The “Cash Receipts Summary” at Appendix 2A in PPC’s Guide to Write-up Services presents a reconciliation of sales to cash deposits that generally will provide the needed information about sales. Information about most of the accounts receivable activity during the period (that is, sales on account and payments on account) can be provided by completing the “Cash Receipts Summary” at Appendix 2A in PPC’s Guide to Write-up Services. An organization’s medical loss ratio is equal to the amount expended on reimbursement for clinical services provided to enrollees under its policies during the tax year (as reported under Sec. 3. The organization takes into account 80%, rather than 100%, of its unearned premiums for purposes of computing premiums earned on insurance contracts during the tax year under Code Sec. The organization is not allowed the special deduction set forth in Code Sec. Additionally, we’ve set up the course so that you need to master all concepts in any given lesson before you can successfully complete the lesson and move on.

Accountants should clearly establish an understanding with the individual about the need for cooperation and communicate any lack of cooperation. The accountants can continue processing the information without waiting on additional information. •• Clearly state when the information is needed. •• Educate the individuals involved about why the requested information is needed and provide assurances that confidentiality will be maintained. •• Obtain an understanding with the individuals involved about the information that is needed and the consequences of providing that information late. •• An extension of time is necessary to complete the processing of the information. •• Additional fees are needed (assuming that the accountants ultimately had to provide information that initially was to be provided by the client). Notice 2010-79 provided interim relief for the first tax year beginning after Dec. 31, 2009 (IRS will not treat a taxpayer as losing its status as a stock insurance company by reason of Code Sec. In Notice 2010-79, 2010-49 IRB, IRS provided interim guidance on the new Affordable Care Act rule.

Thus, rather than provide information about inventories at each interim period, they provide the information only when physical inventories are taken. Inventory Information Inventory information is helpful to adjust inventories to their proper levels and record cost of sales. Instead, they take physical inventories periodically (that is, they count the inventory on hand) and use estimates to adjust inventory and record cost of sales in other periods. Sales Information The information needed about the period’s sales varies with each company but may include totals for cash sales, sales on account, credit card sales, and sales taxes collected. Accounts Payable Information If the general ledger is maintained on the accrual basis of accounting or if supplementary schedules presenting accounts payable information are prepared, information about the period’s accounts payable balance is needed. Accounts Receivable Information If the general ledger is kept on the accrual basis of accounting, information about the period’s accounts receivable balances is also needed. So, while one firm handles all your accounting, tax returns and account related legal requirements, the other firm (with no links to the first firm), conducts a once-a-year audit.

In cash accounting, if you get an invoice for something, you don’t record the cost in your books until you’ve paid the invoice. Some clients simply will not cooperate regardless of the accountants’ efforts to get them to do so. Generally, such a review will involve only a minimal amount of the accountants’ time, particularly if a transmittal form accompanies the information. Use Transmittal Forms Some accountants in public practice provide transmittal forms to be returned with their clients’ information. The transmittal forms serve as memory joggers for their clients to help ensure that all information is provided. In addition, any other activity during the period that affects accounts receivable (for example, write-offs or other adjustments of accounts receivable) should be provided. This, according to information provided by BCPS in response to a direct request, specifically seeking a log detailing which records had been removed from the room, purportedly first scanned and then destroyed.