Maximizing Strategic Year-End Tax Planning — As the year ends, taxpayers have an important chance to review their finances and make moves that can lower their 2025 tax bill. With the state and local tax (SALT) deduction limit increasing from $10,000 to $40,000, more people may benefit from prepaying state taxes before year-end—especially those who itemize deductions. If your income has increased in 2025, confirm your estimated payments and withholdings match your expected liability. Adjusting year-end withholdings can help avoid penalties since these are treated as paid evenly throughout the year. It’s also a good time to maximize retirement contributions—401(k) and 403(b) limits are $23,500, plus catch-up options for those 50 and older. Taxpayers not covered by employer plans should review IRA or Roth IRA opportunities. With the higher SALT limit, charitable gifts are more likely to provide a tax benefit. Consider a Qualified Charitable Distribution (QCD) from an IRA to give directly to charity while lowering taxable income. Those turning 73 in 2025 must take required minimum distributions to avoid penalties, and families can make tax-free gifts up to $19,000 per person ($38,000 per couple) before year-end. Year-end planning isn’t just about closing out this year—it’s about setting up for success in the next. Reviewing your goals and acting strategically now can help maximize savings and position you for a strong start in 2026.

Maximize Your Charitable Giving Impact — Why Charitable Giving Matters: While charitable giving starts as a generous act and a way to support causes you care about, it can also optimize your tax strategy. Thoughtful planning allows you to make a meaningful impact on your community while leveraging potential tax benefits. Understanding the rules and opportunities surrounding charitable contributions is essential for maximizing both your generosity and your financial strategy. Tax Deductibility Qualifications: To qualify for a tax deduction, contributions must meet a few key requirements—gifts must be irrevocable and not given in exchange for goods or services, donations must be made to a 501(c)(3) organization, and receipts or acknowledgments should be obtained for tax documentation. Whether you benefit from the deduction depends on whether you itemize or take the standard deduction. If your total deductions exceed the standard amount, charitable contributions can reduce your taxable income and lower your overall liability. Forms of Giving Beyond Cash: While cash contributions are the most common, there are many ways to give. Securities, stocks, and bonds can provide additional tax advantages. Charities may also accept personal property such as vehicles, art, jewelry, or real estate, and some are now accepting digital currency. Non-cash gifts generally require valuation and proper documentation, which can include appraisals for larger items. Donor-Advised Funds: Donor-advised funds (DAFs) are gaining popularity as a flexible, convenient way to manage charitable contributions. These funds allow you to make a large contribution in a single year, receive a tax deduction immediately, and decide later how to distribute funds to specific charities. The fund manages record keeping, ensuring proper receipts and eligibility verification, and reduces the administrative burden for donors. DAFs are also helpful for avoiding solicitation from multiple organizations after a gift is made. Recent Tax Law Updates: New tax legislation now allows taxpayers up to $1,000 per person ($2,000 for joint filers) to deduct charitable contributions even if they take the standard deduction. This change removes a common barrier to giving. For those who itemize, a new floor requires that the first 5% of adjusted gross income is not deductible, slightly limiting deductions for high-income donors. Overall, these updates create more opportunities for taxpayers to give meaningfully while planning strategically. Plan Thoughtfully to Maximize Impact: Understanding the nuances of charitable giving, whether through cash, non-cash gifts, or donor-advised funds, can make your contributions more effective while optimizing your tax strategy. Thoughtful planning ensures you support your chosen causes and leverage the benefits available under the current tax code. At Hantzmon Wiebel, our team helps you navigate these complexities so you can give confidently, maximize your impact, and stay aligned with your overall financial goals.

Why Form 990 Matters For nonprofit organizations, compliance and transparency are essential to maintaining tax-exempt status and building trust with donors, grant-makers, and the public. One of the most important tools in this process is Form 990—the annual information return required by the IRS for all tax-exempt organizations. More than a compliance obligation, Form 990 offers an opportunity to present accurate financial information, demonstrate accountability, and communicate the organization’s mission and impact to key stakeholders. What Is Form 990? Form 990 is the IRS’s annual reporting requirement for tax-exempt organizations. It provides a comprehensive picture of the nonprofit’s financial activities, governance practices, and operational details. Through this form, organizations report on their mission and program accomplishments, share revenue and expense information, disclose compensation for key employees, and outline their governance structures. Unlike most tax filings, Form 990 is publicly available, making it a vital tool for maintaining transparency and accountability. Different Types of Form 990 The version of Form 990 a nonprofit must file depends primarily on its size and financial activity. There are three main tiers: Form 990-N: Designed for organizations with annual gross receipts under $50,000, this simplified “postcard” version fulfills the IRS filing requirement with minimal reporting. Form 990-EZ: Required for nonprofits with gross receipts under $200,000 and total assets under $500,000, this version requests additional financial and governance information compared to the 990-N. Full Form 990: For organizations exceeding the above thresholds, the full version requires detailed financial statements, governance disclosures, and narrative sections describing mission, programs, and accomplishments. Key Considerations for Nonprofits When preparing Form 990, accuracy, completeness, and timeliness are critical. Several points warrant particular attention: Compliance Deadlines: The standard filing deadline is 4 1/2 months after the fiscal year-end, with an option for a six-month extension. Late filings can result in penalties or, in cases of prolonged noncompliance, automatic revocation of tax-exempt status. Public Transparency: Because Form 990 is publicly accessible through various databases, accurate and thorough reporting supports credibility with donors, grantmakers, and the community. Mission Communication: Narrative sections within the form allow organizations to highlight program accomplishments and impact, offering a cost-effective way to share results with stakeholders. Potential Tax Implications While most nonprofit activities are tax-exempt, income from activities unrelated to the organization’s primary mission may be subject to Unrelated Business Income Tax. Examples include operating commercial businesses unrelated to the mission or renting out property financed with debt. These activities require separate reporting on Form 990-T and may create taxable income. Maintaining Compliance and Trust Accurate and timely filing of Form 990 ensures compliance with IRS regulations, preserves tax-exempt status, and strengthens public trust. By dedicating appropriate time and resources to this process, nonprofit organizations can meet legal requirements while effectively demonstrating accountability and impact to stakeholders.

