Calculating Cash Flow from S-Corporation & Partnership Tax Returns

Does it ever seem you need a secret decoder ring to convert business tax returns to cash flow? This session will help take the mystery out of Partnership and S-Corp tax returns so you can identify real cash flow quickly and accurately.

To qualify a business borrower for a loan, you need to be able to determine the cash flow of the business entity (or entities) involved. Tax returns were designed to report taxable income, not cash flow. Partnerships and S-Corps are pass-through entities, meaning that they do not pay taxes directly. Instead, they pass the taxable income through to the owners’ individual tax returns. Your job is to disentangle all the passed-through incomes, reassemble them for the business, then determine what cash flow will be used as qualifying income.

Overestimating income from a tax return may lead to the approval of a weak loan that could cost your institution hundreds of thousands of dollars in losses. Underestimating income can lead you to deny loans that should be approved, resulting in missed opportunities to grow your loan base. This session will help take the mystery out of Partnership and S-Corp tax returns so you can identify real cash flow quickly and accurately.

Attendance certificate provided to self-report CE credits.

• Participants will receive the 2021 Lenders Tax Analyzer for S Corps and Partnerships. This interactive cash flow calculator will help you quickly and easily convert a Form 1065 or 1120-S into a cash flow report
• Employee training log
• Interactive quiz