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Ways to determine your business value

Before one go ahead and invest in an organization, one would want to determine its value to see if it will be worth your time and money to invest in the company. We define company value as the worth of a business. You can think of company value as how much it would cost to purchase the business or a company's selling price. Deciding the amount for the business is one of the most essential decisions for selling a business. There are various Small  business valuation methods. The price you value your trade could alter depending on the way you use. A business person must have knowledge about the basics of small business valuation. But, to determine the fair market cost of business, one must consult an appraiser. 

There are various options to obtain an estimate of the company. Many Business Valuation Expert Witness follows methods that involve one's business's cash flow projection and financial history, which help them see profitable investments. Here are three options to find the valuation of a business.

Method 1: Evaluation based on Asset

This method looks at your business's assets and liabilities. The difference between assets and liabilities determines the value of a business. Assets and liabilities play the role of adding value and debt to your organization. In this type of Small business valuation method, you assume the company to be made up of small parts wherein some parts add value to the company; these items are called assets. Other elements add debt to your business. Liabilities are debts your company owes to creditors. Hence, to find the exact value of your business, subtract liabilities from assets.

If you are selling a healthy business, you may not want to price it at book value. A healthy business could be sold for more than the book value. With the asset-based method, you can find the book value of your business. The book value is the owner's equity on the balance sheet, which should be the lowest price you are ready to sell your company. 

Method 2: Evaluation based on Market

One of the most popular valuation methods is the market method. A business's worth depends on the market. The market method compares your business to similar companies that have already sold. It basically determines the value of an asset based on the selling price of the related assets. Study the data from similar businesses' sale prices then evaluate your business at the same amount for companies that are like yours. 

This Small business valuation method offers an amount close to the fair market value means your small business net worth is what buyers are willing to pay. Depending on which one can raise or decline the net price of their business.

Method 3: Evaluation based on Income

Third Small business valuation methods are the income method that allows investors to evaluate the value of a property based on the income the property generates. In this method, one views your business's financial history using the records, which shows a buyer that your business is a low-risk and profitable investment. Many business investors take a loan to buy your company; your records should indicate that your business can produce enough profit to pay the mortgage. 

To build your company's value takes time and careful planning. One must completely sustain the business record, which needs financial and bank statements as well. The more organized your books are, the better chance buyers have of seeing your value. 

An appropriate approach is to take counsel from an appraiser for a professional business valuation. HP Accounting provides your business valuation and Accounting services in San Francisco. Contact us to have a fair evaluation of the net worth of your company. 

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Benefits Of Hiring A Business Valuation Expert Witness

It's been over 12 months, and you haven't had a business value assessment yet? If so, this post is right for you! Today, we are going to discuss the importance of getting a business valuation.

A business valuation gives an entrepreneur or business owner the required facts & figures about the real worth of their business. Business Valuation Expert Witness calculates this actual worth concerning total asset values, market competition, and all the possible income values. So, if you want to display the growth of your business, you must get the valuation done every year. Now let's have a look at some of the significant benefits that will make you understand the importance of an Expert witness accountant for your business.

1. Know In Detail About Your Company Assets

The primary benefit of hiring a Business Valuation Expert Witness is to obtain the actual worth of all the assets. Although you might think that your in-house team can complete this evaluation, but there are specific numbers that could only be assessed with the help of a professional.

As a business, you might want to reinvest in the company. So, the expert would provide you the exact information about the insurance coverage you can obtain. Also, you would get to know an accurate business valuation assessment in order to generate maximum possible profits.

2. Know Your Company's Resale Value

If you are about to execute your exit strategy, it will be only beneficial if you have taken the help of an Expert witness accountant throughout the journey of your business. Now, right before you start the process of selling your company (mainly before 2 to 4 years of initiating the process), you have to evaluate the exact worth of your business.

Once the worth is calculated, it can go up for sale on the open market. Moreover, with the help of a Business Valuation Expert Witness, you eventually obtain the opportunity to achieve a higher selling price. They utilize black and white statistics to solidify your position in the market and justify the selling price.

3. Obtain The Actual Worth Of Your Company 

Everybody has merely a general idea of what the actual worth of a company actually means. They usually understand it as the company's total bank balances, stock market value, and the asset value. However, it is more than that! A Business Valuation Expert Witness always has a hands-on experience to evaluate mentioned basic aspects. 

Still, in spite of these parameters, they tend to create the company's reputable market image also. Hiring a reputed valuation firm will always provide you the correct numbers so that you can decide on the fact either you should sell your company or not. 

Moreover, they will give a clearer picture of your company's growth chart over the previous five years. It is an important aspect since your potential buyers would make their decision on the basis of the consistent growth your company has made so far. So, you can conclude that hiring an Expert witness accountant plays a significant role during acquisitions & mergers.

Take Away

A yearly business valuation would help you to calculate the consistent losses, and growth of your business so that you can realize if there is some room for improvement. In short, it would let you know the actual worth of your business. 

If you want to hire a professional Business Valuation Expert Witness, head towards Hp Accounting. We are a leading provider of interim and outsourced financial management for tech and other companies. We support our clients’ compliance with the IRC 409A and SFAS 123(R) rules. 

To have a word with our Expert witness accountant, contact today!