Why Business Structure Matters. When starting a business entity, one of the most important—and often overlooked—decisions is choosing the right structure. From sole proprietorships to LLCs to corporations, each business entity comes with different legal, operational, and tax implications. The structure of your business affects everything from daily decision-making, liability protection, taxes on income, and ownership over time, including your "exit" strategy. Getting this choice right from the beginning helps lay a strong foundation for growth, compliance, tax efficiencies, and long-term success. Common Myths About Choosing Business Structures. “I’ll just get started and figure it out later.” Many business owners launch with an informal plan and no formal entity, operating under a trade name as a sole proprietorship or as an informal partnership of multiple owners. While this can be appropriate in some cases, it often leaves owners exposed to unnecessary risk and missed tax opportunities. “All entities offer the same protections.” Not all structures offer equal liability protection or tax flexibility. For example, LLCs and corporations provide liability protection, while sole proprietors remain personally liable for business debts and legal issues. Additionally, how profits are taxed varies significantly. “It’s easy to switch structures later.” While business structures can change as a company grows, some choices—like electing corporate status—can be difficult or costly to unwind. Choosing the right entity from the outset provides more options down the road and prevents avoidable complications, and potential adverse tax consequences. The Most Common Business Entity Types. Sole Proprietorship. The simplest business structure is one in which an individual owns and operates the business without creating a separate legal entity. In this case, there is no distinction between personal and business liability, and all income is reported directly on the individual’s tax return. Partnership. When two or more individuals share ownership, a partnership may be formed—formally or informally. This structure provides flexibility but also requires clear agreements and thoughtful planning around decision-making and financial responsibilities, and profit sharing. Limited Liability Company (LLC). LLCs have become the preferred business structure for many entrepreneurs, offering liability protection and tax flexibility with fewer formalities than corporations. Whether structured for a single owner or multiple owners, LLCs provide versatile tax treatment options that can be tailored to fit specific business needs. Corporation. Business owners create corporations under state law to gain liability protection. They can choose C corporation taxation, which involves double taxation, or elect S corporation status to pass profits directly to shareholders. However, corporations require more regulatory compliance and have stricter ownership restrictions, particularly if electing S corporation status for tax purposes. Key Considerations When Choosing a Structure. Business Model and Capital Needs. Is your business service-based or capital-intensive? A professional practice or a service provider business may benefit from an LLC, while a tech company seeking investors might lean toward a corporation. Capital requirements often influence how a business is structured, but requires a detailed analysis to make an optimal decision. Ownership and Management. Will you be the sole owner, or are there multiple owners? Will ownership change over time? If you’re bringing expertise and someone else brings funding, a more formal structure with clear equity terms, management guidelines, and financial responsibilities may be necessary. Liability and Risk. Entities like LLCs and corporations offer limited liability, shielding owners from personal risk. Sole proprietorships and general partnerships offer no such protection. Exit Strategy. Thinking about your end goal—even before launching—helps ensure the structure supports your future. Do you plan to pass the business to family? Sell to a public company? Your exit strategy should influence your entity selection today. Tax Implications. Pass-through entities like LLCs and S corporations offer a single layer of taxation, while C corporations are taxed at the entity level and again when profits are distributed. The right choice depends on your revenue model, reinvestment plans, and goals for compensation and should include some thought about your exit strategy as you "harvest" the results of your business success. Estate Planning and Succession. If you intend to involve family members or transition the business to the next generation, your structure can impact estate taxes, ownership transfers, and long-term control. Changing Structures as You Grow. Business needs evolve. It’s common for owners to start with a simpler structure—like an LLC or partnership—and later convert to integrated entities or possibly a corporation as they attract investors or expand operations. However, transitions must be carefully planned to avoid tax consequences or legal hurdles. In particular, while it’s relatively easy to move into a corporation, getting out can be more complex and incur significant tax burdens. That’s why it’s essential to evaluate your long-term plans before forming an entity. Start with a Solid Plan—and Even Better Advice. A well-chosen business structure not only aligns with your goals but also adapts as your company grows and evolves. It protects your interests, simplifies tax planning, and positions your business for long-term success. At Hantzmon Wiebel, we work closely with entrepreneurs and business owners to provide them with advisory services that support sustainable growth. Whether you’re launching a new venture or rethinking your current setup, our experienced advisors provide the clarity and confidence you need to make informed decisions every step of the way.

U.S. citizens and residents with foreign financial interests must understand and comply with international tax obligations to avoid costly penalties. The U.S. taxes individuals on worldwide income, meaning foreign bank accounts, investment accounts, pension plans, rental properties, and interests in foreign entities must be reported—whether owned directly or held through signature authority. Common reporting forms include FBAR (for foreign accounts exceeding $10,000), Form 8938 (for a broad range of foreign assets), Form 8865 (for foreign partnerships), and Form 5471 (for foreign corporations). Failing to file can result in steep penalties, but options such as amended returns, delinquent FBARs with reasonable cause, or the IRS’s offshore procedures are available for restoring compliance. Non-U.S. individuals with U.S.-based income must also file correctly, and U.S. businesses paying foreign contractors are responsible for tax withholding and filing Form 1042. With complex rules and high stakes, proactive planning and accurate reporting are essential. The Hantzmon Wiebel tax team is available to help navigate these requirements.

