PBMares Accounting Blog

It’s Not What You Think: Food and Beverage is an Amenity

Posted by Mary F. Dolan, CPA on Jul 10, 2017 1:03:42 PM


Articles on the topic of food and beverage (F&B) losses come out so regularly they are like a bad record stuck on repeat.  Sorry (I’m not sorry) to be perpetuating the trend. To put the concept simply, a club is going to lose money in F&B operations, just as it does in every other area, from golf to tennis to the pool. Even those that say they make a profit do not take into account the overhead costs not specifically allocated to the department.

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Topics: Club Industry, hospitality

Does Your Charitable Contribution Qualify for a Deduction?

Posted by Theresa Leon-Loughmiller, CPA, MPA on Jul 7, 2017 9:00:00 AM

When it comes to preparing individual tax returns, many individuals wonder what kind of documentation they need to support their charitable contributions.  First and foremost, to qualify for a charitable contribution deduction, a contribution must have been given to a qualified charitable organization.  The Internal Revenue Service (IRS) website contains a link in to search for exempt organizations (https://www.irs.gov/charities-non-profits/search-for-charities).  Donations given to directly to an individual in need are not considered a deductible contribution but instead are considered by the IRS to be personal gifts.  Secondly, an individual can only deduct contributions if they are itemizing their individual tax return.  Generally an individual may be able to deduct up to 50 percent of their adjusted gross income, however, there are limitations.  Seek advice regarding your individual deduction limitations from a tax professional. 

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Topics: Not-for-Profits, Tax Planning

Fine-tuning your company’s compensation strategy

Posted by Michael Kennison, CPA , CIT on Jul 6, 2017 11:33:01 AM

 

As a business evolves, so must its compensation strategy. Hopefully, your company is growing — perhaps adding employees or promoting staff members who are key to your success. But other things can spur the need to fine-tune your compensation strategy as well, such as economic changes or the rise of an intense competitor. A goal for many businesses is to provide equitable compensation.

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Topics: Tax Bites, Tax Planning

Business owners: Put your successor in a position to succeed

Posted by David J. Damiani, J.D., CPA on Jun 30, 2017 4:15:13 PM

When it comes time to transition your role as business owner to someone else, you’ll face many changes. One of them is becoming a mentor. As such, you’ll have to communicate clearly, show some patience, and have a clear conception of what you want to accomplish before stepping down. Here are some tips on putting your successor in a position to succeed.

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Topics: Business Briefs

Seasonal business? Optimize your operating cycle

Posted by Donald Knotts, CPA on Jun 23, 2017 9:37:10 AM

Every business has some degree of ups and downs during the year. But cash flow fluctuations are much more intense for seasonal businesses. So, if your company defines itself as such, it’s important to optimize your operating cycle to anticipate and minimize shortfalls.

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Topics: Business Briefs

Subcontracting Primer – Team Work and Due Diligence Pays Off

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Jun 21, 2017 3:25:32 PM

 

FAR 44.101 defines a subcontractor as “Any supplier, distributor, vendor, or firm that furnishes supplies or services to, or for, a prime contractor or another subcontractor.”

As a prime contractor or a subcontractor with subcontractors you have certain responsibilities that will help to ensure an efficient and productive relationship that, in the end, provides the desired results (FAR 42.202)e)(2).

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Topics: Government Contracts

When are activities of a nonprofit subject to income taxes?

Posted by Edward T. Yoder, CPA, MSA on Jun 19, 2017 2:41:58 PM

A nonprofit will not ordinarily be taxed on its revenues.  However, income from unrelated business income is subject to tax (UBIT).  UBIT is based on gross income derived by any nonprofit from any unrelated business activity it regularly conducts less the expenses directly connected with the activity.

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Topics: Not-for-Profits

How A Polo Shirt Can Help Drive Your Club’s Bottom Line

Posted by Christin Butler, CPA on Jun 7, 2017 1:25:16 PM

Everyone knows that the bottom line rules the day.  It has become hard to balance member expectations against the realities of payroll and other costs associated with maintaining a club so providing opportunities for members to spend more money inside the club is more important than ever. Merchandise bearing your club’s logo is one way to do this has and it has an extra benefit of free advertising.

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Topics: Club Industry, hospitality

Does Your Gov Con Have a Policies and Procedures Road Map?

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Jun 6, 2017 10:25:37 AM

To emphasize the need for compliant policies and procedures we need to refer to a quote from the great Yogi Berra, “If you don’t know where you’re going, you might not get there.”  Over the years we have seen organizations doing everything right but without compliant policies and procedures as a road map to ensure consistent compliance, they have failed government audits.  Other organizations that have compliant policies and procedures but have not shared them with the people who need them (i.e. they have them but they are gathering dust on the shelf and are probably obsolete), have also failed, because people did not know what the organization’s goals were or how to respond to compliance situations.

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Topics: Government Contracts

Public Student Loan Forgiveness - A Great Way to Attract Employees to a Not-For-Profit

Posted by Nick Preusch, JD, LLM, MSA, CPA on Jun 5, 2017 1:44:38 PM

In 2007, President George Bush signed into law the Public Student Loan Forgiveness Program. This program allows people working in certain industries to have their student loans forgiven, tax-free, after 10 years. Usually people believe this program only applies to governmental employees. However, the law allows for employees of a 501(c)(3) not-for-profit to also qualify for student loan forgiveness. This is a great way to attract employees who may otherwise require a larger salary and a great way to keep employees at your not-for-profit.

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Topics: Not-for-Profits, Tax Planning