Best Practices for Encouraging Entrepreneurship within Family Businesses

Posting by Joel C. Susco, CPA

The giant leap from first generation to second generation in a family business isn’t bridged merely by luck or time – it takes work, planning, and an understanding of entrepreneurship.  Keeping the entrepreneurial spirit alive first relies on understanding the characteristics of entrepreneurship, e.g., creativity, adaptability and self-determination.  Following are some “best practices” for helping to foster the entrepreneurial spirit, and providing your family business with both ideas and tools to survive and thrive […]

May 7, 2013 Family Owned Businesses Read more...

New Trustee’s Guide to Investments: Basis Points

Larry Beebe, CPA

New trustees can be overwhelmed by the investment knowledge that must be quickly acquired to function effectively in their new roles. This series will provide in-depth information about plan investments to assist new trustees in their fiduciary duty of managing plan assets.
When discussing your plan’s investments in trustee meetings, you may hear many unfamiliar financial terms.  Understanding commonly used terminology, such as basis points, Alpha, Beta, Yield Curve and other financial language will allow you to effectively […]

May 3, 2013 Accounting, Benefit Plan Accounting Read more...

Preventing Fraud with Surprise Audits

Posting by John Merchant, CPA, CFE, CFF

Surprise audits are an important, but often overlooked fraud prevention mechanism.  Many unscrupulous employees anticipate the regular audit and cover their tracks accordingly, but a surprise audit can expose the usually hidden graft.   Additionally, the simple threat of a potential audit can deter fraudulent employee behavior.

These audits often cover the same areas as a routine audit, but in more depth.  My colleague Alex Helfand, in his post on bbforensic.com, identifies several common areas […]

May 2, 2013 Accounting, Family Owned Businesses, Forensic Accounting Read more...

Choosing a Retirement Solution for Your Company: Profit Sharing vs 401(k)

Ashleigh Zeller, CPA

As your company grows, offering a retirement plan is an important benefit to help recruit and retain employees. There are a number of options available; in this post, we’re going to review two of the most common plan types – profit sharing plans and 401(k) plans.

These plans are alike in several ways. Both are qualified, tax-deferred retirement plans that allow participants to contribute pre-tax earnings; the principal and subsequent earnings are not taxed to the employee until […]

April 30, 2013 Accounting, Benefit Plan Accounting Read more...

What’s Love Got to Do with It? How Family Ties Can Harm a Family Business

Posted in DCFBA Blog, Management, Relationships | Post By Joel C. Susco, CPA, Principal

Posting by Joel C. Susco, CPA

Every business experiences challenges now and then, but family owned and operated businesses can be particularly challenging to navigate successfully and smoothly. Working with family members can be a very enjoyable experience, but if management falls into some common mistakes, it could pose some specific business risks that, if not properly addressed and resolved, could result in negative consequences to your […]

April 24, 2013 Family Owned Businesses Read more...

Divorce Checklist: Financial Information and Documents that Can Aid a Settlement

Joel Susco, CPA

According to the Women’s Institute for Financial Education, each year, nearly 2.8 million men and women go through the emotional and financial trauma of divorce. And, financial survival is one of the most common concerns.

One of the biggest mistakes divorcing couples make is being in the dark about their finances. If one spouse in the marriage has historically been the financial decision maker and records keeper, he/she may have an unfair advantage when it comes time to […]

April 23, 2013 Accounting, Wealth Management Read more...

MAP-21 Annual Funding Notice Disclosures are Due on April 30

Charles Creigh, CPA

The Moving Ahead for Progress in the 21st Century Act (MAP-21), which was passed last summer, included several provisions for defined benefit plans.  The Department of Labor has recently released Field Assistance Bulletin No. 2013-01, providing key guidance for single-employer defined benefit plan administrators regarding the new annual funding notice disclosure requirements mandated by MAP-21.  The first annual funding notice that requires the MAP-21 supplemental disclosures is due April 30.

ERISA currently requires plan administrators of defined benefit […]

April 22, 2013 Accounting Read more...

The Secrets of Successful Buy-Sell Agreements

Posting by Geoffrey D. Brown, CPA, Principal

A well-crafted buy-sell agreement is essential for limiting liability and resolving a number of tax and business issues in closely-held or family enterprises, especially those with multiple owners and partners.  The agreement outlines the roles and rights of the parties involved, fostering smooth relations and the successful continuation of the business.  It also prevents an owner from selling his interests to an outsider without the consent of the other owners, and provides an […]

April 20, 2013 Accounting, Tax, Valuation Read more...

Four Ways Family Businesses Can Encourage Innovation

Posting by Geoffrey D. Brown, CPA

Innovation is the key to driving business success. In today’s increasingly crowded business environment, it’s key to staying competitive.  Whether it involves developing cutting edge products and services, creating a new process, or simply remaining flexible to adjust to the changing needs of your client base, businesses must continue to innovate and evolve for their own survival.

One of the biggest challenges that family businesses face with regard to innovating is striking that healthy balance […]

April 16, 2013 Family Owned Businesses Read more...

Payments Fraud Prevention: Protecting Your Family Business from Check and Card Fraud

Posting by Joel C. Susco, CPA, Principal 

Are your payment processing systems vulnerable to fraud?  Our Forensic Accounting team recently posted on the most recent research showing that check fraud continues to be a persistent problem for companies, and credit card fraud is on the rise.  Unfortunately, family businesses aren’t immune from this trend.

According to the 2013 AFP Payments Fraud and Control Survey, 61% of the companies surveyed had experienced some type of payments fraud.  Without the proper controls in place, […]

April 13, 2013 Accounting, Family Owned Businesses, Forensic Accounting Read more...