Whalen CPAs

Should you disclose a pending lawsuit, government investigation, or other contingent liability? The answer requires a judgment call about whether the contingent loss is “remote” (has a slight chance of occurring), “probable” (is likely to happen), or “reasonably possible” (falls somewhere between remote and probable). How a loss is categorized determines whether it should be disclosed and/or reported on the balance sheet and income statement. Accurate reporting of contingencies helps business owners and other stakeholders manage potential risks and make informed financial decisions. Contact us for help navigating the rules for identifying, estimating, and disclosing contingent liabilities.

Happy Halloween, everybody.

Access to timely, accurate financial data is critical to your business’s success. However, small business owners may not have the time or patience to handle tedious bookkeeping tasks or the resources to hire a full-time, in-house bookkeeper. Outsourcing these tasks to a third-party provider can be a smart decision for five key reasons: 1) lower costs and scalability, 2) enhanced accuracy, 3) expanded access to financial expertise, 4) improved timeliness, and 5) the use of advanced security protocols. Outsourcing your bookkeeping helps alleviate stress by ensuring your financial records are up-to-date, accurate, and secure. Contact us to help you work smarter, not harder.

As year end approaches, you may be thinking about tax strategies. One way to reduce potential estate taxes and show generosity to loved ones is to give cash gifts before Dec. 31. Taxpayers can transfer large amounts using the annual exclusion. In 2024, the exclusion amount is $18,000. It covers gifts you make to each recipient. That means if you have three children, you can transfer $54,000 to them in 2024, free of federal gift taxes. Married couples can consent to give each recipient up to $36,000 a year. Other rules may apply, and you need to file a gift tax return if you give more than $18,000 or consent to give gifts with your spouse. We can prepare a gift tax return for you.

When reviewing their income statements, business owners tend to focus on profits or losses. But focusing solely on the bottom line can lead to mismanagement and missed opportunities. Instead, analyze this financial report with an auditor’s mindset. This requires professional skepticism, objectivity, attention to detail, and the curiosity to ask questions. Compare individual line items in the current accounting period to past results and industry benchmarks. After identifying major changes and trends related to revenue and expenses, dig deeper to find the causes and make better decisions. Contact us for help interpreting the historical results and using them to improve future performance.

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Congratulations to Ryan Grumman on his promotion to Tax Services Senior Staff! Ryan's passion for puzzles and numbers shines through in his exceptional tax work. With a focus on corporate, partnership, individual, nonprofit, and trust returns, Ryan is a valuable asset to our team. We're excited to see him continue to grow and succeed! #promotion

Welcome to the Whalen CPAs team! Please join us in welcoming Brody, a talented specialist in our audit department, to the Whalen CPAs team! With his degrees from Bowling Green State University and his previous roles at DHL Supply Chain, BDO, and Nissin Travel Service, Brody brings a wealth of experience and a passion for accounting to our firm. Outside of work, Brody enjoys staying active, spending time with his dog, and cheering on the Seattle Seahawks. His enthusiasm for life and his dedication to his work make him a valuable addition to our team. Please join us in welcoming Brody and wishing him all the best in his new role! P.S. The second photo is what Brody usually looks like when he's off work.... No lie 😆 #WhalenCPAs #NewHire

It’s an ideal time to begin making moves that could reduce your tax bills for 2024 and 2025. If you itemize deductions, you may be able to deduct medical expenses, state and local taxes up to $10,000, charitable donations, and eligible mortgage interest. But these deductions won’t save taxes unless they’re more than your standard deduction ($29,200 for joint filers, $14,600 for singles, and $21,900 for heads of household). You may be able to work around deduction limits by bunching discretionary medical expenses and charitable gifts into the year they’ll do some tax good. For example, if you itemize for 2024 but not 2025, you may want to make two years of charitable contributions this year.

Does your company follow the cutoff rules? Loose interpretation of the accounting rules can lead to errors and unexpected audit adjustments. Here’s how to get it right.