here’s what you’re looking for: edward mendlowitz

client service opportunities

eight ways to value a family-owned business

scales, money and gavelwhy fair market value can’t always be used.

by ed mendlowitz
77 ways to wow!

there are many ways and purposes for valuing a privately owned business. there is no one “right” way. an appropriate method should be determined depending upon the reason and use for the valuation. here are explanations of some of the most used methods.

more: solos need plans for death, disability | when an owner dies without a buy-sell agreement | due diligence is in the details | manage better with the right financial tools | do you need a forensic professional? | six benefits of an internal audit
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

fair market value

many people refer to a business’ value as its “fair market value” but this is generally a misused term. its derivation is from a 1959 irs revenue ruling that specifically addresses valuations for gift and estate tax purposes and does not necessarily provide a reasonable valuation for other uses.
read more →

pro member exclusive

tax reviewers can advance, with a push

two people talking and smiling in officeseven management tasks to adopt.

by ed mendlowitz
how to review tax returns: the field-tested update

reviewers are the team leaders of tax season. there are many people involved in the process, but an aware reviewer can and should be the team leader.

more: what makes an excellent tax return reviewer | ‘quick and dirty’ tax review | three ways to improve tax returns | don’t use eyes, use brain | three types of tax return reviews | tax review procedures are your quality control | how to turn tax returns into new business
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

every return passes through the review department. some reviewers, like some staff and even some partners, do what they are supposed to do, and they do it well and with pride, but they do not step over the boundary of what they perceive their job is to do. the leaders step forward and assume responsibility!
read more →

management

solos need plans for death, disability

"sorry we're closed" sign hanging in windowchecklists for pre-planning … and for recovery in a worst-case scenario.

by ed mendlowitz
77 ways to wow!

every sudden death or disability is a tragedy. for those who own a business and do not have a contingency plan in place, their legacy is confusion, high costs, stress and anxiety for their family, employees, customers, vendors and everyone else who depends on that business in some respect.

more: when an owner dies without a buy-sell agreement | are you ready for a co-owner to drop dead? | simple controls can prevent fraud | charity directors must take theft seriously | forensic techniques can be fraud deterrence | the hazards of poor internal controls | rule #1: start with cash
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

businesses are organic in that many people depend on them for many things and do become part of people’s lives. owners who do not plan, shortchange those they leave behind … saddling them with doubt and many times with unnecessary and unfavorable consequences. lack of planning is not done through ignorance, but through arrogance. making plans for your death is difficult and unpleasant … but it is a necessary part of life. it is a courtesy for those closest to you who contributed to your success.
read more →

checklist

what makes an excellent tax return reviewer

bonuses: a 10-question test (and answer key), plus 18 other issues you might want to test.

by ed mendlowitz
how to review tax returns: the field-tested update

firms have to decide who will do the tax return review, and how qualifed they are for this. ideally, trained tax department personnel are the primary reviewers. however, the bunching and compression of work often shifts some of the review to higher level, non-tax personnel such as audit managers and partners who might not have the comprehensive training, background, knowledge and experience to handle everything that comes up during the tax preparation process.

more: ‘quick and dirty’ tax review | when returns should be submitted for review | tax follow-up worksheets can mean more revenue | stop tax return review shortcuts | routine is key to reviewing tax returns | seven types of tax return reviews
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

additionally, in many firms, almost everyone on the staff will prepare some returns to ease the almost insurmountable burden on the tax department. that lack of trained preparers, though, places an added burden on the reviewers, making it important for them to be more aware and alert when they perform the review.
read more →

advisory & consulting

when an owner dies without a buy-sell agreement

three ways to value the business. four lousy alternatives.

by ed mendlowitz
77 ways to wow!

the right thing to do is have a buy-sell agreement, but many owners stupidly neglect to get this done. here is a suggested buyout plan where one owner drops dead, unexpectedly, and there is no agreement.

more: are you ready for a co-owner to drop dead? | you don’t need this, but your survivors do | five ways to ward off fraud in not-for-profits | client hires new manager: you need a plan | anatomy of a fraud
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

a caveat is that the right way is to engage an appraiser to determine the value and go through an entire process that was explained in my previous post. however, with smaller businesses where the families want to keep costs low, not cause excessive time and stress, and remain friends … what follows is a suggested plan. this might not work in every situation and is certainly not ideal. however, it does offer a manageable method of price and terms.
read more →

checklist

‘quick and dirty’ tax review

… in 17 steps.

by ed mendlowitz
how to review tax returns: the field-tested update

everything i suggest in my handbook is recommended and works well. each firm will use and adopt what they want and what fits into their practice.

more: when returns should be submitted for review | 10 errors that ‘smart’ scanners make | tax: the procedural checklists your firm needs | the best way to review a tax return | why you can’t skip checklists | how to turn tax returns into new business
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

many times, i am asked for a quick down and dirty suggested review method, so i put the following together. this should not be a substitute for reading the handbook and considering all my recommendations. reviewing is a process, not a thing to do.
read more →

mergers & acquisitions

when returns should be submitted for review

three times it’s appropriate.

by ed mendlowitz
how to review tax returns: the field-tested update

the workflow of returns submitted to reviewers needs to be managed, otherwise the reviewer could become overloaded with incomplete or partially completed returns waiting on additional information. this adds nonproductive work to the reviewer that can best be delegated to the preparer, who is actually delegating it to the reviewer, i.e., upward delegation, which makes no sense, or have it assigned to an administrative person for follow-up. for efficiency i suggest that the preparer is the best person to follow up and maintain control of the incomplete return.

