States, IRS now using specialized software to detect companies’ unpaid tax liabilities

In recent years, a number of U.S. states and the federal Internal Revenue Service (IRS) have begun adopting an increasingly sophisticated array of tools to aid in the identification of companies that attempt to evade taxes or flout other regulatory requirements.

In recent years, a number of U.S. states and the federal Internal Revenue Service (IRS) have begun adopting an increasingly sophisticated array of tools to aid in the identification of companies that attempt to evade taxes or flout other regulatory requirements.

Several states, including Washington and Louisiana, have employed technology developed by software firm SAS. The company first developed the fraud-detection program in the 1990s to help banks discover accounting irregularities that suggested malfeasance.

After implementing SAS’s software, Washington officials increased their identification of companies not complying with the state’s workers’ compensation requirements by 65 percent. This allowed them to collect $18 million in premiums that would otherwise have gone unpaid. Los Angeles County has made effective use of the technology as well, specifically with regard to the detection of individuals illegally tapping into public welfare programs.

The IRS signed a contract with SAS to begin using the software in December 2011. Accounting Today reports that the IRS hopes to use the technology to close an estimated $345 billion gap between the amount of money that should be collected through taxation and the amount that is actually collected.

With state and federal agencies using these sophisticated new tools to catch companies that do not comply with their legal responsibilities, it is increasingly important for business leaders to take steps to ensure that their organizations are in full compliance with tax codes and other regulations.

Working with an internal audit consultant can help a company ensure that it does not have any outstanding liabilities that will lead to legal challenges or expensive penalties in the future.

Why companies continue to offer group health insurance plans to employees

The Washington Post’s Sarah Kliff recently offered an explanation for a survey showing that zero of 512 companies planned to stop providing health insurance programs to employees as a result of the Affordable Care Act – offering these benefits pays off for employers.

The Washington Post’s Sarah Kliff recently offered an explanation for a survey showing that zero of 512 companies planned to stop providing health insurance programs to employees as a result of the Affordable Care Act – offering these benefits pays off for employers.

Kliff asserted that these business leaders simply continue to believe that providing group health insurance plans offers a significant advantage in their efforts to recruit and retain talented professionals.

She went on to explain that the Affordable Care Act – “ObamaCare” – does not change the nature of the benefits equation for employers, whose chief concern is remaining competitive against other companies. Although they could eliminate expensive healthcare benefits for a mere $2,000 per employee, it would simply not be advantageous.

“They offer benefits not because any law requires them to but because it serves their interests,” wrote Kliff. “They can remain competitive when recruiting employees and keep their workforce healthier and more productive.”

This is an excellent point. We’ve previously reported on research from Truven Health Analytics, which indicated that employers can benefit significantly from offering health insurance coverage to staff members. And, it appears as though many employers agree with the conclusion that cancelling their benefits programs would have a significant negative impact on their ability to attract and retain top-quality professionals.

Companies that are looking to gain a further edge in their efforts to recruit leading talent should contact a firm of experienced corporate recruiters. Working with experts enables a company to conduct a fast, effective executive or financial professional search and come away with its staffing needs fully satisfied.

Retention rates heavily influenced by work-life balance, job enjoyment

According to a new study released on August 28 by the American Psychological Association (APA), the top reasons given by U.S. workers for remaining in their current jobs include the ability to maintain a positive work-life balance and getting general enjoyment out of their work.

According to a new study released on August 28 by the American Psychological Association (APA), the top reasons given by U.S. workers for remaining in their current jobs include the ability to maintain a positive work-life balance and getting general enjoyment out of their work.

The APA’s Workforce Retention Survey was conducted by Harris Interactive and asked 1,240 working adults about the importance of a number of factors that contribute to decisions about remaining in a job rather than seeking a new one. Benefits and pay were cited by a large portion of employees, with 60 percent and 59 percent, respectively, identifying those considerations as key reasons to stay in their current positions.

Meanwhile, 67 percent of respondents said they are motivated to stay with their employer because their jobs fit well with the other things that are going on in their lives. The same percentage said they remain in their positions simply because they enjoy their work.

Despite the economy’s sluggish recovery and the relatively high unemployment rate, only 39 percent of respondents cited lack of alternative job opportunities as a reason for remaining with their current employers.

Business leaders should keep these figures in mind when they are recruiting new workers. The APA’s research highlights the importance of hiring individuals who are not only technically qualified, but will fit well within an organization’s culture.

Partnering with corporate recruiters can help a company conduct a targeted search that matches it with professionals who will be motivated to stay in their positions and deliver strong performance levels over time. Recruitment firms can offer expertise in identifying and evaluating leading candidates in order to select the professionals that offer the best fit for a company.

Tropical Storm Isaac raises issue of continuity planning for Gulf Coast businesses

With Tropical Storm Isaac approaching the Gulf Coast, local enterprises and individuals are being subjected to a variety of warnings and advisory notices regarding weather-related threats to their lives and property. Several local governments have even issued mandatory evacuation orders.

With Tropical Storm Isaac approaching the Gulf Coast, local enterprises and individuals are being subjected to a variety of warnings and advisory notices regarding weather-related threats to their lives and property. Several local governments have even issued mandatory evacuation orders, according to the Washington Post.

