revenue Service added the repairs method to its list of automatic accounting changes originally outlined in Revenue Procedure 2008-52 and reinforced in Revenue Procedure 2009-39. The IRS Large and Mid-Size Business Division issued two...
read moreSSAP 101 Adopted
Statutory Accounting Principles Working Group Adopts SSAP 101 Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10. On August 31, 2011 the Statutory Accounting Principles Working Group adopted SSAP 101. As adopted this replacement of SSAP 10R...
read moreHeads Roll in Chicago — Significant Changes to the Chicago Employer’s Expense Tax, a.k.a. the “Head Tax”
If you are paying Chicago Employer’s Expense Tax (referred to as “Head Tax”), you should be aware of some recent legislative changes that may reduce your tax liability. The salary thresholds in the definition of “full-time employee” and “commission merchant”...
read moreIRS Cracks Down on Unreported Transfers of Real Estate
Jack and Jill own a house. They would like to add Peter, their son, to the deed just in case something happens to them in the near future. Jack and Jill file a form at the County building to add...
read moreThe IRS is Calling — a Common Sense Solution for Business Cell Phone Expenses!
The Small Business Jobs Act (better known as the Hire Act) provided that cell phones are no longer considered “listed property” for tax years beginning after December 31, 2009. “Listed property” required extra substantiation/tracking requirements for proving the deductibility of...
read moreTen Easy Ways To Improve Your Website and Bring In More Customers
The Internet is a powerful marketing tool that very few businesses harness effectively. Marketing online goes far beyond designing a visually appealing website. The more effort and time you put into your site, making it easy to use, more “visible”...
read moreInventory Management for Companies Using LIFO IPIC Valuation Methodology
As management is looking for avenues to reduce costs, optimizing the use of available working capital and cash flows from operations, efficient inventory management could be a very useful tool. For companies using last in, first out (LIFO) inventory price index...
read moreHedging Commodities to Manage Business Risks
The most fundamental principle of finance measures the amount of risk you have related to each dollar of potential profitability. Yet, companies have a tendency to focus more attention on absolute returns, rather than on what they are risking to...
read moreRising Healthcare Costs: Can We Stop the Insanity?
Was Ben Franklin America’s first healthcare expert? Looking back, Franklin understood how to stop the rising costs of care and what to do with the savings. As a common sense strategy to stop rising healthcare costs, an ounce of prevention is worth more than a pound of cure. Franklin also knew that a penny saved was a penny earned. By applying his wisdom today, business owners can provide quality healthcare and stop the insanity of rising healthcare costs.
read moreIRS Extends Deadline for Voluntary Disclosure Due to Hurricane Irene
The IRS extended the deadline for the Offshore Voluntary Disclosure Initiative (OVDI) to September 9, 2011 (the previous deadline was August 31, 2011). Our article “Second Chance for Voluntary Disclosure,” from the March 2011 Tax Highlights, describes that with the...
read moreFASB Amends Accounting Standard for Healthcare Entities (Topic 954)
The Emerging Issues Task Force (EITF) reached a consensus and the FASB approved Accounting Standards Update 2011-07 “Health Care Entities: Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health...
read moreDeducting 100% of the Cost of Certain Vehicle Purchases
Businesses can once again deduct up to 100% of the purchase price of new sports utility vehicles (SUV). The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, enacted December 17, 2010, allows bonus depreciation of 100% on...
read moreEmployee Theft Adds Up, Low-Cost Solutions Could Save Thousands
Could your organization use an extra $50,000? Could your organization use an extra $50,000 it already has? It turns out that many organizations receive funds that don’t end up in the practice’s bank account due to fraud. Based upon my...
read moreTaxpayers Beware: IRS Impostor Emails
Recently there have been reports of phony emails with subject lines such as “Federal Tax payment rejected” or “Your IRS payment rejected.” These emails are not from the IRS. If you receive one of these emails do not reply, do...
read moreThe Service’s Strange Math: LLC = LP. Courts Disagree — For Now . . .
In three separate cases, the IRS has attempted to disallow passive-loss claims of LLC interest holders, arguing that under the Code and Regulations, there is no difference between an LLC interest and an LP interest. All three cases were decided...
read moreHigh-Deductible Health Savings Account Adjustments
The Internal Revenue Service released Revenue Procedure 2011-32 effective for the 2012 calendar year. Revenue Procedure 2011-32 adjusts for 2012 inflation figured for contributions to HSAs. The annual limitation on deductions increased for qualified individuals with self-only coverage from $3,050...
read moreUpcoming Changes to Schedule E in 2011
On December 20, 2010, the Treasury Inspector General for Tax Administration (TIGTA) issued its audit to the Internal Revenue Service Commissioners for the Small Business/Self-Employed Division and the Wage and Investment Division. The TIGTA made recommendations to IRS management on...
read moreEmployers Get a Small Break: FUTA Tax Decreases
Beginning July 1, 2011, the Federal Unemployment Tax (FUTA) decreased from 6.2% to 6.0% before credits for state unemployment taxes paid. Congress did not extend the 0.2% FUTA surcharge before the June 30 deadline. Employers have been required to pay...
read moreIRS Increases Mileage Rates for Remainder of 2011
The IRS increased the standard business, deductible medical, and moving mileage rates effective July 1, 2011 through December 31, 2011. Recognizing recent gas price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally...
read moreTake Your Mittens Off — Michigan Budget Bills Create a Warmer Business Climate?
On May 25, 2011 Michigan Governor Rick Snyder signed into legislation a series of tax bills resulting in major changes for Michigan business and individual taxpayers. The new laws will take effect January 1, 2012. The highlights of the legislation...
read moreMost Significant Business Valuation Tax Court Case in Years — Estate of Gallagher
While everyone else was busy getting ready for the Fourth of July holiday weekend, the US Tax Court filed its memorandum of findings regarding the fair market value of a minority interest in a closely held business. In Estate of Gallagher...
read moreExecutive Summary: Certification — Same Activity, Different Result
Certification of products and processes is ever present in US business. Certifications are typically carried out by tax-exempt Section 501(c)(3) and Section 501(c)(6) organizations. When Section 501(c)(3) organizations carry out certifications, the income is often subject to unrelated business income....
read moreIllinois Department of Human Services Financial Reporting Requirements Have Changed for FY2011
In an effort to reduce the number, variety, and redundancy of financial reports required of community service providers, Illinois Department of Human Services (DHS) has replaced the grant report and consolidated financial report (CFR) with an Annual Financial Report (AFR). ...
read moreA Survey Reveals Continued Increase in Demand for Nonprofit Services
A recent survey conducted by the Nonprofit Finance Fund (NFF) of more than 1900 nonprofit leaders nationwide revealed that continuing increases in demand for services have spread many organizations thin. NFF’s “2011 State of the Sector Survey” found that nonprofits have seen...
