The Lawhorn Ledger
Financial Insights and Business Strategy
Straight from The Lion’s Mouth
Value-Based Pricing Explained
Before anything can be sold in the marketplace, you need to formulate a price for that product or service. For nearly the entire history of capitalism, decision-makers have chosen one of two pricing strategies, often without knowing what pricing strategy they are...
IRS Waives Tax Penalties for 400,000 Taxpayers
The new tax laws in the US and the subsequent tax code changes have caused much concern, confusion, and have even caused some to experience unwarranted tax penalties. With the massive overhaul of the tax codes and IRS guidance that has taken place over the past 24...
Xero Updates and What They Mean for Clients
We hear a lot about the ‘cloud’ and have begun to frequently refer to our workplace data and storage as ‘the cloud.’ The term has become our metaphor for the Internet, and it is a blend of where we house our work and the processes of our work from software, to drives,...
What is a Financial Reporting Engagement
We all know the importance of keeping track of finances. Personal, or business, keeping “good books” helps one avoid surprises, audits, and potential fines by the IRS or other taxing authority. We also know it is always a good idea to have a professional...
Congress Passes New IRS Reform Bill
**Update: As of Monday, July 1, 2019, President Trump has signed the Taxpayer First Act into law. A new, bipartisan IRS reform bill has just been signed into law by the President. The bill, called the Taxpayer First Act and championed by the Senate Finance...
How to Choose the Correct Business Entity
On most accounts, there has never been a better time to take the leap towards entrepreneurship in America. After all, there are have been several new initiatives that were part of the Tax Cut and Jobs Act of 2018 that helped introduce a single and flat corporate tax...
Why Did My CPA File a Tax Extension?
As we settle into April, it may be that you received notice that your accountant filed a personal tax extension on your behalf. But, what does this mean for you and why would your accountant do that? There are many reasons for filing an extension and, don’t worry, are...
2019 Tax Preparation: Tax Preparation Services versus a CPA
Accountants are often asked the difference between tax preparers, such as H&R Block, Jackson Hewitt, and Liberty Tax Services, and Certified Public Accountants (CPAs) during tax time in the US. These roles are often seen as similar when it comes to tax...
Revenue from Contracts Step Five: Recognizing Revenue
Once all of the steps are completed in the framework of the FASB Accounting Standard concerning the Revenue from Contracts with Customers, then businesses can completely recognize the revenue. This final step recognizes revenue when or as the performance obligations...
Revenue from Contracts Step Four: Allocate the Transaction Price
Previously, we addressed Steps 1, 2, and 3 of the Accounting Standard Update (ASU) No. 2014-19, Revenue from Contracts with customers. This post moves on to Step 4, allocating the transaction price to the performance obligations in the contract. This, and one final,...
Child Tax Credit Advance Payments Start in July
In March 2021, the American Rescue Plan Act expanded the Child Tax Credit (CTC), providing larger payments and a provision for advance payments on the CTC that will start in July. This tax return advance is intended to support families still struggling with financial...
New Requirements for Tax Preparers and the American Families Plan
There’s a lot that we already know about President Biden’s American Families Plan (AFP). With an estimated budget of $1.8 trillion, this infrastructure proposal would raise the top income tax rate to 39.6 percent and...
President Biden Proposes Individual Tax Changes
On April 28,2021, President Joe Biden announced a proposal to support Americans in childcare, family leave, education, etc. This $1.8 trillion American Families Plan includes several tax provisions that range from tax increases for some taxpayers to tax cuts for...
How to Create a Small Business Budget
When you become a small business owner, you have to learn how to do a lot of things that you have never done before, such as managing staff, finances, and shipments. To successfully manage your finances, you must be able to create and maintain a small business budget....