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Team Welter

Dec 12
0

New Methods to Obtain Professional Education Credits for CPAs

By | Accounting, Nonprofit | No Comments

CPAs now have two new ways in which they can obtain Continuing Professional Education (CPE) credits. The AICPA and the National Association of State Board of Accountancy recently changed the standards for CPE providers as well as NASBA’s Field of Study document. These new opportunities to earn continuing education credits seek to open more opportunities for CPAs to earn valuable continuing education credits so that they can better serve the organizations they work with.

Computer and Live Events: Blended and Nano Learning

The two new methods now accepted are blended learning and nano learning.

* Blended learning includes a combination of learning methods such as seat-based (classroom) sessions, self-study, and video lessons on demand.

* Nano learning consists of short 10-minute modules, usually focused on a specific task. This type of learning is often used to help CPAs acquire specific skills rather than master overarching concepts.

Not all states accept these methods, so you must check with your local branch of the AICPA and the NASBA to find out if your state accepts nano and blended learning.

Additional changes are also being made to the Fields of Study document. These changes update categories and descriptions so that they are both current and relevant. The biggest change occurs in the Specialized Knowledge field of study, which now separates computer science application and information technology into its own categories. Specialized knowledge topics can now be specific to industries or categories.

Continuing Education and the Nonprofit Sector

Nonprofit financial managers need excellent quantitative as well as qualitative skills to best serve their constituents. These skills including exceptional accounting and financial management, as well as good communication skills.

Specialized skills that nonprofit accountants may also need include:

* Presentation and public speaking skills: Nonprofit CPAs may be called upon to address board meetings, and conferences. These are valuable opportunities to educate the public as well as members and donors.

* Interpersonal communications: Communications inside your office as well as throughout your organization are essential to good management. Persuasion and articulation of thoughts, ideas and concepts is essential for department leadership.

* Social media skills: Social media may seem like an esoteric area for accountants, but even accountants and financial leaders use tools such as texting to reach colleagues with quick messages. Learning the proper methods of communicating via social media is now an essential skill for CPAs.

* Data visualization: Data visualization helps non-accountants understand the nuances of the materials you are presenting. Understanding how to share information via charts, graphs and other methods can help both colleagues and the public understand the nonprofit’s financials easily.

Online learning and the new blended and nano learning methods may provide you with opportunities to build these skills and more. Professional development is essential for CPAs.

Welter Consulting

Welter Consulting helps nonprofit organizations bridge the gap between people and technology. Software support, implementation and training, as well as audit support, are our main areas of service. If you would like assistance with your nonprofit accounting needs, please call us at 206-605-3113.

Dec 05
0

New FASB Rules Go into Effect for Enhanced Clarity in Nonprofit Financial Reports

By | Accounting, Nonprofit | No Comments

FASB announced changes to Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. This landmark set of guidelines is the first update since 1993 and will change how many nonprofits report their numbers.

Summary of the New Guidelines

The new guidelines call for the following changes:

* Reducing the net asset classifications from three to two, net assets with donor restrictions and net assets without donor restrictions;

* Underwater amounts of donor-restricted endowment funds in net assets with donor restrictions are now required to be reported;

* Enhanced disclosures about underwater endowments are also required;

* Preparers can now choose between the direct method and indirect method for presenting operating cash flows;

* The requirement to reconcile the direct method with the indirect method is now waived;

* Requires a not-for-profit to provide in the notes qualitative information on how it manages its liquid available resources and liquidity risks;

* Requires reporting of expenses by function and nature, as well as an analysis of expenses by both function and nature.

The new standards take effect for fiscal years beginning December 15, 2017 and for interim fiscal years after December 15, 2018.

Enhanced Clarity for Donors, Members, and the Public

The impetus behind the changes is twofold. First, FASB sought to update the rules after a long period of consistency. The last update occurred in 1993, and an update was thought long overdue. With the changing nature of nonprofit organizations, donations, and information access by the public, new guidelines were thought necessary for enhanced clarity and confidence in the financial management of nonprofit finances.

The rules also seek to simplify financial reporting for nonprofits. FASB has no wish to complicate reporting for anyone, and the new guidelines, once understood and implemented, will likely make financial reporting easier for nonprofits.

