Rethinking Payment Options for Your Business

Cash hasn’t disappeared — but it’s no longer the preferred payment method for many customers. As electronic and digital options continue to expand, more businesses are evaluating how much they rely on physical currency. Rather than eliminating cash entirely, many are exploring a “cash-light” approach. Here’s a look at current payment trends and the practical considerations for business owners.

Payment trends continue to shift

Consumer payment behavior has shifted in recent years, with noncash options steadily gaining ground. Card payments, including credit and debit, now dominate, alongside growing use of mobile wallets and peer-to-peer apps.

At the same time, cash hasn’t vanished. Many consumers keep cash on hand for budgeting, emergencies or small purchases. This dual reality — declining usage but persistent demand — is one reason many businesses are opting for a cash-light model instead of going fully cashless.

Customer preferences aren’t one-size-fits-all

Payment preferences often vary by age, income level and access to financial services. Younger consumers, including Millennials and Generation Z, tend to favor cards and mobile payment platforms such as Apple Pay, Google Pay and Venmo. These methods are fast, convenient and increasingly integrated into everyday transactions.

However, other groups still rely heavily on cash. Some older consumers prefer it for its simplicity and familiarity. In addition, unbanked and underbanked individuals, who may lack access to traditional financial services or smartphones, often depend on cash as their primary payment method.

For businesses, this creates a balancing act. Limiting cash too aggressively could alienate certain customers, while continuing to rely heavily on it may create operational inefficiencies. Evaluating your customer mix, average transaction size and industry norms can help determine how far you can shift away from cash without adversely affecting revenue or customer satisfaction.

The real cost of handling cash

While cash offers immediacy (funds are received instantly without processing delays), it also comes with hidden costs. Managing cash requires time, labor and internal controls, including:

Maintaining sufficient bills and coins to make change,
Counting and reconciling registers daily,
Transporting and depositing funds at the bank, and
Implementing safeguards such as cameras, safes and segregation of duties.

Cash also carries risk. Theft, employee fraud and counterfeit bills remain ongoing concerns. These risks can increase insurance costs and require additional oversight.

On the other hand, noncash payments may involve transaction fees. Credit card processors and payment platforms charge a percentage of each sale, which adds up over time. These costs can reduce margins and influence pricing strategies, so they should be weighed against the operational savings and reduced risk associated with handling less cash.

Legal and regulatory considerations

Before reducing or eliminating cash acceptance, it’s important to understand the legal landscape. While U.S. currency is considered legal tender for debts, no federal law requires private businesses to accept cash for everyday transactions.

However, to protect consumers who rely on it, several states and municipalities have enacted laws requiring businesses to accept cash. These requirements vary by jurisdiction and may include exceptions. For example, certain types of transactions — such as app-based services — may still be cashless. For businesses operating in multiple locations, these variations can create compliance complexity and heighten the risk of unintended violations.

Legislation in this area continues to develop. In recent years, policymakers have debated measures that would require businesses nationwide to accept cash and prohibit differential pricing based on payment method. Business owners should stay informed about applicable state and local rules before changing their policies.

Finding the right balance

As payment technology continues to evolve, businesses have more flexibility than ever in how they accept and manage transactions. Before making changes, however, it’s important to consult with your accounting and legal advisors to evaluate the financial and compliance implications for your specific situation. The right payment mix depends on your customer base, cost structure and risk profile. Contact us to discuss whether a cash-light approach makes sense for your business and how to implement it effectively.

For today’s small and midsize employers, payroll management is critical. Your employees expect to be paid accurately and on time. Meanwhile, federal, state and local agencies require you to meet a wide range of tax, reporting and wage-related obligations.

Getting it right supports staff trust, helps control compliance risk and provides insights into labor costs. Letting it slip can lower morale, increase turnover and even bring on costly penalties. Here are some big-picture ways to strengthen payroll management.

Create a written policy

Every employer should create a formal, written policy outlining its payroll philosophy, rules and procedures. Your policy should do more than state when employees get paid. It should address timekeeping, overtime approval, paid leave, expense reimbursements, payroll corrections, final pay procedures, and wage or status changes. If you have remote or multistate employees, your policy should also clarify how location changes are reported and reviewed.

Ultimately, your payroll policy needs to be a comprehensive, living document that you regularly reevaluate and revise as needed. (It’s a good idea to consult a qualified attorney when doing so.)

Prioritize compliance

Payroll management means payroll compliance. At the federal level, among the most important laws is the Fair Labor Standards Act (FLSA). Under it, you must generally categorize employees as either exempt or nonexempt. Covered nonexempt employees generally must receive overtime pay at the required rate for hours worked over 40 in a workweek. However, some salaried employees may still be nonexempt. So your organization must monitor job duties, compensation and applicable exemptions carefully.

Also, be diligent when engaging independent contractors. Ensure they’re not managed the same way as employees. Worker classification is an especially important area to monitor because the rules are complex and continue to evolve at the federal and state levels, making this a frequent source of disputes and audits. Should any questions arise regarding how to classify a worker, contact your employment attorney.

Of course, there are other laws to consider. Examples include the Federal Insurance Contributions Act, Federal Unemployment Tax Act and Equal Pay Act. Your organization needs reliable, compliant procedures for:

Withholding, depositing and reporting payroll taxes,
Issuing W-2 forms,
Maintaining required records, and
Addressing state and local requirements that may apply.

Agencies such as the IRS and U.S. Department of Labor may conduct payroll compliance investigations. Be sure your staff and payroll services provider, if you have one, keep up with the latest regulations and guidance.

Simplify and streamline

To the extent possible, keep your payroll processes simple and streamlined. You may want to use a centralized portal or a cloud-based “software as a service” application to help facilitate an efficient, affordable approach. Ideally, your payroll system should integrate with timekeeping, human resources and accounting systems to reduce manual entry, improve consistency and create a reliable audit trail. However, automation shouldn’t replace oversight. Maintain clear approval workflows, access controls and review procedures before each payroll is finalized.

Under the right circumstances, outsourcing can increase efficiency, ease compliance, and save time and money. But perform a cost-benefit analysis before investing in a third-party payroll services provider. Remember, even when outsourcing, your organization remains responsible for providing accurate data, reviewing reports, and ensuring tax deposits and filings are properly handled.

Invest in training

If you’re keeping payroll in-house, train every staff member involved appropriately. This should include occasional refresher sessions on procedural or technological changes. Even if you outsource payroll, some employees may need to be taught how to work effectively with the provider.

Don’t limit training to payroll personnel. Supervisors may need guidance on time approvals, overtime rules and how to avoid informal practices that create compliance problems. Employees should know how to submit hours, review pay statements, update withholding information and report discrepancies.

