Renaissance Advisory

  When businesses look for ways to balance employee satisfaction with cost efficiency, one tool that often stands out is the cafeteria plan. Cafeteria plans, also known as flexible benefits plans, allow employees to choose from a variety of pre-tax benefits that best suit their personal and family needs. These plans are made possible by a key piece of tax legislation: Internal Revenue Code Section 125 . At Renaissance Advisory, we’ve seen firsthand how businesses that understand and leverage this provision can gain a competitive edge in attracting talent, improving employee retention, and optimizing their tax strategy. Let’s explore how Internal Revenue Code Section 125 works, why it matters for employers and employees, and how it ties into broader tax planning and tax return programs. What Is Internal Revenue Code Section 125? Internal Revenue Code Section 125, commonly referred to as Section 125 of the IRS tax code, is the legal foundation that authorizes cafeteria plans. Befo...

When it comes to driving business growth, few topics spark as much debate among business owners and financial professionals as the role of fixed assets and current assets . Both are essential for operations, yet their impact on growth can vary dramatically depending on your industry, stage of business, and long-term goals. Understanding the distinction—and how to balance the two—can be the difference between sustainable expansion and stalled progress. At Renaissance Advisory, we help businesses navigate this balance, often uncovering hidden opportunities for growth and even tax reduction services that improve cash flow. Defining the Two: Fixed Assets vs. Current Assets Before we determine which is more important for business growth, it’s important to understand what we mean by fixed assets and current assets. Fixed Assets These are long-term resources a business owns and uses for more than one year to generate revenue. Examples include: Real estate and buildings Machinery an...

Effective management of fixed assets and depreciation is essential for accurate financial reporting, operational efficiency, and long-term business planning. Yet, many organizations—regardless of size—struggle with getting it right. Mistakes in this area can lead to compliance issues, distorted financial statements, and even missed opportunities for corporate tax reduction. At Renaissance Advisory, we’ve seen firsthand how seemingly minor oversights in asset management can snowball into costly problems. This article explores the most common mistakes businesses make in managing fixed assets and depreciation, why they happen, and how to avoid them. 1. Inaccurate Asset Recording One of the most basic yet damaging errors is failing to maintain a complete and accurate asset register. In some cases, businesses forget to log newly acquired assets; in others, they continue recording assets that have been sold, scrapped, or are no longer in use. When your asset register is incomplete or ou...