Exiting a business involves more than selecting a date and placing the company on the market—it requires careful preparation financially, operationally, and emotionally to ensure a smooth and successful transition. A thoughtfully developed exit plan enables business owners to preserve value, maintain continuity, and part ways on their own terms, but too often expectations around timing, ease, and outcomes don’t reflect reality. In reality, nearly half of businesses listed for sale never find a buyer, and a successful sale requires more than just listing—it demands careful preparation to attract serious, qualified interest. Exiting on your own timeline is ideal in theory, but in practice it rarely works without a long runway, and owners who wait until the last minute often limit their options, while starting the planning process three to five years in advance dramatically increases the chances of a smooth transition. Without early planning and expert guidance, the process can quickly become overwhelming and the results disappointing, with an estimated two out of three business owners reporting being unhappy with how their exit unfolded. A successful exit requires readiness across three dimensions: business readiness, which means your operations, financials, and leadership team are prepared for a transition; financial readiness, which ensures the sale or succession supports your financial future and aligns your business value with your personal financial goals; and personal readiness, which involves being emotionally prepared to step away, as many owners are surprised by how much their identity ties to their business and it’s important to plan for what’s next. Successful transitions aren’t accidental—they are the result of deliberate steps taken over time, including beginning exit planning three to five years in advance to strengthen the business and explore different exit options, obtaining a professional valuation to understand what your business is worth and why so you can take actions that increase long-term value, using scenario planning to align the exit with both personal and business goals whether through a third-party sale, internal succession, or other strategies, ensuring that personal and financial goals match the business strategy to create a satisfying transition, and regularly revisiting your plan as circumstances evolve. Exit planning is about building long-term resilience and value and, when done well, supports day-to-day decision-making, aligns operations with vision, and creates flexibility for the future.

Financial Planning and Analysis (FP&A) forecasting and planning goes beyond traditional budgeting. It’s a dynamic planning tool that helps organizations set realistic expectations, evaluate performance, and respond to changing circumstances. While budgets are often considered static documents meant to limit expenses, effective budgeting aligns both revenue and spending with an organization’s long-term goals. Whether planning for growth or navigating uncertainty, FP&A provides the roadmap to move forward with clarity. Consistently measuring actual results against budgets allows leadership to identify variances early, make data-informed adjustments, and capitalize on opportunities as they arise. This proactive approach supports day-to-day operational stability while letting organizations stay agile and strategically focused. Even the most well-intentioned budgeting efforts can be derailed by long-standing misconceptions. Here are a few common myths—along with what is true. “Budgeting is just about cutting costs.” It’s not. While budgeting can help control costs, it should be a forward-looking tool that supports strategic investment and growth planning. It’s about knowing where to put resources, not just how to restrict them. “You only need to budget once a year.” This might be one of the most limiting beliefs. Business conditions shift too quickly for an annual plan to remain relevant. A good budget is dynamic and responsive, revisited monthly or quarterly to reflect real-time data. “Only large companies need to budget.” False. Every organization, no matter its size, benefits from having a roadmap. Budgeting helps small and mid-sized companies stay agile, make better decisions, and anticipate what’s ahead. Organizations can choose from several budgeting approaches, depending on their goals and structure: Incremental Budgeting builds on the prior year’s numbers, offering simplicity but requiring review to avoid assumptions. Rolling Budgets maintain a 12-month forward-looking view, which is helpful in rapidly changing environments. Zero-Based Budgeting starts from the beginning of each period, making it ideal for organizations without consistent historical data. Top-Down or Hybrid Models align leadership’s strategic goals with departmental input, promoting transparency and collaboration. What makes some budgeting efforts more effective than others? It often comes down to a few intentional habits. It starts with clarity. Organizations that perform best financially tend to define what success looks like early on—whether it’s hitting revenue targets, improving margins, or keeping costs under control. These clear financial goals help shape everything else. Then, they embrace uncertainty by modeling multiple scenarios. Instead of assuming a single outcome, they plan for the best case, the worst case, and a likely middle ground. This mindset keeps leaders prepared—not surprised. Strong budgeters also build rhythm. Reviewing and adjusting forecasts monthly allows them to course-correct quickly, staying in sync with market conditions and internal shifts. Importantly, they don’t operate in silos. Cross-functional communication ensures that departments not only understand the budget but also align their actions with it. When everyone is on the same page, it’s easier to move together. And finally, they start early. Using the current forecast to inform next year’s budget—ideally beginning those conversations in Q4—leads to a smoother planning process with fewer surprises. At its core, FP&A works to connect past performance with future objectives. It takes data and transforms it into actionable insights, allowing leaders to make stronger decisions that drive both short-term performance and long-term sustainability. From nonprofits to private enterprises, organizations that integrate forecasting and budgeting into regular operations gain a clearer picture of their financial health and a stronger foundation for growth. If your organization is looking to strengthen its forecasting and/or budgeting process, Hantzmon Wiebel can provide guidance through advisory services tailored to your unique goals and operations.