read moreRecognize and Celebrate Cumulative Giving
Nonprofit organizations looking to expand their planned-giving prospects or simply boost contributions should not underestimate the power of cumulative giving. At a time when resources are stretched, organizations often focus their development efforts on major donors. Cumulative giving over time...
read moreOrganizing Reinsurance in Receiverships and Troubled Companies
Protecting Your Largest Asset by Getting a Handle on It: A Brief Checklist It’s a dark and stormy night!! (Really) The Department of Insurance is in the midst of an examination of The ABC Troubled Company (“Troubled Company”). Among other...
read moreThe Perfect Storm For Reviewing Your Life Insurance Policies
When was the last time you evaluated your existing life insurance policies, whether they are personal or being used for gifting or business purposes? If it has been more than five years – and especially if it has been more...
read moreOne-Minute Thought — The Debt Limit, Politics, and Taxes
The US reached its “debt limit” of $14.294 billion on May 16, 2011. According to our rough calculation that is just under $50,000 for every man, woman, and child in the US Treasury Secretary Geithner has authorized some “extraordinary measures”...
read moreDo State Unclaimed Property Reporting Rules Apply to Me? It’s Likely!
We've all heard stories of people who, through a simple internet search, have tracked down money and property they've long since forgotten. Unclaimed property has become a hot topic in taxation and it isn’t even a tax. Each state administers...
read morePrinting Reduction in Blackman’s Tax Department
The Environmental and Community Outreach (ECO) Committee at Blackman issued a challenge to the Tax Department this year to reduce its printing-paper consumption by 35%. By April, the department nearly doubled the target, and achieved a 67% reduction! If this trend continues, the annual savings would equal 1.8 million sheets of paper or 200 trees.
read moreAudit Committee Self-Evaluations
Performance evaluations are an important tool to help organizations assess their effectiveness against established metrics. Many not-for-profit organizations spend a great deal of time and resources monitoring and evaluating the performance of their programs, finances, employees, and vendors. However, when...
read moreCertification — Same Activity, Different Result
Revenue from certification is typically considered UBTI when received by a Section 501(c)(3) organization but not a Section 501(c)(6) organization. Certified products and services are ever-present. One can choose a meal based on certification marks such as the American Heart...
read moreRedefining the World of Deferred Acquisition Costs (DAC)
No doubt you have read about and gone through the exercise of familiarizing yourself with the new fair value definitions from the Financial Accounting Standards Board (FASB). Well, the FASB continues to move forward by redefining Deferred Acquisition Costs (DAC)...
read moreAccounting for Insurance Contracts — A Joint Movement to IFRS
As the insurance industry moves ever closer to an accepted set of International Financial Reporting Standards (IFRS) - many uncertainties remain related to the nature, timing, and extent of accounting considerations for insurance contracts. Insurance companies will likely be facing...
read moreHiring is Trending Up - Good News All Around!
A recent article published in Crain’s Chicago Business, pointed to an increasing decline in Chicago-area unemployment rates. This trend is particularly notable in the increase of hiring within the manufacturing sector. March marked a record 7th consecutive statewide decline...
read moreExpanding Lean Thinking
Since the mid-1980s, many companies, with great success, have adopted the lean manufacturing system that was developed by the Toyota Motor Corp. By making fundamental changes to the way things are done on the shop floor, production has greatly improved....
read moreThe Problem with Multi-Employer Pension Plans
For unionized employers that are signatory to area-wide or industry-wide collective bargaining agreements, the multi-employer defined benefit pension plan for many years has provided employees who are covered by these agreements with a definite level of pension benefits on retirement...
read moreFund Growth with Operational Best Practices
We all know that growth in an organization requires capital. This is true for a variety of reasons and the complexities vary from company to company. Frequently, capital is required as an organization grows because more trade receivables and inventories...
read more外国实体在美国做生意—税收结构和面临的陷阱
当一个外国公司决定进入美国市场,它的第一个重大决定是确定哪种类型的美国实体(分公司、单成员有限责任公司、合伙公司或公司)能对其长期的财政和税收有利。
read moreSignificant Tax Savings for Fixed-Asset Investments in 2011
Late in 2010, Congress extended two key tax-depreciation provisions — Section 179 and Bonus Depreciation. These provisions should be kept in mind with your capital-expenditure planning for this year and future years as they could save you significant tax dollars...
read moreForeign Entities Doing Business in the U.S. — Tax Structures and Pitfalls
中文版 Once a foreign-based company decides to enter the U.S. market, its first major decision is to determine which type of U.S. entity (branch, single member LLC [SMLLC], partnership, or corporation) will best serve its long-term financial and tax interests....
read moreCanadian Tax Reporting Penalties for Non-Compliance
Many US companies are expanding their markets into Canada. If you find yourself in this situation, you may be interested in a recent article from Schwartz Levitsky Feldman LLP/SRL in Toronto, an HLB International affiliate of Blackman Kallick, LLP. This...
read moreCongress Repeals 1099 Reporting Requirements Contained in the Health Care Bill
On April 5, the United States Senate passed H.R. 4, repealing the 1099 reporting requirements contained in the Patient Protection and Affordable Care Act (PPACA) that otherwise would have taken effect in 2012. H.R. 4 also repeals the 1099 reporting...
read moreNew Consolidation Standards — Who Put the VIE in Related-Party Lease Arrangements?
The new consolidation guidance has snagged the most common sort of related-party transaction in our practice today — the related-party lease. The basic scenario covered by this alert is the following: An entity needs a building to contain its operations. The owner of the business entity finds such a building, buys it, and leases it to the entity.
read moreWhen Are Fractional-Interest Discounts Appropriate for Estate Purposes?
The U.S. Tax Court recently provided an example of how not to get a fractional-interest discount. In early 2011, Judge Morrison decided on Adler v. Commissioner (click to read the Tax Court Memorandum). In the case, Judge Morrison concluded that...
read moreSecond Chance for Voluntary Disclosure
The IRS announced its second voluntary disclosure program for taxpayers to disclose unreported foreign accounts, including income and expenses related to the accounts. By participating in this program, taxpayers with unreported foreign accounts can avoid criminal prosecution for unpaid taxes....
read moreAre There Benefits to Being a Small Contractor?
Accounting Methods for Small ContractorsDepending on the type, size, and length of the construction contract, various methods of accounting for long-term construction projects are allowed — each method has its own advantages and disadvantages. Contractors who meet the small contractors’...
read moreIllinois Passes "Amazon" Legislation. Should I Care If I'm Not Amazon?
