Brinker Simpson & Company is honored to be named a Top 10 2019 Best Accounting Firms for WOMEN among female respondents to Accounting Today's survey recognizing the 100 Best Firms to Work For in the United States.

Bob Simpson, CPA, MST, Managing Partner of Brinker Simpson & Company, sat down with The Neumann University Center for Leadership to provide small business accounting insights as part of their Entrepreneurship Video Series. The series is designed to help small business owners start, manage and ultimately grow their business. Watch the video here:

The 2017 tax-cut plan eliminated or restricted many itemized deductions from 2018 through 2025, and raised the standard-deduction thresholds. 

With the Presidential election 9 weeks away, we prepared the following guideline to illustrate where each of the candidates stand on certain tax laws. Biden’s proposed changes would repeal different aspects of Trump’s 2017 Tax Cuts and Jobs Act (TCJA). Please note, these are proposed changes and Congress often makes the final decision.

Biden’s tax plan
Biden has been critical of the TCJA and his planned tax law changes call for higher taxes on both ordinary and capital gain income for high net worth individuals. His proposed changes include:

• Raise the top marginal individual income tax rate for incomes above $400,000 to the pre-TCJA rate of 39.6%.
• Tax long-term capital gains and dividends above $1 million at the ordinary income rate of 39.6%.
• Cap the value of itemized deduction to 28%, thereby reducing the benefit for taxpayers in rate brackets higher than 28%.
• Raise the corporate income tax rate from 21% to 28%.
• Institute a 15% alternative minimum tax on corporations with $100 million or more in profits.
• Raise the Global Intangible Low Tax Income (“GILTI”) (a tax on income from foreign affiliates, including foreign-held intangible property and its related income) rate from 10.5% to 21%.
• Institute a 12.4% Social Security payroll tax, to be split between employers and employees, on income earned in excess of $400,000.
  • This proposal results in a “donut hole” where wages between the current cap of $137,000 and $400,000 are not taxed.
• Phase out the Section 199A deduction on taxable income in excess of $400,000.
• Expands the Earned Income Tax Credit (“EITC”).
• Expand the Affordable Care Act’s premium tax credit.

Trump’s tax plan
Although President Trump has not officially issued a tax policy proposal for his re-election campaign, the budget proposals submitted to Congress since the passage of the TCJA have assumed the individual income tax provisions set to expire at the end of 2025 will be made permanent. Trump is set to unveil this month a Tax Reform Plan for low-income and middle-income taxpayers – Tax Reform 2.0.

Benefits of Outsourcing

Business clients often ask us: Should we outsource our accounting needs? What exactly are the benefits we can expect?
In small businesses, we often see owners or employees who struggle to effectively balance several competing job responsibilities. Examples include an office manager who is forced to manage human resource and administrative functions while trying to do bookkeeping as well. Other situations include business owners who try to manage their company’s growth but don’t want to relinquish control over the finances.
The decision to outsource bookkeeping and accounting enables businesses to increase their bottom line and create more opportunities to focus on their core business. By outsourcing, businesses gain access to a team of devoted CPA experts who stay focused on the company’s financial well-being, which allows ownership to concentrate its time and expertise where it is needed.
Businesses can also save money on salary increases, employer payroll taxes, insurance and fringe benefits through outsourcing. Recently, Brinker Simpson was hired to replace the controller of a $3M business and saved the company over $50,000 in salary and fringe benefits.
When partnering with an outsourcing firm, business owners do not have to worry about the cost of employee turnover or spending time looking for new staff. According to the Society for Human Resource Management’s new Human Capital Benchmarking Report, the average cost to hire a new employee is $4,129 and the average time to fill a position is 42 days.
As small businesses grow and hire more staff, many CEOs do not have the time to focus on accounting. With the business growing at an accelerated pace, more advanced reporting is needed, and CEOs rely on a variety of financial information to make informed decisions. They need a consistent and trusted advisor. Outsourced Accounting firms can assist with a variety of functions including monthly and annual reporting, budgeting and forecasting, cash management, and bookkeeping. Business owners can take comfort when the work is backed by a team of CPAs who focus on instituting processes and controls to maintain the security of company assets.
Brinker Simpson offers a variety of flexible solutions to provide excellent service to fit your company needs. If you would like more details on how your business can gain access to our team of experts, including tax, audit, and advisory professionals, please contact Donna Stilwell , CPA, CFE at dstilwell@brinkersimpson.com for a discussion on how we can help your business with outsourced accounting needs.

Sadly, it did not take long for scammers to take advantage of the programs being offered to help individuals and businesses through this current situation. Don't let your guard down! Remember, the IRS and banks will not contact you for bank account information or to verify social security numbers or information on your tax return. Also, you should not pay anyone a fee to process your stimulus check. The Federal Communications Commission (FCC) is receiving reports of potential scams, warning on their website: