Business Financial Statements and Tax Returns: Navigating and Analyzing a Business Tax Return-Sp23

Presenter: Richard Hamm, Advantage Consulting and Training

This 90-minute program will be presented live on: February 21, 2023 – 8:30-10:00 a.m. CT

Recording available through: May 21, 2023

Price: $330

This program unlocks the key issues in analyzing business tax returns by creating a business tax return from a conventional financial statement.  This shows the major formatting differences and ways balance sheet accounts and income statement items are labeled differently in a tax return.  It also reveals the functions of the various schedules.  By using a pass-through entity, we further see how the tax return carefully segregates items that move to an owner’s personal tax return via the Schedule K-1.  A final step is creating a chart that “maps” a financial statement to both pass-through entities and a regular corporation.

After this seminar, attendees will be able to:

• For an example business (case), construct a tax return balance sheet (Schedule L), income statement, Schedule M-1 and Schedule M-2 on the cash basis
• Identify key formatting differences between a conventional financial statement and a tax return
• Describe how pass-through entity tax returns separate various income statement items for purposes of allocating them to the owner(s) personal tax returns
• On the Schedule K-1, identify the pass-through items that involve cash, compared to pass-through items that do not involve cash
• Describe the common relationship between pass-through income and distributions to the owner(s)
• Create a chart to compare and align financial statement components to the appropriate tax return schedules

Target Audience:  Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists and others involved in business and commercial lending