Quick References
CBM’s Quick References are high-level insights about critical issues and concerns facing your organization. The firm’s accounting and advisory group is available to help you implement solutions to keep your business on track to long-term success.
About Form 1099-NEC
It is time to submit Form 1099-NEC forms before its official January 31 deadline. Businesses and not-for-profits must report prior year payments to relevant vendors and contractors. Form 1099-NEC is required for payments over $600 in a year to individuals or unincorporated businesses (such as sole proprietors or partnerships) for services.
Smart Cash Management
Stakeholders want confidence that an organization’s cash is secure and insured. The Federal Deposit Insurance Corporation insurance coverage is $250,000 per depositor, per insured bank, for each ownership category. We recommend considering the following deposit account alternatives as part of your cash investment strategy.
The New Lease Standard
CBM’s latest Quick Reference concerns itself with the new lease standard, which is intended to account for all lease obligations on financial statements, rather than excluding operating leases as has been the standard. This change ensures a company’s financial situation is reflected as accurately as possible within the financial statements.
Cyber Liability Insurance
Standard business insurance policies provide coverage for certain cyber incidents. For instance, if you lose electronic data due to a computer virus or hardware failure, your insurance may pay recovery or replacement costs. To extend coverage for a wider range of risks, you will need a stand-alone, customized cyber liability policy. Reach out to CBM if we can be of assistance.
Current Expected Credit Losses (CECL)
Current Expected Credit Losses (CECL) is a new accounting standard requiring a shift in accounting for credit losses from an incurred loss methodology to an expected loss methodology. Accordingly, recognition of allowances for credit losses is recorded when a loss is expected as opposed to probable.
Financial Plan, Budget & Forecast
Financial planning, budgeting and forecasting are complimentary financial tools used by organization leaders to map out and execute their short-term and long-term goals. A plan provides the framework, a budget provides accountability and allocation of cash, and a forecast projects the financial future of the organization.
New Overtime Rule
**Update: The DOL overtime rule has been struck down by a federal court as of 11/15/2024**
The U.S. Department of Labor has issued a final rule increasing the minimum salary required for certain type of employees to be considered exempt from the Fair Labor Standards Act (FLSA) overtime pay requirements. Additional updates to the minimum salary requirement will be made in 2025, 2027 and then every three years thereafter to accommodate changes to the standard of living.
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