Earlier this month, Governor Quinn signed the controversial “Amazon” legislation sent to him by the lame duck legislature in January. Starting July 1, sellers who pay commissions to Illinois residents who refer potential customers to them are required to collect...
read moreMore Options to Enhance Trust:
New Reporting Framework Provides Assurance on Service Organization Controls
A lot can go wrong when outsourcing functions to a third party. For example, a security breach can leak customers’ private information, or a server can go down and leave critical transactions unprocessed, or fraud at the service organization could...
read moreDomestic Production Deduction Increases by 50% in 2010
In 2010, the domestic production deduction (DPD) will reach the highest percentage allowed per the American Jobs Creation Act of 2004, increasing from 6% to 9%. If a taxpayer falls within the 35% federal tax bracket, he or she can...
read moreAssembling Your Due Diligence Team
Mike’s Molding manufactured parts for the appliance industry. He saw an opportunity to add customers and product offerings by acquiring Irwin’s Insert Molding, an insert molder from whom Mike had bought electrical connectors for several years. Irwin told Mike he...
read moreIllinois Manufacturer’s Purchase Credit
Attention Illinois manufacturers! The state wants to double your benefits! It sounds too good to be true, but the Manufacturer’s Purchase Credit (MPC) is real. The MPC is available to Illinois manufacturers and graphic-arts producers. The credit is earned by purchasing...
read moreIllinois Individual Use-Tax Amnesty, New Reporting Option Followed Up by More Aggressive Enforcement
Thought that the income tax hike was the only tax problem you might face from Illinois in 2011? Think again. Have you made purchases online this year or in prior years? Have you bought anything while traveling abroad and not...
read moreEFTPS changes as of January 1, 2011
For all companies that are currently using paper coupons to deposit their federal taxes, an important change is occurring on January 1, 2011. Paper coupons will no longer be allowed, and companies must be prepared to deposit their federal taxes...
read moreTax Due Date Emancipated from April 15 - Three More Days to File Your Tax Return
For Tax Season 2011, the due date for the “April 15 returns” for Tax Year (TY) 2010 is April 18, 2011. Although April 15 falls on a friday in Tax Season 2011, Washington, DC will observe the Emancipation Day holiday on...
read moreIncrease your Cash Flow with Cost Segregation
A cost segregation study can increase the cash flow from your real estate investment by accelerating the rate at which your property is depreciated. Most buildings that are depreciated as non-residential real property are depreciated over 39 years. The buildings...
read moreThe 2011 Illinois Tax Hike and Other Changes — Just the Facts
Early in the morning of Wednesday, January 12, 2011, amendment #3 of Senate Bill #2505 was sent to Governor Quinn for signature. The bill, which the governor is anticipated to sign, is estimated to generate $6.8 billion of additional revenue....
read moreQuick Links and Good Ideas, January 2011
Visit the Strategy Insights Blog Happy New Year! We hope that you were able to take a few minutes over the holidays to spend with family and friends and that you are back in the saddle, ready to attack 2011...
read moreProposed Changes to Revenue Recognition Standards — Only One Proud Standard Rather than Dozens
What’s “ahead” in this article:> Key Points> FAQs — Other Common Questions and Answers> Suggested Next Steps> A Final Important Note(click on these links to go directly to that section)The Financial Accounting Standards Board (FASB) issued an exposure draft in...
read moreMeasuring the Success of Your Strategy, Starts with Asking the Right Seven Questions
Most strong leaders realize that planning is a process, following an ongoing cycle, rather than a “one and done” event. The planning cycle often includes a variation on the following steps: analyze, plan, execute, measure, and adjust.In “Stress-Test Your Strategy,...
read moreFair Value Disclosure Improvements
(SSAP 100 - Fair Value Measurements - Modified)
“Fair Value” has become as common as “Google,” “Twitter,” or even “Facebook.” No matter if you’re watching your favorite business TV show or reading various business periodicals, you are sure to run across this topic. Fair value accounting and disclosures...
read moreTax Cuts and Unemployment Benefits Extended
The House of Representatives passed the Senate version of the tax bill late on December 16, 2010, without amendment, by a vote of 277-148. The "Unemployment Insurance Reauthorization and Job Creation Act of 2010", HR 4853, postpones the sunset of...
read moreHURRY! — Limited time left for Zero Tax Rate on investments in Qualified Small Business Stock
The Small Business Jobs Act of 2010 contained a special provision that gives an exclusion of at least $10 million in gains from tax for investments in qualified small business stock. This special feature was added for a very limited...
read moreLeadership Lesson from the Military: Put Away Your Iron Fist and Empower Your Troops
We speak often about different leadership models and how leadership needs to be adaptive in order to be successful.In 2006, I had the pleasure to help organize a symposium at the Kellogg School of Management titled “Leadership and Execution: Lessons...
read moreResearch & Development Credit: To Be, or Not to Be?
Think you need employees in white lab coats to qualify for the research and development tax credit? No! The R&D tax credit is for taxpayers that design, develop, or improve products, processes, techniques, formulas, or software. The R&D credit is...
read moreLease Accounting Changes are Coming
The way we go about accounting for leases will never be the same. On August 17, 2010, the Financial Accounting Standards Board (FASB) published for public comment a proposal that is expected to make significant changes to the financial reporting...
read moreThe Michigan Business Tax: The Basics
The Michigan Business Tax (MBT) was enacted on January 1, 2008 and replaced the Single Business Tax. The MBT comprises two separate taxes: a business income tax and a modified gross receipts tax. Taxpayers are subject to the MBT once...
read moreDo You Make Payments to Foreign Persons and Know Form W-8?
The Internal Revenue Service is cracking down hard on businesses that make payments to foreign persons. The IRS requires US taxpayers to both withhold the proper amounts (often 30%) and retain Form W-8. Requesting the proper Form W-8 before you make...
read moreDisclose Your Foreign Assets (. . . and the IRS is not just talking FBARS!)
In March of 2010, Congress passed the Hiring Incentives to Restore Employment (HIRE) Act. This act is partially paid for by new rules pertaining to heightened reporting requirements for foreign accounts. One new and important code section resulting from this...
read moreTax Credits for Small-Business Health-Care Costs in 2010 - What is the definition of a “Small Business”?
One of the first provisions of the Patient Protection and Affordable Care Act to go into effect is a health-care tax credit for small businesses and tax-exempt organizations. This credit is effective for tax years 2010 through 2013 and is...
read morePaying Too Much State Tax?
