Sources of Support at Yeo & Yeo

Yeo & Yeo offers varying career paths based on an individual’s strengths, passion, performance, leadership attributes, personal situations, and more. The career paths are individualized, specifically tailored to an employee’s career goals and aspirations, not a one-size-fits-all approach. Going beyond alternative paths to success, Yeo & Yeo provides mentorship, career advocacy and skill development through multiple programs including:

Emerging Leaders Program, which identifies future leaders on the partner track and provides the advanced training, tools, and support that they need to accelerate their growth and success.
Enhanced performance evaluation process, which includes more frequent check-ins, clearly-defined weighted goals, and ongoing feedback to help continually improve and retain aspiring leaders.
Restructured Mentor Program, which pairs current firm leaders with compatible future leaders, even taking into consideration the high proportion of women on Yeo & Yeo’s partner track and pairing them with established female partners who give a powerful visual model for success.

Leadership skills can play an important role in career development. At Yeo & Yeo, we nurture emerging leaders to gain self-confidence, improve performance and drive results. Through the evaluation process you will have the answers to:

What am I expected to do?
How well am I doing?
What are my strengths and weaknesses?
How can I do a better job?

Answers to these questions keep you informed of the progress you are making. When questions arise or advice is needed, your mentor is available as a support every step of the way. These quality programs provide you with the greatest opportunities for growth of leadership skill, improved job performance and success at the firm.

Career paths are not do-it-yourself at Yeo & Yeo, thanks to the maps and structures that show employees multiple, proven routes to success.

Yeo & Yeo CPAs & Business Consultants received the Leading Edge Alliance’s (LEA) prestigious Outstanding Diversity & Innovation Initiative award for its Women Leaders marketing campaign. The award was announced at the LEA’s 2016 Global Conference held in Houston, Texas. Each year the LEA recognizes accounting firms for their cutting-edge innovations that differentiate LEA members from their competitors.

“It is an honor to be recognized by our peers for creating a unique marketing campaign,” said Kimberlee Dahl, director of marketing. “We are pleased with the campaign’s results – particularly the tremendous reach we experienced on our social media and website – and at the same time we benefitted from the focus it brought to Yeo & Yeo’s culture.”

In 2015, Yeo & Yeo was named to the Accounting MOVE Project Best Public Accounting Firms for Women list, which recognizes ten firms for their women’s initiatives. Subsequently, the firm’s marketing team developed a comprehensive strategy to maximize that honor.

The team interviewed 13 of Yeo & Yeo’s women leaders firm-wide and asked them to share their real-life stories. Their responses were transformed into attractive articles, and a webpage was built specifically for featuring Yeo & Yeo’s Women Leaders’ profiles. Each week, one feature was posted to social media platforms and to the firm‘s website and intranet. Yeo & Yeo found that employees, clients, recruits and prospects were engaging with the content and sharing the firm’s posts at a level not achieved before.

The comprehensive marketing plan furthered five goals:

To illustrate the firm’s culture to potential employees
Increase online traffic
Humanize the firm’s professionals
Serve as a source of mentorship and advice for female professionals
Garner additional opportunities to leverage the firm’s achievements and initiatives

The campaign also helped to generate several speaking opportunities and article contributions regarding women’s initiatives.

Yeo & Yeo is a founding member of LEA Global, the second largest international professional association in the world, creating a high-quality alliance of 220 firms in more than 100 countries that are focused on accounting, financial and business advisory services.

You can learn so much from the awards a company receives and gives.

Awards such as Best and Brightest Companies to Work For in Michigan and Best Accounting Firms to Work For in the USA, let you know that our employees value their career at Yeo & Yeo. We have great benefits, work-life flexibility, award-winning programs and a culture of developing friendships among each other.

