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Turn to Business Valuation Pros for QoE Reports
Financial statements provide the data to support prices in mergers and acquisitions (M&As). But are those reported results reliable and sustainable? After all, the value of a business is based on expected future earnings, not historical results. A quality of earnings (QoE) report prepared by a qualified business valuation professional provides critical insight into earnings, [...]
ACA Penalties May Still Apply — and They’re Increasing for 2026
Many small businesses don’t have enough employees to worry about the play-or-pay provisions of the Affordable Care Act (ACA). However, as your business grows, these rules can apply sooner than expected. This issue also may not be on your radar because there’s a common misconception that the repeal of ACA penalties under the Tax Cuts [...]
What You Need to Know About Filing an Extension – and Minimizing Penalties
If you don’t have everything ready to complete your federal individual income tax return by the April 15 deadline, you can request an automatic extension. Filing Form 4868, “Application for Automatic Extension of Time To File U.S. Individual Income Tax Return,” by April 15 can give you breathing room to file accurately and protect you [...]
Help Stop Staged Accidents from Raising Your Insurance Costs
According to the FBI, staged auto accidents account for approximately $20 billion a year in losses. This type of insurance fraud is particularly harmful to the insurance companies that must pay out liability, disability, medical and other types of claims. All of this may sound troubling, but what does it have to do with non-insurance businesses? [...]
FAQs About the Research Credit
Companies that engage in research and development activities may qualify for a federal tax credit for some of those expenses. The credit is complicated to calculate, and not all research activities are eligible — but the tax savings can be significant. Here are answers to questions you might have about this potentially lucrative tax break. [...]
Are Your Eligible for Mileage Deductions?
It’s important to know if you can deduct vehicle-related expenses. A change that was made permanent by last year’s One Big Beautiful Bill Act (OBBBA) limits who can claim a deduction for business mileage. But you might still be eligible, and deductions also may be available if you use your vehicle for certain non-business purposes. [...]
How Valuators Bridge the Gap Between Private and Public Company Values
Business valuation professionals routinely rely on public stock market data when valuing private businesses. However, experts also recognize the key differences between public and private companies and adjust their analyses to generate reliable and defensible value conclusions. Comparing apples to oranges The New York Stock Exchange and other public markets provide readily available, objective pricing [...]
Debt vs Equity: Classification Counts When Shareholders Put Money Into Their Corporations
If you operate your business as a C corporation, how you put money into your company — and how you take it back out — can have a major impact on your tax bill. Payments from shareholders to fund the business can either be classified as capital contributions (equity) or shareholder loans (debt). That might sound [...]
Should Your Business Consider a Fiscal Year-End?
Most businesses close their books for tax and accounting purposes on December 31 because it aligns with the calendar year. But a calendar year isn’t always the best option. For some companies, choosing a fiscal year end that better reflects their business cycle can improve financial reporting and simplify year-end procedures and tax filing. Here’s [...]
Recognize Lulling Tactics and Limit Your Business’s Fraud Losses
“Lulling” may sound comforting, but in a fraud context, it’s far from it. This term refers to techniques fraud perpetrators use to prevent suspicious businesses or individuals from asking questions, getting angry — or even contacting law enforcement. To lull someone into inaction, a fraudster might offer excuses, make promises, blame delays on someone else [...]
It’s Your Last Chance to Claim These Clean Energy Tax Breaks
Last year’s One Big Beautiful Bill Act (OBBBA) terminated several clean energy tax incentives earlier than previously scheduled. But if you bought an electric vehicle or made certain green home improvements last year, you might be eligible for a tax credit on your 2025 individual income tax return. Remember, tax credits reduce your tax liability [...]
Liquidation Value Can Shape Critical Business Decisions
Most business valuations focus on the company’s value as a going concern, but some situations call for a different premise of value. When a business is struggling to stay afloat, it may be more appropriate to evaluate liquidation value. Here’s a closer look at situations where business valuation professionals might use this alternate premise of [...]
Business Deductions for Four-Legged Coworkers
Did you know that you can claim tax deductions for animals that serve a bona-fide business purpose? This benefit extends beyond agricultural operations. Working animals in many sectors may qualify. Here are the details. Working animals vs. personal pets A working animal must provide a clear and direct business benefit. Common examples include: Dogs used [...]
Don’t Get Burned When Partnering with a Social Media Influencer
Businesses commonly use social media platforms to increase brand and product awareness and drive traffic to their websites. Partnerships with “influencers” can be integral to these efforts — particularly if your company sells consumer goods or services. But how well do you know your influencers? Some may exaggerate their reach or even perpetrate fraud to [...]
Options for Forfeited Employee FSA Balances
Many businesses offer health care and dependent care flexible spending accounts (FSAs) as part of their employee benefits package. These plans provide valuable tax savings to employees and payroll tax savings to employers. If your company operates a calendar-year FSA with a 2½-month grace period, employees have until March 15, 2027 to incur eligible expenses [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
