The Cost Approach: AKA the many hats approach is the most common way to determine reasonable compensation. It calculates a reasonable compensation by determining what the replacement cost for each service a shareholder provides their business. Over 70% of reports ran in RCReports use this approach. This interview can be completed by you or your client.
Click Here to view a sample of a Cost Approach Reasonable Compensation Report.
Initiating a Cost Approach Report:
Select the client you wish to run a report for from the Clients tab, and then click New Report.
Select the Report Purpose and click Next.
NOTE: For more information on each purpose hover over the icon:
Select Cost Approach and click Next.
Select the Tax Year for the report.
Note: Premium Subscribers have the option to display or suppress results to the client upon completion of the online interview.
Select if you want to be notified when your client completes the online interview.
Select Next.
Sending the Interview to Your Client
You can choose to send your client the email invitation using the RCReports automated email [you can copy yourself].
Note: This email cannot be edited.
You can also copy the interview URL to your clipboard and paste it into your own email editor for a more custom look.
Note: Each interview link is unique to that client and interview.
To complete the interview for or with your client select Click here to being interview.
Note: After making this selection the interview will open in a new tab in the browser you are using.
The online Client Interview for the Cost Approach is a simple process that typically takes 15-30 minutes.