Careful documentation can minimize the risk of tax law changes, since changes before commitment can give risk to unwinds or price adjustments, while changes after commitment are usually “grandfathered.” Let us consider a fifteen year lease of new equipment with a tax life of seven years. Let us assume the equipment costs $1 ...
The first thing you should do if you think you’ve messed up is to contact a practice management advisor in your state. These consultants usually have experience dealing with IOLTA, and rules in most states don’t require them to report ethics violations to the bar. If you’re just starting out and think you’ve set up […]
In the preceding example, the $12,000 is deductible when an equivalent amount of warranty claims are paid, resulting in future tax savings of $4,800 (i.e., 0.4 × $12,000). Net working capital, in particular, is intended to represent those assets and liabilities that are expected to have a short-term impact on cash and equity. Current assets ...
You’ll have many options for your small business by the end of the article, though we recommend Bench as the best use of your money and time (it’s also what I use to manage the books for this website). The truth is that the data stored with AWS and LEAP is infinitely more secure than a law […]
In effect, a credit facility lets a company take out an umbrella loan for generating capital over an extended period of time. The reason for this is that credit facilities are in some ways more expensive than long-term loans. Types of credit facilities include revolving loan facilities, retail credit facilities , committed facilities, letters ...
Since the outcome of contingent liabilities cannot be known for certain, the probability of the occurrence of the contingent event is estimated and, if it is greater than 50%, then a liability and a corresponding expense are recorded. The recording of contingent liabilities prevents the understating of liabilities and expenses. Like the ...