Yeo & Yeo was the first and only CPA firm in Michigan to receive the prestigious Michigan Community Service Commission’s service award, the Governor’s Corporate Community Leader Award. This award recognized the monetary contributions and more importantly, the time our employees spend giving back to the communities that we live and work in. The giving back of our time and talent to help make a difference in our communities has always been among our core values and a defining part of our culture. We have also been honored to be among the Accounting MOVE Project Best Public Accounting Firms for Women and to have many of our female leaders be recipients of awards such as the MICPA Emerging Leader Award and the Experienced Leader Award. These demonstrate our commitment to supporting and advancing women within our firm.

Yeo & Yeo has received several awards from the international association, Leading Edge Alliance, of which we are a charter member. This alliance is made up of regional CPA firms like Yeo & Yeo across the globe who work with each other to take care of the needs of our clients no matter where they are located in the world. The Leading Edge Alliance recognized Yeo & Yeo for leading initiatives and best practices in recruiting, marketing, professional development and process improvement.

We love to recognize employees and the ultimate award at Yeo & Yeo is the Spirit of Yeo Award. The award recognizes an individual within the firm who exemplifies the attributes of the firm’s mission and core values. What is so unique about this award is that any employee, other than an owner, is eligible to be nominated and anyone can nominate an employee. Each year, dozens of employees are nominated by their peers. I always look forward to the day that I spend reading about the outstanding efforts our professionals have made.

Indeed awards tell a story, and Yeo & Yeo’s story continually becomes more exciting for our dedicated professionals!

My career path was nontraditional in that I obtained my CPA license working in private accounting in Ohio. After moving to Michigan and starting my career with Yeo & Yeo, I found a flexibility where I could be more involved in my community as well as have the work-life balance I needed as I grew in my career, became a wife, and the mother of triplets.

There are issues that female professionals face. I was fortunate not to have experienced these challenges simply because I am a woman, and throughout my career I have worked hard to make sure other women are afforded the same equalities I was.

In 2015, Yeo & Yeo was named to the Accounting MOVE Project’s Best Public Accounting Firms for Women list, which recognizes ten firms across the nation for their women’s initiatives and female leadership. The project evaluates the retention of women leaders in public accounting and their advancement to partnership and other positions of increasing responsibility.

Yeo & Yeo provides the venue for women who have the desire and drive to grow as leaders in the accounting industry and in their communities. As a founding member of Yeo & Yeo’s Career Advocacy Team, I along with other key team members in our firm sought out the concerns that our female professionals faced and did our best to find solutions. Over time, we discovered that the issues our females encountered were relevant to all professionals, regardless of gender. Top of their list: equal access to career development and advocacy experiences, and promoting the successful integration of personal and professional lives. Therefore, we continually work to provide enhanced solutions for those issues.

The primary focus in our firm is to position our employees to best serve their families along with serving their communities, clients and the firm.

We wish every one of our employees to have a gratifying career that includes upward mobility, support and feedback along the way.

When Yeo & Yeo was named to the Accounting Move Project’s Best Firms for Women List, I was among one of the women leaders in our firm to be featured. I recommend, whether you are a women or man seeking a career in accounting, that you read the advice that Yeo & Yeo’s women leaders provide regarding their challenges and how they balance work-life flexibility.

You can read my story and other Yeo & Yeo women leaders’ stories here.

Yeo & Yeo CPAs & Business Consultants has been selected as one of Michigan’s Best and Brightest in Wellness for the third consecutive year. The program highlights companies, schools, faith-based groups and organizations that promote a culture of wellness, as well as those that plan, implement and evaluate efforts in employee wellness to make their business and their community a healthier place to live and work.

“This is an exciting achievement that recognizes Yeo & Yeo’s commitment to the health and well-being of our employees,” said Thomas E. Hollerback, president and CEO of Yeo & Yeo. “We are proud to support and encourage employees looking to live a healthier lifestyle at home and in the workplace.”

Yeo & Yeo supports wellness for its employees by offering a gold level healthcare plan and paying a large portion of the premiums, helping to keep costs low for employees. The firm has a high percentage of participation in its wellness plan and healthcare premium reduction incentive. Another initiative is the firm’s Fitbit Fitness Program. Themed, monthly challenges for individuals and teams, along with prizes and friendly competition, have resulted in a high level of participation. The firm also provides free flu shots.