Why Financial Reporting Matters: While balance sheets and income statements are essential, financial reporting for nonprofits goes beyond just numbers on a page. It includes internal reports such as budget-to-actual comparisons, cash flow projections, functional expense allocations, and the integration of key metrics relevant to the organization. These reports provide a foundation for sound decision-making, helping nonprofits stay financially healthy and focused on their mission. Accurate and reliable financial reporting is crucial because it affects every aspect of a nonprofit’s operations. Leadership teams rely on these reports to make informed decisions, fundraisers use them to demonstrate financial stewardship to donors, and external entities such as banks and auditors require them for compliance and funding approvals. Having accurate financial data ensures that strategic decisions support your organization's goals and strategic objectives. Key Differences Between Nonprofit and For-Profit Reporting: While the fundamental principles of financial reporting apply to both for-profit and nonprofit organizations, there are several notable differences: 1. Donor Restrictions: Unlike for-profit businesses, nonprofits have a fiduciary responsibility to honor donor restrictions. If a donor contributes funds for a specific purpose—such as building a new media room—the nonprofit must track and report those funds accordingly. 2. Endowments: Nonprofits must carefully manage donor-restricted endowments to comply with legal requirements for maintaining principal balances. This differs significantly from for-profit businesses, which do not have similar legal obligations. 3. Functional Expense Allocation: Nonprofits must track how much of every dollar goes toward program expenses, management, and fundraising. These allocations provide transparency and help demonstrate a nonprofit’s commitment to its mission. 4. Success Metrics: For-profit organizations measure success by profitability and shareholder returns. In contrast, nonprofits measure success by their impact—how well they fulfill their mission and serve their communities. Even the most well-intentioned nonprofits can struggle with financial reporting. Several common pitfalls can hinder financial clarity and decision-making. One challenge is an outdated or ineffective chart of accounts. An improperly structured chart of accounts can limit the relevance and clarity of financial reports. Reviewing and updating the chart of accounts periodically helps ensure it aligns with reporting needs and provides a clear financial picture. Another issue is inadequate fund tracking. Nonprofits must accurately track restricted funds to comply with donor intent and financial reporting standards. Investing in fund accounting software or developing supplemental tracking methods can help ensure proper fund allocation. Inaccurate or delayed reporting is also a concern. Making decisions based on outdated or incorrect financial data can impact a nonprofit’s sustainability. Establishing a structured month-end close process with clear deadlines helps maintain timely and reliable reporting. Finally, confusion over cash versus accrual accounting can create discrepancies. Many nonprofits operate on a cash basis internally but report on an accrual basis externally. To bridge this gap, supplementing cash-based internal reports with accrual data, such as a pledge receivable schedule, provides a more complete financial picture. Technology is transforming financial reporting by streamlining processes and increasing transparency. Online bill pay solutions, cloud-based accounting software, and automated reporting tools make financial management more efficient and accessible, especially for remote users. However, adopting new technology requires caution. If underlying issues persist, automation can sometimes make them harder to detect. That’s why maintaining strong financial controls and effective oversight remains essential for accurate reporting. Financial reporting is more than just numbers; it serves as the foundation for transparency, accountability, and strategic decision-making. By addressing common pitfalls, embracing technology, and ensuring accurate and timely reporting, nonprofits can strengthen their financial health and better serve their missions. If your organization needs help optimizing its financial reporting, Hantzmon Wiebel is ready to guide you through the process.

When it comes to financial reporting, businesses and organizations often require attestation services, but there’s often confusion about what these services actually entail. Many people think they are undergoing an audit when, in reality, they are receiving a different level of service. Understanding the differences between an audit, a review, and a compilation can help you determine which service best meets your needs. At Hantzmon Wiebel, we provide three primary levels of attestation services. 1.) Audit. An audit provides the highest level of assurance, meaning that we perform a detailed examination to provide reasonable assurance that your financial statements are free from material misstatement. It’s a comprehensive process that includes testing financial transactions, confirming balances, and gaining an understanding of internal controls. 2.) Review. A review provides only limited assurance. This means we analyze financial statements using inquiry and analytical procedures but do not perform in-depth testing of transactions. It’s less extensive than an audit but still provides valuable insights. 3.) Compilation. A compilation involves assembling financial statements based on the information provided by the client. Unlike an audit or a review, we do not provide any assurance regarding the accuracy of the financial statements. However, we do issue a compilation report that accompanies the financial statements. Regardless of the level of attestation service you need, preparation is key to ensuring a smooth and efficient process. Here are some steps you can take to be ready: 1. Communicate Early and Often: One of the most important steps in preparing for an audit, review, or compilation is clear communication. Work with your accountant to establish a timeline that meets your reporting deadlines. A well-planned schedule allows both parties to align expectations and avoid last-minute challenges. 2. Maintain Accurate and Timely Reconciliations: Reconciling your accounts regularly throughout the year is crucial. If your accounts are not reconciled before our engagement begins, the process can become more time-consuming. Monthly reconciliations of bank statements, accounts payable, accounts receivable, and other subsidiary ledgers will help ensure accuracy and efficiency. 3. Document Key Financial Information: Proper documentation is essential, especially for an audit. Ensuring that financial records, reconciliations, and other supporting documents are signed and dated helps demonstrate compliance and facilitates a smoother engagement. While this is particularly important for audits, maintaining thorough records is beneficial for any attestation service. 4. Stay Informed on Accounting Standards: Accounting standards evolve, and keeping up with changes is important. We communicate upcoming changes to our clients, but it’s the organization’s responsibility to implement them. Significant updates should be reviewed and addressed well before year-end to avoid last-minute adjustments. 5. Ensure Reports Tie to the General Ledger: Before submitting financial reports, verify that they align with the general ledger. If discrepancies exist, they will need to be addressed before we can proceed with the attestation engagement. Taking the time to ensure accuracy in advance can prevent delays. 6. Review Prior Engagements: Looking back at previous audits, reviews, or compilations can provide valuable insights. Reviewing past journal entries and reconciliations can help you identify adjustments that may need to be made before providing financial statements for the current engagement. Proactively addressing these items can save time and streamline the process. Being prepared for your audit, review, or compilation engagement not only makes the process more efficient but also ensures that your financial statements accurately reflect your organization’s financial health. By maintaining open communication, reconciling accounts regularly, and staying informed on accounting standards, you can set yourself up for a successful engagement. If you have any questions about which attestation service is right for you or how to best prepare, we’re here to help. Contact us at Hantzmon Wiebel to discuss your financial reporting needs.