Stay on top of it

Payroll management is an ongoing responsibility that demands vigilance and continuous improvement. Regulations, technologies, and staffing and operational needs can all change over time. Contact us for help evaluating your current payroll practices, identifying potential tax and reporting issues, and making needed improvements.

Yeo & Yeo CPAs & Advisors is pleased to announce that David Youngstrom, CPA, President & CEO, has been named a 2026 Junior Achievement of North Central Michigan Business Hall of Fame Laureate, one of the organization’s highest honors.

A Junior Achievement (JA) Laureate is recognized for exceptional business leadership, meaningful community impact, and a demonstrated commitment to mentoring and inspiring youth. Laureates embody JA’s core values of entrepreneurship, financial literacy, and workforce readiness, and serve as positive examples for the next generation of leaders.

Youngstrom was selected for his significant community involvement, his commitment to being a role model for young people across the Great Lakes Bay Region, and his leadership in creating opportunities for students to learn, grow, and explore future careers. He is also recognized for his development of future leaders within Yeo & Yeo and his strong advocacy for employee well‑being and professional development, fostering an environment where individuals at all career stages can thrive.

Throughout his more than 30‑year career with the firm, Youngstrom has been known for his people‑first leadership style, high ethical standards, and dedication to strengthening both the firm and the communities it serves. He is widely regarded for fostering a culture where individuals are encouraged to learn, collaborate, and take ownership of their growth—helping shape the next generation of leaders within Yeo & Yeo and beyond.

“Dave’s leadership extends far beyond the workplace,” said Jamie Rivette, CPA, CGFM, Principal and nominator. “He has a genuine passion for developing people—whether that’s encouraging staff to volunteer for Junior Achievement, mentoring young professionals, or championing resources that help our team grow personally and professionally. His impact is felt across the region, and this recognition is incredibly well‑deserved.”

Youngstrom and fellow Laureates were recognized during the Junior Achievement Business Hall of Fame Celebration on May 7.

Businesses that own commercial real property may be sitting on an overlooked treasure chest of tax savings — and a cost segregation study can be the key to unlocking it. This is a strategic tool that combines accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real property. A cost segregation study may allow you to accelerate depreciation deductions on certain items, thereby deferring taxes and boosting cash flow.

Timing counts when depreciating assets

Commercial rental properties and buildings used for business purposes are generally depreciated over 39 years under federal tax law. But such properties may include a wide range of components with much shorter depreciation recovery periods. These can include parts of various systems such as HVAC, plumbing, electrical, fire protection, alarm and security, as well as:

Drywall
Doors
Fixtures
Data and communication ports
Flooring
Cabinetry

These assets could have useful lives of five, seven or 15 years — all significantly less than 39 years. By segregating such assets, you can claim greater depreciation deductions sooner. You’ll claim the same total amount of depreciation on the assets over time but reduce your tax bill in the short term, providing greater cash flow.

OBBBA changes add value

Recent tax law changes under the One Big Beautiful Bill Act (OBBBA) enhanced these benefits by increasing first-year depreciation write-offs. The two most widely relevant provisions relate to:

Bonus depreciation. The OBBBA restored 100% first-year bonus depreciation deductions for eligible assets acquired and placed in service after January 19, 2025. While commercial real properties aren’t eligible for first-year bonus depreciation, segregated building components with shorter recovery periods may be eligible. There are no phaseout limits for bonus depreciation, which is helpful for larger companies.
Section 179 expensing. For tax years beginning in 2025, the OBBBA increased the maximum amount of eligible assets you can immediately deduct under the Sec. 179 expensing election to $2.5 million. A phaseout reduces the maximum Sec. 179 deduction if, during the year, you place in service eligible assets in excess of $4 million. Both figures are adjusted annually for inflation. For 2026, they’re $2.56 million and $4.09 million, respectively. Again, commercial real properties aren’t eligible for Sec. 179 expensing, but segregated building components with shorter recovery periods may be eligible.

Additionally, if your business involves manufacturing or certain agricultural activities, you may be eligible for a new depreciation-related tax break. The OBBBA introduced a 100% deduction for the cost of qualified production property (QPP). To be eligible, among other requirements, a qualifying real property’s construction must begin after January 19, 2025, and before January 1, 2029, and it must be placed in service before 2031. This break allows eligible businesses to immediately deduct the cost of QPP that otherwise would be depreciable over 39 years.

The QPP deduction makes cost segregation studies less relevant for qualifying property. But it’s subject to several specific requirements and exceptions that may prevent you from claiming it.

Ready, set, save

A cost segregation study can significantly lower your taxes, but it isn’t a do-it-yourself project. Although this strategy has been consistently upheld in the courts, the IRS closely monitors deductions based on cost segregation studies. And the rules can be confusing.

So, it’s prudent to hire experienced professionals to help you identify various building components and break down write-off periods for them. Contact us to discuss whether a cost segregation study could potentially save you taxes. We can determine reasonable cost allocations to help withstand IRS scrutiny.

When it comes to fraud, small business owners can feel like they’re between a rock and a hard place. On the one hand, the Association of Certified Fraud Examiners (ACFE) has found that companies with fewer than 100 employees suffer higher losses per occupational fraud scheme than their larger peers ($141,000 vs. $130,000 for companies with between 100 and 999 workers). On the other hand, fraud prevention can be expensive, which may be prohibitive for startups and other smaller businesses. But even if you’re constrained by a small-business budget, there are affordable ways to protect your assets from fraud.

Assess and prioritize threats

One key to low-cost fraud prevention is to prioritize risks. Depending on your industry and operations, you may not need to worry much about certain types of fraud. For example, a law firm probably isn’t as vulnerable to inventory theft as retailers and manufacturers are. However, billing fraud and corruption can be real concerns in the legal services sector.

At the same time, recognize that, regardless of industry, you must spend money to prevent hacking and other cybercrime. At a minimum, you’ll need reliable security software that includes virus protection and firewalls. Most companies need to shield their IT networks, individual computers, wi-fi networks and business-issued mobile devices. But if you have employees working from home or other security risks, you may require a larger budget.

To help you cost effectively allocate antifraud resources, consider engaging a fraud expert to conduct a risk assessment. The expert will examine areas where fraud is most likely to happen (such as in accounts payable, purchasing and IT), and whether internal controls are in place to prevent it. Then the expert will review the controls you currently have to learn if they can be breached — and how easily. The assessment will conclude with a report that should guide your antifraud spending. Pay attention to the greatest threats that aren’t currently addressed by internal controls.

Do it yourself

Another budget-friendly way to prevent fraud is to do some of the work yourself. For example, ask us for guidance on how you and your managers can recognize red flags and conduct internal audits. Implementing inexpensive internal controls — such as segregating accounting duties by assigning different employees to complete certain tasks — also can be very effective.

