Author: Ketel Thorstenson, LLP

KT Insights
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Senior Managers Announced at Ketel Thorstenson, LLP

Ketel Thorstenson, LLP announces the promotion of Brady Larsen, CPA and Mary Hlebechuk, CPA, to Senior Manager in the Tax Department.  

Brady Larsen, CPA joined Ketel Thorstenson’s Rapid City office in 2012 as an intern and shortly after became a full time CPA  in the Tax Department.  He holds a Bachelor of Science degree in Economics from South Dakota State University.  
 
Brady provides tax planning, consulting, and preparation services to individuals and businesses.  His specializations include agriculture tax and employer healthcare reporting and is the leader of the Ketel Thorstenson Agriculture Niche, as well as part of the staff development team. He is a member of the South Dakota CPA Society (SDCPA) serving on the board of directors, is chair of the Young Practice Advisory Council, and was named the outstanding young professional for 2019. Brady is a Rapid City Leadership Class of 2015 graduate. Brady and his wife have two children and they enjoy the outdoors and sporting activities. His personal hobbies include woodworking and putting up hay with their old tractors.  

Mary Hlebechuk, CPA joined Ketel Thorstenson’s Rapid City office in 2015 as an intern in the Accounting Services Department. She held two Tax internships over the following two years while working part time in Accounting Services and joined the Tax Department full time in 2017. She holds a Bachelor of Science degree in Professional Accountancy from Black Hills State University.  
 
Mary’s specializations include agriculture, trust and estate, and high net worth clients. She is a member of the American Institute of Certified Public Accountants (AICPA) and the South Dakota CPA Society (SDCPA). She serves on the board for the West River Estate and Financial Planning Council and is a member of the Rapid City Youth Professionals Group. Mary is a part of the Ketel Thorstenson raining cornhole champion team. She is an avid golfer and enjoys going to breweries to try craft beers.  

As Senior Managers, responsibilities include management duties, strategic planning, ensuring a positive client experience, seeking training and education opportunities for staff and clients, and mentoring staff. 

November 4, 2022
| Ketel Thorstenson, LLP
News
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All KTLLP Offices will be closed Fridays starting October 28th through the end of the year

October 24, 2022
| Ketel Thorstenson, LLP
KT Insights
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QuickBooks Online – Is this Software for You?

Whether starting or expanding a business, it is always important to find the accounting software that best fits a company’s needs. With so many options out there, this can be an overwhelming decision. We are commonly asked, “Is QuickBooks Online the right software to use?”. While there is not a clear answer to this, let’s take a look at some of the favorite QuickBooks Online (QBO) features that could benefit your business.

Bank Feeds: Each month, all bank and credit card accounts should be reconciled: this captures all the appropriate revenue and expenditures. Manually entering these transactions can often be tedious and frustrating. In QuickBooks Online, there is the option to link bank and credit card accounts to the program. This will automatically download every transaction that has cleared the bank into a holding area—the bank feeds.

Once transactions are imported into the bank feeds, it is easy to code the revenue and expenditures to the appropriate chart of account categories. There is also the option to set up rules, which allows the software to automatically code transactions into the program. Using bank feeds is an efficient process for reviewing transactions and bank reconciliations are seamless.

Cloud-Based Software: One of the most common capability requests is to be able to access the software from anywhere.  While there are ways to have multiple users for QuickBooks Desktop, it is more cumbersome than QuickBooks Online.

QuickBooks Online is a cloud-based software through Intuit. This means the data is safely stored and easily accessed through a web browser. Employers can easily add users and give access to their data. Clients also love that they can access their data from any device.

Accounting Firm Access: Businesses like the ability to have their QBO with the option to add multiple users and accounting firms. All it takes is an email address to invite the firm. Once the invitation is accepted, there is instant access to the company’s books.

Payroll E-File Abilities: Running payroll and making sure the taxes are filed correctly can be a daunting task. A payroll subscription can easily be added to a QuickBooks Online account.  

We often hear that this payroll software is user friendly: easy to enter employees, process payroll, and even pull reports. A convenient feature in QuickBooks Online is the ability to e-file payroll taxes and forms. Businesses can link their EFTPS account with QuickBooks Online. Once this is set up, payroll tax liability payments can be scheduled straight from QuickBooks Online. Not only does the payment get made it also automatically schedules the payment in the correct posting period and year.

Notable Mentions: There are many other favorite features of QuickBooks Online. A few notable mentions are as follows: the ability to easily pull reports, the ability to track revenue by class and the ability to easily customize chart of accounts.

Accounting software can be overwhelming and confusing. Ketel Thorstenson has a team of QuickBooks Pro-Advisors that are trained and knowledgeable in QuickBooks Online. If you are contemplating using QuickBooks Online, have questions or want training in the software, we are here and happy to help!

