Can You Prevent Identity Theft?

Several of our clients have received a letter from the IRS validating the amount of the refund they are to receive when they haven’t even filed their return.  Worse yet, when they file their return electronically, the return is rejected because another return has already been filed using their social security number. No matter where
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Understanding Your Financial Statements, Does your CPA Help?

Many small and medium size business owners get their monthly or quarterly financial statements and only look to see whether or not they were profitable and then file them away.  I had one business owner tell me he really didn’t understand what the balance sheet or cash flow statement meant and was embarrassed to ask.
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Proposed DOL Rules May Make Millions Eligible For Overtime Pay

In his 2015 state of the Union Address, President Obama said employees should be paid for the overtime they work.  He then instructed the Department of Labor (DOL) to review and amend the overtime rules. On June 30, the DOL proposed significant changes to the federal overtime rules that exist today.  Today overtime pay is
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Understanding Working Capital in the Sale of a Business

We’ve come across several sales transactions in the last year and the concept of Net Working Capital (NWC) is always a point of contention once the deal is closed. A typical deal is priced on a debt-free/cash-free basis, meaning the seller retains the cash but also pays off any debt with the proceeds of the
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Is EBITDA The Same As Cash Flow?

EBITDA is often used and confused as a proxy for operating cash flow but there are two reasons EBITDA does not equal cash flow. But first understand that EBITDA is used throughout the business community from valuation multiples to covenants in credit agreements.  It is the standard metric in the business world when discussing the
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The Profile of a Fraudster

The ACFE’s 2014 Report to the Nation on Occupational Fraud and Abuse analyzed 1,483 fraud cases and determined the following of the person committing the fraud: 42% were staff-level; 36% were mid-level managers 55% worked alone in committing their scheme 52% were between the ages of 31 and 45 47% had worked for the organization
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A Tax Break that is Actually Free

Tax credits and incentives usually come at a cost that is tied to some kind of increased spending for the taxpayer.  However, there is a tax incentive for “manufacturer’s” that is free. It’s referred to as the Section 199 deduction (referring to the section of the Internal Revenue Code where the deduction is explained) and
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Corporate Fraud Detection: Investigating Fraud in Your Company

Unfortunately, corporate fraud detection is something that business owners must seriously consider, because the consequences of inaction can be dire for an organization. In its 2012 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) stated that, among its survey participants, the typical organization loses 5% of its revenues to fraud each year.
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