Nominees were evaluated by using an assessment, created and administered by SynBella, the nation’s leading wellness provider. Criteria for selection included wellness programs and policies, culture and awareness, leadership, participation and incentives, communication and measurement, among others. A total of 400 companies and organizations were nominated for the award. Of those organizations, 187 completed the entire selection process, and 107 winners were chosen.

Yeo & Yeo will be honored at a symposium and awards celebration on October 20 at The Henry in Dearborn. The program is co-presented by the Michigan Business & Professional Association, Michigan Food and Beverage Association and Corp! magazine. Winners will be featured in the November issue of Corp! magazine and the November/December edition of Corp! online.

Imagine working a lifetime in hopes of one day passing on the many fruits of your labor to those who you love, but in the blink of an eye as much as 40 percent of it is taken away in the form of estate taxes. While there are many strategies to help protect your estate or at the very least mitigate the effects of the high estate tax rates, the door may soon slam shut on one of the most frequently used strategies. The IRS has proposed regulations that would disallow a discounted valuation method used in valuing assets in family limited partnerships and therefore no longer allow a lower taxable asset value for estate taxes, gifts, and transferring assets.

To utilize this strategy, a family limited partnership is often formed to help manage a family’s wealth and is a tremendously helpful tool in transferring the wealth from one generation to the next through tax-free gifts at a discounted valuation. The partnership is normally formed when senior family members contribute assets to the family limited partnership in exchange for an ownership percentage of the entity. These members most often will retain the role of the general partner and therefore can retain control of the partnership assets, control cash flow and management decisions, and determine and limit the ability of limited partners to transfer their interests. Upon formation, the general partner will transfer partial ownership of the partnership and ultimately their assets to their children, other family members, or trusts for their benefit over time.

In order to transfer ownership interest, the partnership would analyze the fair market value of the partnership assets to arrive at the overall value of the company. This would be used to determine the percentage of ownership that could be transferred as a tax-free gift each year. In the past, a family limited partnership was able to discount this value due to influencing factors such as a non-controlling minority interest and lack of marketability. For instance, without a majority voting percentage, a minority stakeholder is unable to single-handedly have a significant impact in making business decisions and as a result the value of that minority stake in a company would be discounted. Likewise, having a minority stake in a company such as a farm or family business would make it very difficult to find a buyer who would be interested in joining the partnership, which also justifies a discounted valuation due to lack of marketability.

However, with the proposed regulations, widely used discount valuation methods would be drastically limited. As a result, the business assets would have a higher valuation which would have a significant impact on the way businesses are able to plan the transfer of their family business. This most likely would lead to an increased estate tax burden on many of these families and in some cases, the passing of a majority family member could lead to liquidation of all or part of the business to pay the significant estate taxes due. This proposed regulation has been met with quite a bit of pushback and is scheduled for a comment period to begin on December 1, 2016, but final regulations could come out by year-end.

So what can you still do in 2016?

Keep in mind that the federal estate tax exemption is $5.45 million dollars per individual, but make sure your estate plan reflects the new “portability” provision allowing spouses to inherit each other’s unused exemptions.
If you have been considering transferring closely held business interests either through lifetime gifts or at death, we recommend that you consult with your estate planning attorney and other advisors quickly to determine if action before December 1 is advisable.
Make annual gifts of up to $14,000 per beneficiary by December 31, as it will not count against your lifetime estate/gift tax exemption of $5.45 million.

Contact the professionals of Yeo & Yeo’s Agribusiness Services Group to discuss the estate and gift tax strategies that are most beneficial for your situation.

Last year, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The new standard, which takes effect in 2018 for privately held companies (2017 for public companies), creates a single, comprehensive revenue recognition model to replace today’s industry-specific — and often inconsistent — rules.

As you prepare to implement the new standard, do not overlook the potential tax implications. In some cases, the new rules may accelerate taxable income or create book-tax differences that you will need to track and report.

