AccountingWEB Weekly News Wrap-Up - Issue 106

AccountingWEB Weekly News Wrap-Up - Issue 106

August 3, 2001

This AccountingWEB Newswire Sponsored by:

Oracle Small Business

THIS WEEK'S NEWS FROM ACCOUNTINGWEB

1. Accounting Job Market is Picking Up
2. Multidisciplinary Practices Get Go-Ahead
3. Taking Baby to Work: Coming to an Office Near You?
4. Harvey Pitt Confirmed as SEC Chairman
5. Tax Rebate Con-Men May Become Cons
6. Accenture Releases Study on the Entrepreneurial Spirit
7. States Will Change Tax Laws
8. CA’s Monopoly on Auditing Upheld in Canada
9. Are You Seeing Red? Virus Alert
10. Wal-Mart Customers Spending Rebate Checks

EDITORIAL

The rebate confusion continues, as several states that normally tax federal income tax refunds (because they allow a deduction of federal taxes) have agreed not to tax the summer rebate, as if this isn't really a tax refund, just a gift from the federal government.

Meanwhile, Wal-Mart encourages taxpayers to spend the rebate money on electronics and other luxury items, treating the money as pure windfall instead of the early return of next spring's tax refund. Accountants owe it to their clients to explain the true nature of this tax rebate, making certain that clients aren't complaining next spring that they should receive a higher refund due to the new lower tax rates.

Gail Perry
Managing Editor
mailto:gperry@accountingweb.com

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IN THE NEWS

1. Accounting Job Market is Picking Up

When the economy takes a downturn, people turn to the number crunchers to make things better. This translates into more and better jobs for those with a financial background. Enter the accountants. As business schools are decrying the decline in attendance in their accounting programs, the need for those who can generate and understand the numbers is growing.

2. Multidisciplinary Practices Get Go-Ahead

It's starting in New York, but soon it may be coming to a professional practice in your neighborhood. The New York State Bar Association has given its blessing to the formation of multidisciplinary practices (MDPs), paving the way for sanctioned cooperative ventures between lawyers and other professionals, including accountants.

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Special Offer: Sign up for the FREE Accountants Program using code 16630 and get Jack Fox’s, "Building a Profitable Online Accounting Practice," in addition to a free Oracle Small Business Suite Account.

3. Taking Baby to Work: Coming to an Office Near You?

It got its start in state government offices. Will the newest employee benefit catch on in the nation's workplaces?

4. Harvey Pitt Confirmed as SEC Chairman

It's official. The Senate has confirmed Wall Street lawyer Harvey Pitt as the next chairman of the Securities and Exchange Commission.

5. Tax Rebate Con-Men May Become Cons

Two men have been arrested in connection with the recent tax rebate scam wherein taxpayers in several states were mailed official-looking documents that offered to compute the amount of the federal tax rebate for a fee.

6. Accenture Releases Study on the Entrepreneurial Spirit

For those of you who thought being an entrepreneur means going it alone, you may be in for a bit of surprise. A new survey conducted by Accenture over a period of 18 months shows that true and effective entrepreneurship is really a collaborative effort. Survey results also show that American business owners are among the least likely to embrace this theory.

OUR SPONSOR'S FREE OFFER

Oracle now does Small Business Accounting: The Oracle Small Business Suite offers integrated accounting, payroll, expense reporting and more. PC Magazine’s 2001 Editor’s Choice Award Winner, the Small Business Suite offers anywhere, anytime access to information, and because it's web-based you never have to worry about upgrades. Getting started is easy with an instant QuickBooks(c) import.

Special Offer: Sign up for the FREE Accountants Program using code 16630 and get Jack Fox’s, "Building a Profitable Online Accounting Practice," in addition to a free Oracle Small Business Suite Account.

7. States Will Change Tax Laws

Bowing to pressure to make this year's federal income tax rebate a total windfall event, several states that allow deductions for federal income tax are changing their tax laws so that citizens won't have to pay state tax on the rebate as they normally would on a federal tax refund.

CLIENT NEWSLETTER

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8. CA’s Monopoly on Auditing Upheld in Canada

In a decision handed down on July 25, 2001, Superior Court Judge Pierre J. Dalphond ruled that Section 24 of the Chartered Accountants Act does not violate the rights and freedoms guaranteed under the Canadian Charter of Human Rights and Freedoms and the Québec Charter of Human Rights and Freedoms. Under this Section, the legislator grants CAs the exclusive right to practice public accounting, including external audits and review engagements.

9. Are You Seeing Red? Virus Alert

The latest irritant to hit the Internet is the Code Red worm, which may have been responsible for a worldwide slowing of service this past week. The worm is still crawling around, or so we're told, and you can still download a patch to protect your system from future infiltrations.

10. Wal-Mart Customers Spending Rebate Checks

You've gotta love a good marketing scheme! Wal-Mart grabbed the tax bull by the horns and cut to the front of the line of merchandisers hoping to cash in on the federal income tax rebate. It looks like savvy marketing is paying off for the giant retailer.

ACCOUNTINGWEB WORKSHOP SCHEDULE

Tuesday, August 7, 4:00-5:00 EDT
Topic: The Value of Direct Marketing and Lead Generation
Presenter: Larry Bildstein, CPA, President and CEO of The Whetstone Group
Sponsor: National Payment Corporation

Thursday, August 9, 4:00-5:00 EDT
Topic: Are 529 Plans the Best Way to Save For College?
Presenter: Rick Darvis, CPA, Owner of Darvis Accounting
Sponsor: College Savings Bank

Check out the Workshop Schedule for the upcoming sessions in our ongoing workshop series.

ACCOUNTINGWEB Q & A FORUM

Click on the link(s) below to offer your insight and feedback or
to see what others recommend:

1. How is preferred stock different from common stock? Also, does the owner of preferred stock have any claim on the bankruptcy estate of a company in chapter 11 bankruptcy?

2. I have a financial spreadsheet with rows defining various financial parameters and columns defining values for each year. For parameters that may not have values in all the years, i.e., in all the columns, is there a way to print without those parameters that do not have value for all the years?

3. I have a flower shop and have to dispose of product when it becomes unusable. I understand that I can expense this as waste (because of the time and effort for caring for it). I use QuickBooks Pro 2001 and cannot figure out how to do this as my product is a non-inventory item (items used for assembling the finished product). Currently I am keeping track of it using journal entries debiting the WASTE ACCOUNT (expense account) and crediting a temporary WASTED FLOWER ACCOUNT (other inventory account). This affects my assets where I don't think it should as I when I receive product it does not increase my assets. Any suggestions on how to handle this would be appreciated.

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Simply click on the Add Comments option at the bottom of any
question to add your response and comments.

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