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The Daily

NEWS HIGHLIGHTS FOR TUESDAY - 11.29.16

By:
Maya Lindsay
Published Date:
Nov 29, 2016

Accounting and Financial News Stories

The Path to Planning Success
Accounting Today
Whether a CPA firm chooses to provide personal financial planning services or not, you can still help pursue the success of your clients’ financial futures. It can be as simple as paying closer attention to the details and going just a little beyond telling them what happened last year. A progressive and caring CPA should always take the opportunity to make sure that their clients are well-served across the financial spectrum. For years, many CPAs have told or alerted their clients about gaps in their personal financial lives — yet the same issues emerge year after year, with a fix still needed.

Dodd-Frank Rules on Business: Up for a Rethink
Wall Street Journal
President-elect Donald Trump campaigned partly on a vow to dismantle the 2010 Dodd-Frank law, which supercharged bank oversight with myriad regulations. Corporate finance chiefs outside the sector, however, are focusing on the fate of the law’s nonbank provisions, which range from directives on executive pay to rules on hedging disclosure. Implementing some of those Dodd-Frank rules is costly, time-consuming and fails to help investors, say financial executives and experts.

Looking To Borrow? You May Need An Audit, Review Or Compilation
Forbes
Business lending in the U.S. continues to climb as 2016 winds to a close, and many businesses considering 2017 growth plans will undoubtedly seek financing in the coming year. One way to prepare for borrowing is to understand the types of financial documentation required by lenders so that you can work with your accountant, if needed, to develop this in a timely manner. As you would expect, in general, the more a lender knows about the business and can see into its financial workings, the better your chances of securing financing.

For New York employers battling unions, Trump could bolster defenses
Crain’s New York Business
After eight years of a pro-labor climate in Washington, the scales are set to tip back in employers' favor under the Trump administration. In New York, where unions are stronger than in any other metro area in the U.S., employers could see such a shift as a benefit. Republicans intend to roll back Obama administration rules intended to help unions expand their memberships. With Donald Trump in the White House, the National Labor Relations Board and the executive branch will likely empower business owners who don't want employees to unionize, experts said.

The Top 4 Reasons for a Bad Hire
CPA Practice Advisor
The most common reasons for a bad hire? Aside from poor performance, it's the result of a mismatched skill set. That's according to new data from financial staffing firm Robert Half. Nearly four in 10 CFOs interviewed (38 percent) responded this way, up two percentage points from a similar survey conducted five years ago. Another 27 percent of financial executives think unclear performance expectations is the top reason new employees don't work out.

The Hacker in Client’s Clothing
Accounting Today
We often feel obligated to follow our clients’ and customers’ directions, rules, requests and commands — and woe be to the person who questions those edicts. After all, clients are the ones who keep our businesses alive. Unfortunately, cybercriminals are exploiting these realities. Hackers harness the value of a client’s power in order to carry out destructive data breaches. For most, this puts business owners squarely in their crosshairs as the target for fraud attempts. If a cybercriminal can infiltrate a company’s main man, they are in the optimal position to extract their clients’ money.

SEC Criticizes Tesla Over ‘Tailored’ Accounting
Wall Street Journal
Tesla Motors Inc. has come under fire from the Securities and Exchange Commission for using prohibited accounting metrics and sharing that information with investors, according to regulatory correspondence. The SEC said Tesla in its August earnings release used “individually tailored” measurements when the electric-vehicle maker added back certain costs to revenue calculated under generally accepted accounting principles. While the SEC allows the use of some non-GAAP metrics, certain figures that adjust revenue are prohibited as detailed in the regulator’s guidelines from May 17.

5 Tips When Seeking a Small Business Loan
CPA Practice Advisor
Applying for a small business loan or line of credit can be a critical step in opening or expanding a business. To ensure a successful relationship, prospective lenders will request documents and ask questions about you, your business, and your goals. Being well-prepared can help you demonstrate the creditworthiness of your business.  Most community banks are committed to helping you expand your business.  Create a Business Plan. Lenders like careful planners. Be sure to have a clear, detailed explanation of your business and its goals. Be ready to discuss your products or services, your industry, and the steps you are taking to build long-term success.

Review: Accounting isn’t dead, just depreciating
Thomson Reuters
A gunmaker's stock plunges following the election of a firearm-friendly U.S. president, because a victory for his rival might have sparked a last-minute sales rush. A German bank's shares slump after the country's chancellor reportedly vows not to bail it out. In both cases, new information leads to a significant change in the company's value. And in both, financial accounts would have been no use whatsoever. "The End of Accounting" is a book that starts from the premise that the numbers companies publish every three, six or 12 months are no longer up to the job.

U.S. Government Bonds Strengthen
Wall Street Journal
U.S. government bonds strengthened Monday, showing some signs of positive momentum after three consecutive weeks of yield increases. In late-afternoon trading, the yield on the benchmark 10-year Treasury note was 2.319%, compared with 2.359% Friday. Yields fall when bond prices rise. Bonds have sold off sharply since Donald Trump’s victory in the Nov. 8 presidential election, as investors respond to the increased chances of fiscal stimulus next year.