Practice Management

The $787 billion American Recovery and Reinvestment Act of 2009 (P.L. 111-5, Feb. 17, 2009) provides almost $300 billion in tax relief. As a stimulus package, the bill makes available over $280 billion in tax relief in the short term in 2009 and 2010. For business, over $75 million in tax benefits are provided for 2009 and 2010. Although most of that is accelerated depreciation, which, over a 10-year period when tax bills are "scored," almost evens out, the immediate benefits to business taxpayers are substantial. What's more, to avoid discouraging taxpayers from making investments and purchases before the act was passed, most of the tax incentives are retroactive to Jan. 1, 2009.While some of the business benefits can help businesses of any size, the act targets significant benefits at small businesses in particular. This is consistent with the Obama administration's view that small business is the principal engine for jobs growth. Notably, the act seeks to encourage spending for major purchases of capital equipment by extending enhanced small-business expensing and 50 percent first-year bonus depreciation. Small businesses that are incurring losses now but made profits within the last five years can take advantage of enhanced net operating loss carrybacks. S corporations and owners of qualified small-business stock also received benefits that can reduce their taxes.

The tight economy means more accounting professionals pursuing fewer quality engagements. Consolidators, larger practices, telemarketers, rainmakers and others establish new footholds during tough times. These competitors squeeze firms of all sizes, forcing them to sell more effectively to survive. Without a booming economy as a propellant, accountants should base their growth on how well they can sell their services in a more competitive marketplace.If you want to be among the top 10 percent of business development specialists, you don't have to be 100 percent better in prospecting, client presentations or closing. If you become only 20 percent better in each step of a professional sales method, your opportunities to win engagements will protect your future. Small improvements can make the big difference between a winner and second place.

What's the hottest issue in the accounting profession right now?No, it's not IFRS, or fair value accounting or even the latest President Obama-driven tax legislation.

Despite all the tax changes in the past year to stimulate the economy, the Internal Revenue Service appears to be weathering the tax season well so far.

The Financial Accounting Standards Board has issued a “plain English” summary of the board’s actions when it modified the standards for fair value and mark-to-market accounting in response to congressional demands.

The Securities and Exchange Commission has revoked the license of an Arizona CPA and filed charges accusing him of running a $67 million Ponzi scheme.

Accounting firm network Horwath International has changed its name to Crowe Horwath to emphasize its association with Crowe Chizek.

The Internal Revenue Service should determine whether using tax software creates any security and compliance risks, recommended the Government Accountability Office in a new report.

Victims of severe flooding in Minnesota and North Dakota have an extra 30 days, until May 15, to file their 2008 individual tax returns and pay any taxes due.

Both the House and Senate approved the Democrats’ version of a $3.5 trillion budget plan for fiscal year 2010, but without a single Republican vote.