In this tough economic time, states are feeling the pressure just as much as their citizens. Most states are running a deficit and are aggressively looking for new ways to increase revenue to close the budget gap. A way of...
read moreIRS finally admits losing! Deduct accrued payroll taxes on year-end accrued wages, bonuses, and vacation
In the past, the IRS would not allow accrual-method taxpayers to accrue and deduct FICA and FUTA taxes until the year that compensation related to the payroll tax was actually paid. Effective for years ending on or after December 31,...
read moreThe New Digital Reality: Your Brand Is No Longer in Your Own Hands
Last week I heard an engaging presentation by Mohanbir Sawhney, a leading professor at Kellogg and the Director for the Center of Research Technology and Innovation. The presentation was titled “Customer Engagement and Brand Building in a Digital World.”Sawhney spoke...
read moreInsurance Broker Acquisitions: Contingent Considerations & Commissions
If you’re considering or already in the process of acquiring an insurance broker, you’ll want to read the latest article by Brian Gore, Rebecca Nelson, and Jagesh Shah of Duff & Phelps, a national financial advisory and investment banking firm.They...
read moreTurning Tough Times Into Triumph
Keith McFarland, author of The Breakthrough Company and Bounce and a regular columnist for Business Week, spoke at a Chicagoland Chamber of Commerce event on September 30th.Instead of outlining the findings of either of his two books (“So you will...
read moreFair Value Measurements: SSAP 100 versus ASC 820 (fka “FAS 157”)
[Updated: Oct.27, 2010 to reflect the NAIC's proposed disclosure changes]Fair value accounting has been a part of US Generally Accepted Accounting Principles (GAAP) since the early 1990s. In its relatively brief history, fair value accounting, or “mark-to-market” accounting, has racked up...
read moreWhy You Should Never Lose on Price—And How to Make Me Right
We wanted to share with you an article that one of our colleagues, Stuart Baum, Director of Marketing for Blackman Kallick and President of LargerPond Marketing, recently had published in the Perimeter Advisors Online Insight Newsletter.AYSO Region 423’s Referee Administrator...
read moreA Great Strategy is Like a Stream. Except It Flows Both Ways.
One of the questions posited in “The Execution Trap” (by Roger Martin in the Harvard Business Review, August 2010) is . . . Can you “draw a line in the organization above which strategy happens and below which execution does?”...
read more加快并购美国公司的步伐
目前中国对美方投资形势 众所周知， 中美两国在政治经济贸易等方面关系良好。 目前在商业投资方面出现了新的趋势 ： 一 方面， 中国由于政府鼓励企业进行海外投资，放松外汇管制，越来越多的中国公司开始投资美国企业， 而且目光不仅仅局限于那些价值数十亿美元的技术型企业和石油公司。中国企业资金越发雄厚， 中国国内生产总值从2008年到2009年增长9.1%；2010年第一个季度国内生产总值与同期相比上涨11.9%。 国际货币基金组织预计2010年中国国内生产总值会上升10.5%。 在美国方面，银行及其它金融市场都紧缩贷款，导致许多投资项目暂停。 一些美国地方政府已经开始针对中国资金设立有吸引力的投资优惠。 近期几家汽车制造企业被中方并购， 使更多美国企业有意向出售自己的资产或销售渠道给中国买方。 激发这些并购行为的另一大动力在于全球经济衰退导致许多企业价值下降， 作为买方的中国投资公司从中得益匪浅。中国买方竞争对手减少， 使其可用更优惠的价格购买到美国的资产。 今年一季度中国大型企业不断出手收购海外行业巨头引起大家的广泛关注，掀起中国企业海外投资的热潮. 外币汇率的变动也促使中国企业逐渐从对外出口向对外直接投资转变。 人民币升值使劳动力和原材料成本上升， 对中国出口有不利的影响。 2005年7月21日, 央行宣布人民币对美元汇率一次性升值2.1%， 此后人民币汇率不再盯住单一美元， 开始实行浮动汇率制度。 到2008年底， 人民币对美元升值20%。 今年一季度人民币已升值超过4%， 这对中国企业进口和中国的对外投资是个极为良好的机遇。 ...
read moreFamily business survey says . . . the recovery is moot
Blackman Kallick & FFI’s "Adaptability and Innovation" survey finds that family-owned enterprises are acting, not waiting.We have been speaking with a number of financial-market prognosticators over the last few weeks. As usual, the opinions run the range from cautious enthusiasm...
read moreFamily Business Generational Transfer Statistics Can Distort Reality . . . and Opportunity
We’ve all seen the statistics: only about 30% of family businesses make it to the second generation and, of those, only about 10% make it to the third. But, cold statistics can hide or color the truth. Certainly, people working...
read moreWhy Have Excellence When You Can Have Mediocrity?
We spend a lot of our time talking and writing about ways to improve teams and organizations. But we were recently handed a copy of a May 7 Business Week article, “5 Ways to Ensure Mediocrity in Your Organization” and...
read moreIVCA Profile Q&A: Mark J. Blumenthal, Partner at Blackman Kallick
Featured Speaker at June 24th IVCA Breakfast Event: focusing on Strategies in a Rising Tax EnvironmentIVCA: What can attendees expect when you give your presentation on June 24th?Mark Blumenthal: Taxes are a very hot subject right now, and on a...
read moreWhen the Going Gets Tough, the Tough Become Customer-centric
Blackman Kallick Director of Marketing, Stuart Baum, advises how companies can use "customer centric-ity" to thrive during turbulent economic times. Harvard Business School’s Ranjay Gulati recently spoke at an Association for Corporate Growth–Chicago event entitled “Roaring Out of the Recession:...
read moreIt Takes More than Current Compensation to Keep the Right People on the Bus
A sign that the recovery may be gathering steam was reported in the May 3 Wall Street Journal article, “Raises Creep Back onto the Salary Scene.” In the article, Dana Mattioli provides examples of organizations like BASF Corporation, PricewaterhouseCoopers, Rockwell...
read moreESOPs: “Another” Way of Doing Business
Last month we attended a packed First Friday Club of Chicago event featuring Mary Sullivan Josephs, Executive Managing Director of Evergreen Private Capital Advisors speaking about Employee Stock Ownership Plans (ESOPs).Mary recently founded Evergreen as an investment banking firm focused...
read moreAdaptability and Innovation - Share Your Experience
In order to better understand the economic and business issues with which we were confronted and the ways that companies adapted and reacted to them, Blackman Kallick has launched an “Adaptability and Innovation Survey.”This survey is being conducted in conjunction...
read moreAcquisition Integration: Culture versus Strategy
David Spitulnik, Blackman Kallick’s Director of Strategic Services, recently participated in a panel focusing on the integration of business acquisitions at the Midwest Private Equity Conference in Chicago. Also participating on the panel were Frank Cheswick, Aldine Capital Partners (Introductions);...
read moreKids, Wealth, and Consequences: a book review
A few years ago we were confronted with a situation in which a father left $60 million to his two children upon his death. His very unprepared son felt that his father had done him a terrible disservice, essentially burdening...
read moreExcess Capacity - Tax Advantage or Disadvantage?
