Employee Fraud: Protect Your Business Before It’s Too Late
Thursday, May 23rd, 2013
There is so much that goes into running a business. It starts with delivering a great product or service. You must find customers and convince them to pull out their wallets. You have to keep financial records and comply with the law. You must manage employees.
The list goes on and on. And it can be easy to overlook things. Unfortunately, one of the most commonly …
Looking to Sell Your Business? Start by Getting the Business Appraised!
Wednesday, May 15th, 2013
When it comes time to sell their business, many business owners reach for the phone and begin contacting potential buyers.
This may sound like a logical starting point, but as we have discussed previously, it’s skipping an important first step: securing a business valuation. A business valuation is the process in which a professional firm thoroughly examines the financial picture of a business in order to …
Small Business Fraud: Key Mistakes to Avoid
Thursday, April 25th, 2013
Over the years, I have worked with many clients who have been victimized by fraud. It’s always a sad process, because employee fraud inevitably represents a betrayal of trust on some level or another. It also represents a loss of hard-earned income for the business owner and his or her family.
Interestingly, over the years I have discovered that most cases of fraud look very similar. …
Business Valuation: Four Steps to Add Value to Your Business
Tuesday, April 16th, 2013
One of the common services that we provide for our clients is business valuation. This is a fancy way of saying that we help them figure out what their business is worth. (Or what the business they are purchasing is worth.)
And while this is an essential step in the sale of a business, it typically happens at a point at which it is too late …
Preventing Fraud: What to Watch For
Tuesday, March 26th, 2013
Employee fraud impacts thousands of businesses each year and is incredibly costly in terms of money, time, and other resources. Unfortunately, as we have written before, fraud almost always strikes in the situations where a business owner or manager least expects it. I’ve personally seen and heard a number of very sad stories over the years – stories like an employee who went to the …
Employee Fraud: Don’t Overlook the Risk
Monday, March 18th, 2013
Over the years, I have worked with a number of business owners who have been victimized by employee fraud. Though the details of each circumstance were different, there was one factor that remained consistent in each case: the business owner “never thought it could happen to me.”
The sad reality is that it is those business owners who are most trusting of their employees that are …
Business Management 101: If You Need an Appraisal… Get the Appraisal!
Thursday, February 28th, 2013
If you own a business, and particularly if you’ve considered selling it, you’ve probably been advised to seek an appraisal. If you are like many business owners, however, chances are that you haven’t yet taken this advice. You’re busy, after all, and the last thing you want to deal with right now is complicated paperwork.
If that is your thinking, I don’t blame you! But be …
Family Owned Businesses Must Embrace Succession Planning
Thursday, February 7th, 2013
As you know if you have been regularly reading this blog, succession planning is a critical, yet often ignored, function for every business. Without a succession plan, thousands and thousands of businesses each year are at risk for disaster as soon as something goes wrong.
And while a succession plan is critical for every business, the need is arguably greatest for family businesses and other small …
The Finances of Divorce: Make Sure Your Spouse’s Income is Properly Verified
Friday, January 25th, 2013
Going through a divorce is a difficult and stressful process. It’s usually emotionally challenging, and the result of the case has implications for years to come. Because of this, it’s important to ensure that the details are handled properly, despite the urge to just get it over with as quickly as possible.
One particularly important element is the verification of each spouse’s income. It’s often simple, …
Unable To Pay Your IRS Debt in Full? We Can Help!
Friday, January 11th, 2013
The IRS is not known as a flexible organization—and for good reason. Many taxpayers and business owners have either been involved in an IRS dispute or know someone that has… and the experience is never pleasant.
However, one area in which the IRS is making strides is in regards to taxpayers who are unable to pay their debt in full. They recently launched an initiative known …
Summary of the Changes to the Tax Law – Part 2
Thursday, January 3rd, 2013
By now, we have all been bombarded by the news of the “fiscal cliff” and how we would have plummeted into the abyss were it not for the courage of our brave representatives in Washington. Most of the changes were “taxpayer friendly” and some not so much. Here is our view of the American Taxpayer Relief Act of 2012.
