ACCOUNTANTS CPA HARTFORD, LLC of CONNECTICUT
William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor
46 Mildrum Road, Berlin, Connecticut 06037
Telephone: (860) 828-3269 Email: info@cpa-connecticut.com
ACCOUNTING AND TAX ARTICLES BY WILLIAM BRIGHENTI, CPA

SFAS 123R  With the implementation of SFAS123R, the calculated value method is now required for nonpublic companies without an internal market for its stocks or options, or for those unable to identify similar public entities for which share or option price information is available, to value its stock options. The implementation of the calculated value method requires the use of an option pricing model and a volatility measure of an appropriate industry sector index. Herein is a comprehensive example of the calculated value method, illustrating in minute detail each step in its calculations of the valuing of a typical stock option of a nonpublic company.

IPIC METHOD  This articles illustrates the use of the Inventory Price Index Computation (IPIC) method, wherein the taxpayer computes an inventory price index (IPI) based on the consumer price indexes (CPI) or producer price indexes (PPI) published by the United States Bureau of Labor Statistics (BLS).

PERCENTAGE-OF-COMPLETION ACCOUNTING  This article introduces the percentage-of-completion method of accounting to contractors in simplified terms, including calculations and journal entries.

QUICKBOOKS CONTRACTOR EDITION  An introduction to preparing Completed Contracts and Work-in-Process reports using the Quickbooks Contractor Edition.

CONSTRUCTION TAX METHODS  Choosing an appropriate tax accounting method for a contractor is explored and explained, listing the various methodologies available and the respective requirements.

ACCOUNTING METHODS FOR CONTRACTORS  Internal Revenue Service summary of the accounting methods for contractors, including the cash, accrual, percentage-of-completion, and completed contracts methods.

QUICKBOOKS TRAINING  William Brighenti, Certified Public Accountant and Certified QuickBooks ProAdvisor, offers classes, webinars, and one-on-one individualized training in Quickbooks, whether you are an advanced, intermediate, novice.

LONG TERM CONTRACT DEFINED The Internal Revenue Service specifies a precise definition of a long term contract.

COMPLETED-CONTRACT METHOD  Article explains and illustrates by way of journal entries the methodology of the Completed-Contract Method of Accounting for contractors and manufacturers.

FADE ANALYSIS  Fade analysis is a critical analytical tool utilized in reviewing percentage-of-completion schedules and financial reports to detect unusual variances in gross profits, job cost shifting, errors, and fraud.

HIRING A CONSTRUCTION CONTROLLER  Before hiring a construction controller through an employment agency, read this article on how to save from $20,000 to $35,000 in recruiting fees! You can do a better job hiring your own controller and save thousands of dollars in the process.

WHY PREPARE YOUR OWN WORK-IN-PROCESS (WIP) SCHEDULE? Also known as work-in-progress or construction-in-process schedules, contractors and manufacturers should always prepare these schedules in-house before submitting their financial data to outsiders, including their external certified public accountants, bonding agents, and financial lenders.

HOW TO PREPARE A WORK-IN-PROCESS (WIP) SCHEDULE  Don't know how to prepare a work-in-process schedule? This article explains and illustrates the entire process with various formats included.

SIMPLIFIED EMPLOYEE PENSION (SEP) PLANS  This article is directed to the young, mom-and-pop business owner who is paying too much in taxes. SEP plans offer big tax savings, with an even bigger retirement account, so you can retire at 59-1/2 and enjoy life.

IRS INSTALLMENT AGREEMENT AND PENALTY ABATEMENT REQUEST Can't pay your taxes? Has the Internal Revenue Service charged you penalties on failure to file a tax return or failure to pay your taxes? File these two forms and obtain relief and save thousands of dollars in taxes.

FREE MARKET DATA FOR YOUR BUSINESS PLAN  Why pay hundreds or thousands of dollars for market data of your competitors in order to prepare a business plan, which you are submitting in order to obtain a small business loan? In this article is explained how and where you can obtain the market data for free.