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Board of Directors Governance

To manage a business, you need more than just workforce. You need a combination of processes, rules, people, and procedures, in other to make it work efficiently. This is where corporate governance begins. Corporate governance deals with how a board assists, directs and manages the corporation by acknowledging the impact of decisions on customers, employees, suppliers, shareholders, and the community.

The board of director’s job is to oversee the conduct of the business and also to supervise management. The board of directors in some capacities are allowed to delegate certain powers to the corporate officers (CFO or CEO) and also to delegate responsibilities to the executives on how to best carry out the company’s day to day affairs.

The board of directors form the basis for corporations to make decisions that takes into account the economy, society, regulatory boards and the market environment. In fact, they could act as Economic damages expert to take smart decisions accordingly.

The board of directors have members of the committee, which will be subsets of the board of directors and which will report back to the board of directors. These are such committees as audit and compensation.

Who Makes Up The Board?

Normally, and except in rare occasions, the board of directors is made up of active investors of the corporation. For one, the major investor is entitled to a seat, the CEO of the company is also required to have a seat as well, while the rest depends on their contribution to the growth of the company as well as their market sense/sales knowledge of the product and the market.

At the initial stage, the board of directors’ members are usually not more than 7 and not less than 5 members, but as time goes on, the size of the board of directors would increase in proportion to the growth of the company, the needs of the company, and the normal practices for the industry.

Each seat of the Board of Directors has a vote that is to be used in voting for important decision making processes. To avoid a draw or a stalemate during decision making, it is best if you have a board of directors of an odd number. To have a good board of directors that would help govern the company, there are 5 basic profiles of qualities you need. They include the following;

   The “Mature” members: These members are basically those that can calm the board down by offering maturity and experience to mediate and arrive at the proper decisions for tough problems. They have a calming influence on the board.

   The “Customer” members: These members are those that understand the customers. They are familiar with the market, the trends, and the needs of the customers. They may not necessarily need to be customers as long as they understand the customers.

   The “Genius” members: These members do not only understand the business, they also under the developmental efforts that is required to pierce through the market and fulfill your needs. Also, they usually have the expertise to use 409a valuation calculator to significantly find the worth of the business at every single step.

   The “Connection” members: These members are all about the connections. They are ready and have a wide network of contacts that are on offer. They are also willing to let the board use it to further the company.

   The “Ethical” members: These members are there to call you out when they smell something fishy. They make sure that everything is done completely ethical and legal without compromising anything.

Functions of the board of directors

The board of directors act as the governing body of the company in terms of decisions making. They are there to provide guidance and direction for the future. Eventually, they would be acting like an in-house Damage calculation expert witness and assess the following risks:

   Reputation of the company

   Litigation

   Finances

   Technology

   Reporting

   Safety

   Health

   Ethics, and

   Environmental.

The following are some of their functions:

1.They protect the interest of the board, the management, the stakeholders, and the shareholders, by responding to their responsibilities and duties with the highest regard to accountability and transparency.

2.These make decisions after serious consideration to their effects and consequences on the customers, employees, suppliers, shareholders, and communities. Thus, 409a valuation calculator could be used as an efficient helping tool.

3.They oversee and plan, while at the same time desist from micromanaging the company. This means that they have to delegate certain powers under certain circumstances to the CFO or CEO.

4.They delegate some certain duties to board committees, who will devote time, resources, and energy to resolve issues.

A well composed board of director’s governance, is one that offers a wide range of perspectives, expertise and knowledge into the boardroom, as well as into the market.

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Using Damage Calculation Expert Witness to Prove Damages

Attorneys prefer to seek help from the expert witnesses to determine some critical and relevant facts to the case they are trying to build. In fact, they have to play a significant role when it comes to the damages phase of the trial. They act as damage calculation expert witness and provides the attorneys with vital information. It includes the key points that are used to analyze how may potential damages be calculated and can be proven. 

Let us have a closer look at the ways attorney utilizes damages expert witness to bolster their arguments by getting the right information about the value of the damage in a case.

Know When Can a Damages Expert Witness Help a Case?

Especially in a personal injury lawsuit, a plaintiff is solely responsible for proving that the defendant or a person against whom you have brought the case in a court of law, responsible for causing injuries. Even, he/she has to prove that the money damages could compensate for those injuries. 

Now, to understand the responsibility of a damage calculation expert witness, we have to consider an example. Let us say there is a situation where causation from the injury is apparent. However, the link among the real cause, damages, and the injury is unclear. So, since an expert witness has all the expertise to establish this link, they get hired for the same. 

They help the attorneys to clarify this missing link if any. They thoroughly study the case and try to establish a legitimate connection between the damages the plaintiff (a person who brings a case) seeks as well as the real injury the defendant caused.

Mostly, there is no such "bright-line" rule for examining when a damages expert witness could testify the damages. 

However,  courts usually allow the witness experts to testify when:

It figures out a close-tie between damages and the liabilities. As an example- wrongful death, personal injury, and business interruption cases.

For calculating the number of damages, accepted methodologies are used.

For speculating about an alternative cause for the losses, the calculations do not require the expert.

There are certain cases where a damage calculation expert witness, who is opening or testifying on damages might be required to be estimated as causation. Choosing an expert with experience, in these situations, could also reconcile the alternative means of damage calculations. 

