Free Cash Flow (FCF): Calculation and Interpretation
Understanding Free Cash Flow Free cash flow (FCF) is one of many financial metrics used to assess a company’s financial health and sustainability. FCF measures the cash a company generates after accounting for operating expenses and capital expenditures. It’s a forward-looking statement that reveals a company’s ability to fund growth, pay dividends, or reduce debt. […]
Understanding ASC 842: Purpose, Application, Impact, and Tax Implications
If your business leases equipment, office space, or other assets, you’ve probably heard about Accounting Standards Codification (ASC) 842 —and you might be wondering how it affects you. It was introduced to enhance transparency in lease accounting, but the transition from ASC 840 to ASC 842 has brought a wave of complexity and confusion. Previously, […]
How to Make Financial Projections for Your Business
Understanding Financial Projections Financial projections are forward-looking tools that estimate your business’s financial performance over a specific period, giving insight on everything from daily operations to long-term strategic planning. How to Calculate Financial Projections Income Statement Projection The income statement highlights projected net income by analyzing anticipated revenues and expenses. It is particularly useful for […]
Post-Filing Tax Strategies: Planning Ahead for Next Year
Filing your taxes isn’t the finish line—it’s just the beginning of better tax planning for next year. Many businesses make the mistake of treating tax season as a once-a-year task, missing out on key opportunities to reduce liabilities, optimize deductions, and improve financial efficiency. At Cathcap, we believe in using post-filing tax analysis as a […]
Maximizing Tax Deductions: Industry-Specific Strategies
Taxes might not be the most exciting part of running a business, but saving money? That’s always worth talking about. The truth is, many businesses miss out on valuable tax deductions simply because they don’t realize what they’re entitled to—especially when it comes to industry-specific write-offs. At Cathcap, we help businesses not only stay financially […]
Understanding Recent Tax Law Changes: What Businesses Need to Know
Tax laws change constantly, and staying informed is crucial for business owners looking to maximize savings, remain compliant, and plan ahead. Recent updates impact bonus depreciation, R&D deductions, QBI benefits, corporate tax rates, and compliance reporting, making proactive tax planning more essential than ever. At Cathcap, we help businesses stay ahead of tax law changes […]
Cash Flow Resilience: A CEO’s Guide to Financial Stability
Scratching your head wondering how to keep your business financially stable in an unpredictable economy? You’re not alone. Cash flow isn’t just about covering expenses—it’s the foundation of long-term success. With rising operational costs, economic uncertainty, and shifting market demands, companies that prioritize cash flow resilience will be best positioned to adapt, grow, and thrive. […]
S Corp vs C Corp
Choosing the right business structure is an important decision for business owners. It impacts taxes, liability, and long-term success. When comparing an S corp to a C corp, understanding their requirements, qualities, and differences is crucial. What Are S Corporations and C Corporations? An S corporation and a C corporation are two distinct types of […]
Business Exit Planning
Understanding Business Exit Planning When it’s time to transition, having a clear and strategic business exit strategy is essential. Exit planning involves more than deciding when to sell—it’s about ensuring a smooth transition, achieving financial goals, and safeguarding the legacy you’ve worked hard to build. By developing an effective exit strategy, you can mitigate risks, […]
What Are Pro Forma Financial Statements?
Pro forma financial statements are a powerful tool for predicting a company’s future financial performance. By using hypothetical scenarios and financial projections, they allow you to visualize how various strategies or events might impact your financial position. Whether you’re a small business owner, a manager at a public company, or a potential investor, understanding pro […]
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