Start Up/Entity Selection
Starting from scratch affords unique and challenging obstacles for a business. Every decision made will have a lasting impact on your success. We are here to provide expertise in the areas that you may lack and present solutions to seemingly unsolvable questions. We will support and advise you on the necessary steps to start your business. From the type of entity to filing the articles of incorporation, we are here to facilitate your success.
Business Plans
The road map to your success and one of the most important tools guiding your business fortune is a business plan. This is usually needed when starting, expanding, or acquiring a business. Lenders or investors normally require business plans and we can help you prepare a professional plan specific to your needs.
Among the items that can be included in a business plan are the following:
- Company Description
- Competitive Environment
- Business Risks
- Management Team
- Operating Strategies
- Financial Projections
Budgets/Forecasts/Projections
Budgets: A budget is a forecast of all revenue and expenditures. It is organized in the same format as a financial statement and normally covers a twelve month period. For a budget to be effective it should include a balance sheet, an income statement and a cash flow statement. This allows a complete comparison of budget to actual financial statements. Differences between budget and actual are analyzed and explained thus used as a management tool in planning.
Forecasts: A forecast is management's assumptions reflecting conditions it expects to exist and the course of action it expects to take presented in the form of prospective financial statements. It is the best of management's knowledge and belief, of the entities expected financial position, results of operations and cash flows.
Projection: A projection is a financial projection prepared to present one or more hypothetical courses of action to reflect the answer to “What happens if”? It is presented in the form of prospective financial statements to the best of management’s knowledge and belief, the entities expected financial position, results of operation, and cash flows.
Financing Options
Different sources of financing are necessary for various stages of growth. Whether for start-up or expansion, we will provide an in-depth analysis unique to your business situation and customize the appropriate options best suited for your success. The following are various types of financing that can be considered:
- Venture Capital (capital in exchange for equity)
- Asset Based Financing (collateral)
- Long Term Debt (Banks, Government (SBA) Small Business Investment Co. (SBIC), Private Lenders
- Line of Credit (Revolving Account)
- Letter of Credit (Bank Guarantee)
- Floor Planning (Inventory Collateral)
- SCOR (Small Company Offering Registration) – Common Stock to the public
- Loan Workout (Repayment Options for Problem Loans)
Internal Controls
Internal accounting controls comprise the methods and procedures associated with safeguarding assets and assuring the reliability of accounting data. It is a process designed to provide reasonable assurance regarding the achievement of objectives in three categories:
- Effectiveness and efficiency of operations
- Reliability of financial reporting
- Compliance with applicable laws and regulations
It is defined as an accounting procedure or system designed to promote efficiency, assure the implementation of a policy, safeguard assets, or avoids fraud and errors etc.
It can help an entity achieve its performance and profitability targets and prevent loss of resources. It can help ensure reliable financial reporting and it can help ensure that the enterprise complies with laws and regulations, avoiding damage to its reputation and other consequences.
Is your internal control where it should be?
Cash Flow Management
Effective cash management practices will influence your company’s growth and survival. In fact, one of the most important aspects of cash flow management is avoiding cash shortages. Performing a cash flow analysis on a consistent basis will help alert management of cash flow needs or problems.
We will analyze, develop, and implement appropriate strategies to help maintain an adequate cash flow.
Business Valuation
What is the value of your business? Most people will answer “I don’t know!” The right answer is whatever a buyer is willing to pay and a seller is willing to accept. A Business Valuation is a mixture of art and science with a blend of proficiency and expertise to arrive at a fair value.
Business Valuations are used for the following reasons:
- Selling a business
- Buy/sell agreements
- Succession planning
- Estate planning
- Divorce
- Litigation
- Issuing stock
- Merger
We will thoroughly investigate and analyze your operations and financial data in order to provide a solid foundation to construct your business valuation. Our extensive efforts and due diligence will provide you with reasonable, fully documented valuation opinion.
Acquisition/Mergers
Many refer to the term “M&A” when discussing mergers and acquisitions. It involves a blend of finding strategies and experienced management to combine companies and their assets. It can be friendly or it can be hostile.
The process of buying and selling a company can be slow, difficult and expensive. So, whether you aim to reduce market competition, cut costs, or build your empire, we are here to help.
We will help you with the appropriate financial analysis focusing on market conditions and your goals and motivations. We advise and guide you through alternative financing, financial disclosures, non-compete agreements, and any other M&A considerations.
Litigation Support
From referrals, to coordination of experts, to the court room, we are here to provide assistance of an accounting, tax or other business nature in matters involving existing or pending litigation.
We will assist you in obtaining documentation necessary to support or refute a claim. After assessing the relevant facts, we will identify areas of loss and formulate areas of strengths and weaknesses of the position taken.
We can also provide assistance with discovery, review of opposing expert’s reports, settlement discussions and negotiations, and attendance at trial.
Forensic Accounting
Forensic as the name implies is a specialized science, integrating accounting, auditing, and the investigative skills of a highly trained professional to look beyond the numbers and relate and structure facts with the reality of the business situation.
We will analyze, interpret, summarize and present complex financial and business related issues that will be both understandable and properly supported.
The following are areas in which we may be of assistance:
- Criminal Investigations
- Shareholders and Partnership Disputes
- Business Interruption
- Employee Fraud
- Matrimonial Disputes
- Business Economic Losses
- Professional Negligence
Agreed Upon Procedures
An agreed-upon procedure is one where the accountant performs specific procedures and reports the findings. This is not an examination or an opinion but only a report on the procedures and findings. The report can be on financial or non-financial information.
This service often happens when an entity needs information verified or there needs to be credibility to the information.
Medical Reimbursement Plans
As you are no doubt aware current tax law allows profitable self-employed individuals to deduct 100% of their insurance premiums from adjusted gross income (AGI). This deduction, however, does not allow for any uninsured medical expense unless they qualify as an itemized deduction. To qualify, these expenses must exceed 7.5% of AGI and only that excess is deductible. And neither deduction reduces self-employment taxes, but the Medical Expense Reimbursement Plan does.
The Medical Expense Reimbursement Plan (MERP) we offer is called the StarPlan which qualifies medical expenses as a business deduction.
Here’s how it works:
- Adopt a medical reimbursement plan.
- Include all eligible employees who elect to be covered.
- Have spouse perform services and become an employee.
- Obtain insurance coverage in spouse’s name.
- Have all electing employees report expenses annually (or more frequently) for reimbursement.
- Provide employees at least annually with an itemized report of expenses.
What tax savings can be realized?
EXAMPLE: You are a Kansas employer with only family members as employees and you are currently in the 25% federal tax bracket. Your annual unreimbursed medical expenses are:
$ 2,000 |
|
.45 |
TAX FACTOR (incl. Est. SS & St. taxes) |
$ 900 |
APPROXIMATE ANNUAL SAVINGS |
Of course, the higher the expenses and/or the effective tax rate, the greater the savings.
How can this plan be implemented?
- Call us. Simple enrollment forms are now available.
- Complete & return easy-to-use medical/insurance expense reports by January 15.
- Pay an annual fee of $245 (includes employer and spouse) plus $50 per electing employee by December 31 of reporting year.
It’s easy to see that as little as $545 of unreimbursed or currently non-deductible expenses/premiums using our previous example more than pays for the plan.
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