In the December 2009 Manufacturing Edge, Brian Wiedenhoeft wrote the article “Excess Capacity: Accounting, Pricing and Production Issues,” which discussed the accounting implications of allocating overhead when production is below normal. A capacity-based fixed overhead allocation allows, for book purposes,...
read moreReview Your Capital Assets for Possible Impairments
As we put the recent recession in our rearview mirror and look ahead to the anticipated greener pastures of 2010 and beyond, it may be appropriate to review your company’s capital assets (land, buildings, machinery, and equipment) for potential impairments.U.S....
read moreEnsuring Timely and Accurate Financial Reporting for Your Foreign Subsidiaries
Make sure you have all the components in place for accurate, and timely, financial reporting from your foreign subsidiary.Recently we were asked to help a company set up the financial reporting infrastructure for a foreign subsidiary it had recently acquired....
read moreIssues Surrounding the Treatment of Business Combinations
In December of 2007, the Financial Accounting Standards Board (FASB) issued Statement No. 141(R), Business Combinations. This standard is now referred to as ASC 805 given the recently introduced FASB Codification. These rules have generated a significant level of discussion...
read moreAre We Coming Out of a Recession? Is it Time to Take the M&A Plunge?
The U.S. stock market is soaring, commodity prices are on the rise, and there are signs that consumer confidence is growing. The positive news is countered with growing bank failures, indications that banks are still not lending, persistent unemployment, and...
read moreEffective Dashboards for Not-for-Profit Boards
If you have ever attended a board meeting, you have likely seen your fair share of those big three-ring binder “board books” which contain all the information needed for the meeting. The volume of financial information that the board is...
read moreTo Plan or Not To Plan? That Really Is the Question!
An article in the January 25 Wall Street Journal titled “Strategic Plans Lose Favor” indicated that many companies put aside their long-range plans during 2009 and focused solely on getting through the trough. Examples were cited of companies that created...
read moreCurrent Environment Provides Perfect Moment for Gifting Carried Interests
A carried interest in a recently formed private equity or hedge fund is one of the most favorable assets for shifting wealth to future generations at little, or perhaps zero, gift tax cost.Here’s why:The valuation analysis of a carried interest...
read moreNonprofits Need Innovative Thinking to Survive the “New Normal”
With 2009 in the rear-view mirror and the economy showing some signs of recovery, many charitable organizations are not doing enough to weather what is expected to be a tough 2010. Too much complacency: that is the consensus Ian Wilhelm...
read moreDo You Have a “Business” New Year’s Resolution?
The calendar now reads “2010.” Is it time for a “business” New Year’s resolution? You might have easily come up with a personal resolution such as losing weight or exercising more, but have you considered a resolution for your business?...
read moreIs the Family Business Leader Born or Made? Follow the Rattle?
Originally posted in the Family Business Wiki Town Square In their November 30 Article in the Wall Street Journal, “Do You Really Want to be a Leader,” Drs. Preston Bottger and Jean-Louis Barsoux suggest that too many people focus on...
read moreWhat’s Your Question to Statement Ratio?
“As you move up the corporate ladder,” Tom Wilson, Allstate’s Chairman, President and CEO, advises, “your question to statement ratio should also go up.” Let’s frame that in the form of a question: When developing the next cadre of leadership...
read moreKeeping the Right People 'On Your Bus'
Twelve months ago, your staff was likely happy just to have jobs. Now, as the market improves, some of your stronger players might be looking for better opportunities.So how do you keep them engaged, involved and loyal … especially if...
read moreHow the Mighty Fall
Author Jim Collins’ book, How the Mighty Fall: And Why Some Companies Never Give In, was published earlier this year. This book is a follow-up to his earlier book, Good to Great.In Good to Great, Collins laid out the attributes...
read moreRecovery Act Reminders for 2009
Nora Stapleton, Tax Partner at Blackman Kallick, shares her expertise on the American Recovery and Reinvestment Act (ARRA) in the October issue of the Journal of Accountancy. The article, Recovery Act Reminders for 2009 summarizes some of the most prominent points readers...
read moreInfluence and Authority—What It Means and Why It Matters
In The New York Times August 9, 2009, article “The Authority That’s Not on Any Chart,” author Daniel Sorid describes the difference between formal and informal authority or influence. Formal authority, the type that shows up on organization charts, flows...
read more抓住收购与兼并美国公司的时机
众所周知，中美两国在政治经济贸易等方面关系良好，目前在商业投资方面出现了新的趋势：一方面，一些美国企业有意向出售自己的资产或销售渠道，而中国方面由于政府鼓励企业进行海外投资以及充裕的中国资本，越来越多的中国公司开始投资美国企业，而且目光不仅仅局限于那些价值数十亿美元的技术型企业和石油公司。
read moreUnderstand Your Employee Retention and Hiring Advantages...and Seize Them -- Now
Visit the Strategy Insights Blog In their article, “Winning Back a Wary Workforce,” BusinessWeek, July 13–20, 2009, Jack and Suzy Welch put into strong words what so many of us in business today know to our core: “This recession has really...
read moreUnderstand Your Employee Retention and Hiring Advantages ... and Seize Them -- Now
In their article, “Winning Back a Wary Workforce,” BusinessWeek, July 13–20, 2009, Jack and Suzy Welch put into strong words what so many of us in business today know to our core: “This recession has really shocked people. Never before...
read moreDecision Impaired or Impaired Decisions?
A few weeks ago, David Spitulnik had the opportunity to hear Neil Novich, retired Chairman, President and Chief Executive Officer of Ryerson Inc. speak at a Shields Menely Partners Event. The title of his presentation was “How Can Such Smart...
read moreBusiness Valuations
Most contractors are missing a critical piece of information – the value of their company. This information is necessary to reach the right conclusion when planning your future. Without a firm understanding of the value of your business it will...
read moreCommon Business Plan Flaws
Over the years, we have been presented with a number of business plans claiming to address issues ranging from the mundane to the earth shattering. While many include some insightful kernels, more often than not, the writers have failed to...
read moreThe Value of Advisory Boards
Business owners often operate within a vacuum due to a lack of trusted networks from which they can seek guidance on critical decisions. This was the topic of a recent panel discussion at the Family Business Alliance Annual meeting. The...
read moreIllinois Enacts Uniform Prudent Management of Institutional Funds Act on June 30, 2009
The Uniform Prudent Management of Institutional Funds Act (UPMIFA) was signed by Governor Pat Quinn on June 30, 2009 and is effective immediately.UPMIFA replaces the Uniform Management of Institutional Funds Act (UMIFA) approved in 1972. UMIFA provides uniform, fundamental rules...
read moreIs Your Business Surviving, Sustaining or Thriving?
The recent 2009 Kellogg Alumni Entrepreneur Annual Conference focused on positioning businesses in today’s market environment. The panels on “managing and improving your business in the downturn” and “recession-proof business models” provided interesting insights on cash flow analysis and investing...
read moreShould There Be an “I” in Team?
