Tag: ATA

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Press Releases

ATA CPAs & Advisors Names New Partner

ATA CPAs & ADVISORS ANNOUNCES NEW PARTNER

Union City, Tenn. — ATA, a nationally recognized CPA and advisory firm, names Charles Peery as the newest partner. Peery helps lead the Union City, Tenn. office and has been with ATA for over seven years. Charles is a certified public accountant, specializing in tax and audit. In his new leadership role, Charles will be responsible for managing client relationships, helping guide those clients to future success, and also helping ATA team members further their professional careers. 

“Charles has shown great success in cultivating relationships with clients as well as being a rising community leader, said John Whybrew, Managing Partner of ATA. “I commend him on his growth and commitment to ATA.” 

“I am excited to be a part of a firm with such a long legacy of providing clients with professional excellence,” said Peery. “Our existing partner group, and those that came before, provided a great example of how to service our clients through intentional relationships and seeking continuous innovation. I look forward to what the future holds at ATA.” 

Peery received his undergraduate degree in business administration in accounting from the University of Tennessee at Martin in 2015. Peery has been married to his wife Kylie since 2013. Together, they have four children, Miloh, Madix, Carlisle, and Carisse, who keep them busy with church, school, sports, dance, singing, and pageants. 

Peery is the board chair and prior treasurer for United Way of Obion County, board member for the Obion County Chamber of Commerce, board of directors member for the Global Citizen Adventure Corps, and member as well as former board member of Kiwanis Club of Union City. Charles was recognized in the past as one of Obion County’s young professionals 31 under 31, he is a graduate of Obion County Leadership, and is a recent graduate of the WestStar Leadership Program.

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ATA PLLC

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and ATA Employment Solutions is a comprehensive human resource management agency.

 ATA has 15 office locations in Tennessee, Arkansas, Kentucky and Mississippi. Recognized as an IPA Top 150 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

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General

How Inflation Could Affect Your Financial Statements

Business owners and investors are understandably concerned about skyrocketing inflation. Over the last year, consumer prices have increased 8.3%, according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index (CPI) covers the prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. This was a slightly smaller increase than the 8.5% figure for the period ending in March, which was the highest 12-month increase since December 1981. Meanwhile, the producer price index (PPI) is up 11% over last year. This was a smaller increase than the 11.2% figure for the period ending in March, which was the largest increase on record for wholesale inflation. PPI gauges inflation before it hits consumers.

Key impacts for your business, inflation may increase direct costs and lower customer demand for discretionary goods and services. This leads to lower profits — unless you’re able to pass cost increases on to customers. However, the possible effects aren’t limited to your gross margin.

Here are seven other aspects of your financial statements that might be impacted by today’s high rate of inflation.

1. Inventory.  Under U.S. Generally Accepted Accounting Principles (GAAP), inventory is measured at the lower of 1) cost and 2) market value or net realizable value. Methods that companies use to determine inventory cost include average cost, first-in, first-out (FIFO), and last-in, first-out (LIFO). The method you choose affects profits and the company’s ending inventory valuation. There also might be trickle-down effects on a company’s tax obligations.

2. Goodwill. When estimating the fair value of acquired goodwill, companies that use GAAP are supposed to apply consistent valuation techniques from period to period. However, the assumptions underlying fair value estimates may need to be revised as inflation increases. For instance, market participants typically use higher discount rates during inflationary periods and might expect revised cash flows due to rising expenditures, changes in customer behaviors and modified product pricing.

3. Investments. Inflation can lead to volatility in the public markets. Changes in the market values of a company’s investments can result in realized or unrealized gains or losses, which ultimately impact deferred tax assets and liabilities under GAAP. Concerns about inflation may also cause a company to revise its investment strategy, which may require new methods of accounting or special disclosures in the financial statement footnotes.

4. Foreign currency. Inflation can affect foreign exchange rates. As exchange rates fluctuate, companies that accept, hold and convert foreign currencies need to ensure they’re capturing the correct rate at the appropriate point in time.

5. Debts. If your company has variable-rate loans, interest costs may increase as the Federal Reserve raises interest rates to counter inflation. The Fed already raised its target federal funds rate by 0.5% in May and is expected to increase rates further over the course of 2022. Some businesses might decide to convert variable-rate loans into fixed-rate loans or apply for additional credit now to lock in fixed-rate loans before the next rate hike. Others may restructure their debt. Depending on the nature of a restructuring, it may be reported as a troubled debt restructuring, a modification or an extinguishment of the debt under GAAP.

