LEACIF

LEACIF Specializing in accounting and advisory services with a strategic and partnership driven focus. Please visit leacif.com and follow our page to learn more.

LEACIF offers leading edge professional services for businesses and entrepreneurs who know there is a better way forward in managing their organization's objectives and sustainably adding to its value. With a strategic and partnership driven focus, we specialize in both traditional accounting and advisory services, as well as services addressing the forefront of emerging issues that matter to our clients.

Hello Summer! 🌞Our office will be closed starting next Thursday, July 2nd, through Sunday July 12th, for Summer Break!We...
06/25/2026

Hello Summer! 🌞Our office will be closed starting next Thursday, July 2nd, through Sunday July 12th, for Summer Break!

We look forward to focusing on enjoying this time of year! 🌻

What are analytical procedures?📊 Evaluations of financial information through analysis of plausible relationships among ...
06/24/2026

What are analytical procedures?

📊 Evaluations of financial information through analysis of plausible relationships among both financial and non-financial data (as defined under SASs)

🔎 As a business owner or manager, you may also be performing analytical procedures, perhaps without even realizing it.

🔎 Procedures might include actions such as comparing current financial reports to the prior month’s reports, considering historical patterns in gross margin percentages, or determining whether employee time records meet expectations.

📈 In order for to be effective, it is important to form an expectation and precision or tolerance level.

📊 For example, if June’s revenue is expected to be within 5% of May’s, but when analyzed is actually a difference of 10%, this may help to indicate a potential recording error, or that the expectation was not suitable. The underlying data must also be reliable.

What analytics does your business perform?

Exploring Schedule K-1s for Partnership and S Corporation Tax Returns🟠 Schedule K-1 reports each partner’s or shareholde...
06/23/2026

Exploring Schedule K-1s for Partnership and S Corporation Tax Returns

🟠 Schedule K-1 reports each partner’s or shareholder’s share of the business’s activity. The information on this Schedule is then used during the preparation of the individual’s tax return.

🔵 Schedules K-1 look somewhat similar for Partnerships vs. S Corporations. Generally, this is because the rules for S Corporations follow certain rules that Partnerships must follow. (S Corps also have to follow certain rules C Corporations must follow.) However, there are significant differences in the information separately reported on Schedules K-1, depending on whether the business is a Partnership or S Corporation.

🟠 S Corporations have overall less information that is separately stated on each shareholder’s K-1, compared to if the business were to be a tax partnership.

🔵 Common to both types of entities, items such as share of ordinary income or loss, share of rental income or loss, and share of capital gain items are reported on Schedules K-1 for both Partnerships and S Corporations.

Partnerships on the other hand separately report items that S Corporations do not.

Some of these include:
🟧 The partner’s share of liabilities
🟧 Guaranteed payments to the partner which include both salary-type payments and payments for items like health insurance or interest on a partner loan
🟧 Share of unrecognized gain for contributed property.

🔵 If you receive a Schedule K-1, it is important to understand each item included on the form and that was to you from the business.

To learn more about how we help our clients with their tax advisory and compliance needs, please reach out!
🌳

Documents Requested During an AFSWhat are some of the documents that are requested during the engagement process?🧮 Gen...
06/22/2026

Documents Requested During an AFS

What are some of the documents that are requested during the engagement process?

🧮 General Ledger Report
🧮 Vendor Disbursement Listing(s)
🧮 Copies of Agreements, including Real Property, certain Financing, Management, and Licensing Agreements
🧮 Payroll Disbursement Journal
🧮 Ownership Listings, including individual ownership percentages and distributions paid through equity
🧮 Vendor source documents for selected disbursement samples

Our Team is currently onboarding for September 30, 2026 and December 31, 2026 due AFS reports! To learn more about our AFS process, please visit leacif.com/afs

"Enjoy the journey and try to get better every day. And don't lose the passion and the love for what you do." ~ Nadia Co...
06/22/2026

"Enjoy the journey and try to get better every day. And don't lose the passion and the love for what you do." ~ Nadia Comaneci

✨ Firm Fact Friday ✨When reviewing and finalizing are agreed-upon procedures engagements and engagement files we use a ...
06/19/2026

✨ Firm Fact Friday ✨

When reviewing and finalizing are agreed-upon procedures engagements and engagement files we use a we developed internally.

✅ Referred to as EQM-5 AUP Performance Checklist, systems wise this checklist is built into our engagement workflows as an organizer with questionnaire and input type functionality.

The engagement team works together to complete various sections of the Checklist. Some of the sections include checking:

✅ Information on the report cover letter
✅ Engagement file retention
✅ Onboarding files, work papers and procedural documentation

While we believe our checklist to be complete for our needs we did not use a practice aid or template, as any reliable aids and templates we found were outdated. Instead, we built a criteria list to create our Checklist.

How did we do it?

💡 We first sourced an agreed-upon procedures checklist published publicly for a recent governmental agreed-upon procedures engagement. While governmental attestations follow increased standards requirements, they also follow those otherwise used by private companies when the underlying engagements are similar.

💡 We then used this checklist to perform a gap analysis against professional standards requirements, including those found in Statements on Standards for Attestation Engagements (SSAEs), and AT-C 105 and AT-C 215, as well as Quality Management Standards.

💡 We added our own specific checklist items to align with our Firm specific needs, such as engagement file documentation and retention requirements.

This Checklist, used in engagement performance, accompanies other checklists, questionnaires, and procedures we use during acceptance, onboarding, and other engagement performance actions.

