“Dedicated to Enhancing the Legal Profession

Transcript:“Dedicated to Enhancing the Legal Profession:
“Dedicated to Enhancing the Legal Profession through Advanced Financial Education” 1 The AACFL An educational organization providing training on the financial aspects of divorce practice to attorneys and judges nationwide. The CFL certification for divorce attorneys – Now in over 12 states! Thursday, June 25, 2020 3:00PM – 4:00PM Eastern Standard Time AACFL Webinar: Capturing Cash Perks and Add Backs For Support Purposes Alex Krasnomowitz: CPA, CVA, MBA – Smolin Lupin- Partner Daniel Roche : CPA, ABV, ASA - Marcum LLP- Partner, National Business Valuation Service Line Leader Allen J. Scazafabo, Jr.: Riker Danzig Scherer Hyland & Perretti LLP - Partner Speaker Introductions Alex Krasnomowitz: CPA, CVA, MBA Smolin Lupin Partner Daniel Roche : CPA, ABV, ASA Marcum LLP Partner, National Business Valuation Service Line Leader Allen J. Scazafabo, Jr. Riker Danzig Scherer Hyland & Perretti LLP Partner Holistic Approach Business Financial Operations & Marital Spending Business Financial Operations Red Flags Large amounts of cash payments for goods/services Low/high amounts of cash on hand “Friendly” relationships with customers/vendors Poor internal controls High Employee Turnover Important Considerations Strong Management Interview Non-titled Spouse Interview for Intel and “Map” Cost Control - Can be Very Expensive Strong Forensic Team Business Financial Operations Revenue Cost of Sales Expenses Assets Liabilities Revenue Understanding and Auditing the Revenue Cycle Estimates Contracts/Agreements Invoices Reported Revenue Accounts Receivable Deposits Cost of Sales Ratio Analysis - Gross Profit Margin Purchase Orders Check Signing Authority Overly Friendly Relationships with Vendors Expenses Perks buried in general ledger accounts Key word search: last names, Etc. Vendors with same address or similar names Family member employees Who signed the back of that check? The Main Characters: T&E, Auto, Cell Assets & Liabilities High/Low Cash Balances Accounts Receivable/Bad Debts Non-Operating Assets Deferred Compensation Marital Spending Marital Assets How were they purchased? Does this make sense with officer compensation/distributions? Remember people like to spend money! The best one: Compare CIS spending to business tax returns Remember most folks do not plan for divorce until it’s happening Marital Bank Accounts Where did the money come from? Again, does the money make sense given officer compensation/distributions? What assets were purchased in each year? Can you track larger ticket items to bank accounts or did they just appear? CIS How far apart is the martial spending on the CIS’s? Can you reconcile marital income to marital spending? Is savings being used to fund lifestyle? Are there 3rd party