September 27, 2022
| Ketel Thorstenson, LLP
News
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Senior Manager Announced at Ketel Thorstenson, LLP

Ketel Thorstenson, LLP announces the promotion of Carrie Christensen, CPA to Senior Manager in the Tax Department.

Carrie Christensen, CPA, joined Ketel Thorstenson in 2013 in the Tax Department in the Rapid City office.  She holds a Master of Business Administration and Management degree from the University of Phoenix and a Bachelor of Science in Business Administration degree from the University of Maryland University College.  She provides tax planning, consulting, and preparation services to individuals and businesses.  Her specializations include real estate professionals, rental partnerships, medical professionals, and the hospitality industry.  She is an expert in assisting clients with IRS issues and leads the IRS response team at Ketel Thorstenson.  Christensen is a member of the South Dakota CPA Society (SDCPA) and the American Institute of Certified Public Accountants (AICPA).  She is a SD CEO Women in Leadership 2019 graduate and a board member of the American Red Cross.  As Senior Manager, her responsibilities include management duties, strategic planning, ensuring a positive client experience, seeking training and education opportunities for staff and clients, and mentoring staff.

August 29, 2022
| Ketel Thorstenson, LLP
KT Insights
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The IRS Increased the Mileage Rate for the Rest of 2022

On June 9, 2022, the IRS announced that they would make a mid-year mileage rate change to combat the much higher-than-normal gas prices. If you qualify for mileage deductions, this could help you trim your 2022 tax bill.

From July 1 through December 31 of 2022, the standard mileage rate for business travel will increase from $0.585 per mile driven for business to $0.625 per mile.

The rate will also increase for active-duty military members who use their vehicles for medical or moving purposes. The mileage rate is $0.18 per mile for the first half of 2022, while the rate will increase to $0.22 per mile for the second half of 2022.

If you’re self-employed and use your car for business travel, you can get a tax deduction for the business use of your vehicle. The standard mileage rate has less record keeping which makes it more straightforward.

If you have questions about this or other tax related issues contact your trusted advisor on the KTLLP Tax Team.

June 16, 2022
| Ketel Thorstenson, LLP
KT Insights
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At Your Service: KTLLP Supports Hospitality Industry

The Black Hills area thrives on tourism — and behind it, the spirit of true hospitality. The act of being friendly, welcoming, knowledgeable, and organized are the hallmarks of hospitable treatment. At Ketel Thorstenson, LLP (KT) we have the same values in the accounting industry.

The hospitality industry is highly competitive and cyclical in nature. Having the right accounting and tax advisor to make the most of your investment and opportunity is key. KT serves as a trusted advisor to the hospitality industry, including entities such as hotels/motels, resorts, campgrounds, casinos, attractions, restaurants, fast food establishments, and more. Business owners in the hospitality industry come to KT for everything from management consulting to entity selection. The KT Hospitality Team takes great pride in consulting on various industry specific issues as well as the broader needs of these businesses and their owners.

Hospitality and tourism can pose several financial challenges, yet the industry can be one of ongoing success and reward with proper financial management. The KT Hospitality Team can work with you on specific problems and enjoy celebrating your successes. We assist our clients in growing their portfolios with help in financing arrangements, cash flow forecasting, tax planning, assurance needs, and accounting services.

Discover the KT brand of hospitality—we call it “Be Innovative” which is one of our core values. Our definition is offering knowledgeable teams dedicated to delivering strategic solutions to ensure our people, clients, and communities reach their fullest potential. Call Austin Eichacker, Hospitality Team Leader at KT today or submit a quick request for services form on the contact us page at ktllp.com, and let’s talk about how we can help.

May 24, 2022
| Ketel Thorstenson, LLP
KT Insights
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QuickBooks 2019 Discontinuation Scheduled

Intuit announced that they are discontinuing an older version of QuickBooks. If you are using QuickBooks 2019 then you won’t be able to use certain services and features after May 31, 2022.

This is particularly important when you consider that Intuit announced that starting with QuickBooks 2022, the desktop version will only be available as a subscription moving forward.

What this means is that for the QuickBooks 2019 desktop products, after that date:

  • QuickBooks 2019 will continue to work after this date, for basic accounting functions.
  • Any service that relies on an Intuit server (such as desktop payroll, online banking, etc.) will no longer be functional in this release.
  • Live technical support for this product will no longer be available from Intuit.
  • Intuit will not guarantee that you can register products or retrieve keycodes.
  • There will be no further maintenance or security updates to the program.