6. Overhead expenses. Long-term lease agreements may contain escalation clauses tied to CPI or other inflationary measures that will lead to increased lease payments. Likewise, vendors and professional service providers may increase their prices during times of inflation to preserve their own profits.

7. Going concern disclosures. Each reporting period, management must evaluate whether there’s substantial doubt about the company’s ability to continue as a going concern. Substantial doubt exists if it’s probable that the entity will be unable to meet obligations as they become due within 12 months of the financial statement issuance date. Soaring rates of inflation can be the downfall of companies that are unprepared to counter the effects, causing doubt about their long-term viability.

We can help. Inflation can have far-reaching effects on a company’s financial statements.

Contact us for help anticipating how inflation is likely to affect your company’s financials and brainstorming ways to manage inflationary risks. © 2022

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News Owensboro, KY

WATHEN AND COMPANY, PLLC MERGES WITH ALEXANDER THOMPSON ARNOLD PLLC

Owensboro, Ky. — Regional accounting firm Alexander Thompson Arnold PLLC (ATA) is expanding its presence in Owensboro, Ky. through the acquisition of local firm Wathen and Company, PLLC owned by Vernon Wathen, CPA, effective January 1, 2022.

ATA has built a presence in Owensboro as a result of a 2017 acquisition of Myriad CPA Group. The acquisition of Wathen and Company allows for ATA’s further growth in the Owensboro area. 

“As we continue to grow, it is our top priority to join with firms that embody similar values as ATA,” said ATA managing partner John Whybrew. “Wathen and Company is a natural fit, and we see a bright future for our firm in the Owensboro area.”

Wathen and two staff members will continue to serve clients as ATA team members as a result of this transition. ATA Owensboro will operate at a new location at 300 Southtown Boulevard Floor 3, Owensboro, KY 42303.

Wathen can be reached directly at @vwathen@atacpa.net.

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. The ATA Family of Firms consists of a team of experts that can benefit every area of your business. Revolution Partners provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; ATA Secure provides cybersecurity services; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and ATAES is a comprehensive human resource management agency. 

ATA has 15 office locations in Tennessee, Arkansas, Kentucky and Mississippi. Recognized as an IPA Top 150 regional accounting firm, it provides a wide array of accounting, auditing, tax and advisory services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

 

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AR News Press Releases

ARKANSAS ACCOUNTING FIRM MERGES WITH ALEXANDER THOMPSON ARNOLD PLLC

Alexander Thompson Arnold PLLC
227 Oil Well Rd.
Jackson, TN 38305

FOR IMMEDIATE RELEASE

Alexis Long, Marketing Director
731-427-8571
along@atacpa.net

ARKANSAS ACCOUNTING FIRM MERGES WITH ALEXANDER THOMPSON ARNOLD PLLC

Hot Springs, Ark. — Regional accounting firm Alexander Thompson Arnold PLLC (ATA) is adding a presence in the state of Arkansas through the acquisition of top local firm JWCK, Ltd., formerly known as Jordan, Woosley, Crone & Keaton, Ltd., effective January 1, 2022.

The merger with JWCK adds 14 professionals to the ATA team, including three principals and two partners, Christina Ellis, CPA and Courtney Moore, CPA. With this merger, ATA will be comprised of 220 employees and 15 locations across four states.

“ATA has had a long-standing interest in establishing a strong presence in Arkansas,” said ATA Managing Partner John Whybrew. “We believe that this strategic merger with JWCK allows the firm to grow in new markets with like-minded professionals as well as continue our multi-year growth plan.”

JWCK’s 60 years of expertise ranges from tax management and accounting services to more in-depth services such as audits, financial statements and financial planning. It is a premier firm for trust and estate tax reporting as well as one of few firms that adhere to the standards to be able to perform audits for entities who receive state and federal monies and audits of financial institutions.

JWCK ranks 14th on the Arkansas Business Publishing Group’s list of the largest accounting firms in the state. The firm has been named Best Accounting Firm in Hot Springs by The Sentinel Record two years in a row, with Ellis being named Best Accountant in Hot Springs the past two years as well.

“Our commitment to serve our community with professionals right here in Hot Springs has led JWCK to merge with ATA,” said Ellis. “Through this merger, we will be able to provide our community with expertise in subject matters beyond what we have in our local office and will be able to devote more time to client relationships by allowing ATA’s entities to handle administrative responsibilities.” 

