Events Calendar

Webinar: What Are Those Partnership & S-Corp Tax Returns Telling Me?
Thursday, July 25, 2019, 03:00pm - 04:30pm

Does it seem like a secret decoder ring is needed to convert business tax returns to cash flow? The confusion arises because tax returns were created to report taxable income, not cash flow – which is what is needed to qualify a borrower. Even more complexities arise when a tax return is for a Partnership or S-Corp because both are “pass-through” entities. The business does not pay taxes directly; instead, taxable income is passed through to the owners’ individual tax returns. A lender’s job is to disentangle the passed-through incomes, reassemble them for the business, then determine what net income can be used as qualifying income.

Overestimating the income from a tax return can lead you to approve a weak loan that could result in hundreds of thousands of dollars in losses. Underestimating income can lead you to deny good loans that you need to grant. This webinar will help take the mystery out of Partnership and S-Corp tax returns and you’ll learn how to quickly and reliably identify a business’s real monthly cash flow.

HIGHLIGHTS

  • What a ‘pass through’ entity is and how it affects tax reporting and cash flow
  • Identify income that was ‘passed through’ to an individual tax return, but earned by the business
  • The value of the Schedule K-1 in analyzing cash flow
  • Convert an accrual basis tax return to cash basis
  • Calculating global cash flow from tax returns
  • TAKE-AWAY TOOLKIT
    • Cash flow conversion worksheet
    • Accrual to cash worksheet
    • Simple global cash flow worksheet
    • Employee training log
    • NEW – Interactive quiz

WHO SHOULD ATTEND?

This informative session is designed for chief lending officers, service representatives, new accounts personnel, loan officers, loan underwriters, credit analysts, loan processors, branch managers, CEOs, and other key lending staff.

SPEAKER:  Tim Harrington, TEAM Resources

Tim Harrington is a Certified Public Accountant, author, and consultant who has specialized in working with community financial institutions since 1992. Since 1996, Tim has been President of TEAM Resources, a firm which provides consulting, strategic planning, and training from coast-to-coast.

A presenter at over 1,000 financial conferences, seminars, and webinars, Tim has provided consulting and training for hundreds of community financial institutions in nearly every state and four countries. Tim advises boards and senior management teams on strategy, profitability, and governance and works with staff on leadership and lending. Tim’s book “Eisenhower on Enlightened Leadership” has been used by many boards and management teams to improve internal leadership. In addition, he is a faculty member of three financial institution schools and is the author of the popular lending software “Lenders Tax Analyzer.”