Everyone has at least one pet peeve. The IRS has many. Here are some items that the tax agency may target on a manufacturer’s 2014 tax return — and ways to help safeguard against an IRS audit.
Volume 1 Issue 1
Hidden Messages in Your Financial Statements: Ratio Analysis and Industry Benchmarking Provide Added Insight
By themselves, financial statements provide limited insight into a manufacturer’s performance. To get a clearer picture of what’s really happening requires a relevant basis of comparison. Financial ratios and industry benchmarks provide management with the tools to identify strengths and weaknesses.
Pinpointing how much a dealership should pay its owners is never easy. You’ve got to consider a variety of factors, including just what form (salaries, benefits, stock) that compensation will take. You also need to ensure your approach will hold up under IRS scrutiny.