ATA Hot Springs will operate at 126 Hobson Ave. until May 2022, when they will move into a newly-constructed space at 1720 Higdon Ferry Road. There is also a location in Hot Springs Village, Ark. at 399 Ponce de Leon Drive, Ste. 2.

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. The ATA Family of Firms consists of a team of experts that can benefit every area of your business. Revolution Partners provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; ATA Secure provides cybersecurity services; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and ATAES is a comprehensive human resource management agency. 

ATA has 15 office locations in Tennessee, Kentucky, Arkansas and Mississippi. Recognized as an IPA Top 150 regional accounting firm, it provides a wide array of accounting, auditing, tax and advisory services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

Categories
Helpful Articles Tax

Traditional vs Roth IRAs

People often ask, “Should I invest in a traditional or Roth IRA when planning for retirement? What’s the difference?” To answer this question, let’s discuss the basics.

Traditional vs. Roth

An IRA is an individual retirement account that is not associated with your employer. When opening an IRA, you will have to choose either traditional or Roth. This is not to say that you are limited to one account for your lifespan. Depending on your income and the stage of your career, both types can be beneficial. 

Generally, Roth IRAs are best suited for younger individuals because they have a long working life before they retire, and that large time-frame gives their investments time to increase substantially. This increase will not be taxable when drawn out during retirement. Roth IRAs also come with an income limit, so it is ideal for those at entry-level or mid-level in their careers.

Traditional IRAs are best suited to those who are in a higher tax bracket. These individuals will save significant tax dollars immediately through tax-deductible contributions and will likely be in a lower tax bracket when they retire because their income will be reduced. This usually describes mature individuals who are in their later years of working and usually have higher incomes. Therefore, the tax savings now are greater, and the time for investments to increase in value is shorter. 

Withdrawing Your Savings

When you decide to put money in a retirement account, it is ideal to leave that investment untouched until you are retired. Traditional IRAs have stricter rules about early withdrawals than Roth accounts. The penalty for early withdrawal (before age 59.5) from a Traditional IRA is 10%, and you pay income tax on the amount you withdraw. Roth IRA withdrawals are tax and penalty free if you withdraw upon reaching age 59.5 and the account has been established for five or more years.

Traditional IRAs impose Required Minimum Distributions (RMDs) when you turn 72; this is a minimum amount that you must withdraw each year from your account. These withdrawals are considered taxable income. To find your RMD, use this worksheet from the IRS.

Roth IRAs do not impose RMDs, and the withdrawals are not considered taxable income. 

Both Traditional and Roth IRAs have contribution limits and due dates that vary year-to-year. You can find those amounts and dates in the graphic below.

For more information and consultation about IRAs and retirement planning, contact industry leader Gabrielle Lorbiecki or visit https://ata.net/ata-retirement.

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Jackson, TN News

Seasoned Banker Joins Top Regional CPA Firm As Client Relations Director

Alexander Thompson Arnold PLLC
227 Oil Well Rd.
Jackson, TN 38305

FOR IMMEDIATE RELEASE

For more information contact:
Alexis Long, Marketing Director
731-427-8571
along@atacpa.net

SEASONED BANKER JOINS TOP REGIONAL CPA FIRM AS CLIENT RELATIONS DIRECTOR

Jackson, Tenn. — Alexander Thompson Arnold PLLC (ATA) is proud to announce the addition of Heather Castleman in the newly created position of client relations director. Castleman, formerly of a large national bank, will bring her skillset to the ATA team effective Sept. 27, 2021.

ATA implemented this role to support client relationships and to better understand business owners’ needs in order to connect them with the abundant resources that ATA has to offer. Castleman’s primary goal is to prioritize the interests of current and future clients by facilitating conversations and fostering lasting relationships between advisees and ATA. She will serve as a liaison for ATA’s Family of Firms and advisory services.

“Heather has a great talent of meeting her advisees’ needs and helping them reach financial goals through personal relationships,” said John Whybrew, managing partner of ATA. “Her experience of maintaining relationships with clients in several states and managing a team of private client relationship managers will allow her to successfully forge connections between our clients, CPAs and the rest of our firm.”

Castleman comes to ATA with 25 years of experience managing client relationships in the financial services industry. She was most recently a private client relationship manager and the team lead for community banking at First Horizon Bank. Castleman’s priorities throughout her career have been building and maintaining positive relationships with clients as well as providing the best services available for customers.

“I am looking forward to this new opportunity in my career,” said Castleman. “This position will allow me to continue to focus on building lasting relationships and helping others. In this role, my goal is to show others that ATA has a full stack of resources available both to individuals and to the business community.”