There are two main types of benefit plans: defined contribution plans and defined benefit plans. A defined contribution plan, such as a 401(k), ESOP, or profit-sharing plan, specifies the amount an employee contributes “up front,” but the final amount they can withdraw depends on market performance and is not guaranteed. In these plans, the investment risk falls on the employee since their returns are uncertain. A defined benefit plan, on the other hand, guarantees a specific benefit amount upon retirement, determined by a formula set by the employer, often based on years of service. Here, the risk is on the employer, as they must ensure they can pay the promised benefits regardless of their business’s future financial status. Both types of plans can help attract top talent and improve staff retention. For example, an employee may be motivated to contribute to a 401(k) if they know their employer will match a percentage of their contributions. With a defined benefit plan, employees receive a guaranteed annual payout regardless of their own contributions. Both options offer valuable incentives that make employment more appealing. Tax Advantages for Employers and Employees: Employees can choose to contribute either pre-tax or Roth funds, each offering different tax advantages, some providing immediate benefits and others offering long-term savings. Employers also gain tax benefits if they match employee contributions or make their own contributions, as these expenses are tax-deductible. Oversight and Regulations: Several government agencies monitor and regulate these benefit plans, with the most significant being the Department of Labor (DOL). Within the DOL, the Employee Benefits Security Administration (EBSA) is responsible for ensuring that retirement and health plans comply with ERISA (Employee Retirement Income Security Act of 1974). ERISA is the primary federal law that establishes minimum standards for retirement plans. One key change introduced by the SECURE Act 2.0 in 2022 was the updated requirement for when retirement plans must undergo a third-party audit. Previously, plans needed an audit if they had more than 100 eligible employees. Under the new rule, an audit is only required if a plan has 100 participants with an account balance. This distinction means fewer companies and organizations need to undergo audits. The Retirement Plan Audit Process: At Hantzmon Wiebel, retirement plan audits are conducted with a focus on several critical aspects: 1. Review Plan Documents: We analyze the adoption agreement and summary plan description to understand plan elections and rules. 2. Evaluate Policies & Procedures: We examine how the plan is administered in practice. 3. Identify High-Risk Areas & Conduct Testing: We perform detailed tests to ensure compliance. 4. Provide Audited Financial Statements: After completing the audit, we deliver financial statements for Form 5500 filing with the DOL. Whether or not your retirement plan is audited, it likely has a mandatory filing requirement for Form 5500 or 5500-SF (short form). This filing is due seven months after the end of the plan year. For example, if your plan follows a calendar year, the deadline would be July 31. However, you can obtain an automatic extension that moves the deadline to October 15. Best Practices for Retirement Plan Management: Every business should keep its retirement plan documents easily accessible. Those responsible for managing the plan, whether plan administrators or primary fiduciaries, must fully understand its rules and ensure compliance. Many businesses are caught off guard when they uncover errors in their retirement plans, and the penalties for uncorrected mistakes can be significant. To avoid costly consequences, it’s crucial to seek professional assistance as soon as an issue is identified. Hantzmon Wiebel understands the complexities of retirement plan audits and is committed to helping employers navigate compliance with confidence. Whether you need assistance with plan audits, Form 5500 filings, or understanding tax benefits, our team will provide expert guidance to keep your retirement plan on track. Partner with us to ensure compliance, protect your business, and provide employees with a secure future.

Every organization encounters risks, but not all risks are negative. Avoiding risk entirely can limit growth and prevent an organization from reaching its full potential. Instead, organizations must learn to navigate and manage risk effectively. Risks generally fall into four main categories: 1. Strategic risks 2. Operational risks 3. Compliance risks 4. Financial risks. Strategic risks involve high-level threats that could impact the organization's long-term objectives. Examples include shifts in customer behavior, the lack of a succession plan, or inadequate board oversight. Operational risks relate to internal and external factors that affect day-to-day functions. These include personnel challenges such as high turnover or the loss of a key team member as well as external threats like natural disasters. Compliance risks deal with regulatory and law-based threats, such as labor laws, data protection, OHSA rules, and ethical compliance risks. Finally, financial risks cover any risk that deals with money, such as market risks, liquidity risks, investment risks, and fraud risks. Organizations that actively engage in risk management and take the time to understand potential risks are better prepared to handle challenges if and when they arise. A structured risk management process uncovers hidden threats and assesses their potential impact on the organization. The first step in the risk management process is to identify the risk. Once identified, the risk is assessed based on its likelihood of occurring and the potential impact if it does. After this assessment, risks are prioritized accordingly. For example, a risk that is unlikely to occur and has minimal impact would be a low priority for an organization. In contrast, a risk that is encountered daily and could significantly impact the company would be placed at the top of the priority list. Once priorities are established, the organization can then allocate resources effectively. At Hantzmon Wiebel, we offer online diagnostics for both businesses and nonprofits, allowing you to get a preliminary assessment right from your computer. We then guide you through the enterprise risk assessment process. By proactively identifying and managing risks, organizations can safeguard their operations and position themselves for long-term success. With Hantzmon Wiebel’s expertise and resources, you can take a strategic approach to risk management, ensuring your organization remains resilient and prepared for the future.