A quick recap

The new standard prescribes a five-step model for recognizing revenue: 1) Identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the price among the performance obligations, and 5) recognize revenue when (or as) performance obligations are satisfied.

Today, contractors usually treat a contract as a single performance obligation. Under the new standard, however, certain contracts may be split into two or more distinct performance obligations. Suppose, for example, that a contract calls for you to construct a building and to supply and install certain equipment. Depending on the facts and circumstances, the contract may be divided into two performance obligations, requiring you to allocate the price between construction and equipment installation and to recognize revenue from each separately.

The new standard may also affect accounting for long-term contracts. Typically, contractors use the percentage-of-completion method to recognize revenue over the life of a project. Under the new standard, revenue is recognized when control of a good or service is transferred to the customer. Depending on several factors, control may be transferred when the contract is complete or it may be transferred gradually over the life of a contract.

Other areas potentially affected by the new standard include change orders, uninstalled materials, and claims and warranties.

Impact on tax planning

The new revenue recognition standard may affect taxes and tax planning in several ways. Here are a few examples:

Acceleration of taxable income. Under certain circumstances, revenue recognition for tax purposes is required to align with its treatment for financial reporting purposes. So, if application of the new standard accelerates revenue recognition for financial reporting purposes, it may also accelerate recognition of taxable income. Suppose, for example, that your contracts call for advance payments. Generally, for tax purposes, advance payments are included in taxable income in the year they are received. But there is a limited exception, which allows you to defer tax on advance payments for goods and services for one year, to the extent they are deferred in your audited financial statements.

In some cases, the new standard’s “transfer of control” model may require you to accelerate revenue from advance payments into the year they are received. If this happens, taxable income related to those payments will similarly be accelerated.

Percentage-of-completion method. With certain exceptions, the tax code requires contractors to account for long-term contracts using the percentage-of-completion method. But the new standard may require adjustments to that treatment for financial reporting purposes.

If the tax and financial reporting treatments diverge, applying the new standard may create a book vs. tax income difference (or alter an existing book-tax difference) that must be tracked and reported on your tax returns.

Changes in tax accounting methods. If the new standard requires you to change an accounting method for financial reporting purposes, it may be necessary or desirable to make a similar change to the corresponding tax accounting method. Changing a tax accounting method requires you to file IRS Form 3115, Application for Change in Accounting Method. Depending on the nature of the change, approval may be automatic, or it may require advance consent from the IRS.

System changes. As just described, adoption of the new revenue recognition standard may cause you to change your tax accounting methods, or it may create (or alter) differences between book and tax income. Either way, you must ensure that you have updated systems, policies, processes and controls in place in order to gather the data you need for both financial and tax reporting and to track any book-tax differences.

Start planning now

Even though the new revenue recognition standard will not take effect for two or three years, it is a good idea to begin planning for the change sooner rather than later. As you prepare, be sure to consider the potential impact on your tax returns as well as your financial statements.

There’s a lot to think about when you change jobs, and it’s easy for a 401(k) or other employer-sponsored retirement plan to get lost in the shuffle. But to keep building tax-deferred savings, it’s important to make an informed decision about your old plan. First and foremost, don’t take a lump-sum distribution from your old employer’s retirement plan. It generally will be taxable and, if you’re under age 59½, subject to a 10% early-withdrawal penalty. Here are three tax-smart alternatives:

1. Stay put. You may be able to leave your money in your old plan. But if you’ll be participating in your new employer’s plan or you already have an IRA, keeping track of multiple plans can make managing your retirement assets more difficult. Also consider how well the old plan’s investment options meet your needs.

2. Roll over to your new employer’s plan. This may be beneficial if it leaves you with only one retirement plan to keep track of. But evaluate the new plan’s investment options.

3. Roll over to an IRA. If you participate in your new employer’s plan, this will require keeping track of two plans. But it may be the best alternative because IRAs offer nearly unlimited investment choices.

