1. Plan Design and Implementation:
Consultation and Strategy
Reins provides an easy-to-use template, but accountants can advise clients on the best structure for a phantom equity plan based on the company’s financial health, goals, and employee needs.
Compliance
Reins ensures out of the box 409A compliance. However, accountants play a role in ensuring the plan complies with all relevant local tax laws and regulations.
2. Valuation and Financial Analysis:
Company Valuation
Small business owners can input their own valuation into the Reins platform. However, valuations are often conducted by accountants who can help determine a company’s worth, which directly impacts the value of MARE Stock (phantom shares) being allocated.
Financial Projections
Accountants and other financial experts on a small business’ payroll might create financial models to project the future value of phantom equity and its impact on the company’s finances.
3. Tax Planning and Reporting:
Tax Advice
While Reins provides legal forms, we are not a law firm, nor do we provide tax advice. Accountants are the experts who can guide companies on the tax implications for both the business and the employees who receive MARE Stock.
Tax Reporting
Similarly, accountants can assist with the preparation of necessary tax filings and ensure accurate reporting when phantom equity turns into cash.
4. Accounting and Record Keeping:
Accurate Recording
From a bookkeeping perspective, accountants can ensure that MARE Stock is accurately recorded in a company’s financial statements.
Expense Recognition
Relatedly, business owners may need assistance with the proper recognition of expenses related to phantom stock, such as compensation expenses.
5. Employee Education and Communication:
Workshops and Training
Reins helps educate employees on the benefits of phantom equity, though accountants can play a critical role in conducting workshops or training sessions to educate employees on how phantom equity works.
Individual Consultations
Providing one-on-one consultations with employees can help them understand their MARE Stock award and its potential financial impact.
6. Ongoing Monitoring and Adjustments:
Performance Tracking
Monitoring the company’s performance and the value of phantom equity over time is something accountants can track in part within the Reins platform.
Plan Adjustments
Plans change, and most Reins customers consider granting MARE Stock awards annually. Accountants can advise on necessary adjustments to the plan based on changes in the company’s financial situation or strategic goals.
7. Succession Planning and Retirement:
Integration
Perhaps one of the most important things an accountant can do for a company’s long term health is to integrate MARE Stock plans into broader succession planning strategies to ensure a smooth transition and retention of key employees.
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