The Hoffman Group is a full-service accounting and consulting firm headquartered in the Baltimore, Maryland region. Our dedicated team provides a comprehensive array of assurance, consulting and tax services for businesses and individuals. By thoroughly evaluating our clients’ unique financial needs, we create personalized solutions and develop comprehensive plans for their success. To us, the most valuable part of our business is client relationships. That is why we are built on the pillars of transparency, trust and respect. Our highly skilled team of professionals and Certified Public Accountants provide the knowledge, passion and technical abilities to help our clients thrive.
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Accrual-Basis Accounting: 2020 Revenue Recognition Cutoffs
As year end approaches, it’s a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S. Generally Accepted Accounting Principles (GAAP). These companies must use the accrual-basis accounting method, and strict observance of these rules is generally the safest game plan. Accrual-Basis Accounting Basics Companies that follow GAAP must use the accrual-basis accounting method, not the cash...
Full-Time Equivalent Employee (FTE) Calculation
Before beginning your full-time equivalent (FTE) calculation, you must determine the headcount or number of FTEs you had during your reference period. The actual loan forgiveness amount you receive may be less depending on whether your average weekly number of FTE employees during the Covered Period was less than during your chosen reference period. You can select a reference period of: 2/15/2019 – 6/30/2019 1/1/2020 – 2/29/2020 or For seasonal...
FTE Reduction Exemptions for PPP Loan Forgiveness
There are a few situations where borrowers are exempt from reductions in loan forgiveness based on reductions in full-time equivalent (FTE) employees. The first of these FTE reduction exemptions which can be found at the bottom of page 3 of Form 3508 on PPP Schedule A. You do not have to compute reductions in FTEs if you meet any of the following criteria: You have no reduction in employees or...
Completing Your PPP Loan Forgiveness Application
The process of completing the Paycheck Protection Program (PPP) loan forgiveness application can seem intimidating, but it doesn't have to be. You have three application form options: Form 3508S, Form 3508EZ, and Form 3508. Here’s a brief overview of the three applications and how to complete them. Form 3508S Form 3508S is available to borrowers who received PPP loans of $50,000 or less. It's the easiest PPP loan forgiveness application...
At The Hoffman Group, we take a personal interest in your success. Our team of Certified Public Accountants and consultants have a breadth of experience in anticipating challenges businesses may face and developing strategic plans to meet their financial objectives. We focus on an array of industries such as construction, manufacturing and distribution, and government contracting to help you make healthy financial and business decisions that amplify profitability and maximize competitiveness.