When Should You Update Your Estate Plan?

Many people think of estate planning as a “one-and-done” task — something you complete and file away. But an estate plan should evolve as your life and finances and relevant laws change. An outdated plan can create confusion, unintended tax consequences or outcomes that no longer reflect your wishes.

The higher federal gift and estate tax exemption that was made permanent by last year’s One Big Beautiful Bill Act is one reason to review your estate plan now. But you should also review your plan whenever something significant changes in your life. Let’s take a look at common situations that signal the need to revisit your will, trusts, powers of attorney or other estate planning documents.

Major life events

Life transitions are the most common reasons estate plans need attention. Marriage or remarriage is a big one, especially if you have children from a prior relationship. Divorce is equally important. Failing to update your documents could leave an ex-spouse in control of your assets or medical decisions.

The birth or adoption of a child or grandchild should also trigger a review. You’ll want to name a guardian or adjust beneficiary designations to reflect your growing family. Similarly, the death or incapacity of a spouse, beneficiary, trustee or executor means your plan may no longer function as intended.

Financial changes matter, too

Your estate plan should reflect your current financial situation. If your net worth has increased significantly — through business growth, inheritance, real estate appreciation or investment success — your existing plan may not adequately address tax planning or asset protection.

Starting, buying or selling a business is another major reason to update your estate plan. Business ownership often requires specific provisions for succession planning, valuation and continuity. Retirement also can prompt changes, as income sources shift and distribution strategies evolve.

Don’t forget supporting documents

Updating an estate plan isn’t just about your will or trusts. Beneficiary designations on retirement accounts and life insurance policies should be reviewed regularly, as they generally override what’s stated in your will.

Powers of attorney and health care directives are also critical to review. Make sure they continue to reflect your wishes and that those you’re providing with decision-making authority are still people you trust and who are able to serve.

The bottom line

An estate plan is only effective if it reflects your current wishes and circumstances, as well as current law. Regular reviews help ensure your assets are distributed as intended, your loved ones are protected, and unnecessary taxes or legal complications are avoided.

Because estate planning intersects with taxes, financial planning and your long-term goals, it’s wise to review your plan with qualified professionals. We can help you identify when updates may be needed and coordinate with your legal and financial advisors to keep your plan on track.

Yeo & Yeo CPAs & Advisors is pleased to announce that Matt Black, ASA, will lead the firm’s Valuation, Forensics and Litigation Support Services Group.

Yeo & Yeo’s Valuation, Forensics, and Litigation Support Services Group provides valuation, forensic accounting, and litigation support services to businesses, law firms, receivers, trustees, financial institutions, and individuals. The team supports clients through some of their most complex and high-stakes situations, including mergers and acquisitions, succession planning, shareholder disputes, divorce proceedings, and litigation matters requiring expert financial analysis and testimony. Previously led by Principal Chris Sheridan, CPA, CFE, CVA, the group has expanded in both scope and complexity of engagements. Sheridan will continue to serve as a core member of the group, providing deep experience and continuity for clients.

Black joined Yeo & Yeo in 2025 as a Senior Business Valuation Manager in response to the firm’s continued growth and increasing client demand for specialized business valuation and litigation support services. Black was brought on to be solely dedicated to business valuation and litigation matters, strengthening the firm’s ability to deliver focused expertise and consistent leadership in this highly technical area.

“Matt’s background and exclusive focus on valuation and litigation services have further strengthened our ability to serve clients facing complex financial and legal challenges,” said Sheridan. “His experience enhances our team’s depth and his leadership positions the group to continue growing while delivering the high level of insight and credibility our clients expect.”

Black’s background includes more than 15 years of experience in business valuation, litigation support, consulting, and mergers and acquisitions for privately held companies across a wide range of industries. Prior to joining Yeo & Yeo, he held several leadership roles, including Senior Manager at KPMG, one of the nation’s four largest accounting firms. He holds the Accredited Senior Appraiser (ASA) credential, reflecting his experience valuing both closely held and publicly traded companies, as well as a broad range of business intangible assets. His work often supports complex financial decisions and legal matters where precision, objectivity, and defensible analysis are critical.

“Clients rely on valuation and forensic work to bring clarity to challenging situations,” Black said. “Whether they’re navigating a transaction, resolving a dispute, or planning for the future, our goal is to provide clear, well-supported insights they can trust to move forward with confidence.”

Black is a member of the American Society of Appraisers and holds a Bachelor of Arts in Finance from Michigan State University. Outside of work, he is actively involved in the community, volunteering with Special Olympics Michigan and previously serving on the organization’s board. He also supports Make-A-Wish Michigan.

These days, accounting and finance professionals are in high demand, and that reality has made it increasingly difficult for nonprofit organizations to attract and retain qualified professionals. Whether you are just starting your organization, or it is well-established, the experience, insights and expertise of qualified accounting and finance professionals are essential. These professionals are vital to maintaining smooth operations, facilitating sustainability, enabling future growth, ensuring compliance with federal, state, and local tax and accounting requirements, and satisfying grant and funding reporting requirements.

