Encoursa

The uptick in reasonable compensation challenges is real.   ➡ In the past week alone I've spoken to two CPAs that are currently undergoing audit with clients where reasonable compensation is being challenged.   Here are some interesting facts about the cases: ➡ Both started as 941/940 audits aka payroll audits ➡ Neither taxpayer had pro-active reports to document their reasonable salary as S Corp owners   Case #1 ➡ Owner works few hours (5-10 per week) as he has staff that does most of the work for him ➡ The owner tried to build his own documentation to back up his salary after the audit started but he was not using salary data for the audit year ➡ The examiner is arguing the owner should be compensated as the CEO of a large company, but that’s not the work the owner is actually performing   Case #2 ➡ The owner was not taking any reasonable compensation despite the advice given by the tax preparer that it was required ➡ After seeing that no reasonable comp was taken in 2020, the auditor also looked at 2021 and 2022 and has already indicated he will be auditing those years as well ➡ The auditor is attempting to push reasonable comp as high as possible in 2020 to set the baseline for the 2021 and 2022 audits   Both of these cases are still working through the examination process.   These are two real examples of why we always advocate that all S Corp owners have an annual reasonable compensation analysis completed and kept on file with their tax documents.   Better yet, make sure you keep an RCReport™ on file each year. Not only will you have solid data to back up your reasonable compensation figure, each RCReport comes with details on IRS rulings, court cases, and job aids that help to educate examiners on the approaches and methodologies used.

🎉 Exciting News! 🎉 G2 has recognized FinQuery as #1-rated Lease Accounting Software for the 13th consecutive quarter! 🚀 Thanks to our amazing customers, FinQuery has achieved unparalleled success, highlighted by exceptional customer reviews across multiple categories: - Product Direction 🌟98% - Ease of Doing Business With 🤝 95% - Quality of Support 👍 94% - Likelihood to Recommend 💡 92% - Ease of Use ✅ 91% We're honored to receive this recognition from real software users and proud to continue delivering top-notch solutions. As we grow, adding contract management and software asset management to our offerings, our commitment to innovation and customer support remains unwavering. Thank you to our customers and the team at G2 for this incredible acknowledgment! #FinQuery #LeaseAccounting #Innovation #CustomerSatisfaction #G2Leader https://hubs.ly/Q02FPcxM0

📣 Connor Group, Boomi, and a cohort of academic researchers collaborated to deliver 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭-𝐞𝐯𝐞𝐫 𝐞𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐫𝐢𝐬𝐤 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 𝐟𝐨𝐫 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐈 (𝐆𝐞𝐧𝐀𝐈) ⬇ Connor Group, along with: Boomi David A. Wood (Brigham Young University Marriott School) Scott Emett (Arizona State University W.P. Carey School of Business) Marc Eulerich (University of Duisburg-Essen Mercator School of Management) announce the 𝐆𝐞𝐧𝐀𝐈 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤.   Built in collaboration with over 1,000 business leaders, academics, and industry bodies, the GenAI Governance Framework provides a detailed guide and comprehensive methodology for organizations of all sizes to assess their AI readiness, identify and manage enterprise risks associated with GenAI technologies, and move into responsible GenAI adoption. The framework can be easily customized to align with a company's unique objectives, needs, and risk appetite, and empowers those responsible for risk management and governance — such as Internal Audit, IT/CISO, Legal, and Audit Committees — to identify, evaluate, and proactively address high-priority exposures. It also provides a structured approach to pinpointing vulnerabilities and implementing controls, facilitating the secure and responsible deployment of GenAI technologies. “Effective AI adoption will be a massive competitive advantage but many don’t know where to start and how to apply it. A few AI tools exist now with many on the way, and they are coming fast. Having a smart AI adoption strategy with underlying controls, data, and processes that are ready for AI takes time. The most competitive companies are doing these things now," explained Jeff Pickett, Chair and Founder at Connor Group. Provided as a free resource, the GenAI Framework includes comprehensive documentation and a robust set of risk and control considerations. Framework implementation and consulting services offered by Connor Group allow businesses to evaluate their current governance practices, identify areas for improvement, and strategically plan for future enhancements. By assessing maturity levels across various control considerations, companies can gain insights into their own strengths and weaknesses and take targeted actions to bolster their AI governance. “Overall, the GenAI Governance Framework and accompanying Maturity Model serve as essential resources for organizations seeking to navigate the evolving landscape of AI,” said David A. Wood. “By adopting these tools, organizations can enhance their preparedness, resilience, and capability to harness the benefits of AI while effectively managing its risks.” For information about Connor Group AI and Automation services, please comment or send us a DM. To download the GenAI Governance Framework, visit the link in the comments.

Meet Eric! He supports our COO as Chief of Staff and also enhances our sales operations as the Sales Operations Manager, driving efficiency and revenue growth through data-driven insights and cross-functional collaboration. We're very grateful to have him here as a key part of our continued success! Check out his full interview: https://hubs.la/Q02BTS5N0 #employeespotlight #employeeappreciation

Through an aggressive M&A strategy, WorldCom went from a local telecom provider to one of the largest companies in the world. Then an accounting scandal culminated in criminal charges and one of the largest bankruptcies in U.S. history. In the latest Encoursa CPE podcast episode we take a look at the history of WorldCom and explain how a persistent group of employees uncovered an accounting fraud so massive that it brought the whole company down. Apple, Spotify, and Web links to the episode are included in the comments.

Connor Group's financial operations accounting advisory team is growing! If you're a process and controls professional with ITGC experience and you are interested in working alongside the world's top growth companies, we would love to hear from you. We provide key business advice around core processes such as financial close, order-to-cash, hire-to-retire, and revenue to give our clients more visibility, consistency, and scalability. Connor Group is a specialized advisory firm of Big 4 alumni and industry professionals, and we're proud of our company culture and the amazing people who work here. Check us out on Glassdoor! For more information, please DM or email hannah.wade@connorgp.com. #connorgroup #accountingadvisory #audit #assurance #internalcontrols #compliance #ITGC #SOX #SOC1 #SOC2 #COSO #californiajobs #arizonajobs #nevadajobs #utahjobs #denverjobs #hybridjobs #remotejobs