Why Is the FASB Issuing This Accounting Standards Update (ASU)? On January 6, 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date to clarify the effective date for ASU 2024-03, Interim Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses for non-calendar year end entities.

Once you reach age 73, tax law requires you to begin taking withdrawals — called Required Minimum Distributions (RMDs) — from your traditional IRA, SIMPLE IRA and SEP IRA. Since funds can’t stay in these accounts indefinitely, it’s important to understand the rules behind RMDs, which can be pretty complex. Below, we address some common questions to help you navigate this process.

The Michigan Earned Sick Time Act (ESTA), a revised sick leave law, is set to go into effect on February 21st, 2025. It will have an immediate impact on any business that employs one or more full-time or part-time employees. The ESTA requires the employer to accrue sick time for each employee as of the effective date of the law, or the beginning of their employment, whichever is later, and it permits the carryover of the earned but unused sick time from year to year. Employers are required to retain and make available to Michigan’s Department of Labor & Economic Opportunity - Wage and Hour Division records of the hours worked and the paid sick time used by employees, if requested; these records must be maintained for a minimum of three years.

When selling business assets, understanding the tax implications is crucial. One area to focus on is Section 1231 of the Internal Revenue Code, which governs the treatment of gains and losses from the sale or exchange of certain business property.

Many different shortcomings can hold back the growth of a company. Some are obvious, such as poor cash flow management or flawed strategic plans. Others aren’t so easy to see.

Saving for retirement is a crucial financial goal and a 401(k) plan is one of the most effective tools for achieving it. If your employer offers a 401(k) or Roth 401(k), contributing as much as possible to the plan in 2025 is a smart way to build a considerable nest egg.

Literally hours after our last email update on December 27th, we learned a different panel of the Fifth Circuit Court of Appeals issued an order vacating the previous panel’s December 23rd stay of the injunction. As a result, the injunction issued on December 3rd is back in effect and reporting companies are once again not required to file the beneficial ownership information report with FinCEN and are not subject to any liability if they do not file while the injunction is in place.

Managing the financial performance of your business may sometimes seem like steering a ship through treacherous waters. Perhaps your voyage goes smoothly for a while until, quite suddenly, you hit a concerning dip or abrupt swell — either of which creates considerable operational pressure.

When deciding on the best structure for your business, one option to consider is a C corporation. This entity offers several advantages and disadvantages that may significantly affect your business operations and financial health. Here’s a detailed look at the pros and cons of operating as a C corporation.

So, how are sales looking for next year? It’s not a rhetorical question. Your business should be able to look ahead and accurately estimate how its future sales are shaping up. This practice is called sales forecasting, and doing it well is key to better managing your company’s financial performance.