THE GOOD NEWS
The …
Summary of the Changes to the Tax Law
Wednesday, January 2nd, 2013
Individual tax rates
All the individual marginal tax rates under EGTRRA and JGTRRA are retained (10%, 15%, 25%, 28%, 33%, and 35%). A new top rate of 39.6% is imposed on taxable income over $400,000 for single filers, $425,000 for head-of-household filers, and $450,000 for married taxpayers filing jointly ($225,000 for each married spouse …
Succession Planning: Not Something to be Left for the “Last Minute”
Friday, December 28th, 2012
Most business owners assume that succession planning (or exit planning) is something to be considered late in the life of the business. This makes logical sense, after all. But the truth is that, in order to maximize the value of the business and ensure a smooth transition, succession planning must be addressed far earlier. In fact, succession planning should be considered from the very beginning.
QuickReadBuzz.com …
Succession Planning: It’s Not Rocket Science… You Just Have to do it
Wednesday, December 12th, 2012
As we’ve discussed, succession planning is something that far too many businesses ignore. Part of the problem is that it’s not a “pressing need”. It’s not something that demands immediate attention… until something goes wrong, and then everyone involved wishes that they had acted sooner.
Recently, an article published on FinancialPost.com highlighted a Canadian business that has handled succession planning very well.
Notice that the key …
Financial Planning: Divorce Isn’t Limited to Young Couples
Wednesday, September 26th, 2012
When most of us think about divorce, we tend to envision young couples in their twenties, thirties, or forties. But the truth is that divorce doesn’t only impact the younger generations. Older couples must face divorce as well—and the financial aspect of divorce can be just as complicated, or even more so, of younger couples and families.
A recent story published on TheGlobeAndMail.com sheds some …
Dealing with Divorce: Financial Mistakes to Avoid, Part Two
Monday, September 17th, 2012
In a recent article, we highlighted three of the most common financial mistakes made during the process of divorce. As we discussed, going through a divorce is a difficult time for anyone—and unfortunately, the stress and emotional turmoil can often lead to bad decisions. Below are three more common mistakes to avoid, courtesy of FamilyLawyerMagazine.com:
Failing to Get the Insurance Before Signing the …
Succession Planning: Citigroup Learned Their Lesson the Hard Way – Will You?
Tuesday, September 11th, 2012
We’ve been talking a lot recently about the importance of succession planning.
A recent Wall Street Journal article explains how the lack of a succession plan has hurt Citigroup and other international financial firms. How much greater is the risk to a small business that is highly dependent on its owner?
Vikram Pandit had been at Citigroup Inc. just five months when he was …
Succession Planning: It’s Easy to Ignore… Until it’s too Late!
Tuesday, August 21st, 2012
As a business owner, one thing that you are always short of is time. There is simply not enough time in the day for the average business owner to accomplish everything he or she would like to get done.
For one thing, most business owners take an active role in the “nuts and bolts” of running their operation on a daily basis. As most of us …
Succession Planning 101: Identify and Groom Future Leaders
Monday, August 6th, 2012
We have been talking about succession planning in depth recently, because it is one of the most important functions of every business owner—yet, it is rarely discussed. Most business owners feel that they are “too busy” dealing with the present to spend time thinking about the future. The reality is, however, that the failure to create a succession plan with come back and haunt them.
Today, …
Dealing with Divorce: Four Critical Mistakes to Avoid
Wednesday, July 25th, 2012
Going through a divorce is difficult enough on a purely emotional level—it’s unfortunate that so many important logistical and financial decisions must be made at such a difficult time. But that is the reality of the situation, and the result, unfortunately, is that many individuals make serious mistakes that impact them financially for years and decades to come. Below are four of the most common …
New Healthcare Law – What This Means For You!
Monday, July 23rd, 2012
The 2010 Healthcare Act included several significant tax changes that are scheduled to take effect next year. The recent Supreme Court ruling paves the way for them, and they will kick in automatically unless Congress takes action. This letter serves as a refresher course on the four key changes that can potentially affect individual taxpayers in 2013 and what you …
Estate and Gift Tax is Changing- Take Action NOW!