Or you might occasionally retain us to review receipts and disbursements for irregularities or perform an inventory verification. If you keep these reviews confidential before they begin, any fraud perpetrators are more likely to be caught off guard.

Cheap and free

Other basic antifraud controls are relatively inexpensive — particularly if you don’t need to use them often. For example, you may hire only a few new employees a year, so you can probably afford to conduct criminal background checks on each one.

And one of the best ways to prevent fraud is free: Maintain an ethical “tone at the top.” This means you and your executives model transparency and honesty. It’s also critical to pay and treat employees equitably and to take action on any complaints about unfairness. Research has shown that employees who feel underpaid and underappreciated sometimes use their perceived treatment to rationalize theft.

Give employees a voice

Ultimately, effective fraud protection isn’t about how much you spend but about how strategically you apply your financial resources. By focusing on the biggest threats, enforcing controls and modeling ethical behavior, even modest antifraud investments can pay dividends. Contact us to discuss inexpensive methods to protect your business’s assets from crooks.

Two federal grant programs that channel billions of dollars annually toward small business research and development have been reauthorized following a gap in their authority that lasted roughly five months.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which operate jointly under the Small Business Administration and are sometimes referred to collectively as America’s Seed Fund, expired at the close of federal fiscal year 2025 on September 30, 2025. President Trump recently signed legislation restoring and extending both programs through September 30, 2031.

What these programs do

SBIR and STTR are structured to direct a portion of federal research and development spending toward small businesses. Each participating federal agency (such as the Dept. of Defense, the National Institutes of Health, NASA, the Dept. of Energy, and the National Science Foundation, among others) is required to set aside a specific percentage of its R&D budget for the programs, which together have delivered more than $81 billion in funding to over 34,000 small businesses since SBIR’s establishment.

The programs operate in three phases tied to how far along a technology or concept is in development – from early feasibility work through commercialization. While both programs share the same general structure and goals, there is one notable distinction: STTR requires the small business to formally partner with a nonprofit research institution, which must perform a portion of the research work.

Who is eligible

Small businesses with fewer than 500 employees are generally eligible to apply, provided the business is for-profit, majority-owned by U.S. citizens or permanent residents, and the principal researcher on the project is primarily employed by the business. Applications are evaluated against each agency’s specific research priorities, so eligibility in practice depends on whether your work aligns with what a given agency is actively seeking to fund.

The programs are not limited to technology startups or manufacturers. Funded projects have spanned a wide range of fields, including medical devices and therapeutics, agricultural technology, cybersecurity, advanced materials, energy systems, environmental science, and defense applications, among others. If your business is engaged in any kind of applied research or development, particularly work that could eventually result in a product, process, or service with broader commercial or public benefit, these programs may be worth a closer look.

What changed in the reauthorization

The legislation is not a straight renewal. Several meaningful changes were included:

Higher funding ceilings. Investment limits were increased across certain phases, giving businesses the potential to access more federal dollars at various stages of their projects.
Expanded agency participation. More federal agencies will now be able to participate in the programs.
New security screening requirements. Applications from businesses found to have connections to foreign governments, foreign militaries, or other entities deemed adversarial will be denied. This represents a new, mandatory step in the evaluation process.
Strategic breakthrough allocation. Agencies whose SBIR set-aside reaches $100 million or more annually will be authorized to award up to $30 million to a single small business over a period of up to 48 months. Businesses seeking this larger allocation must demonstrate market-validated technology and secure matching private investment.
Additional reporting requirements. Agencies will be subject to new annual reporting obligations on their awards, along with periodic reporting to Congress.

Where to start

The central hub for both programs is sbir.gov, the official SBA-managed portal where businesses can explore funding opportunities, review participating agencies, and access application resources. There are currently 11 federal agencies that fund innovations through the SBIR and STTR programs. These include the Dept. of Defense, the National Institutes of Health, NASA, the Dept. of Energy, the National Science Foundation, the Dept. of Agriculture, the Dept. of Homeland Security, the Dept. of Transportation, the Environmental Protection Agency, the Dept. of Commerce (through NOAA and NIST), and the Dept. of Education – each with its own research priorities and solicitation schedule.

Proposals must respond to a solicitation published by one of the participating agencies – businesses cannot simply submit an application at any time. Agencies post funding opportunities on a periodic basis throughout the year, with some releasing multiple solicitations annually.

The sbir.gov portal maintains a searchable database of open topics at sbir.gov/topics, which allows you to browse current opportunities across all agencies and identify those most aligned with your work. From there, applications are submitted directly through each agency’s own submission process. You will also need a Unique Entity ID (UEI) from SAM.gov to receive an award, so obtaining that registration in advance is a practical first step. For businesses that are new to the process, SBIR also maintains a directory of local assistance organizations at sbir.gov/apply, including proposal assistance, commercialization support, and industry networking that can help you navigate the application from start to finish.

Considerations for business owners

If you operate a qualifying small business in fields such as defense, energy, agriculture, biotechnology, or technology development, these programs can represent a meaningful non-dilutive funding source. Unlike a loan or outside investment, SBIR and STTR awards are grants that do not require repayment or an equity stake in your business.

If your business has any international ownership, partnership, or funding relationships, you should review the new security-screening provisions carefully before applying, as connections to foreign governments or militaries will now result in a denial.

The reauthorization also creates a longer runway for planning. With program authority now extended through fiscal year 2031, you can incorporate these funding opportunities into longer-term research and growth strategies rather than treating them as a year-to-year variable.

If you are interested in exploring SBIR or STTR funding, we encourage you to consult with both legal counsel and your CPA before applying. Award structures, matching requirements, and the interaction of grant income with your federal tax obligations are all factors worth reviewing in advance.

Filing an extension can be a practical decision. If your return is complex, extending can give you time to file accurately instead of rushing a return that may later need to be corrected.

But an extension is only useful if you use the extra time well.

The IRS grants individuals a six-month extension to file, generally moving the federal filing deadline to October 15th. What it does not do is extend the time to pay. Your taxes were still generally due by April 15th, and interest and failure-to-pay penalties will continue to accrue on any unpaid balance after that date.

Federal extension rules also do not automatically extend state filing deadlines. State requirements vary, so it is important to confirm the rules that apply to you.

That’s why the period between now and October 15th shouldn’t be treated as extra time to set your return aside. It is a useful planning window. Used well, it gives you time to organize records, refine payment estimates, address open questions, evaluate payment options, and make better current-year tax decisions while there is still time for those decisions to matter.

Start by confirming the extension details

You can request an extension using Form 4868. The IRS also treats certain electronic payments designated as extension payments as a valid extension request without a separate Form 4868 (if the payment is made through an approved IRS channel by the original due date).