Take Away

Now, we know the exact reasons when an attorney should seek the help of a Damage calculation expert witness. If you are also looking for one of the best, reliable, and professional damages expert witness, if preparing for a trial, you should head towards Hp Accounting. Our expert witness has substantial experience in providing testimony in depositions and trials for damage calculations. To know more about our services and damage calculation expert witness,  contact us now! https://www.hpaccounting.com/

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Benefits of Being a CPA

Certified Public Accountant or CPA is a very important part of any company or business. In Public, Private and Governmental areas, the CPA skill set is considered as very important and can relate to job advertisements, personal growth and travel occasions. 

Respect and Reputation:

CPA Expert Witness is honored and are very much respected by their clients and social circles. 

Through their expertise and experience, their values, character and technical knowledge are tested. This profession is known to be a good and highly sought after professions in this community. 

In today's professional world, these 3 qualities are valued assets in any business. CPA is a highly sought after professions in this society today.

Monetary achievement:

Experienced CPAs are able to earn a good amount of money and also have huge benefits. These salaries get increased yearly according to recent surveys. Therefore, in this profession, you can earn good money. 

Job Satisfaction:

These days financial reporting has become very complicated and its importance has increased. There is an excellent opportunity for negligence and criminal activity. The regulations are very tight, which are passed by the Securities Exchange Commission; they need to be complemented by CPAs sincerity and reliability. This is necessary so as to stop white level crimes and financial errors. CPAs are known to be multifaceted experts who are capable of producing highly specialized job-related duties like auditing, management consultation, business consultation, tax advisory services, and much more. 

Career Security:

There is a lack of qualified accounting professionals and due to this, CPAs are much more in demand. This trend is becoming more and more popular day by day as the demand for experienced CPAs is increasing. There are many companies and firms which are continuously struggling to find the most talented individuals. Not only this, universities and colleges are also offering good incentives to lure experienced CPAs into a teaching career. 

Personal Growth:

During the training period, the experiences that you will acquire will give you enough courage and will allow you to have finer things in life. You need to have an ordinary level of math skills to excel as CPA. As a CPA, you need to continue a careful study and training for your professional exam known as The Uniform Certified Public Accountants Examination. After passing the exam, you need to get a proper license. 

Good Job Opportunities:

There are many job possibilities available once you become a CPA. You need not be concerned about your salary being cut as this does not happen to a CPA, which current demand for this profession. 

If you are finding a CPA expert witness for your company, then HP Accounting is here for you. Our services include Commercial Disputes, Professional negligence, Small Business Valuation Calculator and partner disputes, Fraud and financial investigation. Vist! https://www.hpaccounting.com/

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Benefits of Being a CPA

Certified Public Accountant or CPA is a very important part of any company or business. In Public, Private and Governmental areas, the CPA skill set is considered as very important and can relate to job advertisements, personal growth and travel occasions. 

1 Respect and Reputation:

CPA Expert Witness is honored and are very much respected by their clients and social circles. 

Through their expertise and experience, their values, character and technical knowledge are tested. This profession is known to be a good and highly sought after professions in this community. 

In today's professional world, these 3 qualities are valued assets in any business. CPA is a highly sought after professions in this society today.

2 Monetary achievement:

 Experienced CPAs are able to earn a good amount of money and also have huge benefits. These salaries get increased yearly according to recent surveys. Therefore, in this profession, you can earn good money. 

3 Job Satisfaction:

These days financial reporting has become very complicated and its importance has increased. There is an excellent opportunity for negligence and criminal activity. The regulations are very tight, which are passed by the Securities Exchange Commission; they need to be complemented by CPAs sincerity and reliability. This is necessary so as to stop white level crimes and financial errors. CPAs are known to be multifaceted experts who are capable of producing highly specialized job-related duties like auditing, management consultation, business consultation, tax advisory services, and much more. 

4. Career Security:

There is a lack of qualified accounting professionals and due to this, CPAs are much more in demand. This trend is becoming more and more popular day by day as the demand for experienced CPAs is increasing. There are many companies and firms which are continuously struggling to find the most talented individuals. Not only this, universities and colleges are also offering good incentives to lure experienced CPAs into a teaching career. 

5. Personal Growth:

During the training period, the experiences that you will acquire will give you enough courage and will allow you to have finer things in life. You need to have an ordinary level of math skills to excel as CPA. As a CPA, you need to continue a careful study and training for your professional exam known as The Uniform Certified Public Accountants Examination. After passing the exam, you need to get a proper license. 

6. Good Job Opportunities:

There are many job possibilities available once you become a CPA. You need not be concerned about your salary being cut as this does not happen to a CPA, which current demand for this profession. 

If you are finding a CPA expert witness for your company, then HP Accounting is here for you. Our services include Commercial Disputes, Professional negligence, Small Business Valuation Calculator and partner disputes, Fraud and financial investigation. 

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Valuation Methods for Business

Various reasons are there to have an updated business valuation. It helps you when you want to sell your business due to retirement or any other reason. Also, it helps when you need debt or equity financing for expansion. In this case, the investors will need to see the worth of your business. Not only this, but it also helps when you need to add the shareholders as in this case, the share value needs to be determined. 

You need to make sure that the Business Valuation Expert Witness do the right job for you. For this, make sure that you get it done from a business professional. You can find business valuation experts online. A business valuator will use different methods to determine the right price of your business:

Following are the methods that a business valuator uses:

Asset-based Approach:

Business valuation methods sum up all the investments in a business. A business valuation, which is asset-based, can be done on a liquidation basis or on a going concern. A liquidation assets based approach determines the total cash that will be collected if all the assets are auctioned/sold and liabilities are paid off. If you are using an asset-based approach in order to value a sole proprietorship, then it will be more difficult. In a company, all the assets are owned by the company and will be included in a sale of the business. 

