This presentation focuses on four key roles that every financial leader shares: Staying abreast and aware of the myriad changes in GAAP accounting, the impact on the balance sheet, correctly financing the organization, and properly paying state and local taxes. We must be vigilant and current. Many seasoned executives do not properly analyze the lease-versus-buy decision. GAAP is ever-changing. What are the issues that will impact our balance sheet? The spotlight is to enhance our financial skills and accounting. Accounting is always moving forward, just as we should. Otherwise, we may be left behind.
Learning Objectives
- Recognize some of the numerous new methods that individual tax jurisdictions are employing to raise tax revenue and the impact on cross border (interstate) operations. Be aware of the changes in SALT taxation so your employer/clients can be in compliance.
- Understand the need for GAAP accounting to continuously improve and grasp the need to be directly involved in strategic planning and its value.
- Learn how to determine the optimum mix of debt and equity as well as how to properly evaluate the decision to lease an asset and understand the complexity of balancing debt versus equity.
- This seminar will teach how to appreciate the paramount need for an excellent balance sheet and to emphasize the critical nature of using both a) practical analysis and b) common sense in our application and approach to balance sheet accounting.
Major Topics
- • Typical accounting issues that impact the balance sheet
• Where are the 'hidden' issues in unrecorded liabilities
• Why and how most balance sheets are not correct - What are unrecorded assets and why do they matter?
- Suggestions to improve balance sheets
• Identification of and resolution of balance sheet challenges and changes
• Communicating with your audience and stakeholders
• What is the cost of capital?
• How does the mix of debt versus equity affect the cost of capital?
• What is the right balance of debt to equity and why does it vary?
• Modigliani and Miller’s Nobel prize-winning theory
• How do risks affect my choices?
• Risk aversion choices amongst providers of finance
• How will capital structure affect me in times of financial distress?
• Buying assets versus leasing them – what needs to be considered?
• Evaluating a lease versus buy decision and why so many get the analysis wrong
• Understanding the modern finance and accounting organization chart
• GAAP accounting changes o Why so many changes o The speed of change and complexity o Accepting reality
• Recognizing and fixing the top five accounting problems and errors o Revenue o Leases o Management estimates
• Why is strategy necessary? o What is strategy? ➢ The two keys to strategy o Balancing strategy with our day-to-day roles
• Why do local jurisdictions, e.g., states, need more tax revenue?
• The creative new methods to raise taxes o Including new taxes, rates, limits, exceptions, boundaries, etc. o Exporting the tax burden o Employee vs. independent contractors o Mobile workforce issues
• The myriad, novel schemes to tax o Fees and licensing matters
• Leading SALT software providers o Common implementation problems o States' expectations that technology makes compliance simple for the taxpayer o Do the costs of compliance outstrip the taxes due?
• Officer liability for taxes – it is a real thing!
• How variable is SALT taxation? o Examples of the differences o Entity classification considerations in the SALT equation o Variability by state and each county within each state
• The benefit/necessity of an annual review
• Risk reduction strategies
