Maloney + Novotny LLC

Should you disclose a pending lawsuit, government investigation or other contingent liability? The answer requires a judgment call about whether the contingent loss is “remote” (has a slight chance of occurring), “probable” (is likely to happen) or “reasonably possible” (falls somewhere between remote and probable). How a loss is categorized determines whether it should be disclosed and/or reported on the balance sheet and income statement. Accurate reporting of contingencies helps business owners and other stakeholders manage potential risks and make informed financial decisions. Contact us for help navigating the rules for identifying, estimating and disclosing contingent liabilities.

Welcome to the Firm, Katrina Miller.

A comprehensive business valuation is essential when conducting due diligence for a merger or acquisition involving an emerging-market company. Doing business in these regions provides tremendous growth opportunities but also brings significant risks. Experienced valuation professionals consider such factors as local market conditions, political and economic risks, operational barriers, access to capital, and corporate governance standards. These factors may affect the cash flow forecasts and discount rates used to estimate the target company’s value. Contact us for help assessing and navigating the complexities of emerging-market M&As.

Even if you’re confident your organization operates with integrity, a code of ethics can help prevent fraud, guide staffers in their decision-making and reassure donors. Think of it as a statement of how you, your staff and volunteers, and your board practice ideals and put values into action. Start the drafting process by reviewing your mission statement and strategic plans to identify values such as fairness, justice and accountability. Also consider any applicable licensing requirements, conflicts of interest, governance and legal compliance. Your board must approve the code before you implement it.

M+N would like to congratulate Jeremy Shattell on passing his CPA exam! Great work! #CPA #accounting

If you hold an interest in a business that’s closely held or family owned, a buy-sell agreement should be a component of your estate plan. The agreement provides for the orderly disposition of each owner’s interest after a “triggering event,” such as death, disability, divorce or withdrawal from the business. It accomplishes this by permitting or requiring the company or the remaining owners to purchase the departing owner’s interest. It’s essential to revisit the agreement’s valuation provision (the mechanism for setting the purchase price for an owner’s interest) to ensure that it reflects the business’s current value. Contact us with questions.

Access to timely, accurate financial data is critical to your business’s success. However, small business owners may not have the time or patience to handle tedious bookkeeping tasks or the resources to hire a full-time, in-house bookkeeper. Outsourcing these tasks to a third-party provider can be a smart decision for five key reasons: 1) lower costs and scalability, 2) enhanced accuracy, 3) expanded access to financial expertise, 4) improved timeliness, and 5) the use of advanced security protocols. Outsourcing your bookkeeping helps alleviate stress by ensuring your financial records are up-to-date, accurate and secure. Contact us to help you work smarter, not harder.

In business valuation, should a marketability discount be taken on a controlling interest? “Marketability” refers to the ability to quickly convert property to cash at minimal cost. Marketability discounts are well established when valuing minority interests in private businesses. But applying them to controlling interests is somewhat controversial, though courts sometimes accept them. The underlying logic is that fair market value is a cash equivalent amount, but private businesses take time, cost and effort to sell, and sales may include noncash terms. The application of marketability discounts can vary significantly from one valuation to the next. Contact us to learn more.

To reduce rent expenses, your not-for-profit might want to consider sharing a workspace. Options include teaming up with another nonprofit to share space, utilities, equipment and even staffers. Or you might join a commercial shared workspace that houses many types of organizations, including for-profit businesses. Some spaces offer back-office services such as HR and IT. Or a private foundation may have more space than it needs and be willing to rent part of it to you at a reduced rate. Of course, in some areas, office space is ample and you may be able to find a deal. Contact us to discuss the best course of action.

The Business Ownership Information (BOI) reporting due date is approaching, please review the requirements here https://lnkd.in/d3tNDZBV to plan accordingly. #taxplanning