Earning Value Approaches:

The methods of business valuations lie in an idea that the true value of a business lies in its capability to generate money in the future. Capitalizing past earning is the most common approach for earning value. With this type of approach, a valuator is able to determine the expected level of cash flow using the old records of the organization. The capitalization factor is an idea of what rate of return a reasonable purchaser will expect on the investment. You can also take the help of Lost Profits Expert Witness. 

Market Value Approach:

This is done by comparing your business with similar businesses that have recently sold. This method will only work if there are sufficient businesses to compare. It is very difficult to assign a value to a sole proprietorship based on its market value. Sole proprietorships are owned by individuals. This makes things difficult to find public information on prior sales, like businesses. 

Franchise Businesses:

Franchise agreements define how a franchise can be sold and these can vary by vendor. You can check your franchise contract. Some contracts specify that the franchisers will buy back your franchise for a fixed price directly. In order to make sure that the business will be continued uninterrupted others provide assistance with valuation and locating a buyer. 

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Reasons to Get Business Valuation Done

Business Valuation Expert Witness are needed for various reasons by businesses. Many businesses require this to fulfill various purposes like sale or purchase of a business to comply with a court's order to settle legal issues. Many times, business owners want to have an idea about the current value of their business. 

Here are some reasons that people come for business valuation:

Curiosity:

Many people want to check their stock portfolio. Many times these small businesses want to check the value of their company and changes in its value. If you want to check your business’s value, then you can hire Business Valuation Services from HP Accounting. 

Buying a Business:

If the buyer and seller are in the same ballpark, then a buyer can easily request a seller to lower his amount. This amount can be somewhat between 15-20 percent. You should always make a formal request to your seller. 

Selling a Business:

The decision to sell a business is very important and has to be done before 1-2 years before you want to sell your business. These decisions of selling a business require much attention and do not happen overnight. Here, the main thing about planning is to get an objective opinion of your company’s value. 

Selling Your Business in a Short Time:

If you are planning to sell your business in a short time, say one year, then it is important to get a business valuation first. Always make sure that you do things with professional guidance. It will be of no use if you do the valuation without documentation. 

Loan Proposal:

Business valuation can help you a lot in approving your loan. Everybody knows that banks and other sources that lend money has different criteria in making lending decisions. At this, the business value may play a good role. As a business owner, you may need the advantage to get your loan approved. 

Enhance the Value of a Business:

There are many easy steps that can enhance the value of many businesses. To do this, first of all you need to analyze the weaknesses of your business. Focus on the root cause of your business and make sure that you take every necessary step to correct it. You can ask your company's expert to take every necessary step and do the needful. Make sure that along with identifying the strengths and weaknesses, you should focus on the cost and efforts that are required. This will help to increase the value of your company or business. 

If you want a Business Valuation Expert Witness, then you should consider using services from HP Accounting. 

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Trust Accounting

The first thing that comes to mind when one sees "trust accounting," is trust, followed by accounting (it's quite obvious), but they all boil down to one major thing - detail!

Details matter a lot! And as a lawyer, one of the required tasks for managing client funds and billing is Trust Accounting.

Which brings us to the important frequently asked questions.

What is trust accounting?

Trust accounting is the processes involved in bookkeeping, auditing and reporting so that your trust account (a particular type of business bank account used for holding money that does not belong to your business) remains compliant with the laws and regulations. If you want to keep the accounts of your company update, then you can take Business Valuation Expert Witness advice in doing trust accounting.

Are there rules involved with trust accounting?

Yes, and it differs from one state to another. Each state has its laws and legal requirements that have to be followed. Failure to follow up with those laws and legal requirements can incur some dire consequences.

To guarantee lawful commitments are met in your trust accounting processes, it is essential to understand that requirements vary from state to state. States typically will post their guidelines online, but again, you are best to seek professional legal advice for your specific situation.

The majority of federal rules come from the Uniform Principal and Income Act. One of the major things to be aware of is that there are differences between fiduciary accounting income (FAI) and federal taxable income. There are different types of terms used for these accounts (IOLTA, Trust Account and Escrow Account are often interchangeable)

Why do you need to learn the best practices?

The trust accounting field evolves every year, so practices that have been going on for years may become obsolete, hence the need to keep up with the current laws, regulations, and legal requirements, so as not to end up on the wrong side of the law.

Trust Accounting best practices can help reduce the risk of mismanagement when undertaking these types of accounts. And Economic damages expert would also help you to open the avenues of new opportunities to avoid maximum loss and keep the financial sheet of the company updated.

Trust Accounting Best Practices:

We strongly recommend that the practices mentioned below be taken into consideration to ensure that your trust accounts operate at an optimal level smoothly and efficiently.

1. Transparency: Nothing screams that you are accountable and can be trusted like being transparent. Provide a detailed and extensively written agreement or note that shows what and why you are withdrawing a certain amount of money, catalog receipts of the money withdrawn, be specific about the distribution of funds, retainer fees, and fees used for each and every client. This helps save a lot of time and stress both present and forthcoming.