Teamwork, teamwork, teamwork. It’s a word we’ve heard repeated countless times throughout our careers. The fact that most of us are members of several teams, even leading some of them, is proof of just how deeply embedded the concept of...
read moreSurvey of Advisors to Family-Owned Businesses
We would like to thank everyone who participated in our survey of advisors to family-owned businesses last month. With the help of the Family Firm Institute (FFI), we were able to gain an understanding of how the present economic situation...
read moreDifficult Dialogues: Tips for Those Tough Talks
Even in good times, leaders must be prepared to deliver unpleasant news. In this economy, however, the ability to present bad news one-on-one as well as to large groups of people without sacrificing morale is becoming an increasingly critical leadership...
read moreBusiness Succession is Not a Single Event, Planning Starts Now
Barry Cain was quoted in the March 22, 2009, CareerBuilder section of the Chicago Tribune. The quote appeared in Jason Lee’s article on succession planning. In the article, Lee advises family business owners to prepare for the future by following...
read moreFAS 157: New Reporting Requirements for Employee Benefit Plan Investments
In September 2006, the Financial Accounting Standards Board (FASB) released Statement No. 157, "Fair Value Measurements" (FAS 157), which defines fair value, establishes a framework for measuring fair value and expands financial disclosures about fair value measurements. FAS 157 is...
read moreIt’s not what you know—it’s what you do about what you know.
I had the opportunity to hear Jim Skinner, CEO of McDonald’s, and Dipak Jain, Dean of Kellogg School of Management, speak at the Kellogg Global Insight luncheon on February 20.Skinner spoke of the challenges and issues he faced when he...
read moreHow can accurate financial statements improve your firm's sale price?
When it comes time to sell your business, the condition of your financial statements can play a significant role in how your business is perceived by potential buyers and in how much a buyer is willing to pay. If you're...
read moreWhat should you do when a customer files bankruptcy?
What's your best course of action if a customer files bankruptcy? First, consider the size of the debt. If it's a small amount, it may not be worth the trouble to do much other than make sure your claim is...
read moreIs the Window of Opportunity for Selling a Business Closing?
Today"s economic environment offers a very favorable market for business owners interested in selling their companies. But because the economy runs in cycles, the key factors creating this seller"s market: low interest rates, availability of credit, abundant private equity funding...
read moreStart Positioning Your Business Now for the Day You Sell It
Even if you don't plan to sell your business for the next 10 years, positioning it now for sale can help you get top dollar and favorable tax treatment when you do sell. Here are some ways you can prepare...
read moreYour Banking Relationship Is Changing ... Are You Prepared?
The ongoing credit crisis, and now the economy in general, are continuing to take a major toll on the banking industry. Many now think the problems in the banking sector are becoming worse than previously predicted, and the list of...
read moreChicago Business Leaders Survey - Insights
Blackman Kallick followed its November 2008 Chicago Area Business Leaders Survey with a second one in January, just before President Obama’s inauguration. The results of the survey can be viewed online at LeaderSurvey2.BlackmanKallick.com. In spite of the hope that surrounds...
read moreLeading Change in a Downturn
Leadership is challenging in the best of times. However, when you need to initiate change, particularly in a down economy, the task becomes even more complex.Articles in two recent editions of the Harvard Management Update focus on these issues. In...
read moreThe Changing Nature of Your Banking Relationship … Some Ideas to Consider
Mark Robertson, practice leader of Blackman Kallick’s Lender Support Services team, recently offered some observations on how the current banking environment might affect your relationship with your bank. We thought it worthwhile to share these insights with you.The ongoing credit...
read more2009—What’s Hot and What’s Not?
Sara Gentry, Esq., Manager, Legal Staffingsgentry@BlackmanKallick.com, 312-980-2915With the first month of 2009 complete, here are the trends we're seeing so far:What's HotLaw firm mergers/dissolutionsIP Law—This area is going strong and even growing at some firms!Joining Obama's administration—Lawyers and law professors...
read moreBlackman Kallick on Chicago’s Economic Outlook
In November 2008, Blackman Kallick surveyed approximately 300 Chicago area business leaders to gain insight on their outlook for the future of Chicago businesses and the state of the economy at large. The results can be viewed online at the...
read moreNew Year's Resolutions—Ours and Yours
Happy New Year! Generally the new year is flourishing with innovative ideas, fresh business, new cases and new hires. While we hope that the majority of these things still ring true in the new year, we recognize that in this...
read moreFAS 124: Guidance on How to Report Gains/Losses on Endowments
The ongoing credit and liquidity crisis in the United States and throughout the global financial system has resulted in substantial volatility in financial markets and the banking system. These and other economic events have had a significant adverse impact on...
read moreLearn From Past Storms … Even if They Were Less Severe
Recently, Harvard Business Review made available to subscribers a reprint of a June 2001 article entitled “Moving Upward in a Downturn” by Darrell Rigby. The fundamental premise of the article is that, “During industry downturns, smart executives don’t panic. Instead,...
read moreHaven’t You Dreamed of Getting a Leg Up on Your Competition? Why Not Now?
We have written repeatedly about the need to plan for what you want your business to look like when the economy turns around. It is also important to consider what opportunities might be available to you right now. This includes...
read moreVarying Rates for Contract Attorneys: Caveat Emptor!
You Might Get What You Pay For!Jill Elden Rorem, Esq., Partner, Legal Staffingjrorem@BlackmanKallick.com, 312-980-2997So, you're in charge of hiring contractors for a document review assignment and your superior has given you the daunting task of identifying the right agency. You...
read moreHow to Approach Strategic Acquisitions During Downturns
Mark W. Robertson, CPA, CFF, CIRA, CM&AAPractice Leader, Transaction and Lender Support Services mrobertson@BlackmanKallick.com, 312-980-3263 Why Buy the Farm When You Can Buy the Most Productive Cow?Values are falling and the need for liquidity is forcing the sale of businesses...
read moreAre You Prepared for the New 403(b) Regulations?
If you are a 403(b) plan sponsor, you’re probably aware that new regulations will go into effect on Jan. 1, 2009. Now is the time to review your organization’s 403(b) plan to be sure you are in compliance. If your...
read moreDonors Forum Issues the “Illinois Nonprofit Economy Report”
The Donors Forum, an association of grantmakers, recently released its latest research, the Illinois Nonprofit Economy Report: Implications for the Nonprofit Community. The report contains economic and employment information, as well as recommendations and implications for not-for-profit leaders, grantmakers, legislators...
read moreThe Pitfalls of Selling Your Business
When you have decided to sell your business, how should you begin? Recently a colleague of ours, Stella Su, published an interesting article on this subject. It examines sales transactions and helps business owners to prepare and avoid potential pitfalls.Unlike...
read moreChanges to the Model Audit Rule and the Impact on Insurance Companies
With the advent of the new Model Audit Rule, Sarbanes-Oxley-like provisions will now impact the internal control requirements of many insurance companies. Insurance companies will need to spend considerable time and resources in an effort to comply. Additionally, the changes...
read moreEmergency Economic Stabilization Act of 2008 Extends Charitable Giving Provisions
On Oct. 3, President Bush signed H.R. 1424, the Emergency Economic Stabilization Act of 2008 (the Act) into law. This 451-page bill establishes a $700 billion Treasury fund to purchase troubled assets from financial institutions.The Act also includes 41 pages...
read moreTop 10 Reasons to Hire Temporary Help in a Down Economy
Jill Elden Rorem, Esq., Partner, Legal Staffingjrorem@BlackmanKallick.com, 312-980-2997Why buy when you can rent?In tight times, it's good to order à la carte when you might not need the full meal.Your client will appreciate the lower hourly rate when times are...
read moreAdaptive Leadership … Do You Have It in You?
