Checking Your Company’s Vital Signs: How to Read and Understand Financial Statements

23 10 2013

atltechvillagelogo

Your financial statements contain the heartbeat of your business. But much like medical records, it sometimes seems like you need to have a fancy degree to understand them. They’re complex, filled with numbers that you don’t always understand, and can be misinterpreted with unpleasant consequences.

As a startup company, you need to be able to understand this information, degree or no. Join Habif, Arogeti & Wynne, LLP’s David Siegel for a lunch & learn where he’ll walk you through the ins-and-outs of reading and understanding your financial statements. Learn just what those numbers mean and which ones you should be keeping a close eye on. Ask the questions you’ve always wanted to ask, and get answers from a professional accountant with experience in the technology industry. Specifically, you’ll learn how to understand your:

  • Standard balance sheet
  • Income statement
  • Cash flow statement

After this lunch & learn, you’ll walk away with your fingers more firmly pressed on the pulse of your business.

Date: Oct. 29th, 2013

Place: Atlanta Tech Village

Sign up today for this free lunch & learn!

Habif, Arogeti & Wynne, LLP





Will your executive compensation be subject to expanded Medicare taxes?

23 10 2013

Tax Bites

Maybe. The following types of executive compensation could be subject to the health care act’s 0.9% additional Medicare tax:

  • Fair market value (FMV) of restricted stock once the stock is no longer subject to risk of forfeiture or it’s sold
  • FMV of restricted stock when it’s awarded if you make a Section 83(b) election
  • Bargain element of nonqualified stock options when exercised
  • Nonqualified deferred compensation once the services have been performed and there’s no longer a substantial risk of forfeiture

And the following types of gains will be included in net investment income and could trigger or increase exposure to the act’s new 3.8% Medicare contribution tax:

  • Gain on the sale of restricted stock if you’ve made the Sec. 83(b) election
  • Gain on the sale of stock from an incentive stock option exercise if you meet the holding requirements

We’d be happy to help you determine the best strategy for your exec comp. With smart timing, you may be able to reduce or avoid exposure to the expanded Medicare tax. For more information, contact kayla.payne@hawcpa.com.

Habif, Arogeti & Wynne, LLP





Why you should max out your 2013 401(k) contribution

16 10 2013

Tax Bites

Contributing the maximum you’re allowed to an employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, is likely a smart move:

  • Contributions are typically pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the new 3.8% Medicare tax on net investment income.
  • Plan assets can grow tax-deferred — meaning you pay no income tax until you take distributions.
  • Your employer may match some or all of your contributions pretax.

For 2013, you can contribute up to $17,500 — plus an additional $5,500 if you’ll be age 50 or older by Dec. 31.

If you participate in a 401(k), 403(b) or 457 plan, it may allow you to designate some or all of your contributions as Roth contributions. While Roth contributions don’t reduce your current MAGI, qualified distributions will be tax-free. Roth contributions may be especially beneficial for higher-income earners, who are ineligible to contribute to a Roth IRA. If you have questions on other ways to save money on retirement planning, please contact kayla.payne@hawcpa.com.

Habif, Arogeti & Wynne, LLP





Tax Incentives Can Save Your Customers Money on Equipment Purchases

15 10 2013

VetArticle 10-15

What is Section 179 depreciation and how you can use it to save money on this year’s taxes? If you’re a veterinarian, HA&W Partner Rick Rubin, Senior Manager Bob Carreker and Staff Accountant Elise Walker have an answer for you. Read their article featured in this month’s Veterinary Advantage magazine. 

Habif, Arogeti & Wynne, LLP





Exceptional Investor Tax Benefits for Medtech Companies

15 10 2013

How do you attract capital to your medtech company when the longer exit scares away investors? HA&W Partner Mitchell Kopelman and Senior Manager Ori Epstein recently wrote an article on an often overlooked tax code section that may help you reel in those investors. Check it out on MD+DI.

Habif, Arogeti & Wynne, LLP





A Cash Flow Horror Story – And How You Can Avoid Getting Spooked

11 10 2013

Sheldon Zimmerman

Just in time for Halloween, HA&W’s partner-in-charge of Retail, Franchising & Hospitality, Sheldon Zimmerman, talks about how terrifying it is for a restaurant to run out of cash – and what you can do to prevent it from happening.

Click here to read the full article.

Habif, Arogeti & Wynne, LLP





Expiration date for home mortgage debt forgiveness rapidly approaching!

9 10 2013

Tax Bites

Since 2007, homeowners have been allowed to exclude from their taxable income up to $2 million in cancellation-of-debt (COD) income ($1 million for married taxpayers filing separately) in connection with qualified principal residence indebtedness (QPRI). The exclusion had been available only for debts forgiven through 2012, but Congress extended it. Now that expiration date — Dec. 31, 2013 — is rapidly approaching.

You can have COD income if a creditor forgives a debt, reduces the interest rate or gives you more time to pay or in connection with a mortgage foreclosure, including a short sale or deed in lieu of foreclosure. QPRI means debt used to buy, construct or substantially improve your principal residence, and it extends to the refinance of such debt. Relief isn’t available for a second home, nor is it available for a home equity loan or cash-out refinancing to the extent the proceeds are used for purposes other than home improvement.

If you’re considering a mortgage foreclosure or restructuring in relation to your home, you may want to act before year end to take advantage of the COD income exclusion in case it’s not extended again. Contact kayla.payne@hawcpa.com if you have questions.

Habif, Arogeti & Wynne, LLP