Auburn-Opelika (334) 887-7022 | Montgomery (334) 244-8900

Returning Value Blog

When Interest Rates Rise, Optimizing Tax Accounting Methods Can Drive Cash Savings

Posted by Marty Williams, CPA on Jul 21, 2022

U.S. businesses have been hit by the perfect storm. As the pandemic continues to disrupt supply chains and plague much of the global economy, the war in Europe further complicates the landscape, disrupting major supplies of energy and other commodities. In the U.S., price inflation has accelerated the Federal Reserve’s plans to raise interest rates and commence quantitative tightening, making debt more expensive. The stock market has declined sharply, and the prospect of a recession is on the rise. Further, U.S. consumer demand may be cooling despite a strong labor market and low unemployment. As a result of these and other pressures, many businesses are rethinking their supply chains and countries of operation as they also search for opportunities to free up or preserve cash in the face of uncertain headwinds.

Full Story

Posted in Business Advisory

How Do Taxes Factor Into an M&A Transaction?

Posted by Nick Wheeler, CPA on Jul 07, 2022

Although merger and acquisition activity has been down in 2022, according to various reports, there are still companies being bought and sold. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law.

Full Story

Posted in Business Advisory

Construction Ahead: Opportunities and Challenges in 2022

Posted by Michael D. Machen, CPA, CVA on Jun 23, 2022

The Infrastructure Investment and Jobs Act (H.R. 3684) will inject approximately $3 trillion into upgrading and expanding U.S. infrastructure, presenting a long horizon of opportunity for the construction industry.

Full Story

Posted in Business Advisory

Help When Needed: Apply the Research Credit Against Payroll Taxes

Posted by Marty Williams, CPA on Jun 07, 2022

Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses to undertake or increase their research activities. On the other hand, if you’re engaged in or are planning to engage in research activities without regard to tax consequences, be aware that some tax relief could be in your future.

Full Story

Posted in Business Advisory

How Inflation Could Affect Your Financial Statements

Posted by Jessica L. Pagan, CPA on May 20, 2022

Business owners and investors are understandably concerned about skyrocketing inflation. Over the last year, consumer prices have increased 8.3%, according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index (CPI) covers the prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. This was a slightly smaller increase than the 8.5% figure for the period ending in March, which was the highest 12-month increase since December 1981.

Full Story

Posted in Business Advisory

Do You Know the Signs of Financial Distress in a Business?

Posted by Michael D. Machen, CPA, CVA on May 19, 2022

Financial statements tell only part of the story. Investors, lenders, and other stakeholders who know how to identify red flags of impending problems can protect their own financial interests. Additional due diligence may be needed to uncover these issues. For instance, stakeholders might need to talk to management, visit the company’s website and compute financial benchmarks using the company’s most recent financial statement. Here’s what to look for.

Full Story

Posted in Business Advisory

Forecasts vs. Projections: What's the Big Difference?

Posted by Nick Wheeler, CPA on May 18, 2022

Financial statements look at historical performance. But there are times when you want forward-looking reports to help your business make strategic investment decisions, evaluate the viability of a turnaround plan or apply for a loan. Your accountant can help ensure the assumptions underlying prospective financial statements make sense in today’s volatile marketplace.

Full Story

Posted in Business Advisory

Tax Considerations When Adding a New Partner at Your Business

Posted by Marty Williams, CPA on Apr 19, 2022

Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are sufficient so that the decrease in your portions of the partnership’s liabilities because of the new partner’s entry won’t reduce your bases to zero.

Full Story

Posted in Business Advisory

The Rise of Electric Vehicles

Posted by Michael D. Machen, CPA, CVA on Mar 18, 2022

Convergence of the Industry

The automotive industry is experiencing a convergence of disruptions unlike any seen since 1910. Autonomous, connectivity, electrification, mobility, and subscription business models are reshaping the automotive industry and creating a frenzy of activity.

Full Story

Posted in Business Advisory, News & Events

Establish a Tax-Favored Retirement Plan

Posted by Marty Williams, CPA on Mar 16, 2022

If your business doesn’t already have a retirement plan, now might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions.

Full Story

Posted in Business Advisory

Recent Posts

Returning_Value