More and more, nonprofit organizations are turning to outsourced accounting service providers to fill this need. The reasons are clear:

Outside expertise. Accounting professionals from established and respected providers offer a depth and breadth of expertise that, simply put, is a rare commodity. Established outsourced professionals often have worked for years – decades even – in a variety of business and operational settings. Their experience and knowledge can be enormously beneficial to organizations large and small.
Industry specialization. Outsourced accounting providers have experience and insights to meet all reporting requirements amidst a complex and evolving regulatory landscape. They are part of organizations that stay on top of the latest industry trends, shifts, and legislative actions. This can potentially enable the organization to anticipate changes before they happen, and plan accordingly.
Accountability. Accounting professionals from established and respected providers are accountable not only to the organization but to their employer as well. This double layer of accountability serves everyone well; to you, it provides peace of mind that the professional is meeting her/his obligations. To the outside provider organization, the professional’s solid job performance underscores the value of their services and strengthens their reputation in the marketplace.
Customized services. Outsourced accounting services are 100 percent customized to meet the specialized needs of every organization. Purchase and utilize only those services you need, for the specific time in which they are needed. No more, no less.
Cost savings on several levels. This includes human resources (e.g., salary and benefits, training, turnover), audit and tax time and the corresponding expense—provided you don’t need full-time staff. Many accounting and bookkeeping functions are time-consuming. By outsourcing these tasks to professionals, in-house staff can focus on delivering critical services and fulfilling your mission.
Technology. You’ll gain the benefit of an accounting professional who knows the way around accounting and finance systems. This means a much shorter learning curve for your organization —and more time devoted to performing essential duties. Many nonprofit organizations struggle to stay up to date with rapidly changing technology and can benefit from utilizing these resources through an outsourced accounting provider. This allows you to focus on interpreting data and making informed decisions.
Bench strength. If your in-house CFO, controller or bookkeeper is absent for any reason, the organization could face real problems. With outsourced support, the appropriate resources can fill in as needed.
Time savings. The hiring process is inherently time-consuming; retaining an outside provider of accounting services is a much more time-efficient task.
Sensitivity to different reporting requirements. Professionals from respected outsourced accounting services providers can bridge the gap between financial statement presentation, Form 990-series requirements, and grant and funding source reporting requirements, so that you consider all implications in running the organization—and don’t run it solely based on only one consideration.
Specializations to grow with the organization. When you outsource the financial requirements to a firm with broad specialties, that firm can grow with yours—through a greater depth of services to specialized knowledge and experience with complex tax and accounting matters.

Outsourced accounting services can help nonprofit organizations realize significant benefits from top to bottom. We hope you found this article useful as you think through the financial and operational challenges in your nonprofit organization and consider how outsourced accounting services can help address those challenges.

The team of outsourced accounting professionals at Yeo & Yeo is available to assist with any needs you may have related to outsourced accounting services implementation.

We know the nonprofit accounting landscape.
We understand the challenges nonprofit organizations face.
We develop and deploy customized programs for organizations like yours.
We are always available to answer questions, discuss issues or help you and your staff navigate complex financial and accounting challenges.
We strive to become an integral part of your team and become your trusted advisor.

To learn more about our outsourced accounting services and the approach we recommend for your nonprofit organization, please contact us for a free initial consultation.

As remote and hybrid work have become more common, corporate retreats have surged in recent years. Some or all of your employees may now work from home and experience little in-person interaction with coworkers. A retreat can foster collegial relationships and, ultimately, greater productivity. But the first decision you’ll likely need to make is whether your retreat will be a smaller-scale affair held in your office or an off-site retreat. There are ways to make either one affordable.

Your office

Staying on your company’s premises can keep out-of-pocket costs in check. The most obvious is that you won’t need to rent meeting rooms. And, assuming employees live in the area, you won’t have transportation and lodging expenses. You’ll also likely spend less on food and beverages. A local restaurant can cater your meals and snacks, and you could buy beverages in bulk.

On the downside, employees tend to view on-site retreats as just another day at the office. This can hamper creative thinking and team building and limit possible activities. Worse, employees may be distracted if they can frequently run back to their desks to check email and voicemail.

Off-site locations

In general, workers are better able to focus on a retreat agenda at an off-site location. They’re in a new, “special” environment with no visual cues to trigger workday routines. So, even though you’ll incur greater costs than if you’d stayed in your office, you may get a better return on investment.

The fact is, hotels and other facilities that host company retreats need and want your business! Many things may be negotiable, and you might be able to snag discounts by booking or paying early. Get several quotes and compare prices and services. You’ll have more leverage if you avoid scheduling your retreat during seasonal peaks when local venues tend to be busy with weddings, trade shows and industry conferences.

