7 Year-End Tax Planning Moves for Small Businesses

November 1, 2018
tax planning

Year-end tax planning for small business has changed under the new tax law.

Business owners still have time to significantly reduce their tax bills for 2018. Here are seven year-end moves to consider, taking into account changes included in the Tax Cuts and Jobs Act (TCJA).  Read more

Tax Law Expands Accounting Method Options for Small Businesses

August 14, 2018
Accounting Method

The Tax Cuts and Jobs Act allows more companies to qualify for the cash basis method and elect out of complex inventory and percentage-of-completion accounting rules.

Thanks to changes included in the Tax Cuts and Jobs Act (TCJA), many more businesses can now use the simpler and more-flexible cash method of accounting for federal income tax purposes. The new law also includes some other tax accounting changes that are good news for small businesses. Like many TCJA changes that apply to businesses, these provisions are permanent. Here’s what you need to know. Read more

Consider an Alternate Metric to Value Your Small Business

October 18, 2017
Small business

The SDCF metric may be a more meaningful metric to value your small business.

Would you use a complicated discounted cash flow analysis to estimate the value of a mom-and-pop restaurant? How about using a price-to-earnings multiple derived from publicly traded restaurant chains? Neither method seems appropriate for a small family-operated eatery.

As this example illustrates, traditional valuation models don’t necessarily work for small businesses and professional practices. Instead, business appraisers and brokers typically recommend using an alternate metric for appraising small businesses known as “seller’s discretionary cash flow” (SDCF). Read more