To properly value a business, one must first look into the past. This means all historical financial statements, such as income statements, balance sheets, statements of cash flows, and tax returns, should be evaluated to understand what the business has done historically. Interviews are often conducted within the business’s management team to achieve a more holistic view of the business. Human capital, strengths and weaknesses, competition, growth trajectories, and industry type are all factored into a business valuation. There are three main types of business valuations, each with their own sub-approaches: the income approach, the market approach, and the asset approach. 1. The income approach relies heavily on normalized historical earnings —and works best for stabilized companies with deep histories. If the company is in a period of transition or transformation, it may be more beneficial for the management team to create growth forecasts, which are then discounted back to present value to achieve a more accurate value. 2. The market approach looks at sales of comparable companies to infer value. It is also possible to analyze these comparable companies’ stock prices and other publicly reported data if the company has not been sold to see how the market has valued the company. 3. The asset approach is typically used when a company’s asset value exceeds its cash flow value. This method values a business based on both its tangible and intangible assets. There are two main types of valuation discounts: lack of control and lack of marketability. The discount for lack of control reflects the advantages and disadvantages of having decision-making authority versus not having it. For example, a minority owner without control cannot set salaries, distribute bonuses, or make other high-level decisions. This lack of control creates a risk of being excluded from earnings, making it essential to quantify marketability. The lack of a marketability discount reflects the difference in transferability between private stock and publicly traded stock. Several factors influence marketability, including a company’s financial strength, management quality, dividend issuance, and transferability restrictions. For example, a company with strong financial statements, experienced management, regular dividends, and no transferability restrictions would be considered highly marketable. The purpose of a valuation determines the standard of value used. The most common standard is fair market value, which represents the price agreed upon by a willing buyer and a willing seller, both having equal knowledge of the facts and neither being under any pressure to act. This definition ensures a level playing field. Additionally, marketability discounts may apply under this standard. Another common standard is fair value, which is essentially fair market value but without any discounts. Investment value refers to the worth of an asset to a specific buyer, considering their unique circumstances or strategic interests. Lastly, liquidation value applies when a company is forced to sell its assets or shut down, often resulting in lower valuations due to the urgency of the sale. At Hantzmon Wiebel, we understand that business valuations can be complex. Fortunately, our team of highly qualified CPAs, ABVs, and accountants are here to help. We provide accurate, detailed reports to determine your business’s true value.

What are the Benefits of Gifting? Besides that warm, fuzzy feeling one can get from giving to another, gift exchanges are typically not subject to taxation, presenting an attractive way to support another person or organization. Recipients are also never subject to taxation as a result of accepting a gift. Currently, there are two main categories of gift giving that require zero reporting: gifts to an educational institution on behalf of a family member/friend and any gift that funds medical expenses, such as insurance premiums or doctor’s visits, as long as they are paid directly to the provider. These are particularly appealing as they have zero restrictions on the amount being given in a year when traditionally only gifts that fall below the current annual exclusion amount are exempt from any type of reporting. What Kinds of Gifts are Taxable? Gift tax returns are applicable when a gift’s monetary amount exceeds that year’s annual exclusion amount. Reporting a large gift to the IRS, however, doesn’t mean it will be taxed. Only those gifts that are higher in value than is typical are taxed. To ensure that gifts are reported properly, it is important to note that anything of value that is not cash must be appraised by a professional in order to be reported. This can include property, business ventures, and high-value objects. When it comes to gifting, proper reporting is essential. Since gift tax forms are complex and cumulative over your lifetime, we recommend working with a CPA to ensure accuracy and compliance. Keeping track of all gifts given is crucial, as these reports can significantly impact your estate tax. Gifting itself can range from the simple cash transfers discussed above to more complicated approaches that offer long-term financial benefits. Some families use loans as a strategic way to transfer wealth—parents may lend money to their children for a home or business, with the loan eventually being forgiven and treated as a gift. More advanced strategies include trusts, which allow for controlled asset distribution, and charitable gifts that provide benefits to both family members and philanthropic causes. These complex methods require careful planning and professional guidance to align with tax laws and broader financial goals. What is the Estate Tax? The Estate tax, or the “death tax” as some call it, is the total value of one’s assets when they die. Most taxpayers will not have to worry about such a tax, as the 2025 annual exclusion amount is around $14 million dollars. For those who do, however, it is imperative to know that the estate tax—currently 40% on assets above the threshold amount—will be imposed. Gifting can be utilized to circumvent this tax, as gifting reduces that $14 million amount. It pays to be generous!