The concept of a strong Control Environment can be found in internal control, enterprise risk management, and even quali...
06/18/2026

The concept of a strong Control Environment can be found in internal control, enterprise risk management, and even quality management standards that apply to accounting and attest practices.

🔵 When considering a business’s overall internal control, the is the foundational component in an integrated approach. An effective control environment relies on the ‘tone at the top’, and helps support governance initiatives like a business’s culture and ethical values, policies and control activity oversight, and strategy setting.

Enterprise risk management expands on the Control Environment concept, by focusing directly on Governance and Culture. Governance and Culture can include five main points:

💡 Governance exercises risk oversight. Depending on the size of the business, may include owners, managers, or board members.

💡 Operating structures are established. Operating can include areas like ownership structure and individual workflow and control activity structure.

💡 Desired culture is defined. Desired can better be supported and reinforced through strategies, actions, policies, trainings, and other communication.

💡 There is a demonstrated commitment to core values. Consistently communicating and demonstrating a commitment to core provides reinforcement for upholding culture and other risk management strategies of the organization.

💡 Strategies and processes are in place to attract, develop, and retain capable . Hiring, onboarding, and training processes, along with upholding the desired culture and core values, can be integrated to better support a business’s team members.

For those familiar with standards applicable for accounting and attest practices, the above concepts may sound familiar as well!

🔵 Please reach out to learn more about how our Team can help your business explore strategic enterprise risk management concepts, framework implementation, and control documentation.

While a quick glance will not replace a detailed analysis and review, here are 3 quick actions that can help to spot com...
06/17/2026

While a quick glance will not replace a detailed analysis and review, here are 3 quick actions that can help to spot common balance sheet mistakes:

🟦 Check for a balance in the “Opening Balance Equity” account. Generally, this account is best used as a control account only or not used at all. When used this way, the balance should be $0.00 at all times.

🟦 🟦 In QuickBooks Online, for example, common errors that impact the OBE account often occur when adding a new bank account or when using but not maintaining the inventory function.

🟧 Ensure bank reconciliations are up to date, and review the most recent bank reconciliation report for uncleared transactions that are outside of the reconciliation period.

🟧 🟧 Bank accounts can appear to be “reconciled” without resolving potential issues, like prior period uncleared transactions, or other reconciliation discrepancies that were not anticipated or resolved.

🟨 Review Accounts Receivable and Payable Balances on the balance sheet for overall reasonableness, and investigate any concerns by viewing the accounts receivable or accounts payable aging detail reports.

🟨 🟨 Common issues that may occur include when deposits are incorrectly applied to income, instead of an open invoice(s) or accounts receivable, for example when customer payments do not match the invoice amount exactly; or similarly, when disbursements are applied as new Expenses, instead of payments on open bills or accounts payable.

Quick actions like this can help identify high level discrepancies that may be within your business’s balance sheet. When possible, work with an experienced accounting professional to perform regular detail reviews for your accounting transactions, to ensure classifications and reporting are accurate.

Please reach out to learn more about how our Team can help your business with its service needs.

🔎 When performing due diligence on agreements and contracts, such as operating agreements, purchase agreements, lease ag...
06/16/2026

🔎 When performing due diligence on agreements and contracts, such as operating agreements, purchase agreements, lease agreements, and others, it is important to understand the tax affects that the terms of the agreement may cause.

For example

📄 Operating agreements may often include a “Tax Matters” section within them. Issues that may be addressed are how depreciation will be allocated, requirements for methodology, rules related to contributions or instances for exiting or new partners or members.

📄 Purchase agreement terms can be for different types of sales, which can impact reporting and accounting and requirements. Allocation of the total purchase price among the various assets being purchased may also be required, with sellers and buyers subject to tax rules that may apply depending on the business structure and agreement terms.

📄 Lease agreement terms can impact both tax and financial accounting rules. For less complex short-term leases, accounting and tax treatment differences compared to what may be required for more complex and long-term leases is one example. Related-party leases also have additional tax and accounting considerations.

Often, tax and accounting matters might not seem like a priority while putting this type of paperwork together, but they can have significant and unexpected impacts to the business once it is operational or is experiencing ownership changes.

📄 When having agreements and contracts prepared by a legal expert, or sourcing your own templates, it can be beneficial to work with a as well, to help understand the different tax matters and impacts required under the agreements.

🔎 Please reach out to our Team to learn more about how we help our clients understand and plan for tax and accounting matters impacted by agreements.

FY 2026 AFS Reporting DatesThe 2026 AFS report periods and related report due dates are:Report period January 1 – Decem...
06/15/2026

FY 2026 AFS Reporting Dates

The 2026 AFS report periods and related report due dates are:

Report period January 1 – December 31, 2025 ▶️ Report Due June 30, 2026 🌞

Report period April 1, 2025 – March 31, 2026 ▶️ Report Due September 30, 2026 🍃

Report period July 1, 2025 – June 30, 2026 ▶️ Report Due December 31, 2026 🌲 Updates are published around the December due date for the year ahead (FY 2027 in this case)

Report period October 1, 2025 – September 30, 2026 ▶️ Due March 31, 2027 ❄️

Report periods and due dates generally follow the same cadence each year. The AFS report form, procedures, and instructions are updated annually by the CRA, and often published approximately 6 months before the first corresponding report is due.

🍃We are now onboarding for September 30, 2026 and December 31, 2026 AFS reports! To learn more about our firm and process, please visit leacif.com/afs or reach out to us at [email protected].

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Essexville, MI
48732

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