With the payment obligation clearly in view, the most useful post-extension question shifts. The question is not how long you can wait. It is what you should address now so that October is smoother, more accurate, and less costly.

Use the extension period to improve the return, not just finish it

For many filers, the value of the extension period is quality control.

This is the time to clean up K-1 reporting, reconcile brokerage statements, verify basis schedules, confirm deductible expenses, and collect missing support for credits and deductions. The IRS requires you to maintain records that support income, deductions, and credits appearing on your return. Those records generally need to be kept until the applicable statute of limitations expires, which is typically three years from filing but can be longer in certain circumstances.

It’s also worth remembering that the IRS matches third-party information, including Forms 1099, corrected 1099s, and K-1s, against filed returns. Reconciling those documents carefully during the extension window is one of the most practical ways to reduce the risk of a notice after filing.

This is especially important if your return involves more than a W-2 and a standard deduction. A closely held business, rental activity, investment sales, multi-state filing obligations, charitable gifts, or pass-through income can all add layers of complexity. In those cases, the extension period can be the difference between a return that is simply filed and a return that is filed correctly.

The extension period can also be the right moment to evaluate whether any remaining elections or adjustments can still be made for the year in question. Retirement contributions are one common example, depending on the type of account and your situation.

That is where CPA guidance becomes especially valuable. The point is not to stretch out the filing process. It’s to use the extra months to reduce errors, strengthen support, and identify opportunities before the window closes.

Revisit the payment estimate before the balance grows further

If you extended and still owe, this is the moment to revisit the estimate used in April.

The amount paid with the extension is often just that: an estimate. Once better information is available, you should compare the extension payment with the more complete tax picture rather than waiting until October to find out that the shortfall is larger than expected. Interest and failure-to-pay penalties will generally continue to accrue on unpaid tax after the original due date.

That makes the extension period a cash-flow exercise as much as a tax exercise. In many cases, the better move is to make an additional payment now rather than wait until filing. Even when the final number is not yet known, reducing the unpaid balance earlier can help limit the cost of waiting.

If you cannot pay in full, address it directly

If you cannot pay your full balance, you shouldn’t wait passively for the problem to grow.

The IRS offers structured resolution options, including short-term and long-term payment arrangements. Individuals who owe $50,000 or less in combined tax, penalties, and interest may be eligible to apply online for a long-term payment plan. The IRS also provides resources covering offers in compromise, collection delays, and penalty relief.

This is another plan where professional guidance can be helpful. A CPA can help you evaluate whether it makes sense to pay down the balance immediately, set up an installment arrangement, adjust current-year estimates, or preserve business liquidity while still avoiding a deeper compliance issue.

The right answer is often more than procedural. It depends on your full financial picture.

Don’t let the extension distract you from the current tax year

One of the most common mistakes after an extension is treating the prior-year return as the only tax issue in play. It is not.

Federal income tax is a pay-as-you-go system, and withholding and estimated tax obligations continue throughout the current year. This is particularly important if your income was volatile in the first place.

A profitable business year, pass-through income, capital gains, a bonus, or multiple income sources may have prompted the extension. If those same conditions are continuing in 2026, then resolving the 2025 issue without recalibrating 2026 withholding or estimated payments can simply recreate the same problem.

Use this time to review whether withholding or payments are still on track to meet either 90% of the current year’s tax liability or 100% of the prior year’s liability (or 110% for certain higher-income taxpayers).

Treat October 15 as a hard planning deadline, not a soft reminder

The least productive use of an extension is to let it create a false sense that the tax issue has been postponed. In practice, an extension should create a schedule.

By mid-summer, you should know what documents are still missing. By early fall, you should know whether the extension payment was adequate, whether records are sufficient, and whether any open questions require technical review. October 15th is a real filing deadline, not an informal target. Treating it that way can make the difference between a managed process and a repeat of the April rush.

The extension window is also a genuine advisory opportunity. If you extended because your situation is complex, you may benefit from a mid-year conversation that covers the prior-year return, the adequacy of current-year payments, and any planning considerations that are still actionable before year-end.

Used intentionally, an extension can become the starting point for better ongoing tax planning, not just a sign that the return took longer than usual.

A practical checklist if you filed an extension

The months ahead should focus on five priorities:

Revisit your April payment. Assess whether the payment made with your extension was adequate, and consider making an additional payment now if the picture has become clearer.
Gather the documents that affect your return. This may include late-arriving K-1s, corrected 1099s, brokerage confirmations, cost basis records, charitable acknowledgments, and business expense support. Reconciling those documents before filing can reduce the risk of post-filing notices.
Decide whether the return needs technical review, not just completion. This is especially important if you have business interests, rental activity, investment transactions, multi-state filing issues, or unusually large deductions. In those areas, the facts often need to be interpreted, not just entered.
Review the current year at the same time. Withholding, estimated taxes, safe-harbor adequacy, and cash-flow planning for 2026 should not wait until the 2026 filing season.
Address payment issues early. If full payment is not realistic, evaluate IRS resolution options before the problem grows. Payment arrangements tend to work best when approached deliberately and with a clear understanding of your full financial picture.

Using the extension window well

If you filed an extension, the goal is not simply to get your return out by October 15th. The goal is to use the extension window to file accurately, reduce avoidable costs, and prevent the same issues from carrying into the current year.

If your return is complex, if your income is volatile, or if you still have unresolved payment questions, this is a good time to pause, review the full picture, and make sure the next few months are used intentionally. A well-managed extension period can turn a stressful filing delay into a more thoughtful and effective planning opportunity.

For more personalized guidance, please contact our office.

The accounting profession continues to face a talent shortage. This trend — driven by retirements among experienced accountants and bookkeepers and a limited pipeline of new graduates with accounting degrees — is forcing many organizations to rethink how their finance and accounting (F&A) team operates. As businesses prioritize flexibility and continuity, cross-training is a practical, cost-effective way to strengthen your team.

Ample advantages

The most immediate benefit of cross-training is improved coverage. When an employee is out — whether due to illness, resignation, vacation or family leave — others can step in and keep essential processes running smoothly.

Cross-training also strengthens collaboration. When team members understand each other’s responsibilities, they gain a clearer view of how the department functions as a whole. This broader perspective often leads to better communication, fewer bottlenecks and errors, and improved overall efficiency. It can also support internal mobility, as employees are better prepared to step into new roles when opportunities arise.

Another important advantage is risk reduction. The accounting function remains particularly vulnerable to fraud schemes, such as payment tampering and billing irregularities. When multiple employees are familiar with key processes, it creates natural oversight and can facilitate the separation of duties. Combined with practices like mandatory vacations and management review procedures, cross-training can help strengthen internal controls.

