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Essential Guide to Business Valuation for Business Owners

Understanding the value of your business is crucial for making informed decisions whether you’re considering selling, seeking investment, or planning for future growth. Business valuation might sound complex, but it’s all about using the right approach and understanding the type of valuation report you need. This guide simplifies these concepts to help you navigate the process confidently.

Key Valuation Methods

Asset-Based Approach
- This method looks at what your business owns (its assets) and what it owes (its liabilities). It can be done in two ways:
  - Going Concern: Values your business as if it will continue operating.
  - Liquidation Basis: Values your business as if it were to close and sell off all assets.
Earnings Value Approach
- This method examines potential profitability through:
  - Capitalizing Past Earnings: Uses historical earnings adjusted for any unusual items to estimate future profits.
  - Discounted Future Earnings: Projects future earnings and reduces them to present value considering the risks associated with your business.
Market Value Approach
- This compares your business to similar businesses that have recently sold, helping gauge the market’s interest in ventures like yours through:
  - Comparable Company Analysis: Looks at financial ratios from similar companies.
  - Comparable Transactions Method: Reviews […]

By Linkenheimer LLP|2024-04-26T18:39:29+00:00April 26th, 2024|Advisor, business valuation|0 Comments

Keep These 3 Issues in Mind After You File Your Return

The tax filing deadline for 2023 tax returns was April 15 this year. If you filed for an extension, you have until October 15. In either case, once your 2023 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations.

1. Waiting for your refund? You can check on it

The IRS has an online tool that can tell you the status of your refund. Go to irs.gov and click on “Get your refund status” to find out about yours. You’ll need your Social Security number or Individual Taxpayer Identification Number, filing status, and the exact refund amount.

2. Throwing away tax records

You should hold on to tax records related to your return for as long as the IRS can audit your return or assess additional taxes. The statute of limitations is generally three years after […]

By Linkenheimer LLP|2024-04-22T18:12:18+00:00April 22nd, 2024|tax deadlines, tax planning|0 Comments

A General Look at Generative AI for Businesses

If you follow the news, you’ve probably heard a lot about artificial intelligence (AI) and how it’s slowly and steadily expanding into various aspects of our lives. One widely cited example is ChatGPT, an AI “chatbot” that can engage in conversations with users and create coherently written articles, as well as other content, when prompted.

ChatGPT and other similar chatbots are what’s known as “generative” AI. The operative word there refers to software that’s able to generate new content based on input from users and existing data either inputted during development or gathered from the internet.

Along with college students and the curious, more and more businesses are joining the ranks of generative AI users. Research and advisory firm Gartner surveyed more than 1,400 company leaders in September 2023. Two in five (40%) said their organizations were piloting generative AI programs — a substantial increase from the 15% results of the same survey conducted by Gartner about six months earlier.

Imagine the possibilities

Naturally, how companies are using generative AI depends on factors such as industry, mission, operational needs and strategic objectives. But it can be informative to look at a few examples.

In consumer goods and retail, […]

By Linkenheimer LLP|2024-04-03T17:16:13+00:00April 3rd, 2024|AI, Tech|0 Comments

Elevating Your Cybersecurity: Advanced Tips for This Tax Season

As we navigate through another tax season, the importance of safeguarding our financial information becomes paramount. At Linkenheimer, while we prioritize your financial well-being, we also strive to arm you with knowledge to protect against sophisticated cyber threats. Beyond the common cybersecurity measures, there are advanced steps you can take to ensure a fortified defense against data breaches and financial data thefts, especially in line with Data Loss Prevention (DLP) strategies.

Advanced Cybersecurity Measures for Enhanced Protection

1. Monitor Financial Transactions Regularly: Regular monitoring of your bank and credit card transactions can help you spot unauthorized activities early. Sign up for alerts from your financial institutions to get real-time notifications of transactions.

2. Use Dedicated Devices for Financial Transactions: Consider using a dedicated computer or device for your financial transactions and tax filings. This device should not be used for browsing the internet or accessing social media, reducing the risk of encountering malware or phishing attacks.

3. Implement Network Segmentation at Home: For those with smart home devices or numerous connected devices, segmenting your network can add an additional layer of security. This means creating a separate network for your financial and work-related activities, isolating them […]

By Linkenheimer LLP|2024-04-01T21:07:50+00:00April 1st, 2024|Tech|0 Comments

2024 Q2 Tax Calendar: Key Deadlines for Businesses and Employers

Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact your Linkenheimer CPA to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

April 15

If you’re a calendar-year corporation, file a 2023 income tax return (Form 1120) or file for an automatic six-month extension (Form 7004) and pay any tax due.
For corporations, pay the first installment of 2024 estimated income taxes. Complete and retain Form 1120-W (worksheet) for your records.
For individuals, file a 2023 income tax return (Form 1040 or Form 1040-SR) or file for an automatic six-month extension (Form 4868) and pay any tax due.
For individuals, pay the first installment of 2024 estimated taxes, if you don’t pay income tax through withholding (Form 1040-ES).

April 30

Employers report income tax withholding and FICA taxes for the first quarter of 2024 (Form 941) and pay any tax due.

May 10

Employers report income tax withholding and FICA taxes for the first quarter of 2024 (Form 941), […]

By Linkenheimer LLP|2024-04-01T16:55:10+00:00April 1st, 2024|tax deadlines|0 Comments