For the past few days, windows were being boarded up all along the shore as home and business owners braced their buildings to survive the storm. Residents packed supermarkets and gas stations as they sought to stock up on vital supplies such as food and fuel.

Oil and gas companies have halted production and pulled personnel from their offshore drilling platforms. Several major ports have been closed down as well, including New Orleans, Mobile, Pascagoula and Gulfport.

In a press release, Port of New Orleans CEO Gary LaGrange said his organization had “taken all of the necessary precautions in anticipation of the worst.”

Citing the city’s experience with Hurricane Katrina, LaGrange added “This isn’t our first rodeo.”

However, once the storm passes, life will continue. That’s why it’s important for business leaders to make comprehensive plans that not only protect buildings and property from the weather, but also account for the need to resume operations afterwards. And, businesses in other areas shouldn’t wait until there’s a storm approaching in order to create comprehensive continuity plans.

The professionals at a financial project consulting service can help companies draft complete plans to prepare for contingencies, including extreme weather. Having a thorough plan in place allows a business to mitigate the disruption caused by a storm, or any other precipitous event.

Internal audit consultants can help companies identify their most pressing risks

Many executives are aware of the importance of risk management. However, CFO Magazine recently profiled one problem that businesses must confront – the possibility that focusing on “pet” risks can distract corporate leaders and hinder their ability to address big-picture issues.

Many executives are aware of the importance of risk management. However, CFO Magazine recently profiled one problem that businesses must confront – the possibility that focusing on “pet” risks can distract corporate leaders and hinder their ability to address big-picture issues.

Pet risks are those that seem particularly important to certain managers, but do not actually present a significant challenge to the business’s overall health. Sometimes, these issues may be inflated by being associated with known problems or larger general risk factors.

Alyssa Martin, executive partner in advisory services at a Southwest regional accounting firm, told attendees of the recent Institute of Internal Auditors conference that businesses should place a high priority on establishing a comprehensive risk management process. She asserted that such a system should be able to differentiate between a true risk facing the business and a simple operational issue, such as an aging piece of equipment that requires repair or replacement.

“For 23 years I’ve seen company management at all levels try to drive their own issues,” said Martin. “But, when it supersedes more urgent risks, it’s not OK.”

Interim financial professionals can help fill the gap for companies that do not have established risk management practices. Working with an internal audit consultant can help corporations identify and address the most pressing risks that are currently facing them.

Alternatively, companies that are interested in hiring an executive with significant risk management experience should contact professional recruiters to aid in their search. Recruitment firms can help businesses conduct fast, effective searches that match them with talented individuals who have the required skills and will fit with the established organizational culture.

Financial professionals should prepare for the impact of new data management tools

Data management has come to play an increasingly critical role in the operations of many companies. The need to carefully organize and control the flow of information is especially palpable for financial professionals.

Data management has come to play an increasingly critical role in the operations of many companies. The need to carefully organize and control the flow of information is especially palpable for financial professionals.

According to a study of over 300 C-level executives conducted by Oracle, 93 percent of respondents believe that their organization is losing out on potential revenue due to its inability to fully leverage the data it collects. Given this figure, it follows logically that 97 percent of the executives surveyed say that their organization must make changes to improve its ability to utilize information over the course of the next two years.

The adoption of new technologies will inevitably play a role in shaping the way financial professionals do business. And, the proliferation of mobile devices is rapidly changing the way many professionals conceive of computing technology. Especially now that a number of players have jumped into the tablet market in a serious way, business leaders should expect the pace of innovation in that sector to remain fast and fluid.

Also, with Microsoft scheduled to release its new Windows 8 operating system and an updated suite of Office tools, even users of traditional computers should see an expanding array of options for working with business data.

If your company is not prepared to make use of new tools for managing data, it may be beneficial to hire a financial professional who brings technological expertise to the table. Partnering with a firm of corporate recruiters can help a business conclude a fast, effective financial professional search that leaves it in a strong position to capitalize on current trends.

Drought may lead to boon for farming equipment manufacturers in mid-term

At first glance, this year’s dry conditions may look like a disaster for both U.S. farmers and the equipment manufacturers that depend on agricultural activity for their own livelihood. However, the reality of the situation is more complicated.

At first glance, this year’s dry conditions may look like a disaster for both U.S. farmers and the equipment manufacturers that depend on agricultural activity for their own livelihood. However, the reality of the situation is more complicated.

Samuel Allen, chairman and chief executive officer at Deere and Co., recently said “This year’s drought could positively influence our outlook.”

J.B. Penn, the chief economist at Deere and a former official with the U.S. Department of Agriculture, explained that, although this season’s orders of farm equipment will be stifled by conditions, there is a strong chance that a significant rebound will occur next year.

Penn points out that the current tightness in the food market will lead to higher crop prices, which will buoy farmers’ financial situation during the next growing season, assuming production returns to normal levels.

This may lead to an increased willingness to invest in equipment. Crop insurance is another factor that will help farmers emerge from the drought on solid financial footing.