Simple steps

Cross-training doesn’t have to be complicated. A basic starting point is to rotate responsibilities among team members on a temporary basis. The goal isn’t to create deep specialists in every function, but to ensure employees understand the core day-to-day tasks their colleagues perform.

Even short-term rotations — lasting a day, a week or during slower periods — can build valuable familiarity. Over time, this shared knowledge base can make a big difference when unexpected gaps arise.

It’s also wise to include leadership in the process. Encouraging CFOs, controllers and other senior staff to “reverse train” on routine functions helps ensure they can step in if needed and effectively guide others. This approach builds resilience at every level of the F&A department.

Turn cross-training into a strategic advantage

As talent challenges persist, cross-training can help your F&A department maintain continuity while building a more engaged and versatile team. By investing in your current staff, you not only prepare for unexpected disruptions but also support long-term growth and development. We can help you identify cross-training priorities and align your approach with strong internal controls and reporting needs — so your team gains flexibility without increasing risk. Contact us for guidance on developing a cross-training strategy tailored to your organization.

Employer-sponsored qualified retirement plans can be valuable recruiting and retention tools. But they also bring significant administrative responsibilities. For many organizations, those responsibilities include obtaining an independent audit of the plan’s financial statements as required under the Employee Retirement Income Security Act (ERISA).

Although such audits may seem like a hassle, they can benefit your organization in multiple ways. Plus, recent legislative changes — including provisions under the SECURE 2.0 Act — have expanded participation requirements and increased administrative complexity, making careful oversight and periodic review more important than ever.

Primary purpose

Employer-sponsored retirement plans that may require audits include traditional pensions, 401(k)s, ERISA-covered 403(b)s and profit-sharing plans. A primary purpose of an audit is to obtain an independent opinion on the plan’s financial statements and required supplemental schedules. In the process, the audit may identify operational or compliance issues related to applicable federal rules enforced by the U.S. Department of Labor (DOL) or the IRS. An independent audit reassures stakeholders that your plan’s financial statements offer reliable information, too.

Generally, ERISA requires “large” plans to include an audit report with their annual Form 5500 filing. For many defined contribution plans, such as 401(k)s, large-plan status is typically determined by the number of participants with account balances at the beginning of the plan year, subject to certain exceptions. ERISA also generally requires plan administrators to prepare plan financial statements in accordance with U.S. Generally Accepted Accounting Principles.

Not every employer-sponsored retirement plan is required to undergo an annual audit. Many smaller plans are exempt, and some growing plans may qualify for relief under special rules for participant counting. Even when an audit isn’t required, employers should still monitor participant counts, maintain strong records and periodically review plan operations.

Qualifications and scope

It’s important to choose your auditor carefully. You’ll of course want to consider the prospective provider’s professional qualifications, experience and licensing. But, as you do, ensure that the auditor you engage is independent and doesn’t have financial or business relationships with the plan, your organization (the plan sponsor) or related parties that could impair objectivity. For example, the DOL doesn’t view a plan auditor as independent if the auditor also maintains the plan’s financial records.

The American Institute of Certified Public Accountants offers guidance on creating a request for proposal (RFP) for a qualified plan audit. An effective RFP describes the scope of the audit — including its objectives, special considerations and expected schedule.

Advantages to leverage

A qualified retirement plan audit can provide several practical advantages beyond satisfying ERISA requirements. These often include:

Uncovering administrative errors. An audit may reveal that employee deferrals weren’t deposited in a timely manner, employer matching contributions were calculated incorrectly or participant eligibility rules were applied inconsistently. Catching these or other issues early can give your organization a chance to correct them before they trigger penalties, participant complaints or more extensive regulatory scrutiny.

Strengthening internal controls. Depending on the plan, auditors typically review processes related to contributions, distributions, loans, hardship withdrawals, investment reporting and participant data. In doing so, they may identify gaps in documentation, approval procedures or segregation of duties that expose your organization to the risk of errors, misinterpretation or even fraud.

Improving fiduciary oversight. Plan sponsors have a responsibility to act in participants’ best interests. An audit can paint a clearer picture of whether the plan is being operated in accordance with its governing documents and applicable rules. This can enable leadership to better understand where responsibilities lie among internal staff, a third-party administrator, investment advisors and other providers.

Boosting employee confidence. It’s not often talked about, but retirement benefits are deeply personal. These are funds that participants may count on in the future. A well-executed audit can contribute to employee trust.

Plan (and people) protection

If your organization is subject to ERISA, don’t think of a qualified retirement plan audit as a mere regulatory formality. Consider it a valuable opportunity to confirm that you’re administering your plan properly and optimally. Doing so helps protect both your organization and its people.

Whether your plan requires an annual audit or you simply want to strengthen its administration, professional guidance can provide critical insights. Contact us to discuss your responsibilities as an employer-sponsor and the steps you might take to keep your qualified plan on solid footing.

Last year, a new income tax deduction for qualified cash tips went into effect under the One Big Beautiful Bill Act (OBBBA). The break is scheduled to expire after 2028. In September 2025, the IRS released proposed regulations to provide guidance for taxpayers. The IRS has now published final regs that largely mirror the proposed regs but also include some important clarifications and additions.

What does the deduction cover?

Under the OBBBA, individual taxpayers can claim a tax deduction, available to both itemizers and nonitemizers, for up to $25,000 in “qualified tips.” The deduction begins to phase out if your modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 if you’re married filing jointly. The deduction is completely phased out if your MAGI reaches $400,000, or $550,000 if you’re a joint filer. (Married taxpayers filing separately can’t claim the tips deduction.)

Important: The $25,000 limit applies per tax return, so joint filers who both receive qualified tips can’t claim two separate deductions. In addition, tips remain subject to federal payroll taxes and, where applicable, state income and payroll taxes.

Qualified tips generally refers to tips paid in cash (or an equivalent medium, such as checks or credit and debit cards) to an individual in an occupation that customarily and regularly received tips on or before December 31, 2024. They must be paid voluntarily, without any consequence for nonpayment, in an amount determined by the payor and without negotiation. Tips received in the course of a specified service trade or business are excluded.

What’s in the final regs?

The final regs address several critical areas, including:

Eligible occupations. The proposed regs identified 68 eligible occupations in eight categories. The final regs expand the list to 71 occupations (adding visual artists, floral designers and gas pump attendants) and tweaked some of the categories, ending up with:

Beverage and Food Service,
Entertainment and Events,
Hospitality and Guest Services,
Home Services,
Personal Services,
Personal Appearance and Wellness,
Recreation and Instruction, and
Transportation and Delivery.

