Category: Uncategorized

How to debug Excel spreadsheets

Nearly 88% of spreadsheets have errors. This statistic was compiled by Ray Panko, a professor at the University of Hawaii,  after a study of 113 spreadsheets. I’ve easily worked with thousands of spreadsheets, but in my own experience I do find a high rate of errors. Of course, no one is perfect. But if we take some time to analyze the logic of our work papers we’ll find them to be a lot more reliable. After all the world looks to us to be accurate.

The article  offers some tips to debug a spreadsheet. But the first my favorite.

When initially opening a spreadsheet, first obtain a quick overall understanding of the spreadsheet, its parts, and the interaction between formulas and values.

Always take the time to understand what the sheet is trying to accomplish. Especially if these are your client’s workpaper’s you can see what data points interest them the most. For example I’ve seen at least 10 different ways to present real estate tax information, most are expense emphasized but some empathize total liability and even projected tax expenses. Taking the time to understand the inputs and outputs of the sheet is critical to both working with and troubleshooting a spreadsheet.

Other advice offered is a bit more mechanical including: Correcting the Syntax Errors, fixing incomplete calculation errors, and lastly a review of Excel’s built in error checking tools. The article provides some great info on these so I won’t duplicate it here.

A thorough review of our work papers is always needed. We want to be know for creating the best possible product possible. A careful and competent self review we can ensure our clients have the most accurate data they need.

 

 

Source: How to debug Excel spreadsheets

Baby on Board? 7 Tax Tips for Expectant (and Hoping to be Expectant) Clients – AICPA Insights

Infertility can be one of the most the serious crisis any married couple would hope to avoid. But if it is mountain you and your partner must climb, please realize that you are not alone. And there are ways to plan and help mitigate the costs of treatment.

In the article Sternberg offers some important tax considerations. For example there is always the possibility of deducted costs of treatment on Schedule A (assuming they exceed 10% of your adjusted gross income). However, she also stresses the need for an flexible spending account which can be funded with pre-tax dollars  as another method of lowering the burden and overall costs of treatment.

Money taken from an employee’s paycheck and put into an FSA is not subject to payroll taxes, resulting in significant tax savings. Fertility treatments, like all medical and dental expenses, can be deducted from Schedule A if they exceed 10 percent of a couple’s annual gross adjusted income.

She offers a quick refresher on other deductions. If you find yourself in this situation, there’s nothing to be ashamed of. Consider some of these suggestions to help make the financial end of the situation a bit easier. As always please check with your accountant or qualified practitioner before acting on any tax advice and to see what’s best for your circumstances.

 

Source: Baby on Board? 7 Tax Tips for Expectant (and Hoping to be Expectant) Clients – AICPA Insights

The downside of automatic 401(k) enrollment

Good Day All,

I’ve always been an advocate of the Opt-Out 401k concept. When I started my job I couldn’t wait to setup my 401k but I believe at the time I had to wait 30 days before I could do so. For many people, they become quickly accustomed to the take home pay on their check that the shock or thought of it being reduced becomes hard to sallow. So having this automated from the get-go seems like a win-win, right?

Well Kelley Holland of CNBC points out some flaws. First off, the employer has to pick the initial contribution rates, and they are picking very conservative rates. Of course, this would be a very personal choice based on your circumstances, so I can’t blame companies for not wanting to default to 15% for instance. The second part of this problem is that employees aren’t going and changing these rates. In other words by automating the process people aren’t taking responsibility for their retirement.

One solution that’s in use is automatic increases overtime. But again these rates are fairly conservative and the employee still needs to actively manage their account.   To me one solution would be to put the rate selection front and center during the benefits selection. Of course some basic education in retirement savings would help. This could be put right alongside the insurance selections which always need explanation anyway.

Do you have suggestions to how we could address this issue? Let me know in comments.

–Derek

Source: The downside of automatic 401(k) enrollment