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Businesses structured as Employee Stock Ownership Plans (ESOPs) cannot get by with standard tax and accounting services from their CPA firm—they need an accounting partner who understands the unique requirements of being an ESOP. Who is better positioned to provide this support than an accounting partner who is also an ESOP?
Kirsch CPA Group became an ESOP in 2024 and is one of the few ESOP accounting firms in the country. We understand your journey as an ESOP because we’re on the same journey.
Kirsch ESOP Announcement
Satisfying ESOP Requirements
The ESOP business structure involves complex accounting and reporting requirements designed to ensure the long-term success of your shareholders. Kirsch CPA Group can help you meet these requirements by providing you with the following support:
- Liquidity planning and compliance testing for loan covenants
- Audit and assurance services that will maintain your credibility with lenders and trustees
- Collaboration with your third-party administrator and legal counsel on plan design and repurchase obligations
- Reporting to your board of directors and trustee
- Tax planning and compliance
- An insider’s perspective of the benefits, challenges and obligations of ESOPs
Kirsch CPA Group is an employee-owned accounting firm that provides accounting, advisory and strategic tax services to ESOPs across many industries. Whether you are considering becoming an ESOP, are a newly established ESOP, or are an ESOP ready to advance to the next level of business growth, partnering with Kirsch ensures you have the support and expertise you need.
Holistic Accounting Benefits for ESOPs
The Kirsch ESOP Team
Accounting & Financial Support Throughout Your ESOP
Business Lifecycle
Kirsch ESOP Industry Experience
- Construction ESOPs
- Professional services ESOPs
- Manufacturing ESOPs
Like every business, ESOPs face different challenges as they move through the stages of the business lifecycle. Planning for each stage should be managed with strategies that align with company goals, culture and industry demands. But ESOP success, including profitability, performance and employee satisfaction, requires more than strategic planning; it takes a different mindset, and a deep understanding of the ways in which employee ownership impacts company growth and performance.
Kirsch CPA Group can help. Here’s an overview of ESOP business requirements at every stage.
1
ESOP Planning
The decision to undertake the transition to an ESOP requires thorough consideration to ensure financial and cultural alignment, and to identify the advantages and disadvantages. You should have a clear plan that incorporates the goals and expectations of company leadership and a solid grasp of the financial requirements.
2
Establishing an ESOP
Implementing an ESOP is a complex and structured process with legal, financial and operational requirements. Your accounting partner should have deep experience in succession planning that includes ESOPs, as well as the ability to provide sophisticated business advisory services.
3
The Shift to Employee Ownership
Becoming an ESOP is a profound shift for any business, with financial and cultural adjustments at every level. Transparency, communication, education and trust are paramount for a smooth transition. Employee education around the process, its benefits, and implications should be thorough and ongoing. Reliable, up-to-date financial reporting will ensure agile decision-making and instill confidence.
4
ESOP Management & Growth
As your business grows, your challenges and opportunities will grow along with it. Your financial needs will grow more complex. For challenges that can include repurchase obligations and capital demands, you need next-level accounting support from a firm with first-hand experience navigating the ESOP journey.
Employee Ownership Services
Kirsch CPA Group will provide the next-level accounting help your employee-owned company needs including:
Financial Visibility
- Changes to financial reporting to meet ESOP requirements
- IRS and Department of Labor compliance
- GAAP financials with accruals and pre-paids
- Bank and credit card reconciliation
- Cash flow management
- Accounting software clean-up and support
- Payroll management
Assurance & Reporting
- Audits, reviews, compilations
- Internal shareholder reporting
- Support for reporting to board of directors and trustee
- Metric reporting to employee owners
- Census reporting to TPA
- Return on investment (ROI)
Business Planning & Advisory
- Employee shareholder education
- Liquidity planning
- Planning for repayment of seller notes
- Collaboration with third-party administrator and legal counsel on plan design matters and repurchase obligations
- Inventory planning and monitoring
- Analyzing financing options
- Product costing and pricing
Tax Strategy, Preparation & Mitigation
- Tax planning for section 1042 rollovers
- Entity structure planning
- Tax planning for employee shareholders
- Tax compliance and consulting
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Grow Your ESOP Business
Contact a member of the Kirsch CPA Group team to learn more about what strategic and holistic accounting services can do for your ESOP business.
How To Get Started
