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What makes a GAAP audit a smart move for #Entertainment companies? #TeamGHJ Audit Partner Dan Landes, CPA explains that a GAAP audit not only meets compliance requirements but also bolsters a company’s financial credibility and risk mitigation efforts. With the high-value transactions common in entertainment, having a robust audit from an experienced firm like GHJ can be the key to future growth, investment and strategic partnerships. Learn more about the value of a tailored audit approach. https://bit.ly/3Bb8lvV #YourHomeTeamAdvantage

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🚀 Big changes are coming to the Intuit ProAdvisor program! From supporting individual accountants to empowering entire firms, Intuit is reshaping the future of accounting. Discover what Ted Callahan, Intuit's Director of Accountant Partnership & Strategy, has to say about these transformations, new tools, and what’s next for the profession. Don’t miss out—click to read the full story! 🔗https://lnkd.in/gGeQVNR7 Author:- @B2BSeth . . #Intuit #AccountingFuture #ProAdvisor #QuickBooks

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Chief financial officers (CFOs) are increasingly seen as prime candidates for CEO roles, reflecting a broader shift in corporate leadership dynamics. Traditionally valued for their attention to detail, risk management acumen, and focus on financial performance, CFOs are now stepping into CEO positions during times of corporate upheaval. This shift is underpinned by the evolving role of CFOs beyond finance, encompassing corporate strategy, deal-making, sustainability, and data analytics. While CFOs are increasingly seen as architects of business resilience and growth, transitioning to CEO isn't without challenges; research shows CFOs-turned-CEOs may initially struggle to drive revenue growth and must navigate interpersonal dynamics beyond their financial expertise. Nonetheless, the trend indicates a growing recognition of CFOs' potential to lead companies through uncertain times and shape future business strategies. Read More Here: https://lnkd.in/g6c-P8bw Bloomberg Beth Kowitt Branded Hospitality Ventures Hospitality Headline Newsletter #CFO #CEO #business #promotion #innovation Seth Murdoch Adam Saper David No Tom Betts Keith Melker Andrew Ockner

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Unlock the secrets to CFO compensation in the tech sector with our groundbreaking analysis. Discover how private equity tailors lucrative compensation packages to attract and retain the industry’s finest financial leaders. ▪ Lower-Middle Market: Base salaries are competitive, complemented by meaningful bonus opportunities and equity stakes that reward financial acumen and successful outcomes. ▪ Mid Market: Compensation packages are designed to reflect the financial management complexities of a growing tech firm, with substantial bonuses and equity options that align CFOs with the company’s financial health and success. ▪ Upper Mid Market: Offers top-tier salaries, significant bonus percentages, and equity stakes that scale with the CFO’s impact on strategic financial growth and company performance. Swipe through our carousel for a visual exploration of how CFO compensation evolves with company growth in the tech industry, brought to you by Christian and Timbers. For more detailed findings and to understand the implications for your business Read More ➡️ https://bit.ly/4hgCs5P #leadership #executivesearch #Csuite #CFO #compensation #tech

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In April, OpenAI Controller Sowmya Ranganathan walked me through how her accounting team leverages ChatGPT to revolutionize the close process. I instantly knew we needed to share her story with the broader finance community. Accuracy and process are core to accounting workflow, so it can be intimidating to stray from traditional approaches. In our webinar last week, Sowmya walked through some brilliant demos, illuminating how you can automate repetitive and time-consuming tasks with ease. I’d *highly* recommend watching a replay of our webinar if you weren’t able to join live – it’s linked in the comments. We’ve also distilled her advice into a how-to guide: https://lnkd.in/gbheYKf2 Here are some of the pro tips she shared: ⚫ Seek out ways to automate. When you’re repeating a task that takes more than a few minutes in Excel - or something you hate about the close process, rewire your brain to find a way to automate it. Those minutes quickly add up to streamline your day-to-day workflow. This works with the close process, but also many other projects in finance and beyond. ⚫ Be curious about code. While she’s not a trained programmer, Sowmya uses ChatGPT to create Python scripts to build pivot tables and parse through massive CSVs. Her team can categorize a full month of OpenAI’s Azure usage data 👀 in 10 seconds 👀, whereas before they’d have to manually process the data every few days to avoid hitting Excel’s row limits. ⚫ Train ChatGPT on your company’s specific guidelines. After Sowmya ran a prompt to recognize revenue from a transaction file, she asked ChatGPT to cross-check it against their audit firm’s ASC 606 guidelines, which she uploaded as a PDF. The result was nearly the same, but it added an extra step to protect against hallucinations. And, she always triple-checks the results. ⚫ Don’t fear the error message. Pre-ChatGPT, if she was working on an automation project and received a technical error message, she might have given up. Today, Sowmya dumps the message back into ChatGPT, where it can diagnose and resolve any issues. You can see this problem-solving in action during her demo! A big thank you to Sowmya for sharing this hands-on demo and giving finance leaders the confidence to test it out themselves. Now that you have inspiration, how will you use ChatGPT and AI to revolutionize operations at your company?

