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This month's three-part Special Focus addresses amendments to the Military Lending Act Interpretive Rule, recent legislation regarding the transfer by affidavit option for small estates, and the impact the new tax law has on home equity loans. Compliance Notes includes information on NFIP lapses due to federal government shut-down procedures.

Download the January 2018 Compliance Journal

By, Ally Bates

Events

This program covers how to calculate and analyze the basic set of financial statement (or tax return) ratios for operating businesses. Preliminary steps (covered in related programs) include understanding the types of financial statements and level of accountant involvement, distinguishing between cash and accrual accounting methods, and the unique format and features of business tax returns. We now turn to the four primary sets of ratios: (1) liquidity, (2) leverage, (3) profitability, (4) efficiency, and (5) debt coverage. Using a comprehensive case, calculations are demonstrated, as wells as major issues, strengths and limitations of the various ratios. Participants will work from a ratios reference guide that is intended to be a resource for future statement spreading.

Topics to be covered include:

  • Basic guidelines for classifying and spreading the data
  • Identify the key components of a balance sheet
  • Calculate liquidity and leverage ratios for an example business and interpret the results
  • Identify situations with positive or negative working capital
  • Describe common-sizing of the balance sheet
  • Identify the key components of an income statement
  • Calculate profitability and traditional cash flow measures for an example business and interpret the results
  • Calculate efficiency and debt coverage ratios for an example business and interpret the results
  • Explain the use of industry and comparative data within financial analysis

Target Audience: Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists, and others involved in business and commercial lending

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through July 19, 2022

This program unlocks the key issues in analyzing business tax returns by creating a business tax return from a conventional financial statement. This shows the major formatting differences and ways balance sheet accounts and income statement items are labeled differently in a tax return. It also reveals the functions of the various schedules. By using a pass-through entity, we further see how the tax return carefully segregates items that move to an owner’s personal tax return via the Schedule K-1. A final step is creating a chart that “maps” a financial statement to both pass-through entities and a regular corporation.

After this seminar, attendees will be able to:

  • For an example business (case), construct a tax return balance sheet (Schedule L), income statement, Schedule M-1 and Schedule M-2 on the cash basis
  • Identify key formatting differences between a conventional financial statement and a tax return
  • Describe how pass-through entity tax returns separate various income statement items for purposes of allocating them to the owner(s) personal tax returns
  • On the Schedule K-1, identify the pass-through items that involve cash, compared to pass-through items that do not involve cash
  • Describe the common relationship between pass-through income and distributions to the owner(s)
  • Create a chart to compare and align financial statement components to the appropriate tax return schedules

Target Audience:  Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, special assets officers, loan review specialists, and others involved in business and commercial lending

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through July 12, 2022

Analyzing business financial statements and tax returns starts with understanding the basic components of the balance sheet and income statement, along with the reconciliation of retained earnings, plus footnotes and other disclosures. The business tax return is nothing more than a financial statement with similar components, but with a different format and structure. A second step is to use a diagram, with the components in rough proportion to dollar size, to see how the components “flow” together and interact to create three major financial relationships: (1) Sales to total assets, (2) profit retention, and (3) leverage. A third step is to identify and understand the key principles underlying the three primary methods of accounting, followed by examining an accountant cover letter, if applicable.

Topics to be covered include:

  • Identify various financial statement analysis options and tools, plus the basic structure and purposes of financial statements and tax returns
  • Diagram the statement components and how they flow together and create three major relationships
  • Identify various levels of accountant-prepared financial statements (compilations, reviews, and audits) and related accountant cover letters
  • Describe key issues in using internal or company-prepared statements, as well as interim statements
  • Compare and contrast the three primary methods of accounting
  • Key standards, limitations, and alternatives within accrual accounting or generally accepted accounting principles (GAAP)

Target Audience:  Credit analysts, portfolio managers, assistant relationship managers, community bankers, small business lenders, commercial lenders, consumer lenders, branch managers that lend to business owners, private bankers, and special assets

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through June 29, 2022

This seminar will provide the banker with several advanced tax return concepts and related analyses to help them more effectively work with their business customers.

The session will begin with a brief review of analyzing a business owner’s personal 1040 tax return and the return of an LLC, S corporation, and C corporation including Schedules M-1 and M-2, Schedule K-1, pass-through transactions, and other deductions.

