The Nomad Financial Blog

Granted Stock Options? Filing an IRS Section 83b Election

Granted Stock Options? Filing an IRS Section 83b Election

Death & Taxes, But How Much In Taxes? When building or joining a new enterprise, we tend to get caught up in the most exciting and impactful aspects of our days.  What can I build now? Who can I sell to now? Who might invest in the business?  One thing we assume we can put off is thinking about our tax liabilities since any exit […]

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Your Accounting Should Be Utilizing R&D Tax Credits

Your Accounting Should Be Utilizing R&D Tax Credits

The Dollar for Dollar Benefit of Tax Credits With the startup market booming and large sums being spent on research and development (R&D), many newly profitable companies forget to look forward to the days of when they move from the red into the black.  Or when they become profitable, they forget to update their processes for their changing tax position.  Their accountants, after either not […]

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Accrual vs Cash-Basis Accounting

Accrual vs Cash-Basis Accounting

Accrual and cash-basis accounting are the two primary methods businesses use in tracking their income and expenses. However, depending on the size of your business and other factors, one accounting method may be better-suited than the other. By understanding the differences between each method, you can determine which is best for your company’s needs. Cash-Basis Accounting: Simple to implement, but can distort financials With cash-basis […]

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SaaS Revenue Recognition

SaaS Revenue Recognition

Not so long ago, most consumers purchased software on discs to load onto their own computers. They used the software for years, or at least until they needed to upgrade. Today, software-as-a-service, usually called SaaS, has become the norm. With SaaS, consumers purchase a subscription to use and run software that the vendor hosts.  This subscription may also include a bundle of various services.  These issues […]

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IRS Notices and Data Protection

IRS Notices and Data Protection

The IRS Notice Freak Out As a founder or executive, if you have yet to receive the dreaded IRS notice, I promise you that it is probably coming.  These have been known to induce terrible symptoms, including an increased heart rate, sweating, a kung-fu grip on your phone, and worst yet- the high pitched emergency call to your accountant. What to do if you find […]

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Tax Consequences on Peer-to-Peer Accommodations

Tax Consequences on Peer-to-Peer Accommodations

Side Hustle Nowadays many founders, entrepreneurs, and employees need a second source of income to supplement their monthly expenses.  Airbnb has been a solution for many people looking for extra cash.  With that extra cash comes tax consequences, and maybe tax advantages. Unfortunately, income from rental property is taxable.  But, you can report expenses related to that rental property and decrease your taxable income.  Some […]

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12 Tips for Year End Tax Planning

12 Tips for Year End Tax Planning

Right now is the best time for year-end tax planning that might help lower your tax bill.  Here are 12 tips to consider using for your business and personal tax returns before ringing in the new year. Year-end tax planning for business: Invest In Your Property Consider making business expenditures that qualify for the business property expensing option (example: computers, furniture & fixtures, etc.). Move […]

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Fact: You’ll Hire Three Times For The Same Role

Fact: You’ll Hire Three Times For The Same Role

Iterations of the Role Another factor that most small business owners don’t take into account when making the decision of whether to make a hire, and specifically a financial hire, is the fact that you will likely have to go through the costs of hiring for the role three times. Let me explain. Build: The first hire is to find someone who can fill the […]

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Benefits of Outsourcing

Benefits of Outsourcing

Outsourcing As I’ve discussed in my previous emails, business owners often don’t predict the full cost of hiring for financial roles, have trouble knowing when their workload justifies internal hires, and don’t anticipate the fact that once they’ve created a role internally they will likely have to pay to rehire it three times. Often, outsourcing the role can be the answer for efficiently growing your […]

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What Investors Expect: 409A + Stock Treatment

What Investors Expect: 409A + Stock Treatment

This is the final installment of our What Investors Expect series; I hope that the content we’ve provided has helped you to better interact with your new investors, and has set you on the path to success. Firstly, what is a 409A valuation? A 409A valuation is an official report valuing the common stock of your company Why do I need a 409 valuation? You […]

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