Heather is married to Alan, a realtor with Hickman Realty Group in Jackson. They have been married for twenty-six years and have two daughters, Paige and Zoe.

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting. For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and ATA Employment Solutions is a comprehensive human resource management agency.

ATA has 13 office locations in Tennessee, Kentucky and Mississippi. Recognized as an IPA Top 200 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

Categories
Helpful Articles Tax

IRS Releases 2021 “Dirty Dozen” Tax Scam List

The IRS has released the 2021 “Dirty Dozen” tax scam list. This annual list helps taxpayers to be aware of potential ploys to steal money and personal information. This year’s list is divided into four categories: pandemic-related scams, personal information cons, ruses on unsuspecting victims and schemes that persuade taxpayers into unscrupulous actions. Continue reading below for scams to be aware of this tax year.

  • Economic Impact Payment theft

As a result of the CARES Act and the American Rescue Plan Act, many Americans received Economic Impact Payments (EIP), also known as stimulus checks. In general, these payments come straight from the IRS to eligible individuals. The IRS will not reach out asking for bank account information, Social Security numbers or personal information confirmation; ignore random calls, text messages and emails asking for this type of information. 

  • Unemployment fraud leading to inaccurate taxpayer 1099-Gs

The pandemic led to an increase of unemployed individuals applying for unemployment compensation from their respective states. Many of these individuals did not receive their compensation due to fraudulent claims from identity thieves. Taxpayers should look out for a Form 1099-G reporting unemployment compensation they did not receive. Individuals in this position should contact the appropriate state agency.

  • Fake charities

It is not uncommon for “new charities” to pop up all over the place when a disaster occurs. Most of these new charities are just scams, asking for donations for their cause but pocketing the money, or personal information, instead. Donating to charity sounds well and good, not to mention the tax deduction that comes with it, but donations must be made to a qualified charity. Taxpayers should always vet the charities before giving.

  • Immigrant/senior fraud

Just as the previous type of scammers prey on generosity during times of tragedy, they also prey on the most vulnerable of the population year-round. Immigrants should be aware that random phone calls threatening deportation, jail time or revocation of a driver’s license are not from the IRS. These scare tactics are not used by IRS agents, and phone calls are not typically the first attempt at contact from the IRS. Seniors and those that love them should also be aware of the persuasive and threatening techniques used by scammers.

  • Unscrupulous tax return preparers

Taxpayers should be wary of ghost tax preparers, preparers that refuse to sign and include their Preparer Tax Identification Number (PTIN) on tax returns. Having a tax return prepared by an unqualified and unlicensed preparer puts taxpayers at risk of getting into trouble with the IRS. Being picky is okay when it comes to choosing a tax preparer!

Other forms of tax scams that made the 2021 IRS “Dirty Dozen” list include unemployment insurance fraud, offer-in-compromise “mills,” syndicated conservation easements, abusive micro-captive arrangements, potentially abusive use of the US-Malta tax treaty, improper claims of business credits and improper monetized installment sales. For more on this year’s “Dirty Dozen,” visit https://www.irs.gov/newsroom/irs-announces-dirty-dozen-tax-scams-for-2021.

Our team is committed to keeping your information safe and secure, and we are always available to address concerns you may have about tax scams. Contact one of our tax experts to discuss these fraud attempts. If you are concerned about technological security, contact ATA Secure, ATA Family of Firms member.

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News Press Releases Tupelo, MS

Teasler CPA PLLC Merges with Alexander Thompson Arnold PLLC

Alexander Thompson Arnold PLLC
5221 Cliff Gookin Boulevard
Tupelo, MS 38801

FOR IMMEDIATE RELEASE

For more information contact:

Alexis Long, Marketing Director
(731) 427-8571
along@atacpa.net

TEASLER CPA PLLC MERGES WITH ALEXANDER THOMPSON ARNOLD PLLC

Tupelo, Miss. — Regional accounting firm Alexander Thompson Arnold PLLC (ATA) has expanded its presence in Tupelo, Miss. through the acquisition of local firm Teasler CPA PLLC owned by Kate Teasler, CPA, effective July 1, 2021.

ATA has built a presence in Tupelo as a result of a 2017 acquisition of Ashby & Associates PLLC and a 2018 acquisition of Fred Page & Associates P.C. The acquisition of Teasler CPA allows for ATA’s further growth in the Tupelo area. 