more: 10 errors that ‘smart’ scanners make | three ways to improve tax returns | don’t use eyes, use brain | three types of tax return reviews | tax review procedures are your quality control | seven types of tax return reviews | how to turn tax returns into new business
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the firm mindset must be to maximize the efficiency and effectiveness of the reviewer. (i keep repeating this. this must be a top goal if you want to get the best that the reviewers can offer to you.)
read more →

management

are you ready for a co-owner to drop dead?

man holding white rose with lit candles in backgroundwhat you have to have in place.

by ed mendlowitz
77 ways to wow!

not having a buy-sell agreement doesn’t mean anything unless a co-owner dies, becomes disabled, becomes bankrupt, divorced, wants to quit, retire or many other things. i regularly receive calls from accountants on behalf of clients who need valuations because a co-owner had died suddenly without a buy-sell agreement.

more: you don’t need this, but your survivors do | due diligence is in the details | manage better with the right financial tools | do you need a forensic professional? | six benefits of an internal audit | the ten financial controls that’ll make you a hero
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

here is a bleak picture of what happens and what can be avoided. the scenario: a business owned by two friends who started it 20 years earlier. they’re pretty successful, they make good livings, fund their pension plans, and they have money left over each year to provide for modest growth. but they haven’t accumulated any extra savings and they still have home mortgages and kids in college. they are both 50. and then one dies suddenly. the survivor must buy the interest from the estate of his deceased partner. but he doesn’t know what to offer and can’t afford too much.
read more →

pro member exclusive

10 errors that ‘smart’ scanners make

man staring at computer screen in shockdon’t have one? ask another firm for a demo.

by ed mendlowitz
how to review tax returns: the field-tested update

for those who haven’t tried them yet, smart scanners are a fabulous tool, which, if used correctly can save time and cost. the one thing they don’t do is check their work.

more: three ways to improve tax returns | tax follow-up worksheets can mean more revenue | stop tax return review shortcuts | routine is key to reviewing tax returns | seven types of tax return reviews
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

however, smart scanners do not need lunch or dinner brought into the office, don’t take coffee or smoke breaks and you don’t have to listen to how their weekend was. but they do organize the digital work papers on your internal filing system. nothing is perfect but many things are good enough and you just need to determine your tradeoffs.
read more →

leadership

you don’t need this, but your survivors do

bonus checklists: 16 steps to reviewing a buy-sell agreement and 20 issues to consider.

by ed mendlowitz
77 ways to wow!

nobody needs an estate plan, exit plan or a buy-sell agreement. but their families and survivors do.

more: due diligence is in the details | simple controls can prevent fraud | charity directors must take theft seriously | forensic techniques can be fraud deterrence | the hazards of poor internal controls | rule #1: start with cash | the priorities were backward | how to read a financial statement | 77 thoughts about client needs
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

estate plans are done so that the remaining family members can have liquidity, minor children will have guardians of your choosing with a dependable cash flow, children won’t fight (too much) over the money, people of your choice will collect and distribute assets and make transfers in an orderly manner, and estate and inheritance taxes can be minimized as can the costs of settling the estate.
read more →

special

three ways to improve tax returns

think “quality control,” not “review.”

by ed mendlowitz
how to review tax returns: the field-tested update

it occurs to me that there is a difference in the quality between the returns someone does for himself or herself and the returns they do for their clients.

more: tax follow-up worksheets can mean more revenue | tax: the procedural checklists your firm needs | don’t use eyes, use brain | stop tax return review shortcuts | the best way to review a tax return | three types of tax return reviews | routine is key to reviewing tax returns | why you can’t skip checklists | tax review procedures are your quality control | seven types of tax return reviews | how to turn tax returns into new business
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

an informal survey by me showed that the percentage of returns with errors of sole practitioners and partners in cpa firms is less than 2 percent, while the percentage of errors by their staff ranges from a low of 25 percent to a high of 95 percent! why the difference? note that preparer errors are measured by the completed returns they submit for review. and sole practitioner and partner errors are measured by whether a notice was sent by a tax agency or an error is discovered when the following year’s return is being prepared.
read more →

advisory & consulting

due diligence is in the details

every team member must do their part.

by ed mendlowitz
77 ways to wow!

in 2012, hewlett-packard announced an $8.8 billion deduction claiming that they overpaid for an acquisition because of the failure of many other people who were responsible for due diligence. i don’t know many of the details, but it seems that someone screwed up big-time.

more: simple controls can prevent fraud | five ways to ward off fraud in not-for-profits | client hires new manager: you need a plan | anatomy of a fraud | how to explain internal controls to clients | organization minutes too often overlooked | the seven-minute financial statement | the kpi an absentee manager needs
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

due diligence is an essential activity in an acquisition that involves confirming the representations made by the seller, evaluating the strategic fit and terms and conditions of the deal and validating financial, legal, operational and technological aspects of the transaction. keen due diligence can even help determine the final price.
read more →

bonus download

tax follow-up worksheets can mean more revenue

samples included here.

by ed mendlowitz
how to review tax returns: the field-tested update

there are two types of work papers that are generated by the reviewer. one is the reviewer’s notes-based errors found and corrections that need to be made. this should be kept in any manner the reviewer wants, but after the return is completed this should be discarded and not kept in the files. this is done to mitigate liability issues should the workpapers be subject to a subpoena.

more: tax: the procedural checklists your firm needs | don’t use eyes, use brain | three types of tax return reviews | tax review procedures are your quality control | how to turn tax returns into new business
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the other is a tax season follow-up form based on issues disclosed by the preparer, reviewer or partner. the follow-up worksheet is a client service and practice development tool. it provides a uniform method of recording items that need follow-up.
read more →