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 Kozi Checks & Balances TaxTactics News 
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December 18.2024
2 Minutes Read

Embracing ESG: How Ethical Investments Drive Shareholder Value and Sustainability

Attendees engaged in sustainable investment seminar, modern conference.

Understanding ESG: A New Wave of Sustainable Business

Have you ever wondered how businesses can thrive sustainably and responsibly? Enter ESG—Environmental, Social, and Governance—principles, a game-changing framework that not only boosts a company's ecological and social standing but also drives economic success. From minimizing carbon footprints to promoting transparency and worker safety, ESG shows us that doing good is also good for business. An impressive 82% of corporate leaders in 2024 believe ESG will significantly impact performance, highlighting its growing importance.

The Business Case for ESG: Why It Matters

Imagine ESG as not just a checklist, but a strategy that aligns ethical practices with shareholder interests. ESG investments are directly linked to better efficiency and cost savings, which can translate to increased value for shareholders. Companies adopting these principles often find themselves enhanced in resilience, competitiveness, and profitability. This shift is particularly compelling for health-conscious consumers who increasingly align their purchasing decisions with companies committed to sustainable and ethical practices.

Inspiration and Practical Tips

Real stories of change can inspire us. Take, for example, a local business that turned to ESG practices by reducing waste and integrating community wellness activities. Their journey not only improved the environment but deepened their customer relationships, showing tangible value in everyday life. For those considering a more proactive approach to sustainability in their own lives or businesses, starting small—like minimizing waste or supporting businesses that prioritize ESG—can lead to significant positive impacts.

Audit-Proofing Strategies

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12.12.2025

Unpacking How Expert AI Tools Simplify Corporate Tax Compliance

Update How AI is Simplifying Corporate Tax Navigation In today's dynamic business landscape, corporate tax compliance can feel like navigating a labyrinth. With the rise of economic nexus laws and various state regulations, companies often grapple with questions on income tax liabilities due to their digital operations. This is where tools like CoCounsel Tax come in, offering AI expertly crafted templates to help businesses cut through the chaos. The Changing Landscape of Tax Compliance Gone are the days when a physical presence in a state defined tax obligations. States now use economic nexus rules that vary widely, making it crucial for companies to understand their unique circumstances. From California's stringent requirements to states like Florida with no thresholds, navigating corporate income tax has become increasingly convoluted. Businesses today need to know if their remote hiring practices or software licenses could trigger tax liabilities, and AI can offer invaluable assistance here. P.L. 86-272: Why Every Digital Interaction Matters Another area where AI tools can help is in understanding the implications of P.L. 86-272. Once straightforward, the protections this law offered have become murky with the proliferation of digital interactions—chat features, cookies for tracking, and other online services can affect tax obligations. AI developed with real-world applications from Thomson Reuters, including CoCounsel Tax, has been tailored to assist in evaluating these interactions, providing businesses with the insights they need to ensure compliance. Agentic AI: A Game Changer for Tax Departments As businesses adapt to these new regulations, agentic AI emerges as a key player in transforming tax functions. This innovation goes beyond merely automating tasks; it enables tax professionals to leverage technology efficiently, enhancing productivity. According to a recent EY survey, a staggering 87% of tax leaders believe that generative AI can improve departmental efficiency. With AI managing mundane tasks, teams can redirect their focus toward strategic initiatives. This shift is essential as corporate tax environments evolve and become more complex. Embracing the Future of Corporate Taxation The integration of AI in tax compliance isn’t just about efficiency. It’s about strategically positioning your business to adapt to fluid regulatory landscapes. By utilizing tools like CoCounsel Tax, tax teams can automate routines, ensuring they focus on high-level decision-making. As compliance becomes more demanding, embracing advanced tools will not only aid in transformation but also ensure that companies remain competitive and prepared for whatever comes next. Consider this: how might your business fare if it could leverage AI tools to simplify tax compliance? It’s time to explore innovative solutions that can remove burdensome complexities and facilitate smoother operations.

12.11.2025

Understanding Audit Assertions: Essential Insights for Accurate Financial Reporting