If you choose a rollover, request a direct rollover from your old plan to your new plan or IRA. If instead the funds are sent to you by check, you’ll need to make an indirect rollover (that is, deposit the funds into an IRA) within 60 days to avoid tax and potential penalties.

Also, be aware that the check you receive from your old plan will, unless an exception applies, be net of 20% federal income tax withholding. If you don’t roll over the gross amount (making up for the withheld amount with other funds), you’ll be subject to income tax — and potentially the 10% penalty — on the difference.

There are additional issues to consider when deciding what to do with your old retirement plan. We can help you make an informed decision — and avoid potential tax traps.

Kicking off October 1, organizations around the globe will support Breast Cancer Awareness Month, and Yeo & Yeo is joining in by being casual for a cause. Firm employees across Michigan will dress in pink shirts and wear jeans on Fridays throughout October. In addition, Yeo & Yeo’s professionals will be encouraged to donate, wear a Breast Cancer Awareness lapel pin and participate in local Yeo & Yeo office fundraisers throughout the month. For example, the firm’s Saginaw and Greater Detroit offices are forming teams to participate in their local Making Strides Against Breast Cancer walk.

The Breast Cancer Awareness initiative is also part of the firm’s efforts to recognize Wellness & Health Observance during the month of October.

The Michigan accounting firm is proud to support Breast Cancer Awareness Month by promoting and providing opportunities for firm-wide support to unite in life-saving awareness. Yeo & Yeo’s professionals are proud to support their family, friends and co-workers who have been a victim of this disease that strikes nearly 200,000 women each year in the United States.

Please join Yeo & Yeo in recognizing Breast Cancer Awareness Month.

In determining if a payment to a shareholder is proceeds from a tax-free loan from a corporation to a shareholder or a tax-free repayment of a loan from the shareholder to the corporation (as opposed to a potentially taxable corporate distribution to the shareholder), courts look at whether:

1. There’s a written promise to repay evidenced by a note or other document.

2. There’s a stated principal repayment schedule or balloon repayment date.

3. Principal payments are actually made on time.

4. Stated interest is charged.

5. Interest is actually paid on time.

6. There’s adequate security for the purported loan.

7. The borrower has a reasonable prospect of being able to repay the loan.

8. The parties conduct themselves as if the transaction is a loan (for example, by shareholders showing loans they purportedly owe to their corporations as liabilities on personal balance sheets).

These days, anyone looking to form a new business relationship — especially one that involves credit — is wise to check out the risk involved first. After all, we know that even giant companies that once seemed untouchable, may be teetering on too narrow a pedestal.

With that in mind, various parties might be checking out your company’s credit rating to determine whether they want to do business with you. That’s why, just as with your personal credit report, you need to be on top of what is in your business credit file.

If your company is in good standing, is free of legal hassles and has a good reputation, your credit file has the power to work for you. A good business credit score can:

Lead to lower financing costs on loans and credit cards.
Enable you to qualify for better credit terms from suppliers.
Lower your insurance premiums.

Of course, this pendulum swings both ways. Negative information, even if it’s false, can leave your company with higher interest rates, lower credit limits and elevated insurance premiums, plus a loss of revenue if customers decide not to take a chance doing business with you.

What Factors Are Included?

Information in a business credit report is gleaned from a wide variety of public and private sources, including:

The Yellow Pages and other print directories;
Contracts and loans connected to the federal government; people and companies you’ve done business with;
Corporate financial reports;
Legal filings;
Mining from Internet sites; and
The news media.

Does Every Business Have a Credit Score?

No. Many small businesses are judged by the personal credit score of the owner. That often happens when a sole proprietor pays business bills out of a personal checking account. Since business credit reporting agencies do gather information from sources like the Yellow Pages, there might be a bare bones record. And, if there are any recent legal judgments or pending lawsuits, these may show up and raise red flags for anyone who inquires about your business.

Yeo & Yeo’s Government Services Group would like to make you aware of recent changes in the Act 51 Distribution and Reporting System (ADARS).

