Dick Davidson

FASB's new proposal on software cost accounting is here! From cash flow reporting to simplified capitalization rules, these changes could reshape how tech companies report their financials.

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✨ On the tax side, Mercury claimed a substantial R&D credit, but Christine Andrews, CPA wanted stronger documentation backed by granular data to make her confident the credit would withstand audit. On the accounting side, Mercury needed to start reporting on internally developed software (ASC 350-40) at a detailed level for their first year of audited financials. ✍ Both processes needed input from Mercury’s engineering team, but Christine wanted to improve on the traditional approach of creating separate, mostly redundant processes that wasted engineers’ time. 💡 Learn how Mercury used Neo.Tax to simplify both R&D and ASC in our newest Case Study 👉 https://lnkd.in/gjwAP92J

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CFOs/Controllers: Are you battling staffing gaps and difficult hiring in this still tight accounting and finance talent market?   Andrews & Cole consultants can fill those gaps, whether you need someone for 1 month, 3 months, or for a more extended period.   Our consultants are CPAs and MBAs with years of experience in Big 4/public accounting and as corporate CFOs, Controllers, and Accounting Managers, etc. And, there's no need to spend time and resources training our consultants; they've "been there, done that" and integrate seamlessly with your team. Here’s an example of one of our successful engagements: Client: Venture Capital Firm Cost Savings: More than 30% Our client initially engaged a resource from a national consulting firm but found their deliverables lacking. The consultant, who wasn't even local to the market, lacked accountability and the desired level of experience. At a rate of $250/hour, the client was overpaying for underperformance. That's when they turned to Andrews & Cole. We provided a consultant with 20+ years of experience in Venture Capital and Asset Management. Not only did our consultant possess the necessary industry expertise, but they also had a proven track record in developing and implementing processes, systems, and functions – a perfect match for the project requirements. And all at a significantly lower rate.   https://lnkd.in/eiNPftcV   #accountingconsultant #financeconsultant #CPA #consulting

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This is a great overview of why private equity is so interested in accounting. Many industries don't work with the old "buy low, sell high" model, but the accounting industry is fragmented and ripe for roll-ups. Add to that firms that have long-lasting client relationships and aren't up on the latest technology, and you have a perfect target for financial buyers. #privateequity #accountingandaccountants #mergersandacquisitions

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CFOs Struggle to Manage Complexities of State Tax Filings Tax season might be over. But then again, there’s always next year. As Wendy Walker, solution principal at Sovos, told PYMNTS, the complexities of tax reporting will still demand that organizations of all sizes gear up for changes in the tax code and rigorous reporting requirements that will always be fluid and complex. But one thing is simpler: The IRS’ Combined Federal and State Filing program seeks to simplify some of that complexity by taking things online. As Walker told PYMNTS, direct state reporting takes place — as the name implies — when an enterprise files 1099 tax information directly with a state government. “Generally speaking, if you are required to issue a 1099 to the IRS, there is going to be a state requirement as well,” she said. Tax laws require that states use most of the information contained in 1099s, W-2s and other returns that are filed with the IRS to compare income and withholding amounts on state income returns. Enforcement Is Ramping Up Although state tax reporting is nothing new — it’s been around for decades — Walker noted that enforcement has seen some renewed vigor in terms of making sure that all the information matches up. Missteps or failure to file those forms with the states winds up having consequences, chiefly in the form of penalties. “Sometimes states have a per-failure penalty rate, so they will charge a certain dollar amount for each information return that has not been filed,” she said. “Other states will levy penalties based on the income reported on the returns that were not filed.” “There can be pretty stiff penalties, depending on the state,” she added. Amid the stepped-up enforcement, complexity reigns too. This is becoming more apparent as states lower direct-reporting requirements below IRS thresholds. Walker offered the example where some states now require direct reporting of Form 1099-K for transactions done through online apps such as Uber and DoorDash at a $600 threshold, while the IRS only plans to lower the federal threshold to $5,000 for 2024 reporting. Although the IRS’ combined filing program seeks to allow states to file information with the IRS — and the IRS shares the info with the states — the fact remains that the IRS does not (yet) support all the information that states require. California, in just one instance, requires information returns for cancellation of debt that are not included in the combined program. “So, if you are in California, you would have to file those returns directly with the state instead of being able to rely on the IRS,” Walker said. In other cases, some states are listed as participating in the combined program, but their websites say that companies must file directly. “This can all get a bit confusing,” Walker said. News credit PYMNTS #news #fintechnews #finance #financenews #trendingnews #viralnews #dailynewsupdates #dailynewsletter

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As the year winds to a close and you prepare for next year, you may be considering *gasp* a Fractional CFO. Congratulations!! It’s a big move!! 🥳🥳 The fractional CFO industry is filled with so many talented professionals and firms dedicated to helping businesses achieve their financial goals. With so many options, how do you choose the "right" partner for your unique needs? Here are a few key considerations: 1️⃣ Understand Your Business Needs Every business is different. Are you looking for help optimizing cash flow? Strategic guidance during a growth phase? Or perhaps navigating a financing or M&A transaction? Look for a fractional CFO with expertise aligned to your specific challenges. 2️⃣ Evaluate Experience The best fractional CFOs bring years of experience as sitting CFOs or in similar high-level roles. They should be comfortable navigating the complexities of businesses your size and industry. 3️⃣ Consider Cultural Fit Numbers matter, but so does the relationship. A great fractional CFO should feel like an extension of your team—someone you trust to collaborate and communicate effectively. 4️⃣ Seek Clear Value The right fractional CFO will deliver measurable results, whether through improved margins, stronger cash flow, or better financial strategy. Transparency about services, pricing, and ROI is key. At The William Stanley CFO Group, we’re proud to be part of an industry that’s changing the game for small to mid-sized and high-growth businesses. Whether you choose to partner with us or another firm, our goal is always to elevate businesses to their next level. If you’re unsure where to start or want to explore what the right financial partnership looks like, we’d love to connect. #StrategicPartner #FractionalCFO #BusinessGrowth #FinancialStrategylStrategy

