Bypass trusts: Still a viable option for wealthy families

The bypass trust is less popular today than it has been in the past. This is thanks to the increased gift and estate tax exemption ($12.06 for 2022 and $12.92 million for 2023) and a “portability” provision first made available in 2010. However, it remains a good estate planning option for wealthier families and, in fact, …
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How to read and evaluate financial statements

Comprehensive financial statements prepared under U.S. Generally Accepted Accounting Principles (GAAP) include three reports: the balance sheet, income statement and statement of cash flows. Together these reports can be powerful diagnostic tools to help evaluate the financial well-being of a business. By carefully analyzing them, you may be able to uncover potential money-management problems or even …
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Now is the time for 2022 year-end tax planning

With the end of 2022 fast approaching, it’s time to consider tax planning moves that may lower taxes for the 2022 tax year — and possibly set you up for tax savings in future years as well.  The good news is that it now appears that there won’t be any significant unfavorable federal tax changes that …
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Cash flow: Types, red flags, and corrective actions

Statement of Cash Flows is a Powerful Tool There is more to financial reporting than profits. The statement of cash flows can be a powerful management tool. During an economic downturn, it’s especially important for managers to monitor cash flows to detect — and correct — problems as soon as possible. Here’s an overview of …
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Medical practices: Clear policy improves billing results

You may have heard about the Vermont doctor who was fed up with way medicine is practiced today and opened an office she calls “Simply Medicine.” The sole practitioner doesn’t accept insurance. Her fee is listed on a board in the waiting room: $2 a minute for labor, plus the cost of supplies. This doctor’s system …
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Retirement savers: Consider TIPS as inflation hedge

To help curb record-setting inflation, the Federal Reserve Bank enacted its second consecutive 0.75-percentage-point increase to the Fed Funds rate on July 28. Despite the Fed’s aggressive moves, significant uncertainty remains. Financial analysts are unsure whether the rate increases will work — or where the stock and real estate markets are headed given the current inflation …
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Inflation’s surge and the impact on your 2023 taxes

Inflation has been surging this year. The July 2022 consumer price index (CPI) was up 8.5% year over year, according to the latest data from the U.S. Bureau of Labor Statistics. The rate of inflation is expected to stay high for at least the rest of the year. Many taxpayers are understandably concerned about how elevated …
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Construction: Use financial statements to make solid first impression

Financial statements are a must-have for any organization. The balance sheet reveals how much its assets and liabilities are worth based on historic costs. The income statement tells investors and lenders how profitably and efficiently the company has performed during the accounting period. The statement of cash flows details sources and uses of cash from operating, …
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Sol Schwartz & Associates among Best Companies to Work for in Texas

Plus a local award recognizes firm’s workplace for fourth year in a row It’s no accident that some members of the Sol Schwartz & Associates team have been with the firm for decades.  When Sol Schwartz founded the firm in 1980, he launched a tradition of not only bringing in highly capable professionals, but also …
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Forensic accounting: What it is and how it is used

Forensic accountants are often asked to give testimony in court cases. They need to be prepared to answer questions regarding their findings and conclusions. This article will provide information on the basics of what forensic accounting is. How it applies in the real world Attorneys retain forensic accountants to determine whether an individual has committed …
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