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As a business owner, there are several circumstances in which you may need to determine how much your company is worth. The value of a business cannot be determined by the company's financial statements alone. A business's value is dependent on many factors, including its assets, liabilities, profitability, and growth potential. These factors are constantly changing and must be evaluated by a qualified and experienced CPA. When Do I Need to Determine the Value of My Business? The most common contexts in which clients request a business valuation are during a divorce, for damage purposes, and when buying or selling a business. During a divorce, if the business is community property, then it has to be valued to know what all of the assets of the divorce estate are worth. Businesses have trade secrets that are protected by state law and federal law. In cases involving theft of trade secrets or tortious interference, a valuation will need to be completed to determine the extent of the damage. Additionally, if you are buying or selling a business, you will need a valuation completed before that transaction can take place. How to Choose the Best CPA for Your Business ValuationWhen searching for a CPA to complete your business valuation, you want to look for two crucial qualities: experience and credentials. Your CPA needs to be experienced in court and must be able to use their expertise to testify and make appearances when needed. Only accredited business appraisers have the training and skills to create defensible valuation reports, which is why it’s important to find a CPA who is also accredited in business valuation.
The Accredited in Business Valuation (ABV) is a national certification awarded by the American Institute of Certified Public Accountants. This credential is granted exclusively to accountants who demonstrate considerable knowledge and expertise in business valuation. Business valuation is a specialty skill, and few CPAs ever receive this credential. Larry Bradford, CPA, is accredited in business valuation and has been awarded the ABV certification. He has made over 400 court appearances and has more than 40 years of experience in valuation practice. If you are looking for a certified and experienced CPA that you can trust to create a defensible valuation for your business, give Larry Bradford a call at 512-402-0049 or send an email to larry@bradfordtexas.net.
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A common misconception people have is that if they haven’t filed taxes in over 10 years, they can file for bankruptcy and not be held responsible for their unpaid taxes. That is not the case. Filing for bankruptcy does not guarantee that your taxes will be discharged, and it can complicate the process of getting back on a positive financial track. Can Past Due Taxes Ever Be Discharged in Bankruptcy?The answer to this question is, "It depends." If you have not filed a tax return, your past due taxes cannot be discharged in bankruptcy. Only those taxes that have been filed and are older than 3 years can be dischargeable in bankruptcy, unless the tax return was filed late. Additionally, you are still required to keep up with your current taxes, even after filing bankruptcy. According to the IRS, “Failure to file returns and/or pay current taxes during your bankruptcy may result in your case being dismissed.” So, if you don’t file your taxes on time, you will still be held responsible for those taxes, even if you declare bankruptcy. Don’t Get Behind on Your TaxesAvoid getting yourself into a situation where your taxes are overdue. There are many unintended consequences of delinquent tax returns, and filing for bankruptcy won’t get you out of paying what you owe. The best thing you can do to protect yourself is to stay caught up on your taxes.
Larry Bradford, CPA, can help you get caught up on past due taxes and create a plan to ensure you don’t get behind on your payments in the future. Call our office today at 512-402-0049 or send an email to larry@bradfordtexas.net to set up an initial appointment. |
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