TAX DEDUCTIONS FOR TEMPORARY ASSIGNMENT WORK  Have you been recently been laid off like so many Americans, and have accepted temporary work assignments as an independent contractor, and if so, are you aware of the many tax deductions available to you?

CASH FLOW SCHEDULE BY CONTRACT  An analytical tool to spot cash flow problems on contracts, projects, and jobs and to anticipate liquidity problems for manufacturers and contractors.

ROLL OVER AS BUSINESS STARTUP | ROBS  Rolling over a 401(k) plan to purchase a franchise or finance the startup of a business may invite scrutiny from the Internal Revenue Service. Recommendations are provided in the implementation of a ROBS program.

SHAREHOLDER BASIS IN S CORPORATION  The shareholder basis in S corporation is a function of both basis in stock owned as well as loans provided to the S corporation. The calculation of stock and loan basis of a closely-held small S corporation is explained with examples.

LOSS ON SALE OF HOME Considers the tax implications of renting a home before selling it, using a hypothetical example.

MARRIED BUSINESS PARTNERS ELECTION NOT FILE AS PARTNERSHIP Wish to save on the needless tax return preparation fees of filing Form 1065, U.S. Return of Income, and its accompany state informational return? Elect not to file the partnership return as a qualified joint venture. Read how you can make this simple election.

UNIFORM CAPITALIZATION RULE SECTION 263A Learn how to apply the UNICAP rule to include additional Section 263A costs in inventory using the simplified production method and the simplified service cost method.

HOME OFFICE QUALIFICATION CRITERIA  Want to know if you as an employee or a small business owner can claim your home office as a significant deduction on your tax return?

ACCOUNTING AND TAXES SIMPLIFIED BLOG  Have an accounting or tax question?  Interested in perusing various articles on accounting and taxes?  Have something to say about accounting and taxes?  Please visit our blog.  All are welcomed.

HOW TO FIGURE YOUR HOME OFFICE DEDUCTION  Be certain to deduct all of those home office expenses on your tax return by reading this article. 

EMPLOYEE VERSUS INDEPENDENT CONTRACTOR  Is your worker an employee even though you engaged him as a subcontractor?  Are you entitled to unemployment insurance even though you were hired as an independent contractor?

HOME BUYER TAX CREDITS  On November 6, President Barack Obama signed into law a new home buyer tax bill, extending $8,000 tax credit for the first-time home buyer and providing a $6,500 tax credit for repeat home buyers
DEDUCT YOUR NEXT CRUISE  Do you wish to deduct your next cruise?  You may be able to deduct thousands of dollars of travel expenses on a Caribbean cruise.

HOW TO CALCULATE YOUR OFFER IN COMPROMISE  If you do not determine your "Reasonable Collection Potential" correctly, your Offer in Compromise is destined to be rejected by the Internal Revenue Service.

PARTIAL PAYMENT INSTALLMENT AGREEMENT  Enacted in 2005, this agreement allows a taxpayer to settle his tax liability for the full amount; however, it has an "open door" policy, allowing the IRS to change your installment payments every two years.

INSTALLMENT AGREEMENTS OR OFFER IN COMPROMISE  How do you know which agreement is right for you to settle your tax assessment?  A wise choice may save you thousands of dollars and aggravation.

2009 NET OPERATING LOSS CARRYBACKS  The Worker, Homeownership, and Business Assistance Act of 2009 (WHBA), enacted on November 6, 2009 amends ยง 172(b)(1)(H) election of the Internal Revenue Code to allow all taxpayers to elect to carry back an applicable net operating loss (NOL) for a period of 3, 4, or 5 years, or a loss from operations for 4 or 5 years, to offset taxable income in those preceding taxable years.

GENGHIS KHAN AND THE CONTROLLER  Are you an employer, hiring one controller after another?  This article is meant for you, Genghis Khan.

THE MEANING OF "ORDINARY AND NECESSARY EXPENSE"  What precisely does this tax phrase in Section 162(a) of the Internal Revenue Code mean?

