What You’ll Learn

What you’ll learn

Classes offered:

Tax Return Analysis – Essentials and 1040 Review
Beyond the 1040 – Corporation, Partnership and LLC Returns
Financial Statement Analysis – The Business Scorecard

How you learn is as critical as what you’ll learn. In each of Linda’s workshops, you learn through a combination of explanations and case
studies. Calculators and pencils (and erasers) get used. Every analysis tool is explained; then you get a chance to try it on your own or in
small groups.

The groups keep changing so you get perspective from other lenders as well as Linda’s point of view. You dig in and do it so that even
when you have software and other tools to help, you have a deep underlying understanding of what you are doing…and why.

Tax Return Analysis – Essentials and 1040 Review

Contact us about onsite training

More than just the 1040, this workshop is the foundation for cashflow analysis of any tax return. We cover how the information flows, how to tell if you have the complete return, a process to work top to bottom (even when you get interrupted) and the basic types of income, expenses, gains and losses you have to use to get from taxable income to recurring cashflow to pay debt.

Then we drill into the 1040 for personal lending and guarantor analysis. Rentals, sole proprietorships and capital gains get special attention.

You’ll learn to:

  • Convert taxable income into cashflow available
  • Spot red flags and troubled borrowers
  • Keep your train of thought
  • Ask good questions and develop customer relationships
  • Dig for dollars, when necessary, to say “yes” to a good loan

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Beyond the 1040 – Corporation, Partnership and LLC Returns

Contact us about onsite training

Unless you have significant experience or training, be sure to attend the 1040 workshop with or before this one. Most lenders
who skip it wish they had not since it sets the stage for all types of returns.

Picking up where the 1040 workshop leaves off, we cover Partnerships (general and limited), Limited Liability Companies and Corporations (both C and S). Before we jump into the tax forms we cover:

  • Each type of entity
  • Advantages and disadvantages
  • Tax perspective
  • Risk exposure of the owners
  • How the cash flows to the owner versus allocations of taxable income

You work with Linda, in small groups and on your own to:

  • Do a quick overview of any business return to get a feel for the business
  • Determine business cashflow available to pay debt
  • Spot troubled businesses and questionable expenses
  • Calculate cashflow available to the owner and what they really took
  • Discover what they did with excess cash or how they covered a shortfall

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Financial Statement Analysis – The Business Scorecard

Contact us about onsite training

This basic-to-intermediate class is available as an on-site, shared or local program. We also have the course in our Lender’s Online Training. You’ll learn the story behind the numbers.

  • Make better loan decisions
  • Have more meaningful and helpful conversations with business borrowers
  • Capture and retain more lending relationships

Linda believes in hands-on training to develop gut-level understanding. You’ll be calculating percentages and ratios, converting from
cash-basis to accrual and creating simple financial statements from underlying information.

Yes, Linda knows that you have spreads programs to do that for you…back at the bank. After this workshop you’ll really understand
what the calculated numbers are telling you. As those ratios and percentages shift from one period to the next, you’ll have a much
better idea of what happened in the business to cause the change…good or bad.

You’ll be able to answer these questions:

  • Can I trust these financial statements?
  • Does CPA-prepared, compiled, reviewed or audited make a difference?
  • Is the company profitable?
  • What are the trouble spots?
  • Do they have enough cash?
  • Do they already have too much debt?
  • What else should I ask?
  • Should I make the loan?

You’ll learn to:

  • Distinguish between cash- and accrual-basis and reconcile one to the other.
  • Calculate and understand the most common ratios and percentages.
  • Create simple financial statements, including a Statement of Cashflows from the Balance Sheet and Income Statement.
  • Read the Notes to the Financial Statements to learn what questions they answer, and what questions they raise.
  • Write-up your analysis in narrative that goes beyond stating the obvious (elevator analysis) and explains the meaning behind the changes in the numbers.

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Download the Global Tax Return Analysis
Quick Reference Guide