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Business Owners, Your Financial Statements Are Trying To Tell You Something

Business owners are commonly and rightfully urged to regularly generate financial statements in compliance with Generally Accepted Accounting Principles (GAAP). One reason why is external users of financial statements, such as lenders and investors, place greater trust in financial reporting done under the rigorous standards of GAAP.

But that’s not the only reason. GAAP-compliant financial statements can reveal details of your company’s financial performance that you and your leadership team may otherwise not notice until a major problem has developed.

Earnings are only the beginning

Let’s begin with the income statement (also known as the profit and loss statement). It provides an overview of revenue, expenses and earnings over a given period.

Many business owners focus only on earnings in the income statement, which is understandable. You presumably went into business to make money. However, though revenue and profit trends are certainly important, they aren’t the only metrics that matter.

By Linkenheimer LLP|2024-03-27T18:19:50+00:00March 27th, 2024|business, Financial Reporting Framework|0 Comments

Digital Twins and Terminal Servers: A Use Case for Enhanced Remote Work Solutions

Use Case: Optimizing Remote Work Infrastructure

In today’s changing work environment, the ability to set up efficient and secure remote work solutions is paramount. Digital twins can play a crucial role in optimizing the infrastructure required for remote work, particularly in the configuration and management of terminal servers. Terminal servers allow multiple users to access a centralized computing environment remotely, offering a cost-effective and scalable solution for businesses transitioning to or enhancing their remote work capabilities.

Scenario:

Imagine a business that relies heavily on terminal servers to provide its workforce with remote access to applications and data stored on the company’s internal network. As the demand for remote work increases, the company faces challenges in scaling its infrastructure, ensuring secure access, and maintaining high performance for an expanding remote workforce.

Application of Digital Twins:

Performance Optimization: By creating a digital twin of the terminal server setup, IT administrators can simulate and analyze the performance under various scenarios, including increased user load and varying network conditions. This allows for precise capacity planning and hardware optimization, ensuring that the infrastructure can handle peak loads without compromising performance.
Security Enhancement: Security is a critical concern for remote work solutions. […]

By Linkenheimer LLP|2024-03-19T15:49:55+00:00March 19th, 2024|business, Tech|0 Comments

Digital Twins for Operational Excellence: Transforming SMB Operations

In the dynamic and competitive landscape that small to medium-sized businesses (SMBs) navigate, leveraging innovative technologies to streamline operations and enhance productivity is more than a strategic advantage—it’s a necessity. Among the myriad of technological advancements, the concept of digital twins stands out as a transformative tool for operational excellence. This article delves into what digital twins are, their benefits, and practical use cases for SMBs looking to pioneer efficiency and innovation in their operations.

Understanding Digital Twins

A digital twin is a virtual replica of a physical entity, system, or process. This digital mirror can range from something as simple as a model of a physical product to something as complex as the simulation of intricate manufacturing processes. By harnessing data from sensors and other IoT devices, digital twins offer real-time monitoring and simulation capabilities, enabling businesses to analyze, predict, and optimize their operations in ways previously unimaginable.

Benefits of Digital Twins for SMBs

1. Enhanced Decision-Making: Digital twins provide SMBs with a detailed, data-driven view of their operations, allowing for informed decision-making. By simulating different scenarios, businesses can foresee potential problems and make adjustments proactively, minimizing risks and costs.

2. Improved Productivity: By replicating processes […]

By Linkenheimer LLP|2024-03-19T15:40:18+00:00March 19th, 2024|business, Tech|0 Comments

Maximize the QBI Deduction Before It’s Gone

The qualified business income (QBI) deduction is available to eligible businesses through 2025. After that, it’s scheduled to disappear. So if you’re eligible, you want to make the most of the deduction while it’s still on the books because it can potentially be a big tax saver.

Deduction basics

The QBI deduction is written off at the owner level. It can be up to 20% of:

QBI earned from a sole proprietorship or single-member LLC that’s treated as a sole proprietorship for tax purposes, plus
QBI from a pass-through entity, meaning a partnership, LLC that’s treated as a partnership for tax purposes or S corporation.

How is QBI defined? It’s qualified income and gains from an eligible business, reduced by related deductions. QBI is reduced by: 1) deductible contributions to a self-employed retirement plan, 2) the deduction for 50% of self-employment tax, and 3) the deduction for self-employed health insurance premiums.

Unfortunately, the QBI deduction doesn’t reduce net earnings for purposes of the self-employment tax, nor does it reduce investment income for purposes of the 3.8% net investment income tax (NIIT) imposed on higher-income individuals.

Limitations

At higher income levels, QBI deduction limitations come into play. For 2024, […]

By Linkenheimer LLP|2024-03-11T16:52:39+00:00March 11th, 2024|business, deduction|0 Comments

Applying for a Commercial Loan with Confidence

Few and far between are businesses that can either launch or grow without an infusion of outside capital. In some cases, that capital comes in the form of a commercial loan from a bank or some other type of lender.

If you and your company’s leadership team believe a loan will soon be necessary, it’s important to approach the endeavor with confidence. That starts with having valid, well-considered strategic reasons for borrowing. From there, you need to engage your bank or a prospective lender with a strong air of professionalism and certainty.

Essential questions

First, familiarize yourself with how the process works. It’s essentially built on four basic questions:

How much money do you want?
How do you plan to use the loan proceeds?
When do you need the funds?
How soon can you repay the loan?

Your loan officer will also likely ask about your business’s previous sources of financing. So, be ready to explain how you’ve financed your company to date. Methods may include personal cash infusions, forgone salaries and sweat equity, as well as any equity contributions from friends, family members and outside investors.

Loan products

As you’re probably aware, banks and lenders offer a […]

By Linkenheimer LLP|2024-02-28T18:26:29+00:00February 28th, 2024|business, credit|0 Comments