Demystifying Valuation, Economic Damages + Forensic Accounting

CPAs who testify – can they be advocates for their clients?

I was approached by a prospective client a few years ago requiring forensic accounting services in connection with his divorce. The prospective client made it clear to me what his ultimate objective was. He told me, “I want you to review documents I’m going to show you and conclude with me that my wife stole …

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Is the value of your business about to increase 12.5%?

Recent discussions by the new administration regarding changing corporate and individual tax rates got me thinking about how different income tax rates can affect the value of a company. For example, I ran some numbers with the following assumptions. The current effective tax rate on a pass-through company’s earnings at the individual level is 38 …

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Testifying for the first time – minimizing the jitters

In my former life – that is, before I became an accountant – as a police patrolman and detective on the Tucson, Arizona Police Department, I had the opportunity to testify on several criminal-type cases. Back in those days I would get pretty nervous before each of my court appearances. The mere pressure of waiting …

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Protecting against phishing scams this tax season

Betty opened up her email and scanned through her messages. One in particular stood out, from the Internal Revenue Service (IRS), so she clicked on it and began to read. It appeared that there was an issue processing her refund, and the IRS needed some additional information from her. So, she clicked on the link …

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Lack of succession plans in family owned businesses

According to a recent PricewaterhouseCoopers (PwC) report, only 23% of family owned businesses have succession plans in place that include a documented plan, not just thoughts in the owner’s head. In PwC’s 2012 survey, 52% of family run businesses planned to pass the business to the next generation, with only 12% planning to sell the …

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Arizona population projections, marriages and divorces

A report from the CDC/NCHS (*), National Vital Statistics System (See Table 1) has disclosed some interesting facts about population, marriages and divorces covering our 50 states and the District of Columbia. Marriage and Divorce The national average of divorce to marriages per 1,000 total population is 45.6% (**). When it comes to divorce, Arizona …

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Office vacancy rate in greater Phoenix lowest since 2008

2016 Third Quarter Greater Phoenix Office Highlights Below are excerpts from CBRE Marketview, Office, Q3 2016 and Collier International’s Research & Forecast Report Greater Phoenix/Office 3Q 2016. Vacancy In quarter 3 (Q3) 2016, net absorption in Metropolitan Phoenix reached 801,250 square feet (s.f.). For the fifth consecutive quarter, Tempe led all submarkets with 621,885 s.f. …

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Unintended consequences of employee incentive programs

The recent revelation regarding aggressive sales practices at Wells Fargo shocked the financial community and highlights some of the unintended consequences of employee incentive programs. Employers normally have the best of intentions when they roll out an incentive program. The desired result is a win-win situation in which revenues increase and employees are rewarded for …

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