Investment Reporting Tool Must be Completed First

Effective for the March 31, 2016, year-end entities and later that complete an ADARS Act 51 Report, the Michigan Department of Transportation (MDOT) Transportation Asset Management Council’s Investment Reporting Tool (IRT) must be completed before any entity submits its ADARS Act 51 Report. Failure to complete the IRT will result in rejection of the ADARS Act 51 Report due to noncompliance, and future disbursement of Michigan Transportation Funds will be withheld if the ADARS Report is not resubmitted within a designated time frame.

Performance Audits Required by MDOT

Beginning with the September 30, 2016 year-ends, any entity that submits an Act 51 Report will be required to have a performance audit performed. Please visit the links below for additional information provided by MDOT.

Performance Auditing Under Public Act 298 of 2012

PA 298 of 2012 Frequently Asked Questions

If you have questions about how these requirements will impact your entity, reach out to your Yeo & Yeo professional.

The professionals at Yeo & Yeo are engaged and passionate about what the firm stands for and its goals and culture. The firm has enjoyed a strong reputation in its communities for more than 90 years, and today’s initiatives in employee retention and career advancement make the firm even stronger.

When you listen to our employees talk about their firm, it is the relationships that are cited as the main reason they truly enjoy their careers.

The comradery that is evident at firm events (ball games, tax parties, Christmas parties, office luncheons, etc.) makes Yeo & Yeo such a great place to work.

We often invite outside speakers to present at various functions and firm retreats, and it is a common occurrence to receive feedback pertaining to what a cohesive group we have. I recall one speaker mentioning ‘I have never seen a group of CPAs get along so well.’ I think this is because at our core we all share the same values of hard work, giving back to our communities, respecting each other, and caring for our families and friends.

This partnership, like any relationship, takes hard work and reciprocity. I offer this advice to other public accounting firms – there is no doubt in my mind that when you genuinely care about an employee and their well-being, and work to help them achieve what they want to achieve, the benefits that your firm enjoys are extensive. Listen to employees’ feedback and act. It is very exciting to see all levels of staff and management really embracing the changes that are happening in our profession and the work environment, while remaining committed to our core values.

The firm’s Career Advocacy Team was formed nearly four years ago by way of suggestions culled from a survey of the firm’s female professionals. The team discovered that the issues being raised were relevant to all professionals regardless of gender. Today, team members find out what is not working for professionals in the organization and follow up by implementing new policies, procedures and effective training for both women and men.

In our firm, your voice is heard and your ideas are considered. We’re not so big that you and your ideas get lost in the firm.

You’re able to effect change and make improvements. Our Managers, Principals and our CEO have open doors and welcome conversations to help guide you through career decisions, client concerns, policy changes and whatever is important to you. The Career Advocacy Team gathers this feedback to make changes ensuring our firm is a great place to work.

On the most recent employee survey conducted by the Career Advocacy Team, our employees said they wanted a clear career path for advancement. Our Career Advocacy Team is currently working with leaders within the firm to create more individualized career paths for traditional and nontraditional routes. Our employees also told us they want to improve the mentor process in our firm. Beginning in 2016, we have a two-phase mentoring process that begins the day you start working at our firm. On that same survey, 99% of our employees said that our firm is flexible with respect to family responsibilities.You don’t have to miss the important events and stop participating in your outside interests when you work for Yeo & Yeo.

The Career Advocacy Team works to provide equal access to career development and advocacy experiences, assist women in advancing to leadership positions, and promote the successful integration of personal and professional lives.

Consider Yeo & Yeo for Preparing Form 1095

Under the Affordable Care Act, Applicable Large Employers are required to file Form 1095 along with the respective transmittal Form 1094 early next year. The IRS was lenient in assessing penalties for incorrect or incomplete information reported in 2016, for the 2015 calendar year. However, there is no room for error this year. Learn more about employer reporting requirements.

If you completed the reporting yourself last year, you know how confusing it can be.