THE MAKE DEPOSITS FEATURE IN QUICKBOOKS  If you are having difficulty doing bank reconciliations in QuickBooks, try using the Make Deposits feature when entering cash receipts and credit card transactions in QuickBooks.  Bank reconciliations that might require an inordinate amount of time to complete are greatly simplified, allowing a ready comparison of amounts posted in QuickBooks to deposit amounts shown on your bank statements.

QUICKBOOKS CHART OF ACCOUNTS  Do you know how to set up your chart of accounts in QuickBooks?  Does your chart of accounts in QuickBooks need to be modified?  It's easy to do, when you understand the mechanics.

QUICKBOOKS QUICK TRICK TO RECONCILE PAYROLL BANK ACCOUNT  Are you experiencing difficulty reconciling your payroll bank account in QuickBooks?  Here is a trick and some tips that you may find helpful.

REQUIRED DOCUMENTATION FOR CASH AND NONCASH CONTRIBUTIONS  Be advised that the IRS is scrutinizing charitable contributions very carefully.  Consequently, meet all of its documentation requirements in order to claim cash and noncash contributions, avoiding penalties and other expenses.

ACCOUNTANTS CPA HARTFORD     OUR SERVICES     ABOUT US     CONTACT     ACCOUNTING AND TAX TIPS
HARTFORD CONSTRUCTION ACCOUNTANTS     CALCULATED VALUE METHOD SFAS 123R     IPIC METHOD    CLASSES ARTICLES    NEW BRITAIN ACCOUNTANTS    BERLIN ACCOUNTING SERVICES    NOT-FOR-PROFIT CPA ACCOUNTANTS KENSINGTON ACCOUNTING SERVICES    NEWINGTON ACCOUNTING & TAX    QUICKBOOKS CONTRACTOR EDITION CONTRACTOR TAX METHODS OF ACCOUNTING     PERCENTAGE-OF-COMPLETION METHOD     LOSS ON SALE OF HOME
CASH FLOW ANALYSIS OF CONTRACTS     COMPLETED CONTRACTS DEFINED     COMPLETED-CONTRACT METHOD
CONSTRUCTION FADE ANALYSIS     SEP PLANS     WIP SCHEDULES    CONSTRUCTION CONTROLLER     SITEMAP
IRS INSTALLMENTS & PENALTY ABATEMENT     HOW TO PREPARE A WIP SCHEDULE     QUALIFIED JOINT VENTURE
FREE MARKET DATA FOR BUSINESS PLAN     SITEMAP TEMPORARY ASSIGNMENT TAX DEDUCTIONS     QUICKBOOKS TRAINING
401(K) ROLL OVER FOR BUSINESS STARTUP | ROBS     CASH FLOW ANALYSIS     SHAREHOLDER BASIS IN S CORPORATION
UNIFORM CAPITALIZATION RULE     BLOG     HOME OFFICE CRITERIA     HOW TO FIGURE YOUR HOME OFFICE DEDUCTION
EMPLOYEE OR INDEPENDENT CONTRACTOR?     HOME BUYER TAX CREDITS     DEDUCT YOUR NEXT CRUISE
HOW TO CALCULATE A TAX OFFER IN COMPROMISE TO THE IRS     PARTIAL PAYMENT INSTALLMENT AGREEMENT
INSTALLMENT AGREEMENTS OR OFFER IN COMPROMISE     2009 NET OPERATING LOSS CARRYBACKS
THE CONTROLLER AND GENGHIS KHAN     ORDINARY AND NECESSARY EXPENSE     NEW KIND OF ACCOUNTING FIRM
ACCOUNTING & TAX ASSISTANCE     QUICKBOOKS MAKE DEPOSITS     QUICKBOOKS CHART OF ACCOUNTS
QUICKBOOKS QUICK TRICK TO RECONCILE PAYROLL BANK ACCOUNT     CHARITABLE CONTRIBUTIONS