Whether all is going well with your business or you are in the middle of a fight for survival, your team looks to you for leadership. How you seize this challenge and opportunity—passively, aggressively or not at all—might affect the...
read moreChina’s Booming Consumer Economy: An Opportunity for American Businesses
Not long ago, when American business leaders thought about doing business with China, their focus was on sourcing product or moving manufacturing operations offshore. But China’s fast-growing economy has opened up a whole new market for U.S. companies. This issue...
read moreExpanding Internationally? Start with a Strong Strategic Plan
Launching a venture in a foreign country is just like starting any enterprise—it’s complicated and challenging. However, an international expansion has the added challenges of navigating a different culture and business environment.Companies that decide, "We’ve got to be in China"...
read moreCould a “China Plus One” Strategy Work for Your Firm?
China remains the most popular destination for foreign industrial investment in the world, attracting almost $83 billion last year," says an article in the June 18, 2008 New York Times. "But a growing number of multinational corporations are pursuing a...
read moreHow Can an IC-DISC Save on Taxes When Doing Business Abroad?
One way to tap into foreign markets without going overseas could be through the use of an interest charge domestic international sales company (IC-DISC).Before you start doing business in a foreign country, it pays to understand that nation’s tax laws. American...
read moreWhat’s the Right Leadership Style for Your Organization?
A September 1, 2008, article, “Shared Leadership Offers Edge,” discussed the power of collaborative leadership. The article profiles the leadership style at a Chicago-based financial services firm, Wrightwood Capital.Wrightwood’s leaders have determined that collaboration, rather than command and control, is...
read moreNew Form 990 Instructions Released For Tax-Exempt Organizations
On August 19 2008, the IRS issued instructions for the redesigned Form 990, "Return of Organization Exempt From Income Tax," which it released in December 2007. Because the complex new form is designed to enhance transparency and promote tax compliance,...
read moreStuck in 2008 or Moving Purposefully Into 2009?
The Recession Isn’t Waiting for You … What Are You Waiting For? Our March 4, 2008 posting entitled "Getting Through 2008...and Beyond" was written to help business owners and CEOs to better see the coming economic storm and plan their...
read moreFive Organizational Tips for Staffing a Document Review Project
Have you been given the enormous undertaking of putting together a document review? Whether you are an attorney, a paralegal or an administrator, this task can be daunting. These helpful tips will help unravel the mystery of the perfect document...
read moreFinding the Right Business to Buy.
How does one go about finding the right business to buy? This is one of the most often asked questions, and there are probably as many approaches to finding the answer as there are people asking the question.While it might...
read moreFASB Issues Final FSP on Endowments
On August 6, 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) FAS 117-1, "Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act,...
read moreThoughts From The Road
Several years ago, Michael Treacy and Fred Wiersema published the highly acclaimed book, The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market. The central premise of the book is that no company can succeed today...
read moreThinking of Sending Your Next Document Review Offshore? You Might Just Get What You Pay For
You Might Just Get What You Pay ForJill Elden Rorem, Esq., Partner, Legal Staffingjrorem@BlackmanKallick.com, 312-980-2997We all know that contract attorneys have become a critical part of litigation. Blackman Kallick and other agencies have been providing professionals on a contract basis...
read moreDon’t Go It Alone: Unlock the Power of Collaboration
We often share ideas about strategy and how it needs to be at the core of everything that a business leader does. Successful execution of strategy involves, among other things, implementing forecasting models for your company that will provide your...
read moreWhat Can You Demand from Your Recruiter?
Jill Elden Rorem, Esq., Partner, Legal Staffingjrorem@BlackmanKallick.com, 312-980-2997Staffing is a tricky business. The future of your business is built by the intelligence and ability of the people you hire. You must make certain that when you hire, you do it...
read moreRecessionary Times Are Here: Cut Costs or Engage Employees?
This past March we shared some thoughts and planning ideas for business owners and CEOs looking to navigate their way through the current economic storm. Central to our thinking was, and continues to be, the notion that embarking on a...
read moreLetting the Outside In: A Checklist for Using Your Independent Board to Enhance Growth and Profitability
In today’s fast-paced and very challenging business climate, more and more companies are coming to realize the potential power that an independent board of directors can bring to their long-term growth and prosperity. Even in family-owned businesses that still have...
read moreCan You Say What Your Strategy Is?
This is the compelling and thought-provoking title of an article by David J. Collis and Michael G. Rukstad in the April 2008 issue of the Harvard Business Review. An executive summary of the article can be found here. If you’re...
read moreThe Next Wave Of Entrepreneurial Opportunities
At the recent Kellogg Alumni Entrepreneur’s conference, Dean Dipak Jain provided an interesting forecast of the next wave of opportunities. While the comments were focused on business creation, we believe that they have relevance in existing businesses as well.The forecast...
read moreUnderstanding Unrelated Business Income
The primary purpose of the unrelated business income tax (UBIT) is the prevention of unfair competition by tax exempt organizations.It is essential for associations to determine if a trade or business is being conducted regularly and that such trade or...
read moreThinking about hiring a coach — Why only in sports?
It's springtime in Chicago—a time of year when Mother Nature provides us with glimpses of the highly coveted summer yet to come. Chicagoans, in particular, are famous for taking advantage of this precious time in order to engage in leisure...
read moreThinking About Hiring a Coach—Why Only in Sports?
Suzanne M. Lane, JD, MBA, Senior Manager, Strategic Servicesslane@BlackmanKallick.com, 312-980-3301It's springtime in Chicago—a time of year when Mother Nature provides us with glimpses of the highly coveted summer yet to come. Chicagoans, in particular, are famous for taking advantage of...
read moreGenerational Growth in Uncertain Times - Executive's Club of Chicago Lecture
Timing is everything. William Wrigley, Jr., Executive Chairman of Wm. Wrigley, Jr. Company spoke on April 29 as part of the Executives’ Club of Chicago’s CEO Breakfast series. Mr. Wrigley’s speech had been scheduled for over a year, but following...
read moreGenerational Growth in Uncertain Times
The Executives' Club of ChicagoWilliam Wrigley Jr. PresentationApril 29, 2008Timing is everything. William Wrigley Jr., Executive Chairman of Wm. Wrigley Jr. Company (Wrigley) spoke on April 29, 2008, as part of the Executives' Club of Chicago CEO Breakfast Series. Mr....
read moreUpdate on New Form 990—Follow-Up from March 2008 Round Table
TimelineFinal draft of Form 990 released in December 2007Draft instructions released April 7, 2008Available for comments through June 1, 2008Final instructions to be published at the end of 2008New Form 990 effective for 2008 calendar years or fiscal years beginning...
read more1st Generation or 26th Generation Family Businesses... Planning for Success Across Generations Still Requires a Focused Strategy
In its April 5, 2008 issue, the Wall Street Journal profiled the Antinori family, famous Italian winemakers for the last 26 generations. While only an extremely few family owned business have survived for so many years, let alone even into...
read moreWork on Your Business, Not Just in It …
Why the Time Is Right for an Advisory Board
A recent article in the Wall Street Journal titled “Board of Advisers Can Help Steer Small Firms to Right Tack” describes how the owners of the 28-year-old company, OC Sailing Club, were stuck. They understood that their business was stalled...
read moreWork ON your business, not just in it...Why the time is right for an Advisory Board.