“As we continue to grow, it is our top priority to join with firms that embody similar values as ATA,” said ATA managing partner John Whybrew. “Teasler CPA is a natural fit, and we see a bright future for our firm in the Tupelo area.”

Staff member Haley Gilley from Teasler CPA PLLC will join the team at ATA Tupelo and will continue to be the main contact for Teasler’s former clients. Teasler will remain of counsel to the firm.

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About Alexander Thompson Arnold PLLC (ATA)

ATA is a long-term business advisor to its clients and provides other services that are not traditionally associated with accounting.  For example, Revolution Partners, ATA’s wealth management entity provides financial planning expertise; ATA Technologies provides trustworthy IT solutions; Sodium Halogen focuses on growth through the design and development of marketing and digital products; Adelsberger Marketing offers video, social media, and digital content for small businesses; and ATAES is a comprehensive human resource management agency. 

ATA has 13 office locations in Tennessee, Kentucky and Mississippi. Recognized as an IPA Top 200 regional accounting firm, it provides a wide array of accounting, auditing, tax and consulting services for clients ranging from small family-owned businesses to publicly traded companies and international corporations. ATA is also an alliance member of BDO USA LLP, a top five global accounting firm, which provides additional resources and expertise for clients.

Categories
Tax

Getting a new business off the ground: How start-up expenses are handled on your tax return

Despite the COVID-19 pandemic, government officials are seeing a large increase in the number of new businesses being launched. From June 2020 through June 2021, the U.S. Census Bureau reports that business applications are up 18.6%. The Bureau measures this by the number of businesses applying for an Employer Identification Number. Entrepreneurs often don’t know that many of the expenses incurred by start-ups can’t be currently deducted. You should be aware that the way you handle some of your initial expenses can make a large difference in your federal tax bill.

How to treat expenses for tax purposes
If you’re starting or planning to launch a new business, keep these rules in mind:

Start-up costs include those incurred or paid while creating an active trade or business — or investigating the creation or acquisition of one. Under the tax code, taxpayers can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs in the year the business begins. As you know, $5,000 doesn’t go very far these days! And the $5,000 deduction is reduced dollar-for-dollar by the amount by which your total start-up or organizational costs exceed $50,000.

Any remaining costs must be amortized over 180 months on a straight-line basis. No deductions or amortization deductions are allowed until the year when “active conduct” of your new business begins. Generally, that means the year when the business has all the pieces in place to start earning revenue. To determine if a taxpayer meets this test, the IRS and courts generally ask questions such as: Did the taxpayer undertake the activity intending to earn a profit? Was the taxpayer regularly and actively involved? Did the activity actually begin?

Eligible expenses
In general, start-up expenses are those you make to: investigate the creation or acquisition of a business, create a business, or engage in a for-profit activity in anticipation of that activity becoming an active business. To qualify for the election, an expense also must be one that would be deductible if it were incurred after a business began. One example is money you spend analyzing potential markets for a new product or service. To be eligible as an “organization expense,” an expense must be related to establishing a corporation or partnership. Some examples of organization expenses are legal and accounting fees for services related to organizing a new business and filing fees paid to the state of incorporation.

If you have start-up expenses that you’d like to deduct this year, you need to decide whether to take the election described above. Record-keeping is critical.

To see how ATA can help grow your emerging business, visit our website. © 2021

Categories
Construction General Helpful Articles Jackson, TN Memphis, TN

Protect Your Construction Company from the Effects of High Supply Prices

Building supply manufacturers are doing their best to catch up with the high demand for their materials. Material prices overall are continuing to climb, making it difficult for contractors of all types and sizes to provide their services in the same manner they did before the pandemic as well as grow their businesses.

What can contractors do?

Communication is key for contractors and business owners right now. It is important for clients to know developments in supply chains and pricing. Much of the information that should be communicated can be included in contracts. Even though they cannot impact the supply chain and prices of materials, contractors can protect themselves from losing money and work through several means.

  • Expiration Dates

With prices and supply availability changing every day, contractors cannot guarantee a price for long. Since there is a chance that original quotes can change at a moment’s notice, contractors can explain that their quote is only viable until a certain date. 

  • Delay Clauses

Since there are typically damages contractors must claim when a job is not completed by the projected date, it is important for contractors to include delay clauses in their contracts. With the pandemic and the unknowns of the building materials supply chains, contractors cannot be held accountable for the delay in construction due to lack of materials.

Need more insight?

Our experts are consistently keeping tabs on industry changes. Contact one of our representatives today for consulting that will keep your business running smoothly and productively in the midst of unknowns.