Friday, July 20th, 2012
I want to make you aware of a window of opportunity to take advantage of a historically high exclusion amount for lifetime gifts. The amount you can currently transfer, either during life or at death, without incurring any gift, estate, or Generation-skipping Transfer (GST) tax, is $5.12 million. Unless Congress changes the law, this amount, which is referred to as …
Succession Planning: Where to Begin
Monday, July 2nd, 2012
One of the most important functions of managing a business is planning for its future. Unfortunately, succession planning is an area that is often avoided by business owners, for a variety of reasons. But failing to plan for the future can have disastrous results when you are ready to retire from or sell the business.
The fundamental question every business owner must ask is “how will …
Navigating Divorce: What You Need to Know About Your Retirement Accounts
Friday, June 22nd, 2012
Typically, we think of divorce as occurring between relatively young couples. But the truth is that many middle-aged (and older) couples are also going through the process of divorce.
And while going through a divorce is never pleasant, it is even more complicated with an older couple that has more assets which must be divided.
Forbes.com recently discussed the issue of retirement funds as they apply …
Alimony and Taxes: Here’s What You Need to Know
Thursday, May 31st, 2012
As we have noted before, individuals going through the divorce process are often overwhelmed and stressed out. It’s a time of emotional turmoil—but the implications of the proceedings will impact both individuals for years to come, so it’s important that important details aren’t neglected.
One topic which is often overlooked is the tax implication of alimony payments. Forbes.com recently shared several valuable tips to keep …
If You’re Going Through Divorce, Make Sure You Know Your Numbers
Friday, May 25th, 2012
The process of divorce is draining in more ways than one – in addition to the obvious emotional duress, you must also deal with logistical details (who gets the house, who takes care of the kids when, etc), and financial issues.
Unfortunately, many individuals in this situation fail to pay enough attention to important issues. One area that is often neglected is the importance of knowing …
Are You Utilizing Your Accountant?
Friday, May 4th, 2012
Do you have an accountant?
Many small business owners do—they have an accountant who prepares their taxes, in addition to other tasks such as monitoring payroll and supervising bookkeeping. But a good accountant can provide much more than these basic services—and their skills can often prevent employee fraud and other costly mistakes. Many business owners, however, either don’t have an accountant or don’t utilize most of …
Over 50 And Seeking Divorce? You Aren’t Alone
Tuesday, May 1st, 2012
I’ve spoken to many men and women over the age of 50 that are seeking divorce—and are intimidated by the process. While divorce is never pleasant, it is far more challenging for older couples. In addition to emotional stress, the simple truth is that older couples typically have more in the way of financial assets that must be equitably distributed.
If you find yourself in that …
How to Get Through Divorce Without Jeopardizing Your Financial Future
Tuesday, April 3rd, 2012
Divorce proceedings are difficult and unpleasant on a number of levels. As if the emotional turmoil created wasn’t difficult enough, you must also deal with complex legal and financial issues which will have a tremendous impact on your future. Unfortunately, the level of emotion involved causes many people, both men and women, to make poor decisions which they end up greatly regretting down the road.
In …
How NOT to Improve Your Business Value
Monday, March 26th, 2012
At Kane Forensic, we have worked closely with clients in the world of business for over 35 years. As you would expect, we have seen businesses succeed wildly, implode dramatically, and everything in between. Every business wants to improve their profitability and ultimately their net value—why do some fail while others succeed? Of course, there are many variables outside the realm of finance and accounting… …
Don’t Get Burned by Tax Scams, Part II
Wednesday, March 7th, 2012
In a recent article we discussed a number of common tax scams that take advantage of taxpayers who don’t know any better. These supposed tax experts lure their victims by promising outsized returns and other perks. Unfortunately, not only are these strategies ineffective, they are also illegal.
In part one of this series, we discussed four of the most common scams. Today we are going to …
Internal Controls: The Key to Fraud Prevention
Wednesday, February 22nd, 2012
Over the years I have been in business, I have unfortunately seen many instances of employee fraud. The severity varies from case to case, but it’s common for total losses to be in the hundreds of thousands of dollars—or more.
