What was the deferred tax asset for Expense Reduction Analysts in 2024?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
g of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
CliftonLarsonAllen LLP
Clifton Larson Allen LLP
Milwaukee, Wisconsin
April 9, 2025
| 2024 | 2023 | |||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and Cash Equivalents | $ | 2,213,765 | $ | 1,251,718 |
| Accounts Receivable, Net | , | 371,963 | 444,102 | |
| Prepaid Expenses | 82,365 | 85,996 | ||
| Prepaid Incremental Franchise Costs | 475,881 | 393,234 | ||
| Prepaid Taxes | 192,835 | 235,161 | ||
| Due from Related Parties | 1,031,474 | 1,005,148 | ||
| Total Current Assets | 4,368,283 | 3,415,359 | ||
| PROPERTY AND EQUIPMENT, Net | 30,278 | 18,770 | ||
| INTERNAL-USE SOFTWARE, Net | 157,857 | 129,805 | ||
| OTHER ACCETS | ||||
| OTHER ASSETS Prepaid Incremental Franchise Costs, Noncurrent Portion | 3,034,623 | 2,464,230 | ||
| Operating Right-of-Use Asset, Net | 164,045 | 2,404,230 | ||
| Deposits |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the company's deferred tax asset in 2024 was $0.00. In contrast, the deferred tax asset in 2023 was $29,195.
A deferred tax asset represents a reduction in future income taxes that is expected to occur. This arises from timing differences where the recognition of an asset or liability for tax purposes occurs in a different period than for accounting purposes. Common examples include differences in depreciation methods or the treatment of certain expenses.
The fact that Expense Reduction Analysts had a deferred tax asset of $0 in 2024, compared to $29,195 in the previous year, could be due to several factors. It may indicate changes in the company's profitability, tax planning strategies, or accounting methods. A prospective franchisee should seek clarification from Expense Reduction Analysts regarding the reasons for this change and its potential impact on the franchisee's tax obligations and financial performance.