Articles

Integration plays a crucial role in mergers and acquisitions transactions. In order to blend operations into one harmonious company, it is important to create an acquisition integration strategy in advance of a deal’s closing.

There are a number of benefits that can be gained from obtaining an audit of financial statements —even if there is no third-party requirement. Good auditors will familiarize themselves with the business and operations of a company and share valuable advice that may lead to more cost-effective ways to operate.

The Economic Stimulus Act of 2008 was created in an effort to bolster the flagging economy. Designed to stimulate capital investment by businesses and professionals, the new provisions include tax breaks in the form of increased depreciation write-offs.

Enterprise value is an amount that represents the entire economic value of a company. In essence, it is a measure of the takeover price that an investor would need to pay in order to acquire a firm. Calculated by adding a corporation’s market capitalization, preferred stock and outstanding debt together and then subtracting cash and cash equivalents, enterprise value is a more accurate reflection of a company’s takeover cost than market capitalization alone.

Section 404(b) of the Sarbanes-Oxley Act, known as SOX 404(b), requires that companies evaluate the effectiveness of their internal controls over internal reporting and have this audited by their external auditors. Since the Sarbanes-Oxley Act was passed in 2002, the SEC has delayed SOX 404(b) compliance for smaller reporting companies. The delay can be an extended window to improve internal controls.

Employee stock ownership plans, or ESOPs, are the most common form of employee ownership in the country. Originating more than 80 years ago, ESOPs were first recognized by the government in 1974. Now thousands of companies have these plans covering millions of employees.

When handled properly, debt consolidation can provide significant assistance in avoiding a crushing debt load. By consolidating a number of different loans, interest rates can be reduced. Convenience is another major draw of consolidation loans. Rather than pay numerous creditors who are charging varied interest rates at different times of the month, you can take out one loan and pay off all of your accounts.

Financial Accounting Standards Board Interpretation 48 (FIN 48) is a new tax initiative that significantly alters how companies account for uncertain tax positions. The new rules — intended to increase the comparability of financial statements — also expand documentation requirements.

The Sarbanes-Oxley Act, introduced in 2002, has had a significant impact on the auditing process. Over the past several years, heightened regulation has increased the amount of audit evidence that must be obtained and led to more stringent documentation requirements. Against this landscape, it is more important than ever to employ the services of a quality independent auditor.

There are many rewards associated with turning a hobby or passion into a business. One of the biggest is being able to fully leverage one’s strengths and interests on an everyday basis.