Posts by Cougar Digital
Working Capital: A Potential Valuation Sleeper
Working capital is sometimes overlooked in determining the value of a business. But it can have a material effect on value, so it’s important to remember. A business’s working capital equals the difference between its current assets and current liabilities. When the value of a business is determined under either the income or the market approach,…
Read MoreHow to Avoid Tax Pitfalls when Making Corporate Loans to Shareholders
How to Avoid Tax Pitfalls when Making Corporate Loans to ShareholdersInterest rates have increased substantially over the last two years. While rates are still reasonable compared to historical levels, shareholders may decide to take out loans from their companies, rather than pay higher interest rates on bank loans. When doing so, it’s important to follow the…
Read MoreProtecting Your Privacy from Trigger Leads
Applying for a residential mortgage loan can be time-consuming and stressful. And nowadays, home buyers have another stress to contend with when applying for financing: They may be bombarded with unsolicited “trigger leads” from competing lenders — or scammers may try to access an applicant’s personal data. As a lender evaluates your loan application, it accesses…
Read MoreManage Risks When Terminating an Employee
Terminating or disciplining an employee is fraught with legal, compliance and safety issues. In the worst case scenario, violence can occur. Red Flags from the FBIThe FBI has published a handbook entitled Workplace Violence.In that publication, the agency notes that when employee violence occurs, there is a “chance that some warning sign will have reached the employer in…
Read MoreHow To Get More from Your Business Valuation
When owners and managers receive business valuations, the first thing they typically do is flip to the conclusion to see what it’s worth. Often, little attention is given to the analyses underlying the final number, especially if the report was prepared for internal planning or financial reporting purposes. But it’s always a smart idea for the…
Read MoreSocial Security Tax Update: How High Can It Go?
Employees, self-employed individuals and employers all pay the Social Security tax, and the bite the Social Security tax takes gets bigger every year. Here’s what you should know — and why you should be concerned. Projected Social Security Tax CeilingsThe Social Security tax hit on your income is expected to get much worse in future years, according…
Read MoreHelp Wanted: Hiring Your Kids to Work for Your Small Business
If you own a small business, you might consider hiring your kids to work during their time off from school. In addition to teaching your children some financial responsibility and business sense, there are some tax advantages to factor into your decision. Here are the details. Tax Advantages for Your ChildThere are special tax breaks for…
Read MoreUse Overtime Prudently or You’ll Incur Major Risks
When companies depend on overtime to meet productivity goals, they can’t ignore or minimize the stress and disruptions it causes in their workers’ lives. The risks — especially now that so many employees have made it clear that they’ll voluntarily leave their jobs — are too great.What’s more, if a business becomes overly dependent on overtime,…
Read MoreConsider Tax Issues When Valuing a Business for Divorce
Let’s say divorcing spouses own part of the stock in a closely held corporation. This may be one of their biggest marital assets, and often one spouse decides to buy out the other party’s shares by transferring some assets in exchange for the stock. Before jumping headfirst into these transfers, it’s important to consider the expected…
Read MoreDos and Don’ts for Business Expense Deductions
As tax season heats up, companies of all kinds and sizes will be on the hunt for ways to reduce their tax bills. One of the most common ways is through business expense deductions, but not every such expense is deductible. Here’s what to know about the expenses that you can — and can’t — properly…
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