US profit margins reach widest level since 1950
A key indicator in gauging corporate profits rose to 15.5% in Q2, the highest point since 1950. The rise suggests companies are easily passing on price rises to their customers, thus increasing inflation as well as their profits to a point that is beginning to trigger criticism.
How to approach budgeting for 2023
With certain warning signs in the economy, budgeting for 2023 should be approached differently than in previous years, emphasizing cash flow and identifying ways to reduce spending, write Simon Freakley and Lisa Donahue of AlixPartners. “Prepare a crisis playbook: the actions to take if the business suddenly finds itself in deep trouble, such as layoffs, reorganization, or selling assets or a business,” they write.
The tax provisions in the Inflation Reduction Act
The Inflation Reduction Act provides for historic investments in energy production and manufacturing, allows Medicare to negotiate prescription drug prices and helps shore up the Affordable Care Act through 2025, but it also installs several tax provisions aimed at reducing the federal deficit. The CPA Journal has analyzed the tax provisions — which include a 15% corporate minimum tax, an excise tax on stock buybacks, and several tax credits — and outlined what they could mean for businesses and finance teams.
CFOs fear inflation more than recession
Deloitte’s third-quarter CFO Signals survey found nearly half of finance chiefs expect a North American recession by 2023, while almost three-quarters said persistent inflation is a greater concern than recession. CFOs named inflation as the top external risk, and retention and talent as the top internal risks for their firms.
Advice for firms on getting the right cyberinsurance
Cybersecurity specialist Mike Foster shares his expert advice on cyberinsurance and what business leaders and owners should know about the application and renewal process for cyberinsurance coverage. Foster details some of the most common questions insurance companies might ask and offers guidance on how to address them.
Fed maintains hawkish stance
Federal Reserve chair Jerome Powell ended speculation that he might signal a dovish adjustment to Fed policy, when he emphasized in his speech to fellow central bankers at the Jackson Hole Economic Symposium that he does not agree that inflation has peaked, and the Fed “must keep at it until the job is done.”
Auditor sues PwC over drunken pub golf injury
A 28-year-old PwC auditor filed a personal injury claim against the firm after he allegedly suffered a brain injury from a drunken fall at a work event. The lawsuit says the outing was organized by a PwC manager and staff were encouraged to participate in a round of “pub golf,” which entailed visiting nine bars and consuming drinks in as few sips as possible to acquire the lowest score.
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