This applies to the following products:

  • QuickBooks Pro 2019
  • QuickBooks Premier 2019
  • QuickBooks Desktop Accountant 2019
  • QuickBooks Enterprise Solutions V19
  • QuickBooks Desktop for Mac 2019

If loss of any of these services are a problem for your business, you can upgrade to a more current version to continue getting support.

If you are a client of Ketel Thorstenson and have questions about your QuickBooks products, please contact your advisor.

April 25, 2022
| Ketel Thorstenson, LLP
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Promotions at Ketel Thorstenson Announced

Nikki Ritzen has been promoted to Manager. Elizabeth Davis, Chris Jansen, CPA, Nicole Laub, Hannah Sheffield, CPA, and Cassandra Stevens have all been promoted to Senior Associate.

Nikki Ritzen, promoted to Manager, is originally from Chadron, NE. She graduated from Chadron State College with a degree in Business Marketing and joined the accounting profession when she joined us in our Rapid City office in May 2015. She now works remotely from Texas in the Business Accounting Department. The different challenges that arise each day along with working with clients is Nikki’s favorite part about her accounting job. She looks forward to collaborating with staff on their goals, growing the department, and introducing new technology into their processes in her new role as Manager.

“KT has taught me everything I know about the accounting industry. I love having a company I enjoy showing up to work at everyday – even if it is just across the house to the desk,” said Nikki.

Elizabeth “Liz” Davis promoted to Senior Associate, has a Master of Accounting degree from Utah State University, and a Bachelor of Science degree in Human Development from Brigham Young University. Before coming to Ketel Thorstenson in August of 2018 her accounting experience included governmental audit, internal audit, city finance, light manufacturing, and church accounting. Here at Ketel Thorstenson Liz works in the Business Accounting Department. She and her husband, Corey, have 3 children and a son-in-law. Liz plays the piano, occasionally running her own piano teaching studio, and regularly plays the organ at church. She loves dark chocolate, is an avid reader, and enjoys clogging, hiking, camping, and kayaking.

Chris Jansen, CPA, promoted to Senior Associate, is originally from Sheldon, Iowa and attended the University of South Dakota in Vermillion for both his undergraduate and master’s degrees. Chris joined Ketel Thorstenson in January 2020. He enjoys working at KTLLP because of the great coworkers and how much fun they have. In his free time, Chris enjoys hiking and golfing. You can find him on the golf course most of the summer when he is not at the office. Chris also enjoys spending time with his nephews.

“The firm has my best interests in mind and furthers my knowledge of accounting. I am grateful to work at such a great company,” said Chris.

Nicole Laub promoted to Senior Associate, attended Black Hills State University where she obtained her Bachelor of Science degree in Professional Accountancy with a specialization in Human Resources. Nicole joined Ketel Thorstenson in August of 2018 and specializes in the hospitality industry.  She loves the family dynamic at Ketel Thorstenson and all the different clients that she gets to work with. Outside of work Nicole enjoys camping and spending her weekends on the lake.

Hannah Sheffield, CPA, promoted to Senior Associate is originally from White, SD and joined our team in January 2020. She spent a year at Black Hills State University studying Spanish Education but transferred to the University of South Dakota. At the recommendation of a mentor, she took some accounting classes quickly falling in love and changing her major. Hannah has always loved the Black Hills so moving back after 4 years was an easy decision. When accepting an accounting job at Ketel Thorstenson Hannah loved the idea of working with local businesses and making an impact on the people that live right here. From January-April you can find her at the office preparing taxes, but when she has free time May-December she loves to golf, go to concerts and rodeos, travel, hike, and make the occasional trip up to Deadwood for Blackjack and dancing!

“I never knew just how much I’d love this company, the people I work with, and the tax law that I continue to learn more and more about,” said Hannah.  

Cassandra Stevens, promoted to Senior Associate, joined our team in November of 2020. She is originally from Wyoming but currently resides in Minnesota working remotely. Cassandra is the oldest child in her family, her dad is a coal miner, mom is an insurance agent, and sister is in child development. Cassandra has been in public or private accounting for several years now and her family drives her to keep going and spend every day doing what she loves.

Congratulations to our new Manager and Senior Associates on these well-deserved promotions. We deeply appreciate all your hard work.

April 11, 2022
| Ketel Thorstenson, LLP
KT Insights
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Commercial COVID Grant Funding

Over the past 18 months, many commercial entities have received federal grant funding for the first time due to COVID-19. The information regarding how and when to use such grant funds has been limited, vague, or not provided until months after funding is received. To further complicate things, guidance is continually changing.

