Blog Archives

5 BASiC Steps for Business Accounting Strategy Consulting

7/29/2019

Time for some "Blatant Self Promotion!"

Step 1) Begin- Give us your accounting documents.

Bank Statements, Receivables, Payables, Inventory, etc.

Step 2) Accounting– We process your information, reconcile and file.

Step 3) Statements– We prepare the Financial Statements.

Balance Sheets, Income Statements, Ledgers

Step 4) investigation– Accountant Review of Financials.

Tax Planning- Proactive planning can potentially minimize your tax burden.

Step 5) Consulting- Business Strategist Review.

Analysis of Goals, Operations, Marketing, Trends,

Step 1) Begin Again- Meet With You and Discuss Findings.

Regular Accountability through Timely, Accurate Financial Reporting

Reporting the Sale of a Business

7/22/2019

Congratulations, Now that you sold your business, there are reports you need to fill out for the IRS.

Form 8594 is used to report the sale and purchase of a group of assets that constitute a business. Both the purchaser and seller must file Form 8594 with their own individual income tax return.
On Form 8594, the total selling price of the business is allocated to asset classes using the residual method.
Form 8594 provides the IRS with the following information:

The purchaser's depreciable basis in the assets transferred, and
How the seller determined gain or loss.

Assets Classes on Form 8594
Form 8594 lists seven classes of assets. For asset acquisitions occurring after March 15, 2001, make the allocation among the following assets in proportion to (but not more than) their fair market value on the purchase date in the following order:

Class I assets:

Cash and general deposit accounts (including savings and checking accounts).
Does not include certificates of deposits held in banks, savings and loan associations, or other depository institutions.

Class II assets:

Certificates of deposit
U.S. government securities
Foreign currency
Publicly traded personal property, including stocks and securities.

Class III assets:

Accounts receivable
Other debt instruments
Assets that you mark to market at least annually for federal income tax purposes.

Class IV assets:

Property of a kind that would properly be included in inventory if on hand at the end of the tax year or
Property held by the taxpayer primarily for sale to customers in the ordinary course of business.

Class V assets:

All other assets other than Class I, II, III, IV, VI, and VII assets.
Example of assets included in this class:
Furniture and fixtures, equipment, buildings, land, and vehicles.

Class VI assets:

Section 197 intangibles (other than goodwill and going concern value).
Examples include, workforce in place, customer lists, clients lists, patient lists, trademarks, trade names.
See the list of section 197 intangibles.

Class VII:
Goodwill:

Goodwill generally represents the excess of the price paid for a business over its net asset value (also called book value). It may have the following characteristics:
It may be associated with a company's good reputation in terms of the products it sells, the services it performs, and it's standing in the community. Other characteristics of goodwill include:
It may be tied to the ability of a business to continue doing business with its existing customers and to attract future customers.
It is an intangible asset that may only be acquired as part of the acquisition of a business.
It is a section 197 intangible whose value is amortized over 15 years by the purchaser of a business.

Going concern value:

Going-concern value is the value attributed to a business entity as an on-going enterprise.
Going-concern value focuses mainly on the ability of the company's assets to generate a return on investment not simply goodwill.

If an asset described in (I) through (VI) is included in more than one category, include it in the lower number category. For example, if an asset is described in both (4) and (6), include it in (4).

Last Chance- QuickBooks Introductory Workshop

7/15/2019

Thursday, July 18, 2019 10am- Noon

If you're brand new to QuickBooks or a novice, then it is a perfect class for you. If you've been using QuickBooks for less than 2 years, you'll most certainly learn lots of interesting tips, tricks, and workarounds to help you be more effective. This class is perfectly suited for business owners, spouses of business owners, office receptionists, secretaries, office managers, sales and administrative professionals, bookkeepers and anyone who uses QuickBooks as part of their business.

You don't need any prior experience in QuickBooks or accounting. This is designed for people who are trying to decide if QuickBooks are for them and their business, people new to QuickBooks or have been using it for a short period of time. You don't need a computer as this class is not hands on. We've learned that people are able to learn so much more when they're focused on listening to the instructor.

The workshop will be held in the conference room in the Lower Level of our building:

300 N. Martingale Rd.,
Lower Level Room 80
Schaumburg, IL 60173

If you don't own a copy or subscription, no problem. Learn if it is right for your business and if it is, you can buy at half price though GLM.

Illinois Secure Choice

7/8/2019

As a follow up to a blog post here a couple of weeks ago (Click here):

Illinois Secure Choice will be sending notifications to employers, who have more than 25 employees eligible for unemployment for any 30 day period, in batches between now and the end of August/beginning of September. All Illinois employers must either have their own retirement plan or the must register for Illinois Secure Choice by 11/1/19 if they have more than 25 employees. If an employer has their own retirement plan they would need to prove that to Illinois Secure Choice to be exempted from the program. If they start Illinois Secure Choice and later decide they’d rather have their own retirement plan, they would need to prove that the plan is in place to be allowed to withdraw from the program.
The notification letters to employers will include an access code to register online. Once that registration is complete the clock starts on the program for that employer. Employers have until November 1st to begin the program, so if they don’t want to start early they should delay registering until October.
Any employee who is over 18 and is employed 30 days or more must be registered by their employer. When employees are registered they are automatically opted in for a 5% contribution to the retirement plan and they have 30 days to change that before it goes into effect. Employees will be sent information packets that include instructions on creating their online account as soon as they are registered. Employers won’t get a copy so they can’t help employees other than to direct them to Illinois Secure Choice’s employee line 855-650-6914.
Employers will transmit payroll and contribution data with each payroll and the state will withdraw it from their bank account. They will also need to regularly update the employee list with Illinois Secure Choice.

QuickBooks- An Introduction Workshop

7/1/2019

5 BASiC Steps for Business Accounting Strategy Consulting

Reporting the Sale of a Business

Last Chance- QuickBooks Introductory Workshop

Illinois Secure Choice

QuickBooks- An Introduction Workshop

GLM's Blog

Tom Gosche

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