What Is FinCEN, And How Does It Affect Your Business?

Ask the Accountant…

Question: I’ve heard about something called FinCEN. What is it?

Answer: In 2021, Congress enacted the Corporate Transparency Act. As a result of this, beginning on Jan. 1, 2024, many companies in the U.S. are required to file a report with information about their beneficial owners (Beneficial Ownership Information). It is known as FinCEN (Financial Crimes Enforcement Network), and you can find out more information at www.fincen.gov/boi.

Most distributors in our industry will be required to file. It’s not difficult: You must provide information about your beneficial owner who is likely you. You will be able to see at the website who is required to file. If you have questions, contact your accountant and/or attorney. Make sure you find out about this and file if you are required to do so. The penalties for not filing are huge.

Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor of 23 years. She advises ad specialty distributors about using QuickBooks Premier & Enterprise, and SAGE Online to save time, eliminate errors, and correctly account for your business. Her specialty is converting distributors from ProfitMaker, SmartBooks, OrderMaster, AIA, and other accounting systems.

HGatter@AccountingSupportLLC.com www.AccountingSupportLLC.com

Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant".