Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
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WWW.UPANDCOMINGWEEKLY.COM MARCH 9 -15, 2022 UCW 17 Money can be considered a taboo topic of conversation in some circles. As a rule of thumb, you do not speak about salaries, debt or the cost of your most recent vaca- tion with friends or family, do you? We understand that, but when it comes to selling a business, we need to talk about money, and more specifically, cash. What is cash and how does it af- fect your business when you are selling it? When you are selling your business, there are many vari- ables to consider – whether directly or indirectly involved with the sale. For one, what happens to cash when you sell a business? at is a great question – as it might be difficult to understand what assets are and are not rel- evant at this stage. e simple answer? Most of the time, cash does not need to be an asset of the business at the time of a sale. e business owner (i.e., you) should retain all cash (or cash equivalents) after the sale. Sur- prisingly to many, this includes bonds, petty cash, money in bank accounts, etc. But why is cash not an asset? e main reason why cash should not be treated as an operating asset during a sale is that the buyer usually will have their own estimates of working capital. Most often the cash in pass- through entities like S Corpo- rations or LLCs was generated through profits, which the owner already paid taxes on. Or the cash could be due to mon- ies that were borrowed by the company. erefore, when selling a business, the seller either feels they "own the cash" or need to pay it back ; for these reasons cash most often remains with the seller. On the other hand, sometimes in certain businesses cash could be a key component of working capital requirements. Businesses that require cash on hand, like a pawn shop, ATM business or check cashing store. Especially in the case where there are customer deposits or warranty issues like catering/ event facilities or contractors. In conclusion, 99% of the time, the cash in the bank is for the seller to keep. And that should be consid- ered by sellers as part of their proceeds of sale when planning on how much the sellers will net after the closing costs and taxes that affect the sale. e above gets more com- plicated depending upon the structure of your business and the deal you are contemplating; it is important to understand the future income and tax im- plications. It is always good advice to contact an experienced tax planning strategist, lawyer and business broker before agreeing to the terms of your sale. What happens to cash when selling a business? by THOMAS KELSEY BUSINESS & FINANCE THOMAS KELSEY, Transworld Business Advisors of Fayetteville. Comments? tkelsey@tworld.com Beginning on Wednesday eve- ning, March 16 and continuing until nightfall on March 17 is the Jewish holiday of Purim. (For religious purposes, Jewish days run from sunset to sundown.) Purim is the celebration of the survival of the Jews in ancient Persia, from the wicked plot of Haman, as described in the bib- lical "Book of Esther." Perhaps the most unusual thing about this book is that it is in the Hebrew Bible of the Jews (as well as in the Old Testament of Christian scriptures) despite the fact that God is never men- tioned. e book does seem to allude to God, or at least cosmic forces, acting behind the scenes, but God is never mentioned explicitly. Indeed, the rabbis in antiquity who determined which writings were sacred enough to be included officially in the He- brew Bible they were formaliz- ing vigorously debated the issue of its inclusion before deciding it should make the cut. Perhaps the reason it ulti- mately prevailed is precisely because God is only found there implicitly. Understandably, we would like to have obvious, incontrovertible and palpable proof of the existence of God and what God wants from us. A burning bush or the splitting of a sea might be nice. It would definitely help make our lives more certain and assured. But that's not the nature of the daily experience for most of us. Faith is the recognition that there is more to our lives and the world around us than we can access directly. And this truth is found beyond the sphere of reli- gion. How do you feel – not just infer, but feel - the care, concern or love of another human being? How do actors sense the energy of an audience in a silent, dark theater with bright stage lights in their eyes? How do we know when a sound or a sight is beau- tiful? How do we recognize, if we are truly honest with ourselves, whether we have acted morally or not? None of these are merely part of the realm of our ordinary five senses. ey are not within the empirical processes with which we analyze and incorpo- rate overt information. And yet, we all know with certainty that those intangible experiences are real. Even the ultra-rational skeptics among us live their lives, as a practical matter, as if they are genuine realities. As my doctoral studies in religious philosophy would acknowledge, there are ways to account for all of this in formal ways. But that's not what's important for our daily lives. What matters is that we open ourselves up to what is greater than ourselves and beyond what is overtly apparent to us. Our lives can be enriched by recog- nizing, like the "Book of Esther," there is always much more pres- ent in our lives, contributing to them than simply the superfi- cial. Whether in the realm of the Divine, cosmos or humanity, let us appreciate the powerful om- nipresence that is just beyond the veil of our senses. RABBI DOV GOLDBERG, Com- ments? Editor@upandcomin- gweekly.com. 910-484-6200. There's always more there than meets the eye by RABBI DOV GOLDBERG FAITH A hamantasch is an Ashkenazi Jewish triangular f illed-pocket pastr y, asso- ciated with the Jewish holiday of Purim. The name refers to Haman, the villain in the Purim stor y.(Photo courtesy of Pexels.)