As tax season approaches, CPA firms brace for the typical workload surge alongside the impending Corporate Transparency Act’s Beneficial Ownership Information reporting requirement.
Key Takeaways:
- Compliance Software streamlines BOI reporting, saving time and effort for accounting firms.
- Automate reminders and data collection, enhancing client communication and responsiveness.
- Ensure compliance with BOI reporting requirements, avoiding hefty fines and penalties.
- Suitable for firms of all sizes, offering customizable solutions to meet specific needs.
The new Beneficial Ownership Information Reporting requirement poses a significant compliance challenge for accounting firms. They encounter various hurdles in meeting these obligations. From navigating intricate reporting guidelines to ensuring data accuracy and timely submissions, firms must manage multiple complexities in BOI reporting.
The manual nature of the process often leads to inefficiencies. Accordingly, this requires extensive time and resources to gather, verify, and submit the necessary information. Additionally, firms must contend with client responsiveness issues. For example, obtaining required data can be hindered by delays and communication gaps.
Evidently, in this demanding industry, investing in BOI reporting software like FincenFetch becomes essential for firms seeking to overcome these challenges and streamline their reporting efforts.
Challenge 1: Confusion in BOI reporting
Despite the Corporate Transparency Act being enacted in 2021, recent surveys reveal that many small business owners are still unaware of the impending BOI reporting regulations.
This uncertainty poses a significant challenge for accounting firms striving to keep their clients compliant while avoiding hefty penalties. FincenFetch addresses this challenge head-on by providing a comprehensive suite of tools and resources. Specifically, to educate both accountants and their clients about BOI reporting requirements.
- Accounting firms equipped with beneficial ownership reporting software can position themselves as trusted partners. Therefore they can offer invaluable guidance on BOI compliance and solidifying client relationships.
- FincenFetch’s Exemption Checking Tool empowers firms to efficiently determine whether clients are required to file BOI reports. Saving time and minimizing confusion as a result.
Challenge 2: Addressing Unresponsive Clients in BOI Reporting
Client responsiveness has long been a pain point for accounting firms, particularly during busy seasons. Surprisingly, obtaining necessary information for tax engagements can be like pulling teeth.
The same challenge is anticipated with BOI reporting, where timely and accurate data collection is essential for compliance. In effect, FincenFetch addresses this challenge by streamlining the data collection process and facilitating seamless communication between firms and their clients.
- Request Automation: Automated reminders streamline follow-ups.
- Direct Data Input: Clients can input data directly into the system with the Fetch Link. Reducing the burden on accounting firm staff and expediting the reporting process as a result.
Challenge 3: Lack of Time to Meet BOI Reporting Deadlines
Time constraints are a significant concern for accounting firms, particularly when faced with new compliance requirements like BOI reporting. At this point, FinCEN estimates that filing BOI reports may take up to 3 hours per report. Emphatically, firms need tools that streamline the process and maximize efficiency.
Because of the strict deadlines for filing these reports, firms must be able to quickly and accurately submit them on behalf of their clients. In addition, compliance with these deadlines is crucial. Failure to meet them can result in penalties and legal consequences for both the reporting firm and its clients. Therefore, having a clear understanding of the reporting deadlines and ensuring timely submissions is paramount for avoiding potential liabilities.
BOI reporting deadlines:
| Reporting Deadline | Description | Example Deadline |
| Initial Filing Deadline | Reports due by January 1, 2025 for existing reporting companies. New reporting companies have different deadlines based on creation or registration date. | January 1, 2025 |
| Filing Deadline for New Reporting Companies | 90 calendar days after notice of creation/registration for companies created or registered on or after January 1, 2024. 30 calendar days after notice for companies created or registered on or after January 1, 2025. | 90 days after notice (Jan 1, 2024) 30 days after notice (Jan 1, 2025) |
| Updated Reports Deadline | Required within 30 days of change to previously reported information about the reporting company or its beneficial owners. | Within 30 days of change |
| Corrected Reports Deadline | Required within 30 days of awareness of an inaccuracy in previously reported information by the reporting company. | Within 30 days of awareness |
Faster and Easier Beneficial Ownership Reporting
FincenFetch rises to the challenge by offering a suite of time-saving features. The features are designed to simplify BOI reporting and minimize the learning curve for accounting firm staff.
With FincenFetch, completing BOI reports takes less than 5 minutes per report. This is thanks to its intuitive interface and smart automation capabilities.
By significantly reducing the time and effort required for reporting, FincenFetch empowers accounting firms to allocate their resources more efficiently. Thus, allowing firms to focus on delivering value-added services to their clients.
