RCReports Help Center

Learn how to use RCReports to generate accurate and defensible reasonable compensation reports for your clients.

RCReports

Reports & Methodologies

Income Approach

Reports & Methodologies

Income Approach

The Income Approach (AKA the Independent Investors Approach) requires only 4 inputs. Because of this the interview will open in your RCReports dashboard (there is no option to have your client input this data). To make gathering the required information as simple as possible you can download a paper version of the interview from the Resource Library located in the Tools tab and have your client fill it out.

Click Here to view a sample of an Income Approach Reasonable Compensation Report.

The Income Approach Interview

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.

Tip: For more information on each purpose hover over the question mark icon.

Select Income Approach and click Next.

Select the Year and input all required information, then select Next.

Select the Target Return / Return on Equity / Reasonable Compensation you’d like to use and select Save to Client

The report is now saved and can be viewed in the Client’s profile by selecting View PDF under the Action icon.

Note: You can Finalize the report any time before this. Click Here to learn how.

For questions or concerns, contact RCReports at 720-279-8800 or support@rcreports.com

Cost Approach

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.

Market Approach

The Market Approach (AKA the Industry Standard Approach) compares the business owner’s compensation to the compensation of a CEO or General Operations Manager within an industry, location, number of employees, profit, and proficiency level. This approach is typically used at medium to large scale companies where the owner is primarily managing the company (not working within the company).

The Cost Approach

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