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California’s Assembly Bill 3219 which targets private equity groups and hedge funds that directly or indirectly acquire a material amount of, or establish a change in governance or sharing of control over, health care assets, including partnerships and joint ventures, is closer to becoming law following the State Assembly’s May 22, 2024 passage of the pending legislation. The legislation is currently being considered by the California State Senate, where approval must be obtained prior to the end of the legislative session in August if it is to be enacted into law in 2024. The bill defines “health care facility” to include any “nonprofit or for-profit corporation, institution, clinic, place, or building where health-related physician, surgery, or laboratory services are provided,” such as inpatient and outpatient centers, long-term care facilities, and labs. Covered provider groups include all groups of 10 or more licensed health professionals (LHPs) or groups of 2-9 LHPs with $10 million or more in annual revenue. Private equity groups and hedge funds that enter into an otherwise covered transaction with providers consisting of 2-9 LHPs that earn between $4 and $10 million in annual revenue would be required to notify the Attorney General, but the transaction is not subject to approval. The same is true for groups of 2 or more nonphysician LHPs that earn more than $4 million annually. The proposed legislation has serious implications on the use of the contracting structure that many private equity groups utilize to carry out investments while navigating California’s prohibition on the corporate practice of medicine (CPOM) - the “Friendly PC-MSO Model”. This model involves a private equity or lay person-controlled management services organization (MSO) contracting to perform administrative services for a health care practice in return for a management fee, while also having certain rights regarding the ability to designate successor ownership of the practice upon the occurrence of certain triggering events. As currently drafted, the bill could render the Friendly PC-MSO Model unviable or more difficult to employ by prohibiting any physician practice from contracting with any entity controlled “by a private equity group or hedge fund in which that private equity group or hedge fund manages any of the affairs of the physician practice in exchange for a fee.” Disclaimer: This LinkedIn post is for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities. #healthcare #dentistry #privateequity #mergersandacquisitions #law

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Unlock the potential of the Lower Middle Market! 📈 Discover how executives can tap into the LMM to drive value creation, increase cash flow, and secure lucrative roles in private equity. Our latest guide, "Unlocking Value in the Lower Middle Market: A Numbers-Based Playbook for Executives," offers actionable insights and strategies to excel in this dynamic space. Don’t miss the opportunity to monetize your expertise and create new streams of income! 💼 Discover more about Blackmore Partners: https://buff.ly/42iNmB3 📅 Have questions? Schedule a meeting with our Director Chris Melton: https://buff.ly/46DZD46 #PrivateEquity #ValueCreation #LowerMiddleMarket #ExecutiveRoles #BlackmorePartners

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The secret—if it ever was one—is out on private equity fondness for vertical software. While PE-backed acquisitions were down 50%+ from a peak in 2021, vertical buyouts have continued to grow, and the fervor seems to be gaining steam. In today’s essay, we will pose an answer to one question: is PE a viable path to exit for a venture-backed startup?

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The saying is that the only things that are certain are death and taxes. And yet the complex rules and obscure procedures have injected great uncertainty in tax payments in the United States. I'm encouraged to see this #IRS plan and roadmap for modernization.

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🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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Thanks to Andreessen Horowitz for including Column Tax in their article on the coming changes in the tax and accounting industry! As the a16z team shares: "For starters, 75% of CPAs could retire in the next 10 years. Simultaneously, the profession is attracting fewer job entrants, with the number of U.S. students who complete accounting degrees falling. This means in the coming years, far fewer professionals will be available to handle existing client demand — and firms are already struggling to keep up." It's a pivotal moment in the industry across all segments. We're excited to be powering the next generation of tax filing products to help fill the coming demand!

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✨ On the tax side, Mercury claimed a substantial R&D credit, but Christine Andrews, CPA wanted stronger documentation backed by granular data to make her confident the credit would withstand audit. On the accounting side, Mercury needed to start reporting on internally developed software (ASC 350-40) at a detailed level for their first year of audited financials. ✍ Both processes needed input from Mercury’s engineering team, but Christine wanted to improve on the traditional approach of creating separate, mostly redundant processes that wasted engineers’ time. 💡 Learn how Mercury used Neo.Tax to simplify both R&D and ASC in our newest Case Study 👉 https://lnkd.in/gjwAP92J

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Jey Purushotham spoke with CFO Brew for an article exploring the impact of private equity on accounting firms. In the article, Jey asserts that some firms are using PE capital to address the talent shortage by investing in technology that is attractive to younger candidates. Read the article. https://hubs.li/Q02Z_Lt50

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This is quite interesting advice and also quite a non-consensus view in the B2B software world. Cross-border founders who are considering the US vs International incorporation question should consider this as valuable input.

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If you're interested in finding out more about navigating R&D Tax Credit changes, check out this great new blog post from the San Jose-based MTS Professional Tax Service Inc. Just click below.

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Schedule J? On July 22, 2024, the IRS released early version of 2024 form 1120. This release showed changes to Form 1120 Schedule J. It now requires much more detailed reporting of specified transactions, such as PFIC related items, disposition of amortizable assets under Sec. 197, partnership related items, and etc. Similar to Form 5471 Schedule P and other expansion of detailed data reporting which taxpayers should have been maintaining all along. I would not be surprised to see the IRS requiring further details in the attachments such as details of asset allocation which resulted in the amount allocated to goodwill and the amortization across years till disposition. We will have to wait and see until the instructions are released. This clearly follows the trend of the IRS requiring supporting detail reporting as part of the U.S. tax return. In the larger context, I would think other countries may follow this trend as well. They have been following U.S. tax filing in some aspect, such as related party transaction detail reporting. From the corporate tax department's perspective, it means that it will have to maintain much more detailed data and have much better control over such data. Tax Series is already built to support and document detail transactions across the years. Use Tax Series.

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