2. Balance and Reconcile: These two should be done on a regular to show that nothing has been missed from the bank account transactions to the trust accounting software transactions. Ensure that all monthly management and balancing of all trust accounts list all activities that go into and out of the account, along with the complete records of those transactions.

a) Balance and reconcile your records to the banks' records for all transactions into the bank account(s).

b) Balance and reconcile your records for all funds paid out of the accounts to the bank statement.

c) Balance and reconcile your client/matter sub-account totals to the bank account totals. Reconcile your trust account bank statement. Make sure to keep a record of this reconciliation.

3. Always leave a paper trail in digital form: The world now runs on technological advancements, so if you're going to leave a paper trail, let it be a digital one. This helps to report and track every deposit that enters into your trust account with a trust accounting specific software that ensures that there are no errors, unlike the paper ledger cards and spreadsheets that have so many human errors and little to no audit report trails.

4. Duplicate all information in images: By maintaining image copies of all bank statements, deposit slips, client engagement letters, and checks, you'll never lose or misplace a detail.

5. Include an Internal Authorization Form and Separate each fund Check: Request that workflow and e-Payables include an internal authorization form, signed by an attorney to authorize the payment of any IOLTA/Trust/Escrow funds either to the firm or any other third party. Separate the printing or writing of the IOLTA/Trust/Escrow funds checks from the person who will sign the check through internal procedures.

6. Keep Separate Accounts: Funds held for clients must be kept completely separate from the firm’s operational funds. Breaking the rules of managing these accounts (which vary by state) can cause major financial auditing nightmares.

7. Keep and preserve all records even after the client matter has been closed: Keep and preserve all trust account records (scanned, PDFs, copies): deposit receipts, bank statements, canceled checks, client ledgers, client subaccount reports, receipts, register, transactions, and reconciliations.

All of these are simple and common mistakes that can be avoided once you pay attention to the tiny details because the details matter! The best practices listed here will help you to be one of the best in trust accounting.

Here are some other factors to consider:

1) Appraise assets when appropriate

2) Use a CPA, financial planner or licensed fiduciary when appropriate

3) If taking Trustee compensation be sure to follow all rules to avoid conflicts and fulfill duties

4) Make certain periodic reports, in an informative manner, are provided to the beneficiary or his/her assigns

 Do you have other practices you'll like us to know about? Simply, contact us, we would love to hear from you, our Business Valuation Expert will help you!

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Brief Knowledge About Economic Damages

Many times we can see that a business can suffer from economic damages that arises from various illegal conduct. You need to know how the damages should be determined before your company goes to court to recover losses and hire Economic Damages Expert. Make sure you have proper information before you take any action. There are many examples of it like patent infringement, breach of contract and commercial negligence. 

Methods: The financial experts uses some methods to calculate economic damages:

Yardstick: Yardstick is a technique in which the expert benchmarks the performance of a damaged company to the external sources. These external sources include industry guidelines or publicly traded comparables. The hypothesis is that the company’s performance would have imitated that of its rivals if not for the tortious act.

Sales Projection: Sale projection can be defined as the amount of income a company requires to earn in the future. Small corporations try different methods to manage sales projection. Various advantages are associated with it. If you are having correct and up to date sales forecast, then you can easily get loans. Banks provide loan on the time frame in which a business can provide profits. If you already have an established business, then you need to show the growth potential. With the help of sales projection, marketing and other departments which are functional design their budgets and prepare their projects.

Small companies should drive sales projections as it will help for a more widespread assessment.

This way, they will be able to see and determine which product lines are damaging their business and the companies can act accordingly. Business owners can track low product sales. Small companies should be able to determine how should they publish their sales projections and share the numbers.

HP accounting is a provider of interim and outsourced financial management for tech and various other companies. We are a CPA and business valuation firm & Expert Witness Accountant and we support our clients compliance with the IRC 409A and SFAS 123(R) rules, intangible asset valuation as well as issues involving litigation. 

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Nigerian Fraud Loss-Fake Purchase Orders

I was the contract CFO for a government contractor/reseller who sold Apple and other products to the government and to other government contractors. It started that summer day with an email I received from ACL’s COO: ‘Call me on my cell phone as soon as you get a chance.  The FBI just stopped by our office and we have an urgent issue’. When I talked to the COO it became clear that the group of military orders recently placed for nearly $500,000 were fake.

The FBI told us that there was a Nigerian crime ring who looked online for contractors and by contacting Apple and other manufacturers to get lists of their resellers for Apple and other products. Once they determined that the reseller sold to the government, they used their inside connections at military bases to order and arrange for receipt of orders, which they would later sneak off the bases. This was done using a military-looking email address and even live phone calls. The Fraud and forensic accounting put together a real looking government purchase order and sent it to ACL’s office. It even had the correct contact name, Bill Anderson. ACL called ‘Bill’ and though he had some broken English, in Washington this wasn’t that unusual.

Since the military (DLA) had ordered from ACL in the past, it wasn’t that unusual to receive more orders. So after some cursory checking, the first Apple computers and ipads were shipped to a military base. Then more orders came in, for different bases. Same story. Ultimately the fraudsters paid for a small order, some $3000. This further reduced risk around the account, since it wasn’t showing as overdue. However, the orders totaled $430,000.

Finally, after talking with DLA accounting ACL realized it wasn’t going to be paid.

Examining the Facts and Piecing Together the Evidence

ACL’s staff looked closer at the emails-though having official addresses, if one looked at the sent mail their true (non-government) address was visible. This form of spoofing is common and went undetected until after the fact, when it was too late. The damage had been done.

