Protecting Your Inventory and Customers from Employees

During the last year, I have received more phone calls than usual from business owners who believe employees are stealing inventory from them. Many of the concerns I hear from small business owners fall into two categories. The first scenario is the extremely popular and growing internet business, in which entrepreneurs keep inventory in warehouses, …

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The IRS Says You’re No Longer Represented by Your CPA

You get a letter from the Internal Revenue Service and right away you don’t have a very good feeling about it. You open it up, read it, and then panic hits. You owe them $10,000! No. Fortunately, it doesn’t tell you that (I hope!). It tells you that your long-trusted CPA whom you’ve come to …

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ESOP Appraisers Will Not be Named as Fiduciaries…At Least for the Time Being

It was reported in January 2015 that the Department of Labor (DOL) will abandon the “appraiser-as-fiduciary” rule from its planned re-proposal of a broad set of rules affecting fiduciaries and prohibited transactions. This story goes back to 2010 when the DOL issued a proposed regulation that would impose a fiduciary obligation on business appraisers in …

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Do You Know and Trust Your Accountant?

What do you look for in a CPA? Knowledge of tax codes? Professionalism? Business advice? Personality? Wait, what? Did that last one throw you for a loop? It may seem odd to include personality on the list, but it is actually important. Think about it. People like doing business with people they like. Do you …

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A Time to Reflect

We just rang in the New Year, 2015, and it is now a time for reflection on 2014. First and foremost, I wish to thank all the clients we served during the past year. Henry & Horne ’s Business Valuation and Litigation Support Services Group (H&H BV/LS Group) provided forensic, valuation and litigation services to …

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Henry+Horne gives back at the Phoenix Zoo

Last year I was fortunate to participate in Henry & Horne ’s first firm-wide community service event. It was at the Florence Crittenton campus in Phoenix, Arizona. Florence Crittenton provides shelter, education, counseling and social support to nearly 2,000 girls, ages ten to twenty-one. Our three offices in Scottsdale, Tempe, and Casa Grande joined together …

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Employee fraud: how to spot a fictitious vendor billing scheme

Billing schemes are a type of asset misappropriation employee fraud. According to the 2018 Report to the Nations published by the Association of Certified Fraud Examiners, billing schemes typically account for 20% of all employee fraud and cost employers $100,000 per incident. One type of billing scheme we have seen is the “Shell Company” or …

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Tax-Free Student Aid vs. Education Credit

The American Opportunity and Lifetime Learning tax credits were created to subsidize the cost of college education. Generally, the credits are based on qualified costs of education, namely, college tuition and fees, books, supplies and equipment. Those qualified costs must be reduced, however, by the amount of any tax-free student aid received, such as scholarships …

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Fixed Asset Tracking: Why Software is Important

It may seem relatively simple at first to track your assets using an Excel spreadsheet and a couple of formulas to calculate depreciation. How could this create issues down the road? As your business grows, and more assets are acquired, the accuracy of your asset valuation could be steadily decreasing. There are multiple vulnerabilities associated …

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Considerations in valuing a non-compete agreement

A non-compete agreement is often implemented when a business is purchased to prevent the seller from competing with the purchaser. These agreements, referred to as Covenants Not to Compete, contain restrictions which often include a specified length of time and geographic area in which the seller is prohibited from competing with the purchaser. These agreements …

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