Update The Crucial Role of Audit Assertions in Financial Reporting Audit assertions are more than just standards; they form the backbone of financial audits, providing essential insights into the accuracy and completeness of a company’s financial statements. These assertions help auditors evaluate risks and design effective procedures to ensure the integrity of financial reporting. As financial landscapes grow more complex, a firm grasp on these assertions becomes ever more vital. What Are The Main Assertions in Auditing? Auditors generally analyze several key assertions as defined by U.S. Generally Accepted Auditing Standards (GAAS). These include: Existence or Occurrence: Ensuring that recorded assets and transactions truly exist. Completeness: Asserting that all financial data is fully represented. Rights and Obligations: Verifying that entities own the rights to assets and are liable for presented liabilities. Valuation or Allocation: Confirming that amounts have been recorded and measured correctly. Accuracy: Establishing that reported financial information is correct. Cut-off: Ensuring transactions are recorded in the right accounting period. Classification and Presentation: Making sure information is organized and clearly presented. Although different auditing bodies like the PCAOB and ISA may present variations in terminology, their primary objectives remain aligned, fostering a consistent approach to assessing risks and managing assertions. Common Pitfalls in Audit Assertions Even seasoned auditors face challenges when addressing assertions, often stemming from incomplete documentation or a lack of familiarity with new accounting standards. Common assertion missteps include: Overstating Assets: An example can be found in reporting fictitious sales, which may inflate revenue figures. Understating Liabilities: Omitting accrued liabilities might give an erroneous picture of a company’s financial health. Improper Revenue Timing: Mischaracterizing revenue can lead to financial reporting that inflates earnings. Awareness of these pitfalls allows auditors to refine their approach and minimize risks associated with material misstatements. Leveraging Technology in Audit Practices With advancements in technology, auditors are now enabled to analyze complete datasets rather than rely solely on sampling. This shift not only improves the efficiency of audits but also elevates the quality by focusing on higher-risk assertions. However, it necessitates a new set of skills in data interpretation and visualization. Integrating tools such as Thomson Reuters Guided Assurance into audit practices can further enhance an auditor's capability to implement assertions effectively. What Lies Ahead for Audit Assertions? As the business landscape becomes increasingly intricate, ensuring thorough knowledge and implementation of audit assertions will remain essential. Continuous adaptation to emerging standards, coupled with an emphasis on clarity, will fortify the auditing field against evolving challenges, ensuring financial transparency and stakeholder confidence. In summary, a comprehensive understanding of audit assertions is invaluable for auditors seeking to enhance audit quality and navigate the complexities of modern financial reporting.

12.07.2025

Unlocking Supply Chain Efficiency: How to Leverage Free Trade Agreements

Update Understanding Free Trade Agreements: A Primer Free Trade Agreements (FTAs) are essential tools in today's global economy, designed to lower or eliminate trade barriers such as tariffs, quotas, and regulatory hurdles between participating countries. They can be either bilateral, involving two countries, or multilateral, involving three or more. At their core, FTAs aim to facilitate smoother trade flows, promote economic cooperation, and provide a legal framework for businesses, which can significantly enhance supply chain resilience. Why FTAs are Crucial for Business Strategies Today In 2025, the landscape of international trade is being reshaped by significant U.S. tariff increases and geopolitical tensions. Businesses are facing an average effective tariff rate of 18.0%, the highest in nearly a century. Moreover, ongoing conflicts such as those involving Ukraine and the Middle East are threatening traditional trade routes, making it critical for companies to optimize their supply chains through FTAs. FTAs offer several advantages for companies, including: Cost Reduction: By alleviating tariffs, businesses can lower import costs. For instance, engaging with countries under an FTA can significantly help maintain price competitiveness. Supply Chain Diversification: FTAs encourage businesses to explore alternate sourcing options, reducing reliance on single countries and minimizing risks associated with disruptions. Enhanced Compliance: Many FTAs include provisions that simplify customs processes and documentation, which can lead to more efficient operations. Common Challenges in Leveraging FTAs Despite their benefits, many businesses struggle to effectively utilize FTAs. The 2025 Thomson Reuters Institute Corporate Tariffs Survey revealed that only 33% of companies are using technology to automate FTA compliance, potentially missing out on significant cost savings. Common barriers include: Complex Rules of Origin: Companies must adhere to specific rules indicating the necessary local content for products to qualify for duty-free treatment. Navigating these regulations can be daunting without proper documentation. Lack of Automation: Many businesses rely on manual processes for FTA compliance, increasing the risk of clerical errors and inefficiency. Practical Steps for Businesses To successfully leverage FTAs, businesses should consider these actionable steps: Assess Current and Future FTAs: Conduct an extensive analysis to identify FTAs that could benefit your supply chain. Stay informed about upcoming trade agreements that might provide additional opportunities. Invest in Technology: Embrace digital solutions to automate compliance with FTAs. This not only saves time but also reduces the margin for error. Regular Training: Ensure employees are trained on FTA compliance and the importance of maintaining accurate documentation to take full advantage of trade benefits. The Future: A Call to Action The future of global trade is unpredictable, but by effectively leveraging FTAs, companies can create resilient, adaptable supply chains equipped to weather disruptions. As businesses reassess their strategies in response to evolving trade dynamics, investing in FTAs will not only enhance competitiveness in the marketplace but also foster longer-term stability. For organizations eager to optimize their supply chain amidst uncertain tariffs and trade policies, now is the time to take proactive measures. Consolidating your knowledge on FTAs, pairing it with technology, and staying adaptive will be crucial for success in the coming years.

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