- FincenFetch’s Step-By-Step Platform guides staff through the BOI reporting process. This ensures completeness and accuracy while minimizing the time required for filing.
- The Dashboard Overview provides firms with a comprehensive view of all BOI reports. This allows them to track progress, manage deadlines, and make edits directly within the system.
Challenge 4: Bulk Beneficial Ownership Reporting
With a large number of clients requiring BOI reports in 2024 and beyond, accounting firms must scale up their efforts to meet demand. On the other hand, bulk reporting can be a daunting task without the right tools and resources.
FincenFetch simplifies bulk reporting by offering advanced features that enable firms to manage multiple reports efficiently and effectively.
- FincenFetch’s Bulk Uploading feature allows firms to upload multiple reports at once. Bulk uploading saves time and reduces the risk of errors associated with manual data entry.
- Form Duplication enables firms to pre-populate related forms with existing data and documents, further streamlining the reporting process and ensuring consistency across multiple filings.
Challenge 5: Staying Up to Date with CTA Deadlines
BOI reporting isn’t a one-and-done affair; it requires ongoing updates whenever there is a change to beneficial ownership information. Relying solely on FinCEN’s reporting system can lead to redundant data entry and inefficiencies.
FincenFetch addresses this challenge by providing firms with a secure and streamlined solution for maintaining BOI data and filing amendments and updates as needed.
- FincenFetch’s Automatic Updates feature ensures that firms stay informed and compliant by automatically updating BOI reports with the latest information.
- Secure Storage ensures that BOI data is maintained safely and securely, providing firms with peace of mind and minimizing the risk of data loss or theft.
Fines and Penalties for Non-Compliance with CTA requirements
Failure to comply with BOI reporting requirements can result in significant fines and penalties for accounting firms and their clients. The table below outlines the potential consequences of non-compliance:
| Violation | Fine/Penalty |
| Failure to File BOI Report | Up to $500 per day |
| Knowingly Providing False Information | Up to $10,000 and/or imprisonment for up to 2 years |
In conclusion, FincenFetch is more than just a software solution – it’s a strategic partner for accounting firms looking to stay ahead of the curve with the increasingly complex regulations. By leveraging FincenFetch’s advanced features and capabilities, firms can streamline their BOI reporting efforts, enhance client relationships, and position themselves as trusted advisors in an ever-changing business environment.
Don’t let BOI reporting become a burden – Schedule a demo with FincenFetch today and take your firm’s compliance efforts to the next level.
Beneficial Ownership FAQs for Firms:
Q: What is Beneficial Ownership Information, and why is it important?
A: Beneficial Ownership Information (BOI) refers to the details of individuals who ultimately own or control a legal entity, such as a company or organization. It is crucial for regulatory authorities to have access to BOI to prevent financial crimes, such as money laundering and terrorism financing, by enhancing transparency and accountability in corporate structures.
Q: Who is required to file beneficial ownership reports under the Corporate Transparency Act?
A: Under the Corporate Transparency Act (CTA), certain corporations, limited liability companies (LLCs), and other similar entities are required to file BOI reports with the Financial Crimes Enforcement Network (FinCEN). Entities that are exempt from reporting include publicly traded companies, certain financial institutions, and entities already subject to robust reporting requirements.
Q: What information is required to be disclosed in a beneficial ownership report?
A: BOI reports typically require entities to disclose information about their beneficial owners, including their names, addresses, dates of birth, and identification numbers, such as Social Security numbers or passport numbers. Additionally, entities may need to provide details about their organizational structure and the nature of their ownership interests.
Q: Is FincenFetch suitable for firms of all sizes?
A: Yes, FincenFetch is designed to meet the needs of accounting firms of all sizes, from small practices to large enterprises. Our flexible features and customizable options make it easy for firms to tailor the software to their specific requirements.
Q: How can FincenFetch help my firm stay compliant with BOI reporting requirements?
A: FincenFetch offers a comprehensive suite of tools and resources designed to streamline BOI reporting and ensure compliance with regulatory requirements. From automated reminders to smart form guidance, FincenFetch makes it easy for firms to navigate the complexities of BOI reporting with confidence.
Q: Can FincenFetch help improve client communication and responsiveness?
A: Absolutely! FincenFetch’s automated reminders and direct data input features help enhance client communication and responsiveness. By streamlining the data collection process, FincenFetch enables firms to obtain the necessary information from clients in a timely and efficient manner.
Q: Is FincenFetch secure and reliable for storing sensitive beneficial ownership data?
A: Yes, FincenFetch prioritizes the security and reliability of your data. Our platform employs industry-leading security measures to safeguard sensitive BOI data and ensure compliance with data protection regulations. You can trust FincenFetch to securely store and manage your BOI data with confidence.
