For business valuators, normalizing a business owner’s compensation is an important piece of the valuation process as there is an inverse relationship between reasonable compensation and value derived for the enterprise. RCReports makes estimating reasonable compensation quick, easy and accurate.
Solving the Compensation Complexity Problem
Many small business owners have multiple job titles they perform to varying degrees, making it challenging to estimate what their Reasonable Compensation should be. RCReports ensures that when determining a business owner’s Reasonable Compensation, you can easily break down their job duties by title and percentage of time and calculate accurate wage data that is supported by an independent, third-party source.
It used to be that compiling a Reasonable Compensation report took hours or even days. Pouring over wage data, comparing geographic regions, and finding comparable salaries was an exhausting and inefficient process. Fortunately, RCReports has done the work for you. We’ve assembled a database of over 12 million data points for wages covering virtually every possible position and geographic region your clients maybe located in. Not only that, but more than 60% of these data points are exclusive to RCReports. Using RCReports will provide you with access to better data and will save your valuable time.
In the event of an IRS challenge to a Reasonable Compensation figure, it’s good to know that the data and calculations used come from an independent third-party source. With RCReports you can be sure that our numbers are unbiased and represent an accurate Reasonable Compensation figure. Every report provides you with supporting resources, including case law, IRS rulings, whitepapers, and more!
Use RCReports in your Tax practice too!
Not only is RCReports valuable for normalizing compensation for business valuation, but is also invaluable for tax advisors. As a tax advisor, you can use RCReports to help your clients meet the challenge of increased IRS focus on Reasonable Compensation determinations. RCReports is your one-stop solution to calculating Reasonable Compensation figures that are accurate, defensible, and supported by the latest in IRS rulings and geographic data.
Key Product Features
• RCReports results are available immediately
• RCReports operates in the cloud: simply login and begin generating reports in minutes
• RCReports offers all three recognized approaches: Cost, Market & Income
• RCReports establishes Reasonable Compensation fully defensible to the IRS & Court
• RCReports have a 30 day edit window
• RCReports are backed by a comprehensive Methodology report