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Fractional CFOs do more than just help you run your books, check out this article from Forbes that details five benefits of working with a fractional CFO. Interested in learning more about DCA’s fractional CFO services? Schedule an introductory call for more information >>> https://lnkd.in/gdDtgYUv https://lnkd.in/g8KwPZ2B #partnership #forecasting

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This or That: Do You Need Outsourced Accounting or Fractional CFO Services?   Which did you circle more of?? 👇 ✅ Results: • If you circled more statements on the left 👈🏼, you likely need Outsourced Accounting Services! These services will help you manage your daily financial tasks efficiently and cost-effectively 👏🏼 • If you circled more statements on the right 👉🏼, you likely need Fractional CFO Services. These services provide strategic financial leadership and advanced financial insights to support your business growth and decision-making. At Novii, we offer both Outsourced Accounting and Fractional CFO Services to cater to the unique needs of your business 🤓 Contact us today: noviicpa.com/contact Our team is ready to support you, whether you need help with everyday accounting tasks or strategic financial planning 📈 #outsourcing #outsourcedcpa #fractionalcfo #cfoservices #forecasting #biotech #manufacturing

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Check out this great episode from Seema Amble and Marc Andrusko at Andreessen Horowitz highlighting two major trends impacting the accounting industry today: 1. More accountants are retiring than are entering the profession with no indication this trend will reverse 2. The demand for quality accounting is increasing with over 3 million current professionals in a $100B+ market The key to solving this disparity will be automation, specifically with modern software and AI. Accounting leaders will need tools like Rillet to provide an army of staff accountants, enabling them to stop doing the work and start reviewing it. Much of this is already possible in Rillet today as our AI automates bank reconciliation and performs flux analysis saving 1,000s of hours every single month. Check out the full conversation in the comments ⬇️

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New on the blog for #startups and #founders, understanding when it's time to hire a CFO. Blu Ventures Partner Hal Shelton delves into the growing financial demands faced by founders as they scale their business and the key indicators signaling the need for a CFO. #earlystagestartups #earlystageinvesting #vcfunding https://lnkd.in/eK8niZzS

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🏆 New Episode Alert 🏆 Several common themes have been prominent in our discussions, not least of which is the relationship between marketing and finance. In many cases, the relationship is stressed because of a lack of common language between the two functions. On this week's episode we talk with Scott R. Lindquist CFO of CNA Insurance and former CFO of Farmers Insurance - who has helped to cultivate relationships between marketing and finance that have magnified the benefit between the two groups. Key topics include: 1️⃣ The diverse roles of CFOs in the marketplace 2️⃣ The importance of strategic alignment between CFOs and CEOs 3️⃣ The evolution of marketing in the insurance industry 4️⃣ Practical advice for CMOs on building relationships with CFOs 5️⃣ How to effectively present marketing strategies and data to the finance community Enjoy and don't forget to subscribe to the Newsletter - https://lnkd.in/d94rxkyR - for more great content

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Already seeing in RIA / BD land operations department guttings and unsustainable infrastructue. One post I saw on SuccessionLink said "we've received an offer...14x revenue... looking for offers that exceed these terms". Really? 14x REVENUE????? How does this play out? Creating a sustainable exit strategy, with proper client servicing infrastructure, advisor transition over years not weeks, will be what your clients remember you for. Rollup equity in the firm and biggest check striving can end up being a "if it's too good to be true, it usually is". Get paid for what you built, and author your exit well. But this won't end well for clients...something's gotta give.

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Expanding your customer base across state lines? SaaS companies need to be aware of the economic nexus thresholds of the states you're operating in to avoid over or under-collecting taxes. Learn more about state nexus for SaaS businesses below: https://lnkd.in/eH9eE3_m

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We're excited to kick off our series of case studies showcasing why family offices are choosing SumIt Software! To start, we want to highlight a quote that truly captures the way we approach our partnerships with SFOs, MFOs, and accounting firms: "From the beginning, SumIt was very interested in the pain points for family office accounting and what they could do to address those points. They listened, gathered information from various sources, found the overlapping issues, and implemented solutions." This feedback reflects the heart of how we work—understanding our clients' unique challenges and building solutions that make a difference. Stay tuned for more stories on how SumIt is making an impact! #casestudy #customerstory #CFO #accounting #software #technology #SumItSoftware

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The applicability of sales tax to SaaS is ever-changing, shaped by evolving technology. So if you sell software, SaaS or digital services in multiple states, staying on top of changing sales tax rules can be overwhelming. But not realizing your sales tax obligation or not acting on a growing obligation could have big repercussions for your business. Unlock our SaaS taxability state-by-state guide now so you can ensure your business is staying compliant! https://hubs.la/Q02RyysD0

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