Section 1031 Exchanges, or Like-Kind Exchanges. 1031 exchanges are a provision in the tax law that outlines a tax-deferred transaction within the real estate industry. The provision states that if one were to sell a piece of property, they may reinvest that money into another property without having to pay taxes on the previous sale’s profit at that moment in time. This does not mean, however, that the taxes are never paid, and other rules must be followed in order to qualify. Besides tax deferrals, 1031 exchanges allow participants to invest not only their money into new property but the government’s money as well. Over time, this results in healthy profit margins. 1031 Exchanges are Not for Everybody. Despite the 1031 exchange's monetary allure, there are many situations in which utilizing this provision would not be helpful or even detrimental to an investor. For example, 1031 does not benefit those who wish to diversify their investment, as the provision states that the profit must be re-invested into real estate. Also, an investor with large capital losses from other sources that would offset any gain from the real estate may also not want to employ a 1031 exchange. There are a few pitfalls. For one, any due date is a hard deadline, and if one were to miss a date, all of their money would become taxable, even if it were already reinvested in another property, which in some scenarios would leave the investor unable to pay the original tax. Also, the same taxpayer who sold the first property must be the same taxpayer who reinvests. 1031 Exchanges Require a Couple of Rules. Taxes must be paid for any money that is not reinvested after a sale. This allows for some degree of flexibility, as technically not every cent must be reinvested for one to qualify for a 1031 exchange. However, benefits will only befall the money that is. Also, when applying for a 1031 exchange, pay attention to any debt on the current/future property, as any debt relief is counted as money and therefore taxable. Applying for a 1031 Exchange Isn’t Difficult, but There Are Some Things to Watch Out For. Any money that you wish to be reinvested must not be touched. Instead, a QI (Qualified Intermediary) should handle it. Make sure to let your QI know which prospective properties you are interested in, as reinvestment must be done within 45 days. In addition to this strict 45-day deadline, closing must be finished within 180 days or by the due date of a tax return, whichever comes first. If you would like to engage in a 1031 Exchange, we recommend consulting a professional to make sure none of these crucial deadlines are missed. Reporting a 1031 Exchange, however, is less intimidating. 1031 exchanges are simply reported on the investor’s income tax form.

What is Outsourced Accounting? Outsourced Accounting covers foundational accounting work such as accounting, bookkeeping, bill pay, and payroll, as well as more advanced services like month-end close, audits, cash flow projections, and more. Our goal is to function as our client’s entire financing/accounting department. What are the Cost Benefits of Outsourced Accounting? Outsourced Accounting is quite cost-effective as it eliminates the need for a full-time member for finance work on our clients’ end. Hantzmon Wiebel can provide services as needed, the client adding them on only when they see fit. This cuts costs and allows our clients to focus more on what is important. How does Outsourced Accounting Streamline Day-to-Day Business? Our Outsourced Accounting service allows us the opportunity to introduce cutting-edge technology into our clients’ finance departments, decreasing the amount of manual labor needed to complete these tasks previously and freeing up our clients’ employees’ time to work on more pressing matters. Our team is also vigorously trained in all the software we implement, meaning we are always available to troubleshoot if a problem should arise. How does Outsourced Accounting Utilize Collaboration? Collaboration between Hantzmon Wiebel and our clients is imperative for Outsourced Accounting’s success. Maintaining communication allows us to troubleshoot any pain points, stay up to date with any new information, and offer support as needed. At Hantzmon Wiebel, we have software in place that allows us to securely exchange electronic documents with our clients, secure messaging platforms, and regular meetings to ensure constant contact. What Organizations would be a Good Fit for Outsourced Accounting? Any business owners/nonprofits that depend on bank statements to inform their financial decisions may benefit from Outsourced Accounting. This allows for a clean backlog of accounting data that may be utilized for more informed decision making. If a business is struggling to make deadlines in a timely manner, they may also be a good candidate for outsourced accounting. What does a Transition into Outsourced Accounting Look Like? At Hantzmon Wiebel, we have a dedicated onboarding team to help our clients through transitioning to Outsourced Accounting. All of our clients are walked through the process and taught the relevant software by our team, with special attention to any possible mishaps that may happen along the way, ensuring a smooth transition.

1. Tax Refunds are free money from the government: Unfortunately, this myth is as pervasive as it is false. Large tax refunds are a lot like interest-free loans given from you to the government. You may have had money over-withheld from paycheck, or overpaid any estimated payments from the government, leaving them with an excess of your money at the end of tax season. We recommend putting those funds to work by investing it, or letting it gain interest in a bank to build upon any interest you’ve potentially lost. 2. Filing an extension extends my payment deadline: Filing an extension may be helpful to those who need more time to fill out the necessary paperwork and tax returns, but it does not extend the actual date of payment. April 15th is a hard deadline (unless it falls on a weekend or holiday), so make sure you give yourself the time to make that payment. If not, you are liable for fees and interest rates. 3. Students and part-time employees don’t need to fill out a tax return: Every year the IRS releases filing thresholds for different ages/filing statuses. Even if you are filing as single under 65, if you have earned more than the threshhold gross income, you required to file. It may also be beneficial to file if you have had taxes withheld from you, or, if you are student, are qualifies for any refundable credits such as the American Opportunity Credit or Earned Income Credit. 4. Any Charitable Donation counts as a Deductible: As of the 2025 tax season, only donations to certain organizations are deductible. For example, contributions to political organizations would not be able to be filed as a deductible. If you have any concerns about your recent donations, the IRS was a search tool on their website thats identifies all qualified charitable donations. Donations to individuals also do not offer any tax benefits, and if any good or services are exchanged as a result of your contribution, the contributions will subsequently not count as a deductible. To ensure accuracy in the tax filing process, Any receipts, letters, and other physical forms of communication between you and the charity should be kept. 5. Only High Earning Tax Payers are Audited: While it is true that statistically more high earning tax payers are audited at a higher rate due to the potential revenue for the IRS, they are not the only people who are audited. The biggest cause for audits are any tax discrepancies or mathematical errors, or is the amount of deductibles claimed eclipse a person’s gross income for the year. Tax season can be difficult to navigate, but Hantzmon-Wiebel is here to help. Our tax services cover the planning and the completing processes to help you maximize your earnings. Learn more at https://www.hwllp.cpa/tax

