Whether you are a business owner, employee, or investor, understanding how to read and understand the information on a balance sheet is an essential financial accounting skill. […]
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Category: Newsletter
Typical Types of Accruals on the Balance Sheet
The revenues that a company has not yet received payment for and expenses that companies have not yet paid are called accruals. There are four types of accruals that are typically recorded on the balance when the company follows the accrual method of accounting. […]
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Accrual Method of Accounting
Accrual basis accounting is a method of accounting that records transactions when they occur, not when cash is received or paid out. The accrual method of accounting is used to recognize revenue and expenses in the fiscal year they are earned or incurred. […]
Cash Method of Accounting
Cash basis accounting is a method of accounting that records income when cash is received and expenses when they are paid. It is also known as the cash method of accounting. The cash basis of accounting is usually followed by individuals and small companies. […]
Follow the Cash Flows of the Acquisition to Understand the True Return to the Sellers
Cross-border acquisitions usually have additional complexities as the laws of more than one country must be planned for and coordinated. Typical acquisition planning in one country may be different than in another country. A structure that is common in one country may significantly change the deal for an acquiror or target in another country. […]
Strategic Coordination of Accounting and Tax for the Family Office and Dynasty Trust
The typical family office has a sophisticated tax structure that must blend income tax planning with estate tax planning. The structure typically involves a number of business entities that will include owners involving individuals and one or more dynasty trusts for efficient estate and gift tax planning. […]
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Structuring for Tax-Exempt Investors
Tax implications often determine how certain types of investors will invest in a fund. There are various categories of investors that have competing tax implications so it is important that the fund can accommodate the competing tax interests of the investors. One category of investors are tax-exempt investors and planning for unrelated business income tax (“UBIT”). […]
U.S. Taxation of U.S. Citizens and U.S. Tax Residents Residing Overseas – Taxation and Reporting of Certain Foreign Assets
U.S. citizens and U.S. tax residents (“U.S. Persons”) who reside outside the U.S may have investments or assets that require special reporting or have alternative tax regimes. It is important the U.S. Person or their tax advisor understands these specialized tax rules in order to avoid punitive tax regimes or penalties to properly file the required informational reports. […]
U.S. Taxation of U.S. Citizens and U.S. Tax Residents Residing Overseas – Foreign Bank Accounts
The government does not annually tax wealth. However, the IRS wants to know about funds U.S. Persons have in foreign bank accounts. There are now two different reporting requirements for foreign bank accounts, the Foreign Bank Account Report (“FBAR”) and the individual reporting requirement under the Foreign Account Tax Compliance Act (“FATCA”). […]
U.S. Taxation of U.S. Citizens and U.S. Tax Residents Residing Overseas – Mitigation of Double Taxation
There are two methods that a U.S. Person living abroad can use to reduce their U.S. tax liability. The two methods are the Foreign Earned Income Exclusion (“FEIE”) and the Foreign Tax Credit (“FTC”). Even if one of these methods were to eliminate the U.S. Person’s U.S. tax liability, the U.S. Person is still required to file their U.S. tax return if their income exceeds the filing thresholds for the tax year. […]