The final regs also expanded some of the proposed regs’ categories and clarified others. For example, they added “app/platform-based delivery person” to the illustrative list for the “Goods Delivery People” occupation in the “Transportation and Delivery” category.

The final regs also include two new examples dealing with payments to digital content creators. If customers’ payments give them access to the content, the payments are treated as compensation for services provided. But if customers make voluntary payments after gaining access to the content, the payments are tips.

Digital assets. The final regs state that digital assets aren’t considered cash tips — for now. Thus, they’re currently not eligible for the tips deduction. But the IRS has indicated it will consider the treatment of stablecoins in connection with the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and any future legislation that modifies the characterization of digital assets.

Voluntariness. Under the proposed regs, service charges, automatic gratuities and any other mandatory amounts automatically added to a customer’s bill by the vendor or establishment generally weren’t considered voluntary, even if the amounts were subsequently distributed to employees. To be voluntary, the customer must be expressly provided an option to disregard or modify amounts added to a bill.

The final regs retain this approach. However, they modify the language to make clear that a tip is voluntary if the customer has the option to reduce the tip amount to zero. So tips made on POS systems with a tip slider that goes to zero or an option for the customer to select “other” and enter zero are voluntary.

Note: Payments in excess of mandatory amounts are voluntary.

Managers/supervisors. Under the final regs, tips received by a manager or supervisor via a voluntary or mandatory tip-sharing arrangement, such as a tip pool, aren’t considered qualified tips. But tips received directly by supervisors or managers for services they provided in the course of duties performed in an eligible occupation (for example, performing the duties of wait staff while the restaurant is crowded) are qualified tips if all other requirements are satisfied.

Anti-abuse rules. To prevent the reclassification of income as qualified tips, under the proposed regs, a payment wasn’t a qualified tip if the recipient had an ownership interest in or was employed by the payor of the tip. The final regs relax this standard somewhat.

Under the final regs, an amount isn’t a qualified tip if, based on all relevant facts and circumstances, the amount is a recharacterization of wages or payment for goods or services for the purpose of claiming the deduction. Facts and circumstances that might indicate that wages, payment for services or other income have been recharacterized as tips in order to claim the deduction include when:

The invoiced charge for services is less than the payment from the payor shown on a related receipt, and the amount of the cash tip reported on the receipt approximates the difference between the invoiced charge and the payment amount on the receipt, and
A significant shift in historical tipping or payment practices between the payor and the tip recipient occurs.

Moreover, the final regs establish an irrebuttable presumption that a “tip” reflects a recharacterization of wages, payment for services or other income when the employer is the payor of a cash tip received by the employee. The presumption also is triggered if the tip recipient has a direct ownership interest in the tip payor.

Questions?

If you receive tips for work you perform, check the list of occupations eligible for the deduction and plan accordingly. If you have any questions about this tax break, contact us. We can help you determine if the tips you receive qualify for the deduction.

Incorrect underpayment notices

On April 23, the Michigan Department of Treasury acknowledged that thousands of taxpayers are receiving underpayment notices in error. Many taxpayers who made 2025 estimated tax payments to the State of Michigan were not properly credited for those payments, and therefore, received a notice from the state that reflected an underpayment of tax equal to the amount of estimated tax they had already paid.

The Treasury Department confirms that the issue was limited to the letters themselves, not to the underlying tax records. They are working to correct the system error and will issue revised notices once resolved. At this time, no action or response is required from taxpayers who received these incorrect letters.

Erroneous refund checks for penalties and interest

A separate issue has also been identified. Some taxpayers who appropriately reported an underpayment penalty and interest with their return are now receiving refund checks from the State of Michigan in the amount of the penalty and interest.

The Michigan Department of Treasury is asking taxpayers not to cash these checks. Instead, taxpayers should return the uncashed check along with a brief explanation of why the check is being returned to:

Michigan Department of Treasury
P.O. Box 30788
Lansing, MI 48909

Next steps

If you receive any correspondence from the State of Michigan, we encourage you to forward it to your Yeo & Yeo tax professional. We will evaluate whether the notice was received in error or not and help with the next steps.

Both internal and external audits play vital roles in safeguarding your organization’s financial integrity. They share the common goals of promoting reporting transparency and helping prevent errors and fraud, but they serve different functions and audiences. Here’s a closer look at some key distinctions to help your business develop a strategic audit approach.

Why they’re conducted

The purpose of an internal audit is to assess and improve a company’s internal controls, risk management and governance processes. Some companies have an internal audit department, but others outsource this function to external audit firms. Internal auditors — whether in-house or outsourced — work as an extension of the company’s management to ensure that internal processes align with organizational objectives and mitigate risk.

External audits must always be performed by an independent CPA firm. Under the auditing standards, an external audit aims to provide reasonable assurance about whether the company’s financial statements are free from material misstatement and to express an opinion on whether they’re presented fairly in accordance with U.S. Generally Accepted Accounting Principles (GAAP) or another relevant framework.

How far they reach

Internal audits can cover a broad range of topics. For example, auditors may evaluate operations, internal controls, company or industry-specific risks, and compliance with laws and regulations. You can tailor an internal audit’s scope to your company’s needs and modify it as new risks or business opportunities emerge. Outsourcing this function can be cost-effective for smaller organizations that don’t require a full-time internal audit department.

External audits are standardized, focusing solely on the financial statements and related disclosures. External auditors perform testing on account balances and transactions, evaluate financial reporting controls, and assess compliance with GAAP or other relevant frameworks. They also follow applicable regulatory guidelines, such as the U.S. Generally Accepted Auditing Standards issued by the American Institute of Certified Public Accountants and the Public Company Accounting Oversight Board standards.

Who stays independent

Internal auditors work under the direction of the company’s audit committee or management. Outsourced internal audit teams are also part of the organization’s internal audit function, so they may not be entirely independent. While internal auditors usually provide recommendations to the company, they can remain objective if they report directly to the audit committee or management.

On the other hand, external auditors must maintain independence, in fact and appearance, from the companies they audit to ensure objectivity and compliance with professional standards. This means they can’t have direct financial interests in the company or perform services that could create actual or perceived conflicts of interest. Independence is crucial for external auditors to provide an unbiased opinion that stakeholders can trust.

How the work gets done

Internal auditors use a risk-based, continuous-improvement approach, targeting specific areas of concern. They may also use internal control models — such as the Committee of Sponsoring Organizations of the Treadway Commission framework — to assess the company’s processes, identify potential risks, evaluate controls and make recommendations for improvement. Their role tends to be more consultative.

External auditors follow standardized methods to gather sufficient evidence to form an opinion on the fairness and compliance of the financial statements. After assessing the company’s risks, external auditors may perform substantive procedures, analytical reviews and sampling techniques to detect material misstatements. They verify the accuracy of accounts by conducting tests, reviewing source documents and confirming account balances with third parties.