Yeo & Yeo can simplify compliance by providing Form 1095 preparation services that are efficient and cost-effective. Companies that may benefit most from this service include those with:

More than 50 full-time and full-time equivalent employees
49 or fewer full-time and full-time equivalent employees, where the company sponsors a self-insured group health plan for employees

Avoid significant penalties, save a considerable amount of time, and gain peace of mind. Learn more about Yeo & Yeo’s ACA Compliance and Form 1095 preparation services.

I love waking up in the morning with my family! I used to be a ‘6:00 in the morning get to work kind of guy’, now there is nothing I enjoy more than having a bowl of cereal with my two boys and a cup of coffee with my wife before the work day starts. We work together to get the kids off to school and it just seems to get all of our days off to a better start.

At Yeo & Yeo, our primary purpose is to position our employees to best serve their families, communities, clients and the firm, while providing a gratifying and challenging career.

The workforce is vocal, they are telling us what they want: career paths with upward mobility, support and feedback along the way, and the ability to successfully integrate their careers and personal lives. At Yeo & Yeo, we are choosing to listen to this feedback and institute change.

Yeo & Yeo’s Career Advocacy Team aims to assist the firm’s emerging leaders in rising to the top. The team’s core focus areas include career development strategies, leadership development, alternative career paths and flexible work arrangements.

A career at Yeo & Yeo fits well in today’s society. Yeo & Yeo has always been a firm that is family oriented, community minded, and responsive to managing the workload that comes with a profession that encounters many ‘busy seasons.’ However, the profession historically left very little room for work-life balance. Technology is changing; in turn, so is the work force. We can stay in contact with our clients more so than in the past, and with the majority of documentation existing in the cloud, a traditional office setting for work is not as necessary. This allows for greater opportunities to integrate work with our family and community life.

This flexibility and the technology at Yeo & Yeo allowed me to trade in my early mornings for later evenings. I not only have breakfast with my family, but I am home for dinner, enjoy play time with the kids, and when the boys go to bed, I log in and access my virtual office from home for a couple hours. That is how I obtained my balance and integrate my work and life.

Everyone’s situation is different, but when an employee displays their commitment to Yeo & Yeo, we want to do our part to help them achieve their balance.

Yeo & Yeo CPAs & Business Consultants is pleased to announce that Nolan Felsing, CPA, has been promoted to senior accountant.

Felsing provides management advisory services for individuals and for-profit companies. He joined Yeo & Yeo in January 2015 and serves in the firm’s Saginaw office. He holds a Bachelor of Science in accounting and a Master in Business Administration from Central Michigan University. He is a member of the Michigan Association of Certified Public Accountants, the American Institute of Certified Public Accountants, and the Young Professionals Network of Saginaw.

In our community, Felsing has volunteered for Underground Railroad through several of Yeo & Yeo’s Young Professionals group initiatives.

Many expenses that may qualify as miscellaneous itemized deductions are deductible only to the extent they exceed, in aggregate, 2% of your adjusted gross income (AGI). Bunching these expenses into a single year may allow you to exceed this “floor.” So now is a good time to add up your potential deductions to date to see if bunching is a smart strategy for you this year.

Should you bunch into 2016?

If your miscellaneous itemized deductions are getting close to — or they already exceed — the 2% floor, consider incurring and paying additional expenses by Dec. 31, such as:

Deductible investment expenses, including advisory fees, custodial fees and publications
Professional fees, such as tax planning and preparation, accounting, and certain legal fees
Unreimbursed employee business expenses, including vehicle costs, travel, and allowable meals and entertainment.

But beware …

These expenses aren’t deductible for alternative minimum tax (AMT) purposes. So don’t bunch them into 2016 if you might be subject to the AMT this year.

Also, if your AGI exceeds the applicable threshold, certain deductions — including miscellaneous itemized deductions — are reduced by 3% of the AGI amount that exceeds the threshold (not to exceed 80% of otherwise allowable deductions). For 2016, the thresholds are $259,400 (single), $285,350 (head of household), $311,300 (married filing jointly) and $155,650 (married filing separately).

If you’d like more information on miscellaneous itemized deductions, the AMT or the itemized deduction limit, let us know.