The fraudsters had at least two mules: one who made the deposit for an early shipment, and another who worked at a military barber shop, who arranged shipments from the bases to a ship, bound for Nigeria. They ‘worked with’ Fedex by duping them and military shipping clerks into rerouting packages from Fedex facilities and military bases to Fedex offices where they just walked in and claimed the packages. This was done easily with the knowledge of the tracking numbers. Since the packages were addressed to ‘Bill Anderson’ they just walked in, said they were Bill, and without being authenticated, were given the packages.

Neither Fedex nor DLA would take responsibility, even when sued. In fact they were tight-lipped about providing information, since they obviously were duped too by having hired criminals to work at their shipping docks and barber shops.

Reasons This Fraud Was Successful

· Customer was already an approved account with NET 30 terms in ACL’s system.

· Bill Anderson was an actual employee at DLA

· The emails, phone calls, and purchase order documents seemed legitimate.

· ACL was shipping to military bases and the addresses were actual military bases which made this seem legitimate.

Who Were The Fraudsters?

Babatunde Aniyi was involved with the ACL fraud. ACL of course wasn’t the only government contractor/reseller to be defrauded. There were dozens of other companies-according to the FBI the ring may have totaled $100,000,000. In fact I know another contractor, ABC Co, who ACL was actually trying to buy, who was almost defrauded. The tipoff to ABC Co. was that the perpetrator was in too much of a hurry. While time is of the essence sometimes in military or purchasing in general, the salespeople know and sense when something is ‘off’. The fraudsters weren’t able to defraud ABC Co. due to some quick thinking by it’s CEO.

Catching The Fraudster At A Fraud Convention

I received a call from the FBI some months later-they had received a hit from the Indian immigration system that the fraudster had entered their country to attend a conference on hacking. Aniyi (the #2 in the fraud organization) had traveled from Nigeria to India to attend a fraud conference! India has extradition with the US so he was picked up, brought to the US and put in jail. There was a criminal trial, and he was convicted of conspiracy, false pretenses, impersonation and forgery, among other things. The sentence calls for 5 years in jail, a $250,000 fine and restitution. Of course most criminals in that situation don’t actually make restitution, because their assets are offshore or they’re already spent the money. He was no different. Once he served a shortened term he was deported.

Looking for Business Valuation Expert Witness, consider HP Accounting.

Lessons for Companies

 Hindsight is always 20/20 but the stronger the controls are the better the chances of not being a victim to fraudsters. Or in ABC Co.’s case, not passing the ‘smell test’ was the key, since it had an involved, hands-on CEO with years of industry experience who knew something was off and cancelled the orders, just before they were shipped.

Fraudsters will always exist. They do attend fraud conferences. They try to learn from us to keep one step ahead of technology and processes. The best we can do is keep fighting the fight, keep learning and educating others, in an attempt to keep fraud to a minimum.

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7 Signs the Buyer or Seller You're Working With Is a Flake

When it comes to selling or buying , you really need to know if the buyer or the seller is not a flake. But, how do you know all these? It's not as if it's written on their foreheads.

One of the biggest signs that a sale is breaking off and is eventually going to fall apart is in the break and change in communication between the buyer or the seller, whatever the case may be.

Spoiler alert: The largest asset you'll ever buy or sell is a business, believe us nothing gets bigger than that. Selling or buying a business can be quite pressuring, mixing that with emotions running high and then having the deal fall through can really be heartbreaking, disappointing, and demoralizing.

Fortunately, there are tell tales signs that can point out that you may be dealing with a person who is impractical, flighty, unreliable, inconsistent, indecisive, deceitful or flake out on you before you lock in an agreement.

If you're worried that you might be dealing with a flake, just look for these signs. Believe us, the signs are always there, you just have to look closely enough to see it.

Looking for Business Valuation Expert Witness, consider HP Accounting.

1.The buyer or seller is untrustworthy.

Before buying or selling, learn to do a research on the buyer or the seller. It is still your asset before they buy it, and it will be your asset when you buy it from them, so it is best that you do a background check on the individual you are in business with. They may just be there to waste your time with nothing in particular to return as an offer.

2.The buyer or seller seems to have financial problems. 

Most times the prospective buyer or seller may not be untrustworthy or have major character flaws, but if there are indications of financial issues, there's a very likely chance that there would be an increase in the odds that they will flake out during the buying or selling process.

A buyer should show proof of funds for a down payment in order to make an offer on a potential purchase or get prequalified for a loan. You shouldn’t entertain an offer that is submitted without proof of funds, or low funds. For example, you're selling a brand new set of tires with rims for $700, and the buyer offers you $160, don't even think twice on the offer, simply walk away from it.

For Expert Witness Accountant, visit HP Accounting.

So, if the buyer claims to have the funds but can't provide proof of those funds upfront, it can be a red flag that the person doesn't have enough money for a down payment and is stalling. "This happens often. Get proof of funds for the down payment upfront, always."

3.The buyer or seller is slow to act. 

When a seller drags his feet in providing disclosures to a client he had who was interested in buying it could mean lack of interest.

If they are very serious about buying or selling an item, rest assured, they'll be very quick to act and respond with a reply that is more than just a word. Once you see signs of "IDK," "maybe," or "I'll let you know," just know that they are flakes and are not ready for you.  