In any business, large or small, fraud can be a threat to the organization's most valuable assets. Fraud prevention is a critical practice that protects your business’s integrity, reputation, and financial stability. Understanding the risks, implementing preventative measures, and fostering a culture of accountability can help you avoid the devastation that fraud can cause. What is Fraud Prevention? Fraud prevention utilizes strategies, processes, and controls designed to identify, mitigate, and stop fraudulent activity before it occurs. One of these key strategies is the segregation of duties. This involves dividing responsibilities across three critical areas: custody of assets, which includes handling checks; authorization, which could be approving and signing transactions; and record keeping, which focuses on finances such as accounts payable. Businesses can create a system of checks and balances by ensuring these functions are handled by unique individuals, which in turn reduces the risk for undetected fraud. Why is Fraud Prevention Important? Regardless of size or industry, an organization can always be vulnerable to fraud. Many business owners assume fraud won’t occur because they have complete trust in their team or believe their financial assets aren’t valuable enough. Unfortunately, these assumptions create blind spots. An employee managing payroll, check distribution, and record keeping has the potential to commit and conceal fraud undetected. In a real world case, an office manager once gave herself multiple unauthorized raises and used company funds to pay off personal loans—all because checks and balances were not in place at the firm. What are the Benefits? A comprehensive fraud prevention strategy delivers significant advantages: 1. Strong Financial Protection: Damages caused by fraudulent activities are costly; businesses can mitigate losses and potential legal liabilities by utilizing fraud prevention. 2. Increased Trust: Businesses can strengthen relationships not only with stakeholders but also with employees and customers by demonstrating a commitment to integrity. 3. Operational Efficiency: By establishing clear processes and oversight, businesses streamline operations and minimize errors. 4. Organizational Growth: Knowing that proper safeguards are in place allows leadership to focus on the future of the organization rather than worrying about potential threats during the present. By investing in fraud prevention, businesses are protecting not only their bottom line but also their reputation and future. At Hantzmon Wiebel, preventing fraud starts with being proactive. We work with clients to: - Identify potential vulnerabilities in financial and operational processes - Recommend and implement effective controls, such as segregation of duties, to mitigate risks - Educate teams about the importance of oversight and accountability. Our team also dispels common myths about fraud, such as the belief that long term employees or external audits can serve as foolproof safeguards. While trust and routine audits are valuable, they should be part of a broader strategy, not a replacement for comprehensive fraud prevention measures. Fraud prevention is not a clear cut solution. It is heavily dependent on the unique needs and operations of each business. Our team is committed to creating strategies that align with your goals so that you can keep your business safe.

Understanding the true value of a business is a critical yet often overlooked aspect of ownership. Business valuations provide clarity, whether you’re planning for the future, managing estate considerations, or preparing for a transition. Our team helps business owners uncover their company’s worth, turning financial data and industry insights into actionable strategies for growth and success. What is a Business Valuation? A business valuation is a comprehensive analysis that estimates the value of your business. This process involves a detailed review of financial statements or tax returns, interviews with owners and management, and comparisons to published data for similar companies. The result is either a full valuation report for external purposes, like estate or gift tax reporting, or a concise calculation of value for internal planning. Why Are Business Valuations Important? Business owners are often surprised by the results of a valuation. This insight is essential for several reasons. Valuations are frequently required for reporting compliance, such as estate and gift tax returns or annual reporting for Employee Stock Ownership Plans (ESOPs). They also play a crucial role in strategic planning, aiding in estate tax planning, gift planning, and exit planning. What Are the Benefits? For business owners, valuations extend beyond compliance; they provide an opportunity to gain clarity and take control. Understanding the current value of their business enables owners to plan a successful exit strategy, including setting realistic expectations for its price and identifying ways to enhance its value. Valuations also reveal areas for improvement, such as addressing risks or seizing opportunities to boost profitability. Moreover, having an accurate valuation ensures readiness for the future, whether it involves retirement, succession planning, or preparing for a sale. Our Approach Each valuation engagement begins with getting to know the client. We look into financials, operations, and market comparisons to create a report that meets your needs. Whether you need a full valuation for reporting or a concise calculation for planning, our team delivers actionable insights with clarity and precision. Our mission is to help clients make informed decisions based on reliable data. Listen to our full podcast episode on Apple Podcasts, Spotify, or your platform of choice to dive deeper into this topic.

At Hantzmon Wiebel, one of the many services we specialize in is providing expert financial planning and analysis (FP&A), which empowers businesses and organizations to make informed decisions. FP&A serves as a valuable bridge between raw data and actionable insights, allowing business leaders to have the tools and understanding necessary to drive success. What Is FP&A? FP&A involves four key points: planning, forecasting, analysis, and reporting. These four components work together to paint a clear picture of complex data. For business owners, this means having the ability to understand their position financially and confidently make decisions that align with strategic goals. Chapman Yoder, one of our skilled FP&A analysts, explains how “Leaders don’t want to spend their time digging into data—they want to know what the story is and how to take actionable steps.” Our FP&A team excels in turning numbers into stories, followed by actionable ways to adjust your businesses financial strategy. Proven Success in the Past One nonprofit we worked with sought guidance on improving their product sales margins. Through thorough financial analysis, we uncovered costs they hadn’t accounted for, enabling us to provide multiple pricing scenarios. We demonstrated how a 10% price increase, even with a 20% drop in demand, would still result in healthier margins. This gave the organization the confidence they needed to adjust their pricing strategy and increase profitability. How FP&A Can Benefit You Many perceive FP&A as a luxury or an unnecessary expense, but the reality is that it’s an investment. With accurate data, expert analysis, and actionable insights, informed decision-making that enhances growth and profitability becomes an indispensable asset. Our team is committed to helping clients navigate their financial journeys with confidence. Through our service, we bridge the gap between numbers and strategy, helping your organization thrive no matter the industry. To learn more about this topic and how we can support your success, listen to our full podcast on Apple Podcasts, Spotify, or your platform of choice.