Many closely held businesses consider establishing an advisory board, but few actually make the commitment of time and energy to do so. Why establish and maintain an Advisory Board, especially in this economic climate? Perhaps the better question is “why...
read moreIllinois Legislative Update
During the seven-month period from August 2007 to January 2008, the governor signed three tax bills into law, which will affect businesses. The original bill (Public Act 095-0233) was signed into law on August 16, 2007. Again in January 2008,...
read moreGetting Through 2008 ... and Beyond
Let's face it—2008, and possibly 2009, are going to be challenging at the very least, perhaps even worse if the economic climate continues to turn against us. Economists continue to argue over whether we are in a recession. Independent of...
read moreOperating Reserves
Erratic cash flows, loss of a key employee, litigation—all of these events have the potential to adversely affect an association's operations. When these types of events occur, an association can be caught off-guard and unprepared to manage the financial impact...
read moreIRS Releases New Version of Form 990
On December 20, 2007, the Internal Revenue Service issued a new version of Form 990, the tax return charities and other tax-exempt organizations are required to file annually. The new version of the form will be utilized for 2008 returns...
read moreHave You Gone Global? Can You Afford Not To?
Does your company do business overseas? Have you explored your opportunities in China, Europe or Latin America? This article explores how midsize businesses are expanding internationally—and offers food for thought if you've ever considered a foreign venture.In today's global economy,...
read moreCould a Chinese Firm Buy Your Company?
Are you wondering why there has been an increase in the number of Chinese companies purchasing American businesses? Could you benefit from this trend and increase the value of your business, even if you’re not planning to sell right now?Stella...
read moreInternational Financial Reporting Standards: IASB and FASB Work Toward Convergence
If your business is part of an international group of companies, you may have experienced the challenge of converting your financial statements between USGAAP (U.S. generally accepted accounting principles) and the accounting standards required in a foreign country. This is...
read moreNew, Improved Research and Development (R&D) Credits Available
Since 1981, a research tax credit has been available to encourage R&D activities in the U. S. Although the credit has been extended 11 times, it has never been made permanent. In 1996, the alternative incremental research credit was enacted. The...
read moreHow to Protect Your Financial Identity and Credit
According to the Federal Trade Commission, several million people are victims of identity theft each year, generating losses estimated in the tens of billions of dollars. Several states, including Illinois, California, New York and Florida, have passed laws that will...
read moreNew Rules Clarify, Modify the Domestic Production Deduction
The Domestic Production Deduction (DPD) was passed as part of the American Jobs Creation Act of 2004 and became effective for years beginning on or after Jan. 1, 2005. Congress mandated that the Treasury Department provide guidelines within 90 days...
read moreWill a Strategic Buyer Always Pay More?
Stella Y. Su, MBA, CPA, ABVSenior Manager, Corporate Finance Consultingssu@BlackmanKallick.com, 312-980-2912Traditional wisdom says that a strategic buyer will be willing to pay more for your company than a financial buyer. This might have been true once, but business owners today...
read moreAre You Sure Your Kids Will Want the Family Business?
You're a parent who owns a family business. Admit it. If you started the company, didn't you entertain thoughts early on of one or more of your children eventually coming into the business? If your parent or grandparent founded the...
read moreWhat Are the IRS Rules for Business Meals and Entertainment Expenses?
The tax rules for deductibility of meals and entertainment expenses have rigorous require-ments, as the distinctions between business and personal expenses can become blurred. Reimbursements to employees for entertainment expenses under accountable and nonaccount-able plans will have different effects on...
read moreDomestic Production Deduction FAQ
What is the Domestic Production Deduction? Part of the American Jobs Creation Act of 2004. An incentive to encourage manufacturing and other production activities in the U.S. using American employees. What types of entities may qualify? The domestic production deduction...
read moreHow you can benefit from the new domestic production deduction
On Oct. 22, 2004, President Bush signed into law the American Jobs Creation Act of 2004, which has more than 600 provisions. One of the biggest provisions is the domestic production deduction. In January 2005, the Treasury Department issued its...
read moreEvaluating the Noncash Issues in Selling Your Business, Part 2 of 2
Stella Y. Su, MBA, CPA, ABVSenior Manager, Corporate Finance Consultingssu@BlackmanKallick.com, 312-980-2912Part 1, "What’s Actually Included in the Offer Price for Your Business?" addressed the financial aspects of valuing an offer to buy your business. Part 2 deals with legal and...
read moreWhat’s Actually Included in the Offer Price for Your Business? Part 1 of 2
Stella Y. Su, MBA, CPA, ABVSenior Manager, Corporate Finance Consultingssu@BlackmanKallick.com, 312-980-2912If a potential buyer approached you today with an offer to buy your company, what steps would you take to evaluate that offer? In this issue and the next, we’ll...
read moreIt's Never too Early to Think About Selling Your Business
Stella Y. Su, MBA, CPA, ABVSenior Manager, Corporate Finance Consultingssu@BlackmanKallick.com, 312-980-2912If you own a business, chances are you have been approached by companies or individuals interested in acquiring your company. Getting an offer out of the blue can cause emotional...
read more10 ways to take advantage of troubled times
Any change is an opportunity For those who are prepared, the current recession represents an opportunity. If things are going along and nothing has changed, you have to work twice as hard to create opportunities. When things change, you have...
read moreHow to Value a Closely-Held Business, Part 2 of 2
Stella Y. Su, MBA, CPA, ABV Senior Manager, Corporate Financessu@BlackmanKallick.com, 312-980-2912Valuation adjustments and applicationsPart 1 of "How to Value a Closely Held Business" explored several approaches to valuing your company. In Part 2, we’ll look at adjustments to the values you...
read moreHow to Value a Closely-Held Business, Part 1 of 2
By Stella Y. Su, MBA, CPA, ABVSenior Manager, Corporate Financessu@BlackmanKallick.com, 312-980-2912 In the article, "Should you sell your business during troubled times," which appeared in the Fall 2001 issue of Corporate Finance Edge, we discussed whether you should sell your business...
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