A chart of accounts is a list of categories that bookkeepers and accountants use to classify all accounting transactions. All accounts in the chart of accounts fall into one of the five categories: Income, Expense, Asset, Liability, or Equity.

Tail coverage, extended reporting period or tail insurance, is a crucial addition to claims-made business insurance policies. It provides protection for claims made after a policy expires, covering incidents that occurred during the policy period but were reported afterward.

Unique considerations for "union shop" ESOP companies

Debt restructuring is a process used by companies, individuals, and even countries to avoid the risk of defaulting on their existing debts, such as by negotiating lower interest rates. Debt restructuring provides a less expensive alternative to bankruptcy when a debtor is in financial turmoil, and it can work to the benefit of both borrower and lender.

B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.

Refers to any EO transaction completed without the use of debt, such as nonleveraged ESOPs in which the sponsoring company contributes cash to the ESOP, which is used by the ESOP to purchase the employer's stock, or the employer contributes its stock directly to the ESOP

A CDC is a nonprofit, community-based organization with one-third of board typically composed of community residents focused on low-income, underserved neighborhoods.

The primary responsibility of ESOP fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses. Fiduciaries must act prudently.

The cash flow-to-debt ratio shows if a company can repay debt with operational cash flow. It's calculated by dividing the cash flow by total debt. This ratio indicates a company's debt management efficiency, but full repayment from cash flow alone is often unrealistic.

RSU is an award of stock shares, usually given as a form of employee compensation. The recipient must meet certain conditions before the RSU are transferred. RSU give employees interest in their employer's equity but have no tangible value until they are vested.

S Corporation ESOPs must test for section 409(p) which states an S Corp ESOP cannot allocate shares to disqualified persons during any nonallocation year.

CDFI Fund is an independent agency administered by the U.S. Department of Treasury.

the aggregate market value of a company represented in a dollar amount

Also called "worker owner," or "participant" (depending on the EO context), an employee owner is an owning participant in an employee owned business.

A C corporation based ESOP

The first certification for small business exit planners, specifically tailored to the needs of employee ownership sales. Created/certified by Project Equity.

A PEO is a company which offers employment as a service, with the PEO typically becoming "employer of record" for one or more of a company's employees for the sake of shared services such as payroll, benefits, etc.

Equity is what belongs to the owner(s) of a firm and theoretically includes all that the owners have invested in the company over time, including funds used to start the company, annual earnings that have been retained in the company over the years, and any ongoing investments that have been made to replace and improve the organization's assets. It also sometimes includes intangible assets such as brand name or good will.

A person who records financial transactions. Bookkeepers maintain financial records, noting expenses or revenue, and determining how much one owes or is owed. Bookkeeping is related to, but distinct from, accounting. While accountants create reports based on financial information, bookkeepers record the information itself.