Imagine walking into work on your first day at your accounting firm. What do you picture? Do you feel nervous? Do you feel confident?

The first day of starting a new job can be as if you just stepped into a whole new world. At Yeo & Yeo, we understand this because we have been there. We do everything we can to make you feel comfortable, confident and welcomed.

Beginning on the first day that someone joins our firm, we jump-start a complete plan to ensure that they are provided with all the essential information they will need to be successful and enjoy their time at Yeo & Yeo. Within the first six months of employment, our employees receive:

Access to state-of-the-art technology and resources
Introduction into Yeo & Yeo’s Peer program
A comprehensive, full-day orientation
Performance evaluation and feedback, including measurable goals
Continuous technical and non-technical in-house training

With such clear guidance, new employees can become excited about their position and responsibilities, and confident in their performance. As the Talent Manager and a member of Yeo & Yeo’s Career Advocacy Team, I am proud that we are able to provide our employees with the opportunities that will develop them into the future leaders of our organization. It is a responsibility that we take seriously to guarantee our employees have access to every resource and development opportunity they need.

Career development and the prospect of promotional paths are significant decision influencers to employees in the workforce today.

At Yeo & Yeo, we recognize the importance of professionals being able to influence their own career paths. Our Career Advocacy Team is always looking for additional ways to provide clear expectations and opportunities for our employees to move on to the next level of their career.

I understand that career development and training are integral to employee satisfaction and retention; therefore, it is one of my top priorities here at Yeo & Yeo. We are focused on guiding employees from their first day throughout their entire career. We want you to succeed, and we want you to grow.

We empower our employees to create their own career path.

Yeo & Yeo’s professionals focus on tax, audit or business consulting and have the opportunity to become an industry-specialized thought leader. The firm supports them in expanding their skills and knowledge by providing the tools necessary to establish them as a leader in the firm and community.

If you are interested in learning how Yeo & Yeo can be a fit for you, I encourage you to apply on our website or connect with me on LinkedIn.

I hope you are as excited for your first day, as we are.

If you have incomplete or missing records and get audited by the IRS, your business will likely lose out on valuable deductions. Here are two recent U.S. Tax Court cases that help illustrate the rules for documenting deductions.

Case 1: Insufficient records

In the first case, the court found that a taxpayer with a consulting business provided no proof to substantiate more than $52,000 in advertising expenses and $12,000 in travel expenses for the two years in question.

The business owner said the travel expenses were incurred ”caring for his business.“ That isn’t enough. ”The taxpayer bears the burden of proving that claimed business expenses were actually incurred and were ordinary and necessary,“ the court stated. In addition, businesses must keep and produce ”records sufficient to enable the IRS to determine the correct tax liability.“ (TC Memo 2016-158)

Case 2: Documents destroyed

In another case, a taxpayer was denied many of the deductions claimed for his company. He traveled frequently for the business, which developed machine parts. In addition to travel, meals and entertainment, he also claimed printing and consulting deductions.

The taxpayer recorded expenses in a spiral notebook and day planner and kept his records in a leased storage unit. While on a business trip to China, his documents were destroyed after the city where the storage unit was located acquired it by eminent domain.

There’s a way for taxpayers to claim expenses if substantiating documents are lost through circumstances beyond their control (for example, in a fire or flood). However, the court noted that a taxpayer still has to ”undertake a ‘reasonable reconstruction,’ which includes substantiation through secondary evidence.“

The court allowed 40% of the taxpayer’s travel, meals and entertainment expenses, but denied the remainder as well as the consulting and printing expenses. The reason? The taxpayer didn’t reconstruct those expenses through third-party sources or testimony from individuals whom he’d paid. (TC Memo 2016-135)

Be prepared

Keep detailed, accurate records to protect your business deductions. Record details about expenses as soon as possible after they’re incurred (for example, the date, place, business purpose, etc.). Keep more than just proof of payment. Also keep other documents, such as receipts, credit card slips and invoices. If you’re unsure of what you need, check with us.