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Seasonal business? Optimize your operating cycle

Every business has some degree of ups and downs during the year. But cash flow fluctuations are much more intense for seasonal businesses. If your company defines itself as such, it’s important to optimize your operating cycle to anticipate and minimize shortfalls. A high-growth example Consider a manufacturer and distributor of lawn-and-garden products such as […]

Is it a business loan or not?

It’s common for closely held businesses to transfer money into and out of the company, often in the form of a loan. However, the IRS looks closely at such transactions: Are they truly loans, or actually compensation, distributions or contributions to equity? Loans to owners When an owner withdraws funds from the company, the transaction […]

Managing business insurance costs

Adequate insurance coverage is, in many cases, a legal requirement for a business. Even if it’s not for your company, proper coverage remains a risk management imperative. But that doesn’t mean you have to take high insurance costs sitting down. There are a wide variety of ways you can decrease insurance costs. Two examples are […]

Should your nonprofit take out a loan?

Debt is an integral part of many for-profit companies’ strategic plans, yet it has traditionally carried a stigma in the nonprofit world. That view is changing, as more organizations borrow money for major capital purchases, new program funding and other reasons. But before your nonprofit borrows, it’s important to understand that it takes prudent financial […]

Put your financial statement to good use

By midyear, most businesses that follow U.S. Generally Accepted Accounting Principles (GAAP) have issued their year-end financial statements. But how many have actually used them to improve their business operations in the future? Producing financial statements is more than a matter of compliance — owners and managers can use them to analyze performance and find […]

5 tips for nonprofit succession planning

Every nonprofit organization needs a comprehensive succession plan to ensure smooth leadership transitions. Here are five tips for making a written plan successful: 1. Look within. It’s important to develop employees who can move up the ladder when an executive director or other senior manager leaves. But don’t rule out hiring an outsider. Promoting from […]

Business owners: Put your successor in a position to succeed

When it comes time to transition your role as business owner to someone else, you’ll face many changes. One of them is becoming a mentor. You’ll have to communicate clearly, show some patience and have a clear idea of what you want to accomplish before stepping down. Here are some tips on putting your successor […]

Employee share-based payments: FASB revises the reporting requirements

Think the rules for reporting employee stock options and restricted stock are too complicated? The Financial Accounting Standards Board (FASB) agrees — and it has simplified the rules starting in 2017 for public companies and 2018 for private companies. Here’s how: Old rules Under current U.S. Generally Accepted Accounting Principles (GAAP), for each share-based payment, […]

Real estate investor vs. professional: Why it matters

Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses generally are deductible only against passive income, with the excess being carried forward. Of […]

Larry Schwartz Joins Shriners Boston Board of Governors

Larry Schwartz, managing director at tonneson + co, has recently been named to the Board of Governors of Shriners Hospitals for Children – Boston. He brings years of professional and philanthropic experience to the Boston Shriners Hospital, as well as a commitment to the Shriners’ mission of supporting world-class pediatric specialty care, regardless of families’ ability to […]