If you inbox them "can you meet me @ XYZ @ 5:30 today?" And they reply with "I gotta see", or "I work today", and don't reply with a follow up time and place they can meet you, chalk this one up to the birds. They're not serious about doing business. So don't even bother replying until they establish a meet up time and place.

4.A lack of transparency.

 If a buyer or seller seems to be less forthcoming, it doesn't mean the deal will fall through, but it isn't a good sign. If there's any attempt at anything less than full transparency, there's generally a reason.

A lack of transparency has a lot of gray areas, it could mean that they can't really provide all the information that you have asked for and are just trying to buy time till they can get it. Nonetheless, a lack of transparency is a sure sign of a flake buyer or seller.

5.The seller, buyer or agent is taking a long time to get back to you. 

One of the biggest signs a sale is going to fall through is if there's a noticeable change in the communication from the once cooperative client.

We get it that we all live busy lives and have things to do, we also know that we may not always be able to check our texts and phones, BUT, when it comes to doing business, and signing deals, we need to know that time is money. So, once a buyer takes DAYS to reply to your email or message, then it means that she is wasting your time.

Still, don't assume that the seller or buyer is no longer interested. Oftentimes, a message can be crossed or misinterpreted via text or email, therefore picking up the phone and calling the other party is imperative. Nonetheless, avoid anyone that is taking longer than usual to reply to you on an average.

6.Low enthusiasm with the buyer or seller overall. 

Enthusiasm is a sign that they want in and they want it. If you tend to sense that the other party isn't all that excited to be selling his or her business or jazzed to be buying yours, it's a negative sign, and you'll definitely want to keep your emotions in check.

There's a fair chance that this isn't going to happen. "Sometimes clients themselves don't know what they want. This could also be a signal that the prospective buyer has found a different business that he or she is excited about.

There are so many layers involved with acquisitions and financing. Unfortunately, below 15% of attempted acquisitions get completed. The simplest things can make a deal go sideways in the blink of an eye.

7.One potential buyer is more excited than his or her partner. 

We had to save the best for last, the No. 1 sign that a purchase is going to fall apart is when one person loves the business, but their partner is more hesitant.

If it's a joint venture then both partners should be equally excited to sell or buy, it shouldn't be a one way venture.

Often times, flakes don't just give off signs, they give loud and glaring signs with their indecision and lack of preparation.

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The forensic CPA and Business Valuation Calculator can work as a middleman that can help clients undercover and also understand various things that can come into important play during the period of tiring business suit.

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What is CPA Expert Witness and What are its Advantages?

It is a very difficult process to select Expert Witness Accountant when preparing for a trial, but having an expert witness testimony is a crucial step to win the case. In that case, not any witness will do. For this job, you need to have a person who can be very well qualified, knowledgeable, and competent. Not only this, good communication skills are also very important. Hiring good company services can bring you good CPA expert witness services and also forensic accounting. For this, you need to have a good team of certified examiners and experts in various fields that can help you in choosing the right expert witness for you.  

Whenever it comes to matters of money, nobody wants to lose a penny. In legal and courtroom, this can result in a battle against fines, penalties, suing charges, and much more. Defendants are always willing to take the help of various specialists to aid them in cases that include monetary issues more than any other type. In these cases, no price is considered too big to keep your livelihood and bank account safe. The best-suited people to do this job are experienced people from the industry and are known as forensic CPA Expert.

Advantages of Hiring CPA Expert:

These people are very well versed in accounting and business laws. Also, these specialists bring with them a unique set to clients and can handle cases which includes very complex transactions or fraudulent activity. The forensic CPA and Business Valuation Calculator can work as a middleman that can help clients undercover and also understand various things that can come into important play during the period of tiring business suit. These business people are very much experienced in various fields like business management, accounting, financial planning, and auditing. They know what to look for behind the doors and between the lines.

Forensic accounting services provides great assistance to clients and their attorneys who are involved in everything from civil litigation to marital dissolutions and various other matters. These services can help you in having the right information and also use it to the fullest advantage. Also, these can be keyholders to uncover the desired information that isn’t right under your nose.

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Tips for Hiring a CPA Expert Witness

Hiring a CPA expert witness is often an essential aspect of trying a case, & it could be a difference between a loss and a win in court. However, the most challenging part is to understand when to bring in CPA expert witness & how to choose one of the best experts well-suited for the case as well as clients. Here are some of the general tips I have gathered for you to throw some brief insight over the concept of Forensic and investigative accounting as well as the concept of hiring a CPA expert witness for the same.

What is Forensic Accounting?

It utilizes accounting, auditing as well as investigative abilities to examine the finance of a business or an individual. Forensic accounting gives an analysis that could be further used for court cases or legal proceeding.  Forensic and investigative accounting experts are trained to look beyond the numbers to deal with any business-related situation. It is usually used in fraud & defalcation cases for explaining the nature of financial wrongdoing in court. A CPA expert witness is often an outside expert to give testimony in such fraudulent cases.

Thus, there are many CPA firms, which have developed exceptional forensic accounting expertise. A party to litigation may take the help of a CPA to measure the loss & damages caused by an unfavorable event. As an example, if an employee starts forging checks, a CPA expert witness can be hired to measure damages caused to the small business.