Entities expending more than $750,000 of federal grant funding in a year are required to have a financial statement and compliance audit referred to as a Single Audit. Organizations without prior audit requirements may now have an audit requirement due to federal funding received/spent during 2020/2021. As these federal funds are new and have limited or changing guidance, receiving organizations should work with their accounting firms and granting agencies to ensure compliance. Proper documentation is also key in the future when granting agencies or auditors have questions.

Single Audits are conducted under Subpart F of the Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. OMB annually issues a Compliance Supplement, which identifies compliance requirements and suggests audit procedures for numerous federal grant programs. The 2021 Compliance Supplement (July 2021), and an addendum for specific programs unrelated to commercial entities (December 2021) to address COVID funding.

One common grant received by healthcare service businesses was Provider Relief Funds (PRF). Entities that received monies include, but are not limited to, medical and dental practices, nursing homes, assisted living facilities, vision practices, and behavioral health practices. This money has been disbursed through several different phases. The first payments were deposited in bank accounts on April 10, 2020, and payments are continuing. 

The PRF expenses must have a direct COVID affiliation and cannot be reported as having been spent on PRF if already reimbursed from another grant. For example, if a business received a Paycheck Protection Program (PPP) loan that was reported as having been spent with payroll, those same payroll funds cannot be spent again on PRF. Most expenses are allowed to be charged to PRF if they are used in preparing for and/or responding to the pandemic. Additional examples include costs incurred to purchase personal protective equipment, barriers for social distancing, expanded hardware or software to allow for remote work by employees, or enhancing telemedicine, just to name a few. If payroll is being considered as a PRF expense, remember it must have a COVID tie. A nurse working a shift to treat non-COVID patients in the normal course of business is not allowable. 

In addition to COVID-related expenses, organizations can also use PRF monies for lost revenue. For these instances, businesses will enter quarterly information for two years into the Health Resources and Services Administration (HRSA) portal and lost revenue will be calculated based on quarterly figures. An entity might have more revenue in calendar 2020 than in 2019, but may have losses by quarter for the PRF lost revenue calculation.

Normally, federal funding is reported on a Schedule of Expenditures of Federal Awards (SEFA) when funds are spent. However, PRF funding is reported on the SEFA depending on when organizations are required to report in the HRSA portal. See table below for reference on when portal and corresponding SEFA reporting are required.   

Reporting in the HRSA portal is not allowed prior to the portal reporting period dates noted above. Additionally, if a business is unable to show the PRF funds as having been spent, the PRF funds must be returned within 30 days after the reporting time period. 

The OMB has indicated commercial entities will have different options to comply with the Uniform Guidance audit requirement for PRF monies than non-profit and governmental entities have. However, as of the date of this article, those options have not yet been released.

The compliance professionals at Ketel Thorstenson, LLP can help you navigate the Uniform Guidance requirements. Please contact us to answer questions and for additional guidance.

January 12, 2022
| Ketel Thorstenson, LLP
KT Insights
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Is My Employee Long-Term or Part-Time for Our 401k Plan? How Does This Affect Me?

The Setting Every Community Up for Retirement Enhancement (SECURE) Act resulted in a significant change to the definition of a part-time employee. In the past, employees working less than 1,000 hours in a plan year could be excluded from the plan, if elected by the Plan’s eligibility requirements. The SECURE Act establishes the new concept “long-term, part-time employee” (LTPT) for plan years beginning after December 31, 2020.

LTPT is an employee that has worked more than 500 hours, but less than 1,000 hours for three consecutive years and meets the Plan’s age eligibility requirements. Plans have time to prepare for this change – only plan years beginning after December 31, 2020 are counted for the three-year eligibility requirement. Although LTPTs do not become eligible until plan years beginning after December 31, 2023, plans must start tracking LTPT hours now to ensure proper compliance in 2024. Furthermore, the SECURE Act allows plans to let LTPTs into the plan before the end of the three-year period.

In addition, the Internal Revenue Service (IRS) also issued Notice 2020-68 about the SECURE Act, noting that for vesting purposes, all years in which the LTPT worked over 500 hours but less than 1,000 hours must be counted, even prior to December 31, 2020. However, the employer can still require 1,000 hours to be eligible for the company match and profit share.

Plan sponsors should consider the following:

  • Should the Plan allow LTPT employees to receive a match/profit share?
  • Should the Plan be amended to revise the Plan’s vesting requirements?
  • Should the Plan allow LTPT employees into the plan sooner than the eligibility period noted above?

It is important that plan sponsors start tracking hours for part-time employees. Plan sponsors should also work with their third-party administrators and counsel to ensure that plan amendments are made. Taking necessary actions now, and possibly making changes to the Plan, could prevent future mistakes.

This article was co-authored by Austin Eichacker and Kyle Kopren, Senior Managers in the audit department.

January 12, 2022
| Ketel Thorstenson, LLP