What they produce

Internal auditors typically report directly to management or the audit committee. They provide detailed recommendations and action plans based on their findings, areas of risk and control weaknesses. Internal audit reports aren’t usually distributed to outside stakeholders; instead, they’re intended to guide internal improvements and decision-making.

External auditors issue an audit opinion on the organization’s financial statements. The audit opinion is a letter that serves as the front page of the company’s financials. Public companies file reports with the U.S. Securities and Exchange Commission, which are available to the general public. Many private companies share audited financial statements with lenders, franchisors, private equity investors and other stakeholders.

When they happen

Internal audit procedures are conducted throughout the year, typically in accordance with an annual audit plan approved by management or the audit committee. Internal auditors may evaluate different areas on a rotating or as-needed basis as risks evolve or emerge.

External audits are generally performed at year end. However, public companies and larger private organizations may also be required to issue audited financial statements quarterly. For an added measure of assurance, some companies have auditors conduct periodic “surprise” audits or agreed-upon procedures engagements that target high-risk accounts or areas of concern identified during year-end audits.

Choosing the right mix

When used together, internal and external audits provide a more complete picture of your organization’s risks, controls and financial reporting. As your business evolves, so should your audit approach. Periodically reassessing your needs can help ensure you’re getting the right balance of insight, assurance and strategic value. Contact us to learn more.

When an employee’s performance slips, many small and midsize employers hesitate to act. It’s an understandable reaction. Confrontations are often difficult for supervisors. Troubled workers may simply quit in response, and replacing them can be costly and time-consuming. And of course, the worry of legal exposure is ever-present.

However, when problems linger without consistent correction, the negative financial impact can slowly and quietly build. That’s why carefully planned and well-executed performance management is imperative.

Everyone is affected

It’s all too easy for employers to underestimate the cost of underperformance — or not even notice it until a crisis develops. When one employee fails to meet expectations, productivity often declines across multiple positions. Missed deadlines, errors and inefficiencies can disrupt workflows and lower customer satisfaction. Over time, these issues may require rework or create other costly delays.

Meanwhile, other employees are likely to pick up the slack. This can lead to increased overtime for hourly workers, higher payroll costs, growing frustration and lower morale. High performers may feel like they’re handling an unfair share of the workload, which can eventually drive them out of your organization.

Indeed, what began as a single employee’s performance issue can evolve into a much wider operational and financial problem. And if multiple staff members are underperforming, the costs can compound. After all, paying full compensation for below-expected output reduces return on payroll investment.

Supervisor stress

Underperforming employees typically demand more attention from supervisors. Repeated conversations, complaints from other employees and customers, and more labor-intensive oversight can consume hours and mental energy that could otherwise be devoted to strategic or revenue-generating activities. And if performance management policies and procedures are unstructured or unclear, these challenges can persist indefinitely.

This often-overlooked cost is easy to miss because it doesn’t appear on financial statements. Some supervisors may not even mention the drag on their productivity because they believe it’s just part of their job. But there’s no denying that time is among every manager’s most valuable resources. When an organization settles for a suboptimal approach to performance management, leadership development and retention may suffer.

Consistency matters

Effective performance management is all about setting clear expectations, documenting deficiencies and providing guidance on how to improve. Consistent, well-constructed policies and procedures help reduce ambiguity, support more predictable decision-making and strengthen your organization’s position in the event of disputes. They also enable you to determine whether an employee is likely to improve or if further adverse action may be necessary.

By addressing issues early and in a structured manner, you can limit the negative effects of underperformance before they escalate. In turn, you’ll likely create a stronger workplace culture where expectations are well-understood, accountability is reinforced and success is celebrated.

Now precisely how your organization should handle performance management depends on many factors — including its industry, size, mission and culture. But it all starts with recognizing the immediate and long-term impact of a well-trained and managed workforce.

It’s financial, too

At first glance, performance management may not seem like a financial issue. However, underperformers can quietly drain your organization’s resources and create operational inefficiencies. Implementing a consistent, well-designed approach helps control costs and minimize risks. We’d be happy to help you evaluate how performance management affects your organization’s financial stability and long-term success.

Donor-advised funds (DAFs) have become increasingly popular among individuals and families who want to simplify their charitable giving while maximizing tax efficiency. According to the 2025 Annual DAF Report produced by the Donor Advised Fund Research Collaborative, in 2024, the total number of DAF accounts reached a record high of 3.56 million. Total assets in DAFs increased 27.5%, with total invested funds reaching $326.5 billion. Here’s how a DAF might fit into your charitable giving strategy and estate plan.

DAFs in action

A DAF is a charitable investment account that generally requires an initial contribution of at least $5,000. It’s typically managed by a financial institution or an independent sponsoring organization, which charges an administrative fee based on a percentage of the deposit.

From a tax perspective, DAFs offer significant benefits. Contributions are generally deductible in the year they’re made (assuming you itemize deductions), even if the funds are distributed to charities in future years. This is particularly valuable in high-income years when you may want to offset income with a sizable charitable deduction but don’t know exactly which charities you’d like to benefit.

Additionally, donating appreciated assets, such as publicly traded stock, allows you to avoid the capital gains tax liability you’d incur if you sold the assets. Yet you can still deduct their fair market value. (Be aware that some DAFs only allow contributions of cash or cash equivalents.)

Another DAF advantage is administrative simplicity. Unlike private foundations, DAFs don’t require the donor to manage compliance, file separate tax returns or oversee grant administration. The sponsoring organization handles recordkeeping, due diligence and distribution logistics, allowing you to focus on your charitable intent rather than administrative burdens.

DAFs can also enhance strategic giving. Funds within a DAF can be invested and potentially grow tax-free, increasing the amount ultimately available for charitable purposes. You can take time to thoughtfully select the charities, involve family members in philanthropic decisions and create a more intentional giving strategy rather than making rushed year-end donations.

Estate planning benefits

Integrating a DAF into an overall estate plan can amplify its benefits. It can serve as a centralized vehicle for a family’s charitable legacy, helping to align philanthropic goals across generations. You can name successor advisors — such as children or other heirs — who can recommend grants from your DAF after your lifetime, fostering continued family engagement in charitable giving.

From an estate tax standpoint, DAFs are also beneficial. Assets contributed to a DAF — whether during your life or at death — are removed from your taxable estate. This can be particularly advantageous for high-net-worth individuals seeking to reduce estate tax exposure while supporting causes they care about.

Additionally, you can designate a DAF as a beneficiary of retirement accounts, such as IRAs. Because these accounts are typically subject to income tax when an individual beneficiary takes distributions, leaving them to a charitable vehicle, such as a DAF, can be tax-efficient. (But think twice before naming a DAF as the beneficiary of a Roth account, because distributions would generally be tax-free to an individual beneficiary.)

