Pathfinder Business Strategies Offers Timely Tax Saving Strategies To Survive The Impending Economic Downturn}

Filed Under (Taxes) by 4GEey3 on 15-03-2017

Submitted by: Drew Miles

Pathfinder Business Strategies, LLC a privately held company which advises corporations, consumers & small to mid size companies on asset protection, tax savings & wealth building strategies is urging all Americans to structure their finances properly to save as much money as possible on their taxes, and to prepare for the economic uncertainty facing the country.

Pathfinder, which is located in Sebastian Florida, is run by Drew Miles, a former attorney who after practicing law for thirteen years realized that most of his clients were unprepared financially for any sort of drastic economic downturn. When the economy takes a turn for a worse, everyone starts tightening their belts, said Mr. Miles. But one place that is often overlooked is the amount of taxes they pay.

Pathfinder Business Strategies has advised more than 5,000 small and large businesses, as well as individuals how to arrange their assets and income to pay the absolute legal minimum in taxes. We have found that the wealthiest people in the country are paying as little as 5% of their income in taxes, while the average person is paying upwards of 30-50% of their income in taxes. Drew Miles advises that the best way to prepare for a rocky economic future is to make sure that you are keeping all the money that you are legally entitled to.

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Those who will be hit hardest by the struggling economy are those who can least afford it. Hard working middle-class Americans will not only feel the lifestyle altering effects of the faltering economy, but are also the ones paying the most in taxes.

The United States’ economic downturn is making headlines across the world. The falling value of the dollar, combined with the sharp decline in the housing market and skyrocketing energy prices has put many Americans in a panic about the future of the economy.

Its amazing how Im going to save, and how much this is going to help me. This year, it looks like Im going to save $30,000 in taxes. said Joronda Perry, a Pathfinder client and real estate investor from Baltimore, Maryland. Meaning that half of the income that I usually pay in taxes, Im going to get to keep.

In addition to tax savings, Pathfinder Business Strategies advises their clients on how to audit-proof their finances, protect their assets in the event of a lawsuit, and grow their retirement account completely tax-free.

Americans need all the money they can get in order to survive this financial crisis. While many people are turning to business opportunities which can turn out to be scams, Pathfinder Business Strategies offers a way to have more money on hand without having to make any more income.

It is important for people to realize that Americans are making far more money than they are actually taking home, said Drew Miles. A very large percentage of their weekly salary is lost to taxes before they ever cash a check. This money can be recovered and used to pay for rising expenses. When you realize just how much money you are losing right off the top, tax savings is like getting an instant pay raise from the government.

Pathfinder Business Strategies recently reported an average savings of ten to thirty thousand dollars in tax savings for each client. These savings are not of a one-time nature, but rather continue every year into the foreseeable future.

About the Author: I have spent years studying the tax code looking for ways to help people lower their tax bill and keep more of what they earn. Drew Miles Find Out More:


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The Difference Between Sde And Ebitda}

Filed Under (Taxes) by 4GEey3 on 29-12-2016

The Difference Between SDE and EBITDA


Michael Fekkes

The 3 most commonly used valuation methods are the Income, Market, & Asset approach. With the income approach, a business value is based upon the earnings the enterprise generates. Buyers are most concerned with the amount of earnings that the company produces should they acquire the business. The net ordinary income, utilized for tax reporting purposes, does not properly reflect the true earnings of the company based on the non-cash, discretionary & non-recurring items that are expensed by the business owner. Earnings are kept low to achieve the goal of reducing taxes. Therefore, to calculate the true earning capacity of the company, the P&L statements need to be adjusted during a valuation to determine SDE or EBITDA. Re-casting the financial statements will standardize (or normalize) the company earnings through the exclusion of discretionary, variable and non-recurring components, allowing an objective comparison to be made between two or more companies. By applying a multiple to the EBITDA or SDE amount, consistent with the industry sector and a weighting of the issues affecting the business, will derive the business value.

What is Sellers Discretionary Earnings (SDE)?

Sellers Discretionary Earnings is utilized for businesses with under $1mm in adjusted earnings. These businesses often have the owner managing the company and receiving a salary. With these small enterprises it is critical to determine what the owner benefit is as opposed to the earnings of the company. This is accomplished through a series of profit and loss statement adjustments termed add-backs that are made to the pre-tax company earnings. In some instances, there are negative add-backs as in the case with a business that owns real property (e.g. the building & land) where the owner is compensating himself a below market rent or a family employee working for the company who is receiving a below market salary. In both of these cases, an adjustment is made to normalize the expense to the current market value.

The most common adjustments used during the re-casting process are:

1. Add-back one owner’s total compensation

a. Salary

b. Payroll Taxes

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c. Retirement Contributions e.g. 401K

d. Insurance

e. Perks (Health Club, etc)

2. Add-back interest expense

3. Add-back discretionary expenses

a. Donations

b. Personal Cell Phones

c. Travel, Meals, & Entertainment

d. Owners Vehicles (not used in business)

4. Add-back non-cash expenses

a. Depreciation

b. Amortization

5. Add-back Non-recurring expenses

a. Fines / Bank Penalties

b. Attorney fees (e.g. sale of business consultation)

6. Adjust Lease to Fair Market Value

What is Earnings Before Interest Taxes Depreciation Amortization (EBITDA)?

EBITDA is used to define the earnings of the company for businesses with adjusted income greater than $1mm. Here, the owner/investor is typically not active in the direction or daily management of the business and will hire a general manager to perform that function. Therefore, the EBITDA calculation will differ from SDE as it incorporates the general managers salary in the earnings calculation as an expense. EBITDA is a non-GAAP measure that is used to determine profitability and to make comparisons between companies and industries as it eliminates the impact of the financing and accounting decisions made. An easy way to determine EBITDA is to subtract the owners compensation and benefits from SDE. The EBITDA dollar amount will be lower than SDE but the multiple used in the valuation formula will be higher, often 2-2.5 times the SDE multiple. Therefore, as one would anticipate the FMV of the same business calculated using either method should be very close to each other. If not, an assessment as to why and which (or what other method(s)) must be undertaken.

Michael Fekkes is a Senior Broker at ENLIGN Business Brokers. Michael is a Certified Business Intermediary (CBI), a member of the International Business Brokers Association (IBBA), as well as a former business owner. ENLIGN Business Brokers is a Professional Services Firm that is headquartered in Raleigh, NC providing confidential business intermediary services to buyers and sellers throughout the Southeast region.

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The Difference Between SDE and EBITDA }


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