Debits and Credits Podcast

In this episode of Debits & Credits, Michael C. Haas, CPA, explains the role of the Escrow Agents' Fidelity Corporation (EAFC) and the difference between EAFC-covered and non-covered escrow transactions. Michael discusses the history behind EAFC coverage, including the Escrow Plus case, and breaks down the types of transactions that qualify for coverage, such as real estate sales, refinances,...

In this episode of Debits & Credits, Michael C. Haas, CPA, discusses the Federal Reserve’s recent interest rate increase and what it could mean for the real estate, title, and escrow industries. Michael explains the relationship between Fed policy and mortgage rates, the potential impact on home sales and refinancing, and alternative financing options such as seller carrybacks and all-inclusiv...

With uncertainty surrounding the economy and real estate market, it can be easy for buyers, sellers, and industry professionals to become discouraged. In this episode of Debits & Credits, Michael C. Haas, CPA, talks listeners “off the ledge” by putting today’s market into historical perspective. Michael looks back at real estate cycles over the decades, including the mortgage meltdown, and exp...

In this episode of Debits & Credits, Michael C. Haas, CPA, discusses what you should consider when choosing a banking partner. He covers the importance of finding a bank that understands the escrow and title industry, fiduciary and trust accounting, and the unique demands of handling customer funds. Michael also discusses customer service, dedicated banking representatives, online banking capa...

In this episode of Debits & Credits, Michael C. Haas, CPA, takes viewers behind the scenes of a typical escrow and title audit from a CPA’s perspective, from planning and reviewing operating and trust account activity to conducting on-site fieldwork and preparing the final audit report. Michael also explains what auditors look for when visiting a client's office, including internal controls, c...

Escrow liability reporting is an important annual requirement for California escrow companies and getting it right matters. In this episode of Debits & Credits, Michael C. Haas, CPA, breaks down DFPI escrow liability reporting requirements, including the February 15 deadline, reconciled trust account balances, EAFC and non-EAFC liabilities, surety and fidelity bond considerations, and the requ...

When a real estate transaction involves multiple foreign sellers, FIRPTA withholding and reporting can become complicated. In this episode of Debits & Credits, Michael C. Haas, CPA, explains what escrow and title professionals need to know when working with multiple foreign sellers, including seller status, allocation of proceeds and withholding, and required FIRPTA documentation. Michael also...

Reporting requirements for trusts and LLCs can be confusing, especially when regulations and filing requirements change. In this episode of Debits & Credits, Michael C. Haas, CPA, discusses important reporting considerations for single-member LLCs, grantor trusts, and non-grantor trusts, including how these entities are treated for tax purposes and what business owners and trustees need to kno...

In this episode of Debits & Credits, Michael C. Haas, CPA, discusses compensation strategies that can help businesses attract, motivate, and retain top talent while remaining financially responsible. Learn the key components of a competitive compensation package, including base salary, commissions, signing bonuses, retention bonuses, performance incentives, and employee benefits. Michael also...

Accurate bookkeeping is the foundation of every successful business. In this episode of Debits & Credits, Michael C. Haas, CPA, shares practical bookkeeping and accounting best practices that can help small business owners stay organized, make informed financial decisions, and avoid costly mistakes. Michael discusses the importance of maintaining accurate financial records, selecting the right...

Ep. 27: Company Credit Cards: Best Practices Company credit cards can simplify business spending but without the right policies and controls, they can also create unnecessary financial and compliance risks. In this episode of Debits & Credits, Michael C. Haas, CPA, discusses best practices for managing company credit cards, including employee reimbursement procedures, keeping  all receipts in...

Hiring the right type of worker is an important decision for any business. In this episode of Debits & Credits, Michael C. Haas, CPA, explains the key differences between 1099 independent contractors and W-2 employees, and why proper worker classification matters.   Learn how each classification affects taxes, payroll, workers' compensation, benefits, and IRS compliance. Misclassifying workers...

Understanding where your money is going is essential to running a profitable escrow or title company. In this episode of Debits & Credits, Michael C. Haas, CPA, explains how escrow and title companies can analyze their operating expenses, identify unnecessary costs, and better understand what is affecting the bottom line. The discussion includes common business expenses such as payroll, occupa...

