The End is Nigh

Steve Hall | Implementation Manager

Included in this edition of our A*QUA newsletter, you will find a variety of important reminders, warnings, and advice regarding year-end. I will attempt to avoid repeating that which you have already been reminded of, and instead offer a few additional insights and year end reflections.

This time of year comes around every year, and every year we find ourselves less prepared for it than we had planned. Inevitably, every year we vow to do better next year. Well, it’s not too late. You may have just enough time to take care of those last minute transactions and adjustment to your finances to put yourself in the best position for income tax purposes. There are many creative, smart strategies that can be used to save you money now and in the future.

Efficient Accounting Processes

Steve Hall | Senior Transition Consultant

A very common problem among businesses in general and small businesses in particular, is the failure to maintain accurate and timely accounting and financial reporting. Independent automobile dealers are certainly no exception. Many in fact, make no real attempt to do so.

Staying Compliant: Reporting Write-Offs

Ed Stohlman | Katz, Sapper & Miller

In this article, we will address the issues surrounding the reporting responsibilities of BHPH dealers with respect to debts discharged in the ordinary course of business. In general, BHPH dealers are required to report all such debt discharges on Form 1099-C, except those arising in bankruptcy. Given the penalties for noncompliance, it is critical for BHPH dealers to be aware of their responsibilities and establish a program to comply.

An “applicable financial entity” ("AFE") that holds a debt of $600 or more which is discharged during a calendar year is required to file Form 1099-C, Cancellation of Debt, with the IRS and to provide a statement to the debtor. AFE's must file Form 1099-C with the IRS on or before February 28 (or March 31, for electronic returns) of the year following the calendar year in which the indebtedness was discharged. The statement to the debtor must be furnished by January 31 of the year following the calendar year in which the indebtedness was discharged.

Hitting the Books

DeeAnna Gregston | Project Leader

The end goal of accounting activity is the ability to produce and acquire accurate and reliable financial statements.

After the dust has settled on your year-end closing procedures, you’ll want to start the New Year off with your best foot forward. It is important to have a solid foundation of basic accounting practices to ensure a smooth process for the year ahead. If good day-to-day practices are adhered to consistently, then even your dreaded month and year-end processes will become routine.

Getting Down to Brass Tacks

Ending a fiscal year, and beginning a new one, is a great time to do some fiscal housekeeping, and get a fresh start if necessary.

As we move into 2012, it’s important to keep your business’ goals in mind as you conduct your accounting activities. One of the primary accounting goals for your business should be to ensure that your financial statements are accurate, reliable, timely, and represent the results of your business operations. A key to accomplishing this goal is to continuously analyze each balance on your financials, understand what it consists of, and make adjustments if it is not correct.

One of the primary accounting goals for your business should be to ensure that your financial statements are accurate, reliable, timely, and represent the results of your business operations.