Past service credit to employees for years they worked before the ESOP was established

Non-extractive finance flips the power relationship of lender and lendee, making sure that a borrower will never be worse off after working with a lender than before working with them.

Combining emotional intelligence with getting things done.

Gradual reduction in the value of a fixed asset. Because depreciation happens to non-cash assets, like a vehicle or piece of machinery, it can be used as a tax write-off; that is, a person or company may reduce their taxable income by the amount of the depreciation on the asset.

a business that: (1) Is organized for profit (2) Has a place of business in the US (3) Operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor (4) Is independently owned and operated and is not dominant in its field on a national basis

The accrual basis of accounting is the concept of recording revenues when earned and expenses as incurred.

A bolt-on acquisition is a transaction in which a larger company acquires a smaller company that offers complementary services, products, or geographical advantages. PE firms often use bolt-on acquisitions as a strategy to grow their portfolio companies and increase their value.

In the red means your business is in debt and losing money.

A startup company valued at over US$1 billion which is privately owned and not listed on a share market.

A 12-month period for which an organization plans the use of its funds. (The fiscal year for a business does not always line up with the calendar year.)

An F reorganization is defined in Internal Revenue Code Section 368(a)(1)(F) as a mere change of identity, form or place of organization of one corporation. In particular, this involves a tax-free reorganization of the target company (seller), which is typically an S corporation.

An invoice, bill, or tab is a commercial document issued by a seller to a buyer. The invoices documents the sale transaction and indicates the products, quantities, and agreed prices for products or services the seller provided.

Accounting for the total compensation expense of ESOP shares with the average fair value of the released shares during the year. The difference between original cost per share and the average fair value per share is recorded through paid-in-capital or retained earnings and is a non-cash adjustment. The ESOP compensation expense is part of operating income.

Figuring out the best path forward for your business.

Sweat equity is ownership interest or an increase in value that is created as a direct

Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee’s wages, and taxes paid by the employer based on the employee’s wages.

Inventory management is the entire process of managing inventories from raw materials to finished products. It efficiently streamlines inventories to avoid shortages and gluts.

Cash basis refers to a major accounting method that recognizes revenues and expenses at the time physical cash is actually received or paid out.

An optional rule in EO Plans that applies upon re-hiring an employee into an EO company; if they had not met the eligibility requirements during their previous period of employment, they would need to complete the break in service requirements in order to participate in the Plan.

Annual testing for an ESOP that the amount of employer contributions to direct contribution plans that can be deducted each year, according to IRC Section 404(a)(3), is 25% of the compensation of the plan participants.

Frequently asked questions about Zolidar, employee ownership, and business exit planning