As trusted business advisors, we enjoy working with you to co-create ideas and co-develop innovative solutions for your business. To supplement this, we also want to provide valuable information, including upcoming Houston events that we support, and think may be of interest to you.

  • Greater Houston Partnership
  • Turnaround Management Association
  • National Association of Corporate Directors – M&A Panel
  • BioHouston
  • Client Exclusive – Employee Benefit Plan Seminar
  • National Association of Corporate Directors – Risk Management Panel

If you have questions about any event details or registration information, the organization-specific contacts are below. We hope to see you at any or all of these Houston events!

Continue Reading Mark Your Calendars! Upcoming Winter 2020 Houston Events…

While you were celebrating the holidays, you may not have noticed that Congress passed a law with a grab bag of provisions that provide tax breaks to businesses and employers. The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20, 2019. It makes many changes to the tax code, including an extension (generally through 2020) of more than 30 provisions that were set to expire or already expired.

a close up view of a man wearing a black suit and a watch holding a newspaper with the word "business" on the cover; image used for a blog post about five tax breaks from the new tax law

Two other laws were passed as part of the law (The Taxpayer Certainty and Disaster Tax Relief Act of 2019 and the Setting Every Community Up for Retirement Enhancement Act).

Here are five highlights.

Continue Reading 5 More Tax Breaks from the Newly Signed Tax Law

Jen: This is PKF Texas the Entrepreneurs Playbook. I’m Jen Lemanski, and I am back again with Danielle Supkis Cheek, a director and one of the faces of our PKF Texas Consulting team. Danielle, welcome back the Playbook.

Danielle: Always happy to be here.

Jen: So, we’ve had a few other directors in here talking about lease accounting, and I know the standards have changed a little bit since the last time we had—I think it was Chris Hatten was here. Can you give us a little bit of an overview about what’s happened with the delayed lease accounting standards?

Danielle: Yeah sure. The AICPA’s Technical Issues Committee actually wrote an unsolicited letter to the FASB requesting an extension related to… it was really mainly tied to… that we have a lot going on with the Revenue Recognition implementation, I think we talked about the past. And then adding it to the leases, the leases can change your balance sheet a lot, and I think we’ve had a lot of people talking about the implications to your balance sheet of the actual standard, that it can impact your covenants or various ratio analysis.

Continue Reading Get Started on Lease Accounting Now!

As part of a year-end budget bill, Congress just passed a package of tax provisions that will provide savings for some taxpayers. The White House has announced President Trump will sign the Further Consolidated Appropriations Act of 2020 into law. It also includes a retirement-related law titled the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

Here’s a rundown of some provisions in the two laws:

Continue Reading More Tax Provisions from Recent Tax Law Change Update

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m here with Danielle Supkis Cheek, a director in our Entrepreneurial Advisory Services group. Danielle, welcome back to the Playbook.

Danielle: Thank you for having me again.

Jen: I know revenue recognition is a hot topic right now; we’re getting ready to go into audit season. What are some trends you are seeing where clients need to get ready since it’s kind of a new thing that they should be ready for?

Danielle: A lot of clients, particularly certain industry types, have a tendency to kind of not dismiss revenue recognition, but they don’t perceive it as large of an impact. There’s a lot of areas where the revenue recognition rules effectively didn’t change too much, but there’s some really specific nuances that did change, as well as the auditors are going to be looking at how did somebody assess to see if it changed or not. So even in industries that didn’t change very much, there is a certain amount of documentation that needs to be in place for the company having assessed it.

Continue Reading How Revenue Recognition Impacts Companies

The federal government spending package titled the “Further Consolidated Appropriations Act, 2020,” does more than just fund the government. It extends certain income tax provisions which had already expired or were due to expire at the end of 2019. The agreement on the spending package also includes the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

U.S. Capitol building with American flag waving in front; image used for blog about tax law change update about extenders and provisions

Let’s look at some of the highlights.

Continue Reading Tax Law Change Update: Extenders and Provisions

Creating a succession plan isn’t as difficult as you might think. If your top executive were to step down tomorrow, would your not-for-profit know how to make a smooth leadership transition or would your boat suddenly be rudderless? Research by the not-for-profit BoardSource has found that only 27% of charitable organizations have written succession plans. Most not-for-profits, therefore, face an uncertain future — one that could include lost funding, program disruption and even an early demise.

oval brown wooden conference table with chairs on wheels surrounding in a conference room with windows; image used for a blog about not-for-profit succession plan

An experienced advisor can guide you through the process. But there are several points for you and your board to keep in mind as you establish policies for replacing leaders.

Continue Reading Tips: Creating a Succession Plan for Your Not-for-Profit

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Danielle Supkis Cheek, a director on our Entrepreneurial Advisory Services team. Danielle, welcome back to the Playbook.

Danielle: Thanks for having me again.

Jen: So a few episodes back we talked about revenue recognition. Another one of our directors has also talked about it. What are the steps a company needs to take for revenue recognition?

Danielle: The actual standard has five steps that you need to take. From an operational standpoint, you’ll have to figure out what operations you need and how this changes things to see if you need operational steps.

But from a pure, “What does the standard require?”

  • Step one: you actually have to identify – do you have a contract or not, and what is the contract?
  • Then within the contract you have to identify the specific performance obligations. It can get a little tricky – are you delivering the walls of a house and a foundation or an entire house?
  • Then what you need to do is actually determine the transaction price; sounds simple but sometimes with contingent consideration, it can get pretty tricky.
  • Then you allocate that price to the specific performance obligations. Okay, you with me?
  • And then you get a recognized revenue at the very end – step five.

Jen: Great. Thanks for sharing those five steps with us, and I know we can find it at PKFTexas.com on our Revenue Recognition Central. Is there going to be more content coming soon?

Danielle: Of course. It’s an ever-changing standard and an ever-changing area, so yeah, we’re going to keep it updated.

Jen: Perfect, thanks. For more about this topic, visit PKFTexas.com. This has been another Thought Leader production brought to you by PKF Texas The Entrepreneur’s Playbook. Tune in next week for another chapter.

The number of people engaged in the “gig” or sharing economy has grown in recent years, according to a 2019 IRS report. And there are tax consequences for the people who perform these jobs, such as providing car rides, renting spare bedrooms, delivering food, walking dogs or providing other services.

view of a car steering wheel and dashboard with a phone showing directions on a map; image used for blog about tax obligations for a side gig

Basically, if you receive income from one of the online platforms offering goods and services, it’s generally taxable. That’s true even if the income comes from a side job and even if you don’t receive an income statement reporting the amount of money you made.

Continue Reading Your Tax Obligations if You Have a Side Gig…