The remainder of the seminar will cover the following advanced tax topics related to business clients:

  • Corporate tax Issues including business structure, Section 179 depreciation, and bonus depreciation
  • Investments including capital gain/loss issues and passive activities
  • Real estate issues including personal residence, rentals, home offices, and 1031 tax-free exchanges
  • Employer provided benefits including Qualified Retirement Plans and Health Savings Accounts (HSAs)
  • Retirement planning strategies including Defined Benefit (DB) plans
  • Estate planning issues including gifting
  • Year-end tax strategies
  • Changes to the Tax Code that impact Business Owners including the Tax Cuts and Jobs Act (TCJA), the CARES Act, and proposed tax legislation

Target Audience: Commercial lenders, credit analysts, relationship managers, and credit administrators

Presenter
David Osburn, Osburn & Associates, LLC

Registration Option
Live presentation $330

Recording available through June 22, 2022

Attend this proactive webinar and gain an understanding of the often complex and confusing topic of TAXES!

Bank personnel are required to obtain and properly interpret tax returns for both commercial and consumer lending purposes. The first part of this webinar will concentrate on personal tax return analysis while the second part will focus on the analysis of various business tax returns.

The objectives of the first part of the webinar consist of the following:

  • Review the basic structure of the personal 1040 federal tax return (including the various schedules and K-1 forms)
  • Use analysis techniques to prepare a personal cash flow from information gleaned from the 1040 and the related schedules
  • Discuss recent changes in the tax code including the Tax Cuts and Jobs Act (TCJA), the CARES Act,  and proposed tax legislation and how they affect the bank’s individual borrowers/guarantors
  • Describe how the 1040 tax return can be used to market the bank’s products and services

The second part includes:

  • Discuss the structure of a C corporation, S corporation, and Partnership (including LLC) tax return
  • Analyze business tax returns and prepare cash flows for these entities
  • Draw additional information from the business returns including identifying fraudulent tax returns
  • Discuss updates in the tax code including the TCJA, CARES, and proposed tax legislation as they apply to businesses

Target Audience: Commercial lenders, credit analysts, consumer lenders, mortgage lenders, loan documentation specialists, branch managers, assistant branch managers, private bankers, and business development officers.

Presenter
David Osburn, Osburn & Associates,
LLC

Registration Option
Live presentation $330

Recording available through May 24, 2022

This webinar will provide the banker with several advanced tax return concepts and related analyses to help them more effectively work with their business customers.

The webinar will begin with a brief review of analyzing a business owner’s personal “1040” tax return and the return of an LLC, S corporation, and C corporation including Schedules M-1 and M-2, Schedule K-1, pass-through transactions, and other deductions.

Covered Topics

Corporate Tax Issues including Business Structure, Section 179 Depreciation, and Bonus Depreciation
Investments including Capital Gain/Loss Issues and Passive Activities
Real Estate Issues including Personal Residence, Rentals, Home Offices, and 1031 Tax-Free Exchanges
Employer Provided Benefits including “Qualified Retirement Plans” and Health Savings Accounts (HSAs)
Retirement Planning Strategies including “Defined Benefit” (DB) Plans
Estate Planning Issues including Gifting
Year-End Tax Strategies
Changes to the Tax Code that impact Business Owners including the “Tax Cuts and Jobs Act” (TCJA)

Who Should Attend?
Commercial lenders, credit analysts, relationship managers, credit administrators.

Presenter
David L. Osburn, MBA, CCRA, is the founder of Osburn & Associates, LLC, a Business Training and Contract CFO Firm that provides seminars, webinars, and keynote speeches for bankers, CPAs, credit managers, attorneys, and business owners.

His extensive professional background of over 30 years includes 21 years as a Business Trainer/ Contract CFO and 16 years as a bank commercial lender including the position of Vice President/Senior Banking Officer. Mr. Osburn has also been an adjunct college professor for over 30 years including College of Southern Nevada.

Registration Options:

“Live” Web connection – $265
6-month “OnDemand” website link only – $295
CD-ROM and e-materials only – $345
Live plus OnDemand website link – $365
Premier Package:  Live, OnDemand link, and CD-ROM plus – $395