{"id":2382,"date":"2018-09-24T16:15:44","date_gmt":"2018-09-24T21:15:44","guid":{"rendered":"https:\/\/hornvaluation.com\/?p=2382"},"modified":"2020-08-17T12:13:24","modified_gmt":"2020-08-17T17:13:24","slug":"losses","status":"publish","type":"post","link":"https:\/\/hornvaluation.com\/losses\/","title":{"rendered":"Are Those Losses Real? This is How You Find Out"},"content":{"rendered":"
Hey everyone,<\/p>\n
Whether you’re running a business or buying one, it’s important to understand losses. By “losses”, I mean when expenses exceed sales. In simplest terms, it’s when the income statement or profit and loss shows a negative number. You don’t need to immediately panic. You need to review the causes.<\/p>\n
Here’s my list for non-accountants:
\n-> Are there personal expenses? (Pull those out).
\n-> Is it a Tax loss or a Cash loss? (You care about Cash).
\n-> Cash losses can’t keep going unless more money is invested or borrowed.<\/p>\n
Or, stated another way…
\n-> Is the business worth more “alive than dead?” (Supporting a family without more debt, capital, or fraud).
\n-> How much cash is going in the owner’s pocket? (Assuming they’re following the rules).<\/p>\n
Yes, there’s a lot more I could teach you about accounting if you had the time. But you don’t, so this will put you ahead of 90% of the world.<\/p>\n
Thanks, Sign up for this blog\u00a0here<\/a>\u00a0and connect with me on\u00a0LinkedIn<\/a>,\u00a0Facebook<\/a>, and Twitter<\/a>.<\/p>\n Can I Help You?<\/strong><\/p>\n Hi, I\u2019m Josh Horn, CPA, CVA<\/a> of\u00a0Horn Valuation<\/a>.\u00a0I help with business valuations in friendly or unfriendly situations. I also help owners build valuable companies. My clients are business owners and attorneys. If you\u2019d like more information, check out my website hornvaluation.com<\/a>, email me at josh@jhorncpa.com<\/a>, or call me at 217-649-8794<\/strong>.<\/p>\n <\/p>\n I’m a licensed Certified Public Accountant (CPA<\/strong>) and credentialed in business valuation<\/strong>\u00a0(CVA<\/strong>). I’ve been a tax and business consultant in a top 100 CPA firm and a controller in a large international company. I’ve also valued and been the primary advisor to multi-million dollar and small companies in various industries.<\/p>\n “If you’re not working on business value, who is?”<\/strong> Josh Horn, CPA and Certified Valuation Analyst<\/p>\n","protected":false},"excerpt":{"rendered":" Hey everyone, Whether you’re running a business or buying one, it’s important to understand losses. By “losses”, I mean when expenses exceed sales. In simplest terms, it’s when the income statement or profit and loss shows a negative number. You don’t need to immediately panic. You need to review the causes. Here’s my list for … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":2394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"generate_page_header":"","footnotes":""},"categories":[4],"tags":[90,127,35,87,44,125,128,45,92,93,46,94,88,144,142,40,38],"yoast_head":"\n
\nJosh<\/a><\/p>\n