Nonprofit Blog

Do not be misled into thinking that breaches of computer data concern only mega-corporations. The problem is rapidly escalating for small-business owners. In fact, your business may soon be exposed to dangers from hackers, if it has not happened already. According to a recent survey, 55% of small businesses have experienced a data breach, while 53% of those businesses had multiple breaches. 

Of course, everyone makes mistakes, but some are worse than others. For instance, the types of errors you might commit when investing in equities could haunt you for years, dramatically affecting your lifestyle. Here are a few tips for avoiding several common mishaps. Of course, we strongly recommend that you contact Smith & Howard Wealth Management for more information on an investment strategy that is designed to help you reach your goals.

When you think of corrupt executives, names like Lay and Skilling from Enron probably come to mind. But almost every lender has met a prospective borrower who raises a red flag. Perhaps you know someone who brags about cash paid “under the table” to evade taxes — or one who skimps on safety requirements and benefits to save money? 

Many loan covenants include a minimum liquidity threshold based on static metrics, such as the current or quick ratio. Banks have learned the hard way that a significant decline in liquidity can foreshadow bankruptcy. But few lenders consider, or even know about, the cash conversion cycle (CCC), which factors timing into the liquidity equation.

Whether business growth happens through internal expansion or external acquisition, borrowers share certain denominators. They usually need more capital — either debt or private equity — to achieve their objectives. And these business owners may tend to overestimate how they expect to perform while underestimating timing and financing constraints.

Year end is a good time to revisit tax-saving opportunities, such as the Domestic Production Activities Deduction (DPAD), under Internal Revenue Code Section 199. Borrowers who are unaware of the DPAD — or intimidated by its perceived complexity — could be leaving money on the table. 

As organizations continue to seek efficiencies by outsourcing services and goods, they have become more vulnerable to procurement fraud.  Below are warning signs of procurement fraud that all managers, board members and advisors should be alert for.