It can be difficult for companies to project how current trends will affect their mid- and long-term outlook. Businesses that lack the experienced financial staff to conduct this sort of specialized analysis can benefit from working with professional recruiters to quickly connect with the kind of high-quality financial professionals who can guide their development over time.

For companies not seeking to add new permanent staff members, working with a financial project consulting service can be the ideal solution. An interim investment analyst can help a company determine what sort of spending in the present could drive significant business growth in the future.

Business leaders must evaluate options carefully

Best Buy founder Richard Schulze recently expressed an interest in buying out the company. In a letter to the Best Buy board of directors, Schulze offered to pay $26 per share, which would value the entire company at up to $8.84 billion. The company has reacted cautiously.

Best Buy founder Richard Schulze recently expressed an interest in buying out the company. In a letter to the Best Buy board of directors, Schulze offered to pay $26 per share, which would value the entire company at up to $8.84 billion. The company has reacted cautiously.

Being confronted with such starkly divergent paths can leave executives unsure of how to proceed. Best Buy has clearly decided to keep its powder dry for the time being and has sought to prevent Schulze from making any furtive moves that could prove disruptive for the struggling electronics company.

Business leaders need access to concrete information in order to make the best decisions regarding specific opportunities. Working with a financial project consulting service can help companies assess their options and do what is best for their long-term outlook.

Of course, sometimes what a company needs is simply new leadership. Best Buy, keeping its distance from Schulze and his buyout offer, recently named Hubert Joly as its new CEO.

Previously, Joly ran Radisson Hotels and Country Inns & Suites as CEO of hospitality company Carlson. He also oversaw corporate turnarounds at Vivendi and Electronic Data Systems.

“Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy,” Hatim Tyabji, chairman of Best Buy’s board, said in a statement. “Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies.”

With his experience turning around large companies, Joly is well suited to lead Best Buy in its current situation. Businesses that are looking to connect with high-caliber professionals can benefit from partnering with corporate recruiters to successfully conduct an executive or financial professional search.

Consumer goods companies must account for market trends

According to a study by research firm TNS, demand for sparkling wine and Champagne is currently on the rise, offering an opportunity to some beverage makers and posing a challenge for others.

According to a study by research firm TNS, demand for sparkling wine and Champagne is currently on the rise, offering an opportunity to some beverage makers and posing a challenge for others.

Champagne and other sparkling wines could increase their overall share of the global alcohol market from 5.1 percent to 7.8 percent. Survey respondents indicated that their preference for these types of drinks stems from both their superior taste and the sense of sophistication that they afford.

In the U.S., these bubbly beverages’ share could nearly double from 3.5 percent to 6.5 percent.

However, TNS’ research indicates that many consumers are still hamstrung by the cost of sparkling wines. This means that there may be particular opportunities for beverage manufacturers that are able to offer more affordable products, making sparkling drinks accessible for those merely celebrating life, rather than a specific special occasion.

“The study does not indicate that consumers plan to increase their alcohol consumption overall, more that they would like to drink sparkling wines more regularly,” said Jan Hofmyer, chief researcher for behavior change at TNS. “Manufacturers of other alcoholic drinks should take note, as they will need to build loyalty and commitment to ensure their own market share is not affected by this desire to drink more fizz.”

Businesses across a variety of sectors should focus on anticipating and reacting to emerging trends in their target markets. However, recruiting accountants and other financial professionals who are capable of designing fiscally sound plans to take advantage of market trends can be challenging. Some firms may be able to benefit from working with professional recruiters to conclude a fast, effective financial professional search.

For companies that aren’t currently looking to take on additional long-term staff members, working with the interim professionals at a financial project consulting service can be the ideal solution for addressing immediate needs.

Businesses can still benefit from Recovery Act’s renewable energy incentives

Going forward, working with a financial project consulting service can help companies plan their development initiatives in a way that allows them to take advantage of opportunities to benefit from tax credits, grants and other government initiatives, as well as market trends.

The 2009 American Recovery and Reinvestment Act – commonly referred to as “the stimulus” – made government funding available for a wide range of development activities, including the deployment of renewable energy systems at individual businesses.

However, many corporate leaders may not be aware that they can still cash in on the act’s incentives today.

Reimbursement amounts range from 10 percent of the capital costs for geothermal heat pumps and microturbines to 30 percent for solar and wind projects. A diverse group of companies have benefited from this program already, including manufacturers, hotels and furniture stores.

The only requirements are that the business must have completed or currently be in the process of installing renewable energy equipment at their facilities and the project must have been initiated before December 31, 2011.

However, in order to cash in on the incentives, businesses must provide considerable documentation and work with an external audit service in order to verify the amount spent on the equipment and installation, as the cost of the project directly affects the amount of reimbursement that the company is eligible to receive.

Companies interested in seeking financial compensation under the rules of this program must file their claims by September 30, 2012.

Going forward, working with a financial project consulting service can help companies plan their development initiatives in a way that allows them to take advantage of opportunities to benefit from tax credits, grants and other government initiatives, as well as market trends.

Especially for organizations that do not have extensive financial planning staff, partnering with an interim investment analyst can help businesses identify opportunities, evaluate options and execute projects efficiently.