Planning Stage

It is primarily a stage when you need to decide when to hire a CPA expert witness? There is no denying to the fact that a specialized report by these experts can strengthen your case. Before you go through the hiring process and to help the witness experts, you must go over the following items:

❏ Scope of work

Do not forget to define the issues of the case by giving close attention to every detail. It would allow the Forensic and investigative accounting experts to create a realistic fee estimate better.

❏ Depth and breadth of analysis

Being extraordinarily detailed for an extended period may result in excessive work-effort and as a result of which it includes the exorbitant cost. However, a narrow analysis may fail to put a positive impact on the court. So, it is crucial that you should be more detailed than general in the investigation.

❏ Case Budget

Economic struggles, CPA expert witness fees, litigation costs will always continue to be an important issue. So, if you want to foster more significant control over the charges, you should communicate appropriately with the CPA expert witness.

Who to Hire?

❏ Before you hire a CPA expert witness, you need to research their background, qualifications, and most importantly, reputation.

❏ To know the hiring counsel can investigate by talking to the peers. After that, you need to verify all credentials & licenses.

❏ CPA expert witness credential may be confirmed online with the State Boards of Accountancy.

❏ Also, you should check prior testimony experience and results of previous challenges.

Take Away

If you are also looking for an experienced independent firm that has the right skills & engrossed knowledge, head toward “HP Accounting.” We are the leading CPA firm and have been supporting our clients’ in compliance with important rules & regulations. To reach our CPA expert witness visit us now!

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Get the right Business valuation Services

Did you ever think what your company is really worth? If you think that the amount on your financial statement is the amount your company is worth, then you may be wrong. This is because of the inaccuracies that many companies have in their books. These inaccuracies cause serious issues down the road when you apply for a loan or dealing with taxes, etc. For the correct valuation of your business, business valuation calculator is the right tool that should be used. It is of great help, especially in the valuation of small business.

If you are a buyer, then this tool can help you in finding the realm of affordability and if you are a seller, you will get a reality check through this calculator. You will get an estimation of what price you can charge if you want to attract potential buyers.

Various Types of valuations:

Complete Valuation: Valuation is a method of determining the value of any business or business ownership interest. The main purpose of this is to express a definite opinion of value. In this, various methods of valuation are used which are relevant to the business type.

Limited Valuation:

It is to articulate an estimation of business value or business ownership interest lacking the performance of additional procedures required for complete valuation. Only limited procedures to find and analyze the information is conducted by business valuation consultants. This type of valuation is suitable for very few events.

Valuation Approaches:

The valuation section is a very important part of the report and it discusses the different valuation approaches and methods. It determines the value indicative of a business usually for the purpose of insurance coverage or for the purpose of sale or purchase of the business utilizing one or more valuation methods.

There are mainly three types of approaches:

Market Approach

Income Approach

Asset Approach

For any small business valuation calculator services, visit Hp Accounting Services.

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SEC Filings Deadlines for Financial Statements

Financial report deadlines determine when financials are filed by companies, but when companies are find it hard to release and meet with the report filing deadlines, the SEC takes over. This happens basically when companies find it hard to file their annual and quarterly reports within the give timeframe.

When companies fail to meet their report filing deadlines, it raises concerns and worries for the private and public investors that are stakeholders in the company. If you want to keep your accounts and financial records updated, then it is always advisable to hire Forensic and Investigative Accounting Services of the professional service providers.

The SEC deals with the compliance of primarily domestic publicly-trading companies to file both quarterly (Form 10-Q) and annual (Form 10-K) financial reports. While the quarterly report provides a brief summary and less detailed information of the company’s finances for a period within the fiscal year, the annual report provides a detailed and extensive overview of the company’s business practices and finances for the fiscal year. The 10-Q and the 10-K filing both require a deadline determined by the filing status of the company. The final status of the company depends on the public float a company, which is the number of shares that are held by public investors multiplied by the share price. The filing status could be non-accelerated, large-accelerated, and accelerated for filers. In fact, in order to examine all the filters for the financial accounting, then CPA Expert Witness would be your best perspective.

Each companies are given deadlines according to their types of filers:

Non-accelerated Filers (less than $75 million) are given 45 days to file their 10-Q deadline reports, and 90 days for their 10-K report deadline.

Accelerated Filers (more than $75 million and less than $700 million) are given 40 days to file their 10-Q deadline reports, and 75 days for their 10-K deadline reports.

Large Accelerated Filer ($700 million or more) are given 40 days to file their 10-Q deadline reports, and 75 days for their 10-K deadline reports.

Once a company refuses or is not able to comply with the filing of a 10-Q or a 10-K within the time frame for one reason or another, SEC rules require that they make use of a non-timely (NT) filing. The NT filing is a notice the company sends to state that the deadline has not been met due to a reason and that the actual filing will be filed within a specified range of time. The NT provides an additional 5 days for the 10-Q filing to be filed and an additional 15 days for the 10-K filing to be filed. If the deadlines are met, the company is free from all penalization, but if the deadlines are not met, the company might see itself losing its SEC registration, negative market reactions, legal consequences, and delisting from stock exchanges.

Non filing timely, NT filing is bad news for any company and a warning sign for investors, customers, and even regulators, which is one of the major reasons the SEC pays keen interest in the financial report filing deadlines of companies.

HP Accounting has regularly dealt with companies who are in the ‘NT zone’ and has worked with them to turn around their reporting issues. Moreover, we are offering the best CPA Accounting Services as compared to our competitors so that your business can’t astray in the competitive business world.