What Are Those Partnership &
S-Corp Tax Returns Telling Me?
Wednesday, August 14, 2019
3:00 pm – 4:30 pm Eastern
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.
- 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
o Cash flow conversion worksheet
o Accrual to cash worksheet
o Simple global cash flow worksheet
o Employee training log
o 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.
Tim Harrington, CPA, TEAM Resources
Tim Harrington is President of TEAM Resources and has been a financial institution consultant for over 27 years. Tim has advised lenders on verifying income from tax returns since 1992, and consults with financial institutions nationwide on issues of strategy, profitability, and board governance. He speaks at nationwide conferences and has presented in Canada, Mexico, Puerto Rico, Jamaica, and the Virgin Islands. Tim is the author of the popular software, Lenders Tax Analyzer. In addition, his book “Eisenhower on Enlightened Leadership” has been used by management teams nationwide to improve leadership skills. He did his undergraduate studies at Gonzaga University and graduate studies at the University of Washington.
Attendance verification for CE credits provided upon request.
Webinar Sponsored by Financial Education & Development
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.
|Live Webinar: Register for the live event and get five days access to the On Demand Playback. You’ll have an opportunity to ask questions during the presentation and be free to review the content for the next 5 (business) days Registration also includes links to presenter materials, handouts, and pdfs.
Recorded Webinar + Free Digital Download: Can’t attend the live webinar? This option provides a recording of the live event, including audio, visuals, and handouts. We even provide the presenter’s email address for follow-up questions. You will receive an email with the recorded webinar link, which can be viewed anytime 24/7, beginning 6 business days after the webinar. You will also receive instruction on how to download a free digital copy of the webinar to your PC, which you may keep and use indefinitely.
Live Webinar: Register for the live event and get five days access to the On Demand Playback. You’ll have an opportunity to ask questions during the presentation and be free to review the content for the next 5 (business) days Registration also includes links to presenter materials, handouts, and pdfs.
Additional Hookups: Registering another banker from a different location
Live Webinar + On-Demand Link : Both live webinar & recorded webinar + free digital download