Making the Switch Easier on Your Organization

How the changes may or may not impact your organization depends greatly on how your accounts are currently kept. For those who need to adjust their accounting methods, now is the time to begin planning to meet the compliance deadline of December 2017.

Reducing net asset classifications should not be too difficult for most nonprofits. Many already used two net asset classifications, and the former classifications can be rolled into three without too much difficult by most.

If you need assistance making these changes, Welter Consulting can help. We bridge people and technology together for effective solutions for nonprofit organizations. Your accounting software is an important component of the changeover from the older 1993 regulations to the new rollout. We can help you with the change and more.

Please contact Welter Consulting at 206-605-3113.

Dec 01
0

Helpful Volunteer Resources from Open Educators

By | Nonprofit, Volunteer, Youth | No Comments

The Youth Activist’s Toolkit

A Kid’s Guide to Hunger & Homelessness: How to Take Action!

The Activist’s Guide to Fostering LGBTQ Pride in Your Community

How to Volunteer for Veterans

 How to Volunteer Abroad as a Couple

 Parent Enabler Intervention: When, How, and Why to Speak Up When Parents Enable Their Addicts

 Ideas for Educating the Community About Cyberbullying

 Legal Guide for Activists

For more info visit http://openeducators.org/

Dec 01
0

Could You Be At Risk Of An FLSA Lawsuit?

By | Accounting, FLSA, Nonprofit, Overtime | No Comments

A record number of FLSA lawsuits were filed against U.S. employers last year and with new overtime regulations due on December 1, this is a very good time to ask if you could be at risk.

 

As we reported earlier, another four million employees will be eligible for overtime pay under the new regulations and attorneys have warned this could lead to a spike in the number of disputes.

 

“We now have a new salary threshold that puts 4.2 million workers back into play,” said Daniel Abrahams of Brown Rudnick LLP in an interview with TSheets earlier this year. “You can bet the plaintiffs’ bar is busy monitoring this and looking for new cases.”

 

You may wonder what impact the Trump presidency will have on the new regulations and that remains to be seen, but experts warn it would be unwise to ignore the December 1 deadline. The Fair Labor Standards Act has been around for a long time — and it’s not going away anytime soon — so it’s a very good idea to get familiar with the regulations.

 

There are some great free resources out there to get you started and this one, recently published by TSheets, highlights seven of the most common risk areas:

 

1. Misclassification

8.6 million employees are currently misclassified and the consequences can be costly. It pays to know the difference between an independent contractor and an employee, and to know who is exempt from the FLSA and who is not.

 

2. Off-the-clock work

Mobile technology means more and more employees now work outside of normal hours and if they are nonexempt, this time has to be tracked and paid. This is already a common cause of disputes and more are expected after December 1.

 

3. Unauthorized overtime

When nonexempt employees work overtime they have to be paid for it, even if it was unauthorized. The rate is usually 1.5 times their normal pay but in some states, like California, the regulations demand more than this.

 

4. Breaks

 

Research shows that 4 out of 5 office workers now regularly work through their lunch breaks — but if they are nonexempt and the time is being deducted from their paychecks, their employers could end up in court.

 

5. Record-keeping

 

“To the degree that you don’t have this in place, start creating a really good paper trail,” says attorney Maria Hart from Parson, Behle & Latimer. “That’s an attorney’s best friend—to have documents that show what you were doing, not doing, and so forth. Document, document, document.”

 

6. Interns and volunteers

 

In 2015, just 39% of graduate interns were paid. But as attorney Mark S. Goldstein warns, a recent ruling could mean that more of them could be in future. “An employment relationship is created when the benefits to the intern are greater than their contribution to the business,” he says.

 

7. Regulatory changes

 

Should you be complying with state or federal laws? Or both? Are you following the latest labor department regulations? The shifting sands of labor laws makes it a challenge to get it right all of the time.

 

Disclaimer: Please refer to a professional tax or legal advisor regarding specific requirements of FLSA and how they impact your business. We do not recommend particular employee classifications or practices and leave those decisions to the discretion of your organization.