Is Unlimited Vacation the Right Answer to Your Vacation Policy?

This guest post is from Bethany Walsh, Head of Marketing for Abacus. It’s a well known fact that most people don’t take enough vacation or downtime. They are always plugged into their ever present smartphone with email and Slack notifications, whether they’re sitting on a sandy beach or in a conference room. And most employers don’t pay much attention to this – they’re too tied up in it themselves. It’s no secret that you’ll get better quality work out of someone who’s rested than when they aren’t – there’s lack of attention to detail, burning out and other side effects. So unlimited vacation seems like the best answer to solving the dilemma, right? Give the team as much time as they need to take care of themselves – seems logical. But what is it that really stops them from taking time off in the first place and does unlimited vacation …
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A Primer On Transfer Pricing

If you are a company with a subsidiary here in the U.S. or abroad, you may very well be familiar with transfer pricing. For the uninitiated, a transfer price in general is the price charged between related parties (i.e., a parent company and its controlled foreign corporation) in an intercompany transaction. If you are new to transfer pricing, it’s important to know that transfer prices directly affect the allocation of taxable income between related entities. Thus, your company’s transfer-pricing policies can directly affect its taxable income. IRC Sec. 482 gives the IRS the authority to adjust taxable income between two related parties if it deems the current transfer policy to be inaccurate.   A good rule of thumb for intercompany transactions is  that it be congruent with an arm’s length transaction between unrelated parties. Generally, a controlled transaction meets the arm’s-length standard if the income from the transaction is consistent with …
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Telling Your Growth Story Using Financial Projections

This guest post is from Joe Silver, VP of Finance at Lighter Capital. Any potential investor worth their salt will want to know where your business is headed and how their investment will help your business get there. It is very important to offer a set of realistic and attractive financial projections when raising capital. You should approach financial projections like you are telling the growth story of your business. That story will show important numbers and analysis via financial statements. Individual income, investment and expense components combine through financial statements and metrics to show where you are going and what it will take to get there. When building out your projections, you can use historical data as a baseline. Usually investors like to see two to three years of your historical financials to get started. If you have a shorter operating history, however, use everything you have. These financials …
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Paid Sick Leave in California: Understanding the Healthy Workplaces, Healthy Families Act of 2014

This guest post is from Kaspars Upmanis, the founder of CAKE HR. The Healthy Workplaces, Healthy Families Act of 2014 was passed to allow most types of employees in California to be eligible for paid sick leave. With this passage, California becomes the first state in the Union to require all employers, regardless of size, to offer sick leave to its employees. Unlike a similar law in Connecticut, which requires only companies of more than 50 employees to offer paid sick leave, this law affects even the smallest of startups. Introduction of the Act The law went into effect as of July 1, 2015. The first, and probably largest, piece of this legislation is that it provides paid sick leaves to all employees in the state – including temporary, seasonal, and part-time workers. The only exceptions would be in-home support services employees and airline flight deck or cabin crew employees …
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What Is a SAFE? A Closer Look at The Simple Agreement for Future Equity

Convertible debt is a staple in startup funding. But sometimes the complexity and costs outweigh the benefits. Enter the SAFE, or Simple Agreement for Future Equity. Designed for simplicity on the front-end, a SAFE allows a company to accept outside investment in exchange for stock issued at a later date. SAFEs usually appear around the seed stage of funding, as it gives founders the chance to raise funding without having to begin the process of setting a valuation or issuing convertible notes. Because there is no debt component, SAFE agreements tend to favor the entrepreneur over the investor. With that being said, there are important characteristics of a SAFE that you should know before asking your Accounting Professional if it is the right option for your company.   SAFEs are not debt instruments It’s right there in the name: Simple Agreement for Future Equity. Without the involvement of debt, there …
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Changes to IRS Deadlines for Tax Year 2016 – What You Need to Know

As if keeping track of what taxes to pay and when wasn’t hard enough already, Congress has changed some important filing deadlines, which are effective for tax years beginning after December 31, 2015. Sadly, your personal tax deadline is still April 15th, but there have been several shifts in the business tax world that should be on your radar. Shoe-horned into the very exciting-sounding Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, the changes include the following: Corporation and Partnership Due Dates C-Corporations The due date has been extended an extra month – to April 15th for calendar year corporations and the 15th day of the fourth month after the close of the fiscal year for fiscal year corporations. Partnerships and S-Corporations The due date for partnerships has been retracted one month – to March 15th  for calendar year partnerships and the 15th day of the third …
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The Startup Accounting Year-End Checklist

The most wonderful time is upon us: year-end. There are a number of accounting items you should be staying on top of in order to best manage your company finances and position your small business for greater success in the new year. Your year-end thought process should take into consideration the following: Payroll Make sure that you’re filing all of your forms and making payments. It’s important to make sure you’re in good shape to get your employees their W2 forms on time. Also take into account accrued bonuses or special gifts on the books that may not be paid until next year. AR Collections You want to be able to close out all outstanding receivables before year-end so do what you can to collect on unpaid bills. Improving your collection process and expediting payments will help you to maintain better control over your cash flow. For more tips on AR collections, …
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Early Growth Financial Services Expands Tax Team With Addition Of New Chief Tax Officer Anjum Tunuli

Early Growth Financial Services (EGFS) is pleased to announce the latest addition to its full-service tax department, Chief Tax Officer Anjum Tunuli. Under Tunuli’s direction, the tax practice of EGFS will continue its commitment to providing tax services and consulting to individuals, small businesses and venture-backed startup companies in a variety of industries. An accomplished tax executive, with over twelve years of experience, Tunuli has worked with successful small to mid-sized companies and their ownership groups. Tunuli also has a very successful track record representing taxpayers before various taxing agencies, as well as achieving great success for his clients by drawing on innovative thinking in order to understand the full financial impact of tax planning on his clients’ business operations. “Taxes are a regular and important part of every single business. It is important to the companies we service that our expertise can see their tax work through year after …
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Case Study – Bolt Threads: Crucial Pre-Launch Expertise For Next Generation Textile Business

Learn how Early Growth Financial Services provided the financial acumen and support for California-based biotech company Bolt Threads. Click the image to read the case study in its entirety.

Early Growth Financial Services Tabs Michael Jacobson To Head Midwest Market

Early Growth Financial Services (EGFS) has named Michael Jacobson Managing Director – Midwest, based in Chicago. Jacobson will be responsible for leading the efforts of the nation’s top startup accounting firm in the Chicago market and surrounding areas. Michael Jacobson brings to EGFS his background as a founder, entrepreneur, and advisor to startups. His work includes building and leading high performance finance, operations, sales and marketing organizations for venture-backed technology, Internet and services companies. An early leader in the back-office industry, Michael founded Advsor in 2011 to provide services for early and growth-stage startups in San Francisco and New York City. “We are really seeing a growth trend for the startup ecosystem in the Chicago area. As a leader in the startup space, it was important for us to have someone in place that could help build upon the foundation we have laid in the Midwest,” said David Ehrenberg, Founder …
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