The IRS continues to send out notices to cooperatives, indicating a problem with EIN’s and SSN’s on 1099’s issued for prior tax years. If not handled in a timely manner, these will eventually result in a penalty assessment, and in some cases, a direct levy of funds.

When considering whether or not your cooperaitve is understaffed, take a look at the coop’s profitability. As we discussed last quarter, if you are generating adequate local savings, you probably have the right number of employees and those employees are being productive.

Local Savings are the key to maintaining a viable cooperative. You hear it from us in every audit meeting report, from the bank, and at management and director training programs you attend. The percentage of local savings is the key factor in determining a cooperative’s profitability.

The “Fiscal Cliff” deal extends beneficial key cost recovery provisions. Bonus depreciation, which was set to expire December 31, 2012, was extended to qualified properties acquired and placed in service prior to January 1, 2014.

You may have noticed in the past few years that your annual audit seems to take longer than it once did. Changes in accounting and auditing standards, increased disclosure requirements, and the unprecedented growth of our clients are causing us to spend more time planning, documenting, and completing our audit procedures than ever before.

In todays always-online, technology-driven business environment, keeping information secure is more important than ever before. This is especially true for any business that holds the personal information of their employees and patrons in their systems. Businesses need to be concerned with the security of their computer networks as well as the record keeping policies and procedures that employees must follow.