The JOBS Act put a spotlight on crowdfunding by permitting the sale of securities via licensed and registered portals. For companies interested in raising capital, the rise of crowdfunding and funding portals offers some significant growth opportunities while creating unique accounting situations. As regulations continue to develop, small businesses using crowd funding may be required to have audits and financial statements unique to companies raising capital in this way. Crowdfunding has already become a significant player in the start-up world; the website Kickstarter alone has raised over $200 million. Other sites such as CircleUp, Indiegogo and Fundable have had similar successes.. Read More.
JOBS Act Lowers Barriers to Startup Investment
Earlier this month, President Obama signed into law the Jumpstart Our Business Startups Act (“JOBS Act”), which includes a number of provisions aimed at easing access to capital for entrepreneurs with the goal of ultimately creating new jobs. Crowdfunding from Non-Accredited Investors The JOBS Act eases restrictions on equity-based crowdfunding to now allow investments by all investors, not just accredited investors. Any non-credited investor can invest up to the lesser of 10 percent of annual income or $10,000. Crowdfunding investments will still need to file with the Securities and Exchange Commission (SEC), and are restricted to raising $1 million annually,. Read More.
Atlanta Business RadioX Podcast Features CB&H’s Matthew May
At the recent Georgia Technology Summit , the annual flagship conference for the Technology Association of Georgia (TAG), CB&H’s Matthew May (pictured center) appeared as a guest on Atlanta Business RadioX . Matthew joined hosts Lee Kantor and Stone Payton to discuss the opportunities and dangers facing early-stage, entrepreneurial technology firms. It is important for young companies, especially those just in receipt of a financing round, to examine their deductions and credits via their tax returns. For many, this can free cash assets at crucial growth phases. Click here to listen to or download the podcast.
All Businesses Can Benefit from the New Small Business Jobs Act
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.
Audit 101 for Startups Begins with Two Questions
At TechJournal South , CB&H’s Scott Duda offers some advice to startups considering whether or not they need an audit – and it comes down to how the startup answers the following two questions: Do you really want an audit? How well are your controls documented? Audits are the highest level of assurance CPAs can provide and are therefore the most complex, time consuming and costly option available. Many times, an audit is not the right answer for a startup. CPAs can perform three basic attest services for startups. A compilation presents management’s financial information in a standard format but the CPA does not test the. Read More.
When Does a Startup Need an Audit?
Many startups aren’t comfortable with the concept of an “ audit “, but these fears are often greatly exaggerated and unnecessary. To debunk these misconceptions, CB&H’s Collin Hill recently wrote a quick FAQ for CED (formerly The Council for Entrepreneurial Development) outlining the differences between a compilation, a review and an audit , along with some tips on how to prepare for the process. Auditing is simply an extension of a business to make sure controls and processes are in place and are reliable in order to produce materially correct financial statements. The goal is to help your business grow by letting you know what you are doing correctly and where you need improvements in your controls and processes while. Read More.