In this episode of Debits and Credits, Michael C. Haas, CPA discusses the importance of internal audits and how they help escrow companies maintain accuracy, strengthen internal controls, and ensure regulatory compliance. Michael explains how regular internal reviews can identify errors, improve operational processes, and provide valuable training opportunities for escrow officers and staff. He al...

In this episode of Debits and Credits, Michael C. Haas, CPA explores the current real estate economic forecast and the key trends shaping today's housing market. From interest rates and inflation to inventory levels, lending conditions, and market activity, Michael discusses the economic factors influencing buyers, sellers, investors, and real estate professionals. #haasanddawe #realestate #escrow...

In this episode of Debits and Credits, Michael C. Haas, CPA walks through the key steps to starting your own escrow company. From business formation and licensing requirements to obtaining an EIN, securing a surety bond, fidelity coverage, Errors & Omissions (E&O) insurance, and meeting California regulatory requirements, Michael provides a practical roadmap for launching an independent es...

In this episode of Debits and Credits, Michael C. Haas, CPA discusses how escrow companies can effectively work with outside regulators and why preparation is essential for maintaining compliance. Michael explains the roles of agencies such as the Department of Financial Protection and Innovation (DFPI), the Department of Real Estate (DRE), and the California Department of Insurance (CDI), and sha...

In this episode of Debits and Credits, Michael C. Haas, CPA takes an in-depth look at DFPI Regulatory Audits and what licensed California escrow companies should expect during a regulatory examination. Michael discusses the role of the California Department of Financial Protection and Innovation (DFPI), audit procedures, trust account reconciliation requirements under CCR § 1732.2, and financial r...

In this episode of Debits and Credits, Michael C. Haas, CPA discusses Notary Best Practices from an Escrow Perspective. He covers key considerations when selecting a notary or signing service, the importance of working with trusted professionals, common fee structures, liability concerns, and the benefits of maintaining an in-house notary program.  Michael also explains how proper notary procedure...

In Episode 18 of Debits and Credits, Michael C. Haas, CPA discusses Unclaimed Property Laws and the responsibilities businesses have when handling dormant or abandoned funds. Michael explains the process of escheatment, the purpose of notice reports and remit reports, and how businesses must comply with state reporting requirements for inactive accounts and unclaimed property. This episode provide...

In this episode of Debits and Credits, Michael C. Haas, CPA breaks down the Pass-Through Entity Tax (PTET) and how this state tax election may provide federal tax benefits for owners of pass-through businesses. Michael explains how PTET works, who may qualify, and why it has become an important tax planning strategy for partnerships and S corporations. #PTET #PassThroughEntityTax #TaxPlanning #Bus...

In this episode of Debits and Credits, Michael C. Haas, CPA discusses the essential insurance coverage escrow companies should consider to help protect their business operations, client funds, and financial security. Topics include surety bonds, Errors & Omissions (E&O) insurance, cyber insurance, workers’ compensation coverage, and protections offered through the Escrow Agents’ Fidelity C...

In this episode of Debits and Credits, Michael C. Haas, CPA discusses trust accounting best practices and the importance of internal controls in protecting client funds. Topics include trust account reconciliation requirements under California Code of Regulations § 1732.2, fraud prevention tools such as Positive Pay and Payee Positive Pay, and the role of manual control reviews in identifying erro...

In Episode 14 of Debits and Credits, Michael C. Haas, CPA highlights the importance of trade organizations in the escrow industry, including the American Escrow Association (AEA), Escrow Association of California (EAC), and California Escrow Association (CEA). Michael discusses how these organizations support escrow professionals through education, advocacy, and industry standards, while helping m...

In this episode of Debits and Credits, Michael C. Haas, CPA breaks down a key FinCEN reporting update affecting settlement agents nationwide. He explains the new requirements for reporting buyers in all-cash real estate transactions, including seller carry-backs and hard-money loans, and how these rules aim to monitor potential money laundering. Originally set for December 1, 2025 and deferred to...