In my experience, there are typically two constants in cases of employee fraud. First, fraud is committed by a trusted employee. It’s obvious in retrospect—because only …
Litigation Consulting: Don’t Settle for Anyone but the Best
Friday, February 3rd, 2012
As an attorney, you know the importance of providing top-notch counsel to your clients. At Kane Forensic, we share this passion—and our performance over the last 25 years reflects this. Our litigation team is highly sought after in cases ranging from financial fraud to commercial disputes.
Your clients depend on you for insight, guidance, and leadership… and attorneys across the country have come to depend on …
Are You Selling Your Business in 2012?
Thursday, January 26th, 2012
If you are hoping to sell your business this year, you have got plenty to think about. From obtaining a business valuation to finding a buyer, the process of selling a business can be challenging. Today, we are going to share several thoughts designed to make the process simpler for you.
Start with a business valuation. Obtaining a business valuation from a respected expert can greatly …
Thinking of Selling Your Business? Start with a Business Valuation!
Thursday, January 5th, 2012
If you have considered selling your business, the year 2012 may be a great time to do so. Why? For a number of reasons, including the following:
1) Tax rates may climb in 2013. As of now, the Bush tax cuts are scheduled to expire at the end of 2012. In addition, there may be other tax advantages to selling now, instead of 2013, depending on …
Three Business Valuation “Facts” to Ignore
Wednesday, December 28th, 2011
The business valuation process, while essential for business owners, is often misunderstood. As a result, business owners don’t know when a valuation is necessary or how to begin preparation. Today, we are going to take a look at three of the most common misconceptions surrounding business valuations. Contact me today to learn more!
1) “My business is losing money – so it can’t be worth much.” …
Do You Need a Forensic Accountant?
Friday, December 2nd, 2011
I have learned, over the years, that the term “forensic accountant” can be both intimidating and confusing. Accounting is scary enough for many people—and the term “forensic” conjures up images of TV shows like “CSI” and “Miami Vice.”
But what is a forensic accountant, really, and when might you need our services?
In short, as forensic accountants, we have the knowledge and the ability necessary to dig …
Preventing Fraud: The Typical Fraudster
Monday, October 31st, 2011
One of my primary focuses as a forensic accountant is helping my clients identify fraud—and ideally, to prevent it before it happens. Unfortunately, fraudsters have become increasingly sophisticated over the years, and many business owners are unable to detect it without professional assistance. It’s critical, for that reason, that business owners have forensic accountant perform an audit from time to time, at a minimum.
In addition, …
Business Litigation 101: When Should I Hire a Forensic Accountant?
Tuesday, October 25th, 2011
While dealing with litigation is certainly not the most glamorous aspect of running a business, it is an experience that many business owners do have on at least one occasion. And when it does happen, the question “do we need a forensic accountant?” is sure to be raised. The answer to that question largely depends on the circumstances of your case. Generally speaking, forensic accounting …
Fraud Prevention Tips: Understand that Fraud is Often Perpetrated by a “Trusted” Employee
Wednesday, August 31st, 2011
When it comes to detecting and preventing fraud, the unfortunate truth is that virtually all fraud is carried out by an employee that is trusted by management. Now, as a business owner, this doesn’t need that you need to become paranoid and suspicious. In fact, “trust” shouldn’t play a role in fraud prevention… the proper course is to implement a system of controls that make …
Tuesday, August 23rd, 2011
Employee fraud costs businesses in the United States billions of dollars on an annual basis. In a recent article, I shared basic indicators of possible fraud for business owners to keep an eye on. But ideally, you will be able to prevent fraud from impacting your business in the first place. Below are important steps to dramatically reduce the possibility of employee fraud in your …
How to Choose a Business Valuation Analyst
Wednesday, August 17th, 2011
You have determined that you need a business valuation. But now comes the hard part: choosing the right valuation analyst. A business valuation is something that many business owners are unfamiliar with—so where should one begin while selection an analyst? Below are important criteria to examine while selecting a forensic accountant to perform a valuation for your business:
1) Experience. There is no single factor …
Thursday, July 14th, 2011
As a business owner, there are a variety of situations in which it is important to know the value of your business. Examples include a situation in which you are planning to sell the business, merge with another entity, or even buy out a shareholder. As you are probably aware, trying to assign a value to your business without the use of precise …
