2018 tax reform changes: At a glance
Some of the most significant tax changes since the 1980's recently took effect with the passing of the Tax Cuts & Jobs Act. In brief, below are the revisions:
- Reduces income tax brackets. The bill retains seven brackets, but at reduced rates, with the highest tax bracket dropping to 37 percent from 39.6 percent.
- Doubles standard deductions. The standard deduction nearly doubles to $12,000 for single filers and $24,000 for married filing jointly. To help cover the cost, personal exemptions and most additional standard deductions are suspended.
Your tax-time financial review
Now is the perfect time to review your financial affairs. You have to gather information to prepare your tax return at this time. Why not take one more step and do something positive for the well-being of your wallet?
The following suggestions will help you with your financial review:
• Talk to your family. You should factor in the financial decisions and goals of your spouse and children.
• Put your financial goals in writing. Figure out how much money you'll need to meet each goal, when you'll need it and how you'll get it.
Factoring tax reform into year-end financial statements
With the recently signed Tax Cuts & Jobs Act of 2017 (TCJA), significant changes to the federal income tax system are now law. Businesses must now apply the effect of the tax law changes to their fourth-quarter financial statements. For many companies, that will be a complex task. Here are the details.
Rush to comply
Companies are required to reflect the effect of new laws in the quarter they’re enacted, under the Financial Accounting Standards Board’s (FASB’s) Accounting Standards Update No. 2009-06, Income Taxes (Topic 740). Because President Trump signed the TCJA before the end of 2017, companies now must scramble to determine the effect of the changes for their fourth-quarter financial statements.
Trump signs sweeping tax overhaul
The Tax Cuts and Jobs Act was signed into law by President Trump on December 22. It is considered the most significant overhaul of the U.S. tax code in 30 years.
This historic Act calls for lowering the individual and corporate tax rates, repealing countless tax credits and deductions, enhancing the child tax credit, boosting business expensing, and more. The bill also impacts the Affordable Care Act, or Obamacare, effectively repealing the individual shared responsibility requirement.
Click Here to learn more about how these tax changes will impact you as an individual or business owner.
5 tips for an effective not-for-profit board
A recent survey of nearly 1,000 nonprofit directors revealed that gaps in not-for-profit board performance fundamentally impact the success of the organization. Problems range from lack of true engagement by board members to their failure to fulfill important fiduciary duties. Do these sound familiar? Don’t worry. We are here to help you resolve these issues and set your board up to be as efficient as ever.
To avoid these shortcomings, consider the following best practices:
Set clear expectations up front. Do your incoming board members have a thorough understanding of what is expected of them? And do they understand what meeting those expectations will involve? Have they met key players and learned about relevant policies and procedures? We recommend developing a comprehensive onboarding process that clearly defines board responsibilities, including the details they need to know to hit the ground running.
4 smart ways to cut business costs
Keeping costs under control is crucial in today's challenging business environment. Without a doubt, one of the quickest ways for a business to cut costs is through staff reduction. But cutting jobs is not always the best cost-cutting strategy. Drastic job cuts can lead to a vicious cycle of reduced productivity, followed by even slower growth and decreased profitability. Replacing skilled workers when times improve may be difficult, leaving your company to struggle longer still.
Take a look at some alternative cost-control strategies: