Make sure to do your research, when selecting your financial advisors

Description: Due diligence regarding the person who is in charge of investing the organization’s money, can make all the difference.

Here at Hinkle + Landers, PC, one of the Albuquerque accounting firms; we stay up to date on news that has an impact on our community. By keeping current on settlements and awards regarding fraud that affect members of our community, we are able to remain vigilant regarding potential risks to our clients. Investor risk is not only relevant to individuals, but also any size organization. Many organizations rely on financial advisors, investment firms, or Foundations to manage their investments. These investments usually make up a significant portion of the organizations assets. As a result, due diligence regarding the person who is in charge of investing the organization’s money, can make all the difference.

Recently a hedge fund manager, Matthew Sample settled a federal lawsuit, where he was accused of defrauding five investors, two of whom were from New Mexico. The lawsuit accused him of raising $1 million from the investors over a 3 year period. Of that million about $500,000 was actually traded, and the remaining money was used for his personal use, or to pay other investors. The New Mexico investors invested over $700,000 with Mr. Sample and when they requested to withdraw $500,000 from their funds, Mr. Sample gave multiple excuses as to why their money was not available.

Although this news story relates to defrauded individuals, Albuquerque accounting firms, such as Hinkle + Landers, pass this news and others like it on to our non-profit organization clients. Since many of our clients are involved with financial advisors and Foundations, we cannot over emphasize the importance of researching who is in charge of investing their money once they outsource that responsibility. When one of our clients is deciding whether or not to change financial advisors or Foundations, we encourage them to reach out to us, and in turn we reach out to other Albuquerque accounting firms, and see if the potential advisor or Foundation is working with other non-profit organizations, and what their reputation is. We strive to work with our clients in order to prevent any misuses of their money, and stay ahead of anyone trying to defraud them out of their hard earned assets.

Firm Profile: Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms. Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico. Hinkle + Landers, CPAs also provides audit, fraud and forensic accounting services as well as tax preparation and bookkeeping in Albuquerque New Mexico.

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Business Valuation Methods

Some Basics on Value Measurements

As one of the top Albuquerque accounting firms, we find ourselves often confronted with questions of valuation. The different ways the IRS and other authorities value various assets are not always consistent. Valuation professionals decide which measurement to use for a business valuation from various authoritative standards including court orders, case law, administrative law, or statutes of states or federal laws. A company’s documents, buy-sell agreements, articles of incorporation, or the like might also specify the method to use. The valuator may also use professional judgment in making this decision. Because of this, a valuation professional who is qualified and experienced is important when choosing one to hire. It can make a difference in whether or not evidence is accepted in court.

The most commonly used measurement of value is fair market value. If you are trying to value a business interest for gift or estate tax, this is what you will probably use. Other valuation methods may include investment value, intrinsic value, or some other standard. According to the IRS, fair market value is defined as, “the price at which the property would change hands between a hypothetical buyer and seller who have reasonable knowledge of the relevant facts and are under no compulsion to enter into the transaction.”

Fair market value is the price for which an exchange would likely happen if transacted on the valuation date. Fair market value is the value for the best use of that property on that date, considering all uses available realistically. This amount does not change regardless of the use chosen for the property.
Valuation methods can be complicated without the proper skills. We, as an Albuquerque accounting firm with years of experience can help shed some light on this issue.

Firm Profile: Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms. Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico. Hinkle + Landers, CPAs also provides audit, fraud and forensic accounting services as well as tax preparation and bookkeeping in Albuquerque New Mexico.

Sara Heppler is a Staff Accountant at Hinkle + Landers, PC

Hinkle + Landers, PC, one of the leading Albuquerque CPAs and accounting firms, stays up to date on news that has an impact in the accounting industry and our community. The previous blog is by Sara Heppler, a Staff Accountant of Hinkle + Landers, PC on things for business valuation methods or business consulting to consider when accounting in Albuquerque.

CPA Albuquerque, Forensic Accounting, non profit, Whistleblower

Whistleblower Policy for Your Non-Profit Organization

According to the Association of Certified Fraud Examiners’ (ACFE) 2012 Report to the Nations, only 3% of fraud is detected during an independent audit. This same report found that 34% of workplace fraud is exposed by tips from employees, directors, members and volunteers.

These statistics emphasize the importance of having a formal policy that encourages people in or around the organization to report their concerns without fear of retaliation. This formal policy is referred to as a ‘whistleblower’ policy. Below are several items to consider in the adoption of a whistleblower policy for your non-profit organization.

Have a policy that clearly communicates that retaliation taken against a whistleblower is not acceptable. The policy should include actions that will be taken in case of retaliatory action against a whistleblower, including termination of the offending employee.

A whistle-blower policy should designate responsible individuals within the organization to receive and respond to tips. Response to fraud tips should involve both members of management and the governing body

The investigation should ensure the fair treatment and anonymity of the whistleblower during the investigation. If necessary, hire an external investigator such as a Certified Fraud Examiner or any other resource deemed necessary to conduct a full and complete investigation of the allegations.

If a fraud tip is verified via an investigation, the organization should take timely action. Put the responsible individual(s) on leave or terminate them, based on consultation with your attorney. File a report with the local law enforcement agency. Inform oversight agencies for funding sources affected by the fraud.

A whistleblower policy should require that tips are made in good faith and have reasonable grounds for the accusation. The act of making allegations that prove to be unsubstantiated or are made maliciously should result in disciplinary action up to and including termination of employment.

While the employee manual is an appropriate method to communicate the policy to employees, ensure other stakeholders are made aware of the policy as well.

Employees and volunteers are more likely to report a concern in a timely manner if it is easy to report. Organizations can create an anonymous submission form on their website or outsource a hotline service.

Maclen is an Audit Manager at Hinkle + Landers PC

Hinkle + Landers, PC, one of the leading Albuquerque CPAs and accounting firms, stays up to date on news that has an impact the accounting industry and our community. The previous is a blog by Maclen Enriquez, an Audit Manager of Hinkle + Landers, PC on things for non-profit accountants or non-profit organizations to consider when compiling a whistle blower policy.

Accountants Albuquerque, Accounting firms Albuquerque, CPA Albuquerque, Forensic Accounting, tax preparation, tax return

Why Should I Hire a CPA?

I always get the question, “why should I hire a CPA; what does a CPA do that’s different than a bookkeeper or accountant or software?”

I recommend to people often about searching and finding a CPA firm that has bookkeepers and accountants on staff. This way you have the best of all worlds. The value of hiring the CPA firm with all three housed in one place I believe can be summarized in four top reasons.

First of all, CPA’s are licensed by a state, and must keep up-to-date with tax laws in order to maintain their license in the state. Accountants are not licensed. The CPA examination is, in my opinion, the most rigorous test for anyone who’s going to be licensed to study for and to take. That’s why you may have heard that CPA actually stands for “Can’t Pass Again” because there is so much subject matter packed into four parts of an exam just to qualify for a license; then there’s the classroom education required and the hours of experience required; not to mention the continuing professional education required to maintain the license. The only way I can describe the whole process is by comparing it to jumping out an airplane without a parachute and having to figure out how to survive the landing because you know you get to jump out of the airplane ten thousand more times this week.

Second of all, while not all CPA’s specialize in taxes, almost all of them are more familiar with the tax laws than are accountants. Knowledge of the tax code is a huge part of the CPA’s licensing examination and many CPA’s take tax courses every year to keep up-to-date on the changes in the tax code. An accountant also may be able to prepare and sign your tax returns, but being an accountant does not provide assurance of certification, nor does it give them the ability to represent their clients before the IRS, even if this person signed your tax return. Accountants are classified as “unenrolled preparers” by the IRS. Read more from the IRS on Understanding Tax Return Preparer Credentials.

Third of all, a bookkeeper post transactions into software, the accountant reviews the postings and analyzes financial reports, then the CPA does more detailed and thorough financial analysis to advise businesses and individuals on tax or financial matters. Although the designation of “CPA” does not mean that this individual is giving the best advice, a CPA is more prepared and puts his or her license on the line when providing this advice.

Fourth of all, a CPA is eligible to represent his or her clients before the IRS, while the accountant is not. Therefore, if you are paying a professional to prepare your tax return, then make sure this person has full authority to represent you in an audit and to execute any claims on your behalf. This representation is by far, in my opinion, the most critical need an individual or business has for hiring a CPA.

The bottom line is this, the accountant is going to do the daily work and complete tax returns, while the CPA can analyze that work, represent you before the IRS, and help you make more high-level business and tax decisions. Yes, the CPAs charge more; and you get what you pay for.

I’ll leave you with one of my quotes to ponder: “a bookkeeper is going to get you to the sports arena eating the food with the other tailgaters; the accountant will get you to the seats up in the press box eating with all the celebrities and dignitaries; and the CPA will get you down on the field interacting with the players and coaches and back to the locker room eating the catered food with everyone. You get to choose where you want to be and who you get to be with.”

Firm Profile: Hinkle + Landers, CPAs is one of Albuquerque, New Mexico’s leading accounting firms. Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico. Hinkle + Landers, CPAs also provides audit, fraud and forensic accounting services as well as tax preparation, bookkeeping and elder care in Albuquerque, New Mexico.

Accountants Albuquerque, tax preparation, tax return

Tax Preparation – Top 5 Items Your Accountant Needs

Title: Tax Preparation – Top 5 Items Your Accountant Needs

Description: Tax preparation: 5 main items that we recommend preparing before you give your CPA all your receipts and logs for taxes. Hinkle + Landers (505) 883-8788

Tags: tax preparation, Albuquerque, new mexico, tax return

Tax Preparation – Top 5 Items Your Accountant Needs

Hinkle + Landers is a small business, so we know how stressful tax preparation can be. Trying to sort through all the receipts and remember everything from the year before can bring on headaches. There are 5 main items that we recommend preparing before you give your CPA all your receipts and logs for taxes. These items will make the whole process smoother on both you and your accountant.

Financial Statements — Preparing a basic set of financial statements, including the balance sheet, income statement, and cash flow statement, ahead of time will help your accountant understand what happened with your business during the year.
List of Capital Asset Activity — If, during the year, you bought, sold or retired any capital assets, you will need to account for it in your tax return. You will need to prepare a list of those capital asset changes, so your accountant can properly account for it in your tax return. Most of the time the software you use for your business, can easily print out the activity that took place in your capital asset account(s).
Vehicle Log — We get a lot of questions regarding vehicles, and when a vehicle is used for personal and business purposes. When you used your vehicles for business purposes, you can claim a portion of the vehicle’s expenses as a tax deduction on your business income. This deduction can be calculated by two different methods, which your accountant can help you with. For both methods, you need to keep track of your business miles that are driven each year. You can do this by creating a log. Then when your accountant begins working on your tax return, you can give the log to your accountant.
Summary of Home-Office Expenses — When you have your office in your house, and you regularly meet your clients there, you can claim some of your home/office expenses as business expenses. Your accountant can help you with the calculations of determining how your home expenses are broken out into business expenses. You should talk to your accountant early in order to find out what your accountant will need regarding receipts, or other documents.
1098 Forms for Mortgage Interest and Property Taxes — If you have an office in your home that is used as your primary place of business, you will need to provide the 1098 form that you received from your mortgage company, to your accountant. This way your accountant can take into account any deduction related to your home office being your primary place of business. Also, your accountant can claim the mortgage-interest deduction that you are entitled to as a homeowner on your personal tax return.

Firm Profile: Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms. Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico. Hinkle + Landers, CPAs also provides audit, fraud and forensic accounting services as well as tax preparation, and bookkeeping in Albuquerque New Mexico.

Accounting firms Albuquerque, non-profit accounting

2014 Non-Profit of the Year – Accounting Clients

Each year Albuquerque Business First, hosts an event for non-profit of the year, last year Hinkle + Landers was one of the sponsors of this award and this year they are excited to be the main sponsor for 2014. Hinkle + Landers invited all of their non-profit accounting business clients to submit their entry for this prestigious award.

All applications will be evaluated on mission, innovation, impact and sustainability. The types of outstanding non-profit accounting businesses that will be considered are those that represent the arts, culture and humanities; crisis resources; education; environment and animals; family services; health and human services; and public and societal benefit.

Those selected as honorees will be celebrated at the event on September 18^th and in a Business First special publication in September 2014. You can find more information about this event at AlbuquerqueBusinessFirst.com/events.

There are 32 submissions this year and Farley Vener, President of Hinkle + Landers, is currently reviewing all information to be submitted to the panel of judges. Judging begun Monday July 14^th.

Hinkle + Landers believes in and appreciates non-profit organizations who serve New Mexico and they are excited to find out who will be the new 2014 Non-Profit of the Year!

Hinkle + Landers is very proud to serve their clients and provide them with solutions they need to gain financial stability and ultimately reach their goals. As a local New Mexico CPA firm they appreciate helping other New Mexicans, especially in the difficult economic times.

Hinkle + Landers has been working with non-profit accounting businesses in Albuquerque and throughout New Mexico for over 40 years. Hinkle + Landers specialize in audit, tax, fraud examination and business consulting and serve non-profits local and state governments, small businesses, and health care organizations.

Accounting firms Albuquerque, CPA Albuquerque, non profit

Form 990 related to non-profit accounting

Form 990 related to non-profit accounting and non-profit organizations

Hinkle + Landers, PC, one of the leading Albuquerque CPAs and accounting firms, stays up to date on news that has an impact the accounting industry and our community. The following is a blog by Steve Nolan, CPA, an Audit Manager of Hinkle + Landers, PC related to the tax form 990 related to non-profit accounting for non profit organizations.

My daughter is a program director for a non-profit organization that operates a small organic farm for the purpose of educating about healthy and responsible eating. The program is funded by grants mostly from two mainline church denominations. The program is not required to file any returns with the Internal Revenue Service such as a Form 990 information return. She also volunteers for another organic farm that also promotes education concerning healthy food consumption. This organization is a non-profit organization and is required to file a 990 information return.

Why would one non-profit organization be required to file a Form 990 and one non-profit organization not required to file? I will answer this towards the end of the article.

Non-profit Accounting in Albuquerque spans a large spectrum of charities and health and welfare organizations with different purposes that meet non- profit criteria.

According to IRS regulations covering Non-profit Accounting in Albuquerque, and in general, requires non-profit organizations that have $50,000 or less in gross receipts to file a Form 990N through an e-Postcard. An e-Postcard is simple to complete with eight questions required to be answered. There is no penalty for late filing of an e-Postcard but organizations that does not file for three years risks losing their exempt status. The non-profit organization may also file a regular Form 990 if it wishes.

Non-profit organizations with less than $200,000 in gross receipts or $500,000 in assets may file Form 990-EZ of a full Form 990. The Form 990-EZ is shorter than the Form 990 but does require some expertise to complete.

Non-profit organizations that have at least $200,000 in gross revenue and $500,000 in assets are required to file a complete Form 990. Form 990 has a number of schedules to be completed and requires a good working knowledge of preparing that information return for Non-profit Accounting in Albuquerque.

A Form 990-PF is required to be filed for a private foundation non-profit organizations.

Hinkle + Landers, CPAs, who are Albuquerque Accountants and have more than 40 years experience in filing Form 990s for Non-profit Accounting in Albuquerque can provide expert advice and services for any non-profit organization.

So why would two seemingly similar organizations mentioned above have different filing requirements. It is because certain non-profit organizations are exempt from filing any type of Form 990. These include churches and religious organizations, organizations included in a group return and organizations require filing another type of return.

Firm Profile: Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms. Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico. Hinkle + Landers, CPAs also provides audit, fraud and forensic accounting servicesas well as tax preparation, bookkeeping and elder care in Albuquerque New Mexico

Accountants Albuquerque, Accounting firms Albuquerque, Business Consulting Service

Business Consulting Service – Hinkle + Landers, PC

The importance of researching, who is in charge of investing your money

Here at Hinkle + Landers, PC, one of the Albuquerque accounting firms, as a part of our Business Consulting Service we stay up to date on news that has an impact on our community. By keeping current on settlements and awards regarding fraud that affect members of our community, we are able to remain vigilant regarding potential risks to our clients. Investor risk is not only relevant to individuals, but also any size organization. Many organizations rely on financial advisors, investment firms, or Foundations to manage their investments. These investments usually make up a significant portion of the organizations assets. As a result, due diligence regarding the person who is in charge of investing the organization’s money, can make all the difference.

Although this news story relates to defrauded individuals, our business consulting service, pass this news and others like it on to our non-profit organization clients. Since many of our clients are involved with financial advisors and Foundations, we cannot over emphasize the importance of researching who is in charge of investing their money once they outsource that responsibility. When one of our clients is deciding whether or not to change financial advisors or Foundations, we encourage them to reach out to us, and in turn we reach out to other Albuquerque accounting firms, and see if the potential advisor or Foundation is working with other non-profit organizations, and what their reputation is. We strive to work with our clients in order to prevent any misuses of their money, and stay ahead of anyone trying to defraud them out of their hard earned assets.

Firm Profile: Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms. Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico. Hinkle + Landers, CPAs also provides fraud and forensic accounting services in Albuquerque New Mexico

Accountants Albuquerque, Accounting firms Albuquerque, CPA Albuquerque, Forensic Accounting

Forensic Accounting Services and Fraud Prevention Services – Why Bother?

One only has to search the internet using the key words “fraud articles” to see the plethora of examples of fraud. From corporate fraud to medical fraud, from large organizations to “Mom & Pop” organizations, from highly-skilled fraud to easy-as-pie fraud, no organization or person is fully protected or out of the reach of the arms of fraud.

Identity theft scams abound with direct contact schemes using email or cold-calling, credit card fraud such as hacking or un-authorized use, and alliance scams which rely on familiarity such as a caregiver or a relative, trusted or not. Medical fraud is also flourishing from a variety of billing schemes. Churches and social groups are popular targets from the outside and the inside, from financial advisors to clergy. Corporate fraud is more diverse than the organizations that are its targets. Simply put, the old English proverb of “Where there’s a will, there’s a way” is the rule of thumb.

There are some common denominators to all frauds and one of the most pervasive is the lack of sufficient internal controls. Internal controls are their relative importance are deeply imbedded in the foundation of generally accepted accounting principles, both state-side and abroad. So how do we protect ourselves from fraud? Proactive is almost always better than reactive.

Fraud Prevention Services are an effective proactive approach. An expert assessment of risk and internal controls is a must, and arguably is as paramount of an input into the services or products that are sold as the raw ingredients.

Forensic Accounting Services that are reactive in nature or after-the-fact such as services for damages calculations related to various litigation scenarios or procedures designed to detect irregularities or reconstruct records. There are also forensic accounting services such as those related to bankruptcy or valuations either for business purposes or related to family law areas such as divorce, spousal support or custodial support determination.

The benefit of expert Fraud Prevention Services and/or Forensic Accounting Services performed by a reputable CPA firm cannot and should not be underestimated. The high costs of fraud and its increasing prevalence in the marketplace are sufficient reasons to engage in asset protection tactics. There are no guarantees but it is logical to conclude that using sunscreen in the Mohave desert in mid-day August is better than going without.

Firm Profile: Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms. Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico. Hinkle + Landers, CPAs also provides fraud and forensic accounting services in Albuquerque New Mexico

Accountants Albuquerque, Accounting firms Albuquerque, CPA Albuquerque

Here at Hinkle + Landers, PC, one of the Albuquerque accounting firms, we stay up to date on news that has an impact on our community. By keeping current on settlements and awards regarding fraud that affect members of our community, we are able to remain vigilant regarding potential risks to our clients. Investor risk is not only relevant to individuals, but also any size organization. Many organizations rely on financial advisors, investment firms, or Foundations to manage their investments. These investments usually make up a significant portion of the organizations assets. As a result, due diligence regarding the person who is in charge of investing the organization’s money, can make all the difference.