Coordination is key

It’s important to coordinate a DAF with your other estate planning strategies. For example, ensure that your charitable intentions are clearly documented and aligned with your overall distribution strategy. We can help structure your DAF contributions and beneficiary designations to maximize both tax savings and philanthropic impact.

Whether it’s a trademark, copyright, patent, trade secret or other piece of IP, its ultimate value to your business depends on you owning it. Without airtight agreements with employees and independent contractors, these workers may claim that the IP they research and develop belongs to them.

Some companies learn they don’t actually own IP assets only when they’ve engaged a business valuation professional in preparation for a sale, or when employees leave and take IP with them. To prevent unexpected ownership issues and costly disputes that could create risk and diminish your business’s value, take action now.

What the law says

Federal copyright law and the laws of most states mandate that employees and independent contractors who invent products, write materials and develop software may be the owners of the IP rights. In fact, in some states, employers may only have a limited license to inventions created by employees, even if they were invented “on the clock” or using company resources.

Fortunately, you can help prevent ownership disputes, including litigation. All states permit businesses to require workers to sign copyright, IP and invention assignment agreements, subject to applicable legal limitations.

Work with an attorney who specializes in IP to draft a standard agreement based on your state’s laws. It should require the employee or contractor to turn over or legally “assign” IP rights to your business. In addition, it should mandate that the employee or contractor assist your company’s legal counsel in securing and enforcing these rights. It’s also important to apply these agreements consistently and enforce them in practice, because inconsistent use can weaken your position in disputes and merger and acquisition due diligence.

Go a step further

When you hire workers (or when you require them to sign an agreement), make sure you ask them to identify all pre-existing inventions that are to be excluded from the agreement. For example, they may have patented inventions on their own or created trademarks for previous employers. Then request that they give up claims to any new inventions that are related to your business activities, even if the inventions are developed during their nonworking hours.

For example, let’s say your company develops 3D printing software. Your agreement should prohibit your code writers from creating related design tools at home and then selling them to your competitors. If, however, an employee working on her own time and with her own resources develops software that’s unrelated to your business, that IP likely belongs to her. Some states, such as California, prevent employers from claiming such IP or asking employees to sign away their rights to it.

Legal and financial advice

Ultimately, safeguarding IP isn’t a passive exercise but a deliberate business discipline that requires foresight, structure and legal precision. Although an attorney’s guidance is critical for this purpose, financial advisors also play an important role. We can help you address IP ownership issues before you sell your business or before workers leave your employment. We can also help identify financial and tax considerations of IP. Contact us for more information.

Year-end presents unique challenges for government payroll and HR teams. This webinar addresses key HR and payroll compliance requirements, considerations, and planning topics as governments close out the year and prepare for 2027.

Key Topics

Coming Soon

Learning Objectives

Coming Soon

Presenters

Amy Cell – Yeo & Yeo HR Advisory Solutions
Christine Porras – Yeo & Yeo CPAs & Advisors

This session focuses on practical, real-world insights drawn from government audits and accounting engagements. Attendees will gain actionable tips to improve efficiency, reduce audit findings, and strengthen internal processes.

Key Topics

Audit readiness best practices
Documentation efficiencies
Common issues identified during audits
Practical process improvements used by peer governments

Learning Objectives

Apply best practices to improve audit outcomes
Reduce year-end surprises
Strengthen internal controls and processes

Presenters

Several GASB standards continue to challenge government entities well after adoption. This webinar provides a practical refresher on GASB 87, 96, and 101, focusing on common implementation issues, documentation expectations, and audit considerations.

Key Topics

GASB 87: Lease Accounting – Common Errors and Documentation Gaps
GASB 96: Subscription-based IT Arrangements (SBITAs)
GASB 101: Compensated Absences
Lessons learned from audits and implementation reviews

Learning Objectives

Refresh understanding of key GASB requirements
Identify common compliance and documentation issues
Improve internal processes and audit readiness

Presenters

Government accounting standards continue to evolve, and early planning is critical to successful implementation. This CPE-eligible webinar provides a focused overview of upcoming GASB standards 103, 104, and 105, highlighting key requirements, effective dates, and practical considerations for government entities.

Key Topics & Technical Focus

GASB 103: Financial Reporting Model Improvements
GASB 104: Disclosure of Certain Capital Assets
GASB 105: Subsequent Events
Effective dates and transition considerations
Anticipated audit and financial reporting impacts

Learning Objectives

Participants will be able to:

Identify key provisions of GASB 103, 104, and 105
Understand implementation timelines and transition requirements
Evaluate financial reporting and audit implications
Prepare internal teams for upcoming changes

Presenters

Who Should Attend

Finance directors, controllers, treasurers, accountants, and government leaders involved in financial reporting and audit preparation.

Watch On-Demand

Helpful resources related to this webinar:

Government accounting standards continue to evolve, and the pace of change shows no signs of slowing. For government leaders, staying informed about upcoming GASB standards is not simply a technical exercise; it’s a critical part of financial stewardship, transparency, and audit readiness.

Three new standards in particular—GASB Statements 103, 104, and 105—will affect how governments approach financial reporting, disclosures, and implementation planning over the coming years. While effective dates may still feel distant for some entities, early awareness and preparation can significantly reduce implementation challenges down the road.

GASB 103 introduces improvements to the financial reporting model to enhance clarity and consistency in government financial statements. While many governments will find that the core structure of their statements remains familiar, changes in presentation and classification may require thoughtful planning, especially when communicating results to stakeholders and governing bodies.

GASB 104 focuses on specific updates to financial reporting and disclosure requirements intended to improve clarity and consistency in government financial statements. For many entities, the implementation challenge will center on understanding how to evaluate or estimate whether an asset will be sold within one of year of the financial statement date.

GASB 105 includes a series of focused amendments that modify or clarify existing accounting guidance. While the changes are targeted, they may still affect how certain items are recognized, measured, or disclosed. Governments should assess the applicability of each amendment to their individual circumstances to determine whether updates to accounting practices or financial statement presentations are required.

One of the most common pitfalls governments face with new standards is waiting too long to begin planning. Even when implementation dates are several years away, early conversations—between finance teams, auditors, and advisors—can help identify potential data gaps, system limitations, and documentation needs before they become time-sensitive issues.

Another important consideration is how these standards may affect audit processes. Changes in presentation, disclosures, or terminology can influence audit procedures and expectations, making proactive communication especially valuable.

For governments looking to stay ahead of change and reduce surprises, understanding what’s coming—and what steps to take now—is a strong place to start.

View the Government Accounting & Operations Webinar Series