Hotels earn their biggest margins on food, beverages and meeting setup fees, so they may be willing to provide complimentary or discounted rooms for guest speakers and out-of-town employees. Also, try to negotiate a flat food-and-beverage price for the entire retreat, rather than a per-person or per-event rate.

Possible tax relief

Here’s another way to save: Some of your company retreat expenses may be tax-deductible. They need to meet IRS criteria as “ordinary and necessary” business expenses and can’t be extravagant or include expenditures for employees’ spouses. In general, business meals are only 50% deductible, and entertainment costs are nondeductible. Contact us to learn more about tax-deductible costs and the IRS’s documentation requirements.

Launching a start-up comes with no shortage of big decisions and fast-moving priorities. In the rush to grow, financial fundamentals can sometimes take a back seat — often with costly consequences. Some common accounting missteps that new business owners should avoid include:

Overlooking day-to-day spending. Starting a new business is exciting, and it’s natural to focus on generating revenue and building business relationships. But it’s essential to keep detailed, timely records of expenses, including receipts and invoices. This will help you properly allocate costs, price products and services, assess and improve financial performance, and claim tax deductions.

Skipping regular account reviews. Reconciling accounts involves comparing your records to your bank and credit card statements to identify and correct any discrepancies. Account reconciliation helps ensure your business pays close attention to expenses and available cash. It can also help prevent and detect fraud by third parties and employees.

Blurring the line between personal and company finances. When you own a business, you need to keep personal and business matters separate for financial reporting, tax and legal purposes. Maintaining separate bank and credit card accounts and clearly distinguishing between personal and business activities will help avoid confusion. These practices also make it easier to track business expenses and support accurate budgeting and forecasting.

Getting worker status wrong. How much control do you exercise over the people who work for your business? Are your workers an integral part of your operations? Misclassifying employees as independent contractors can have serious legal and financial consequences. Make sure you understand the differences between employees and contractors and categorize them appropriately. If you don’t follow the rules, the IRS, the U.S. Department of Labor and a state tax agency might challenge the status of your workers. Some state rules may be stricter than the federal ones.

Being unprepared for tax obligations. Because many start-ups run at a loss, at least initially, some owners forget to set aside money for taxes. This can lead to cash shortages and other financial difficulties when tax time rolls around. Failure to make timely federal and state tax payments can result in penalties and interest charges. And don’t forget about payroll, sales and property tax obligations. Even if your business operates at a loss, these taxes may still be due.

Neglecting formal accounting systems and controls. Entrepreneurs must select and consistently apply an accounting method that best fits their business needs. Many fledgling businesses start off using cash- or tax-basis accounting, then graduate to accrual-basis reporting as they mature. But lenders, franchisors and investors sometimes require accrual-basis financial reporting from the get-go. Working with an experienced accountant can help you evaluate these requirements, select affordable, user-friendly bookkeeping software and establish consistent processes for recording business transactions.

It also pays to invest upfront in simple internal controls — such as locks on file cabinets, regular software updates, network backups and antivirus programs — to help prevent theft and fraud. Start-ups with valuable intellectual property, such as patents, secret recipes and proprietary software, should consider protecting these assets by implementing network security policies, filing appropriate legal protections, and requiring employees and contractors to sign noncompete agreements, where legally permitted. Additional internal control measures can be implemented as your business matures.

Fortunately, these common accounting missteps are preventable if you take proactive measures to avoid them. Building a strong financial foundation begins with seeking guidance from experienced bookkeeping and accounting professionals. In addition to helping you design and implement sound financial systems and controls, we offer interim CFO and bookkeeping services to support your business while you recruit and onboard the right talent for your finance and accounting department. Contact us to learn more.

U.S. businesses may want to operate abroad for many reasons. Examples include opportunities to grow their customer bases, diversify revenue streams, establish competitive advantages and reduce production costs. Amid all the potential benefits, however, lie some serious risks, including fraud. Business customs and laws can vary widely by country. So before you start operating abroad, perform thorough due diligence.

Corrupt business customs

Corruption is a business risk in every country, but in some countries, it’s widespread. For example, if you want to build a factory, you might encounter officials who expect cash bribes or local politicians accustomed to excessive wining and dining in exchange for their cooperation. If you’re importing or exporting goods, customs officials might solicit bribes to process shipments faster or to mischaracterize their origins or contents. Companies may also face liability under U.S. anti-bribery laws for improper payments made abroad.

One common scenario encountered by U.S. companies operating abroad is pressure to hire friends, family members and associates of government decision-makers. These job candidates may be unqualified for open positions and may expect light (or no) responsibilities. What’s more, you might be pressured to pay them above-market rates so that they can give the official who “recommended” them a kickback.

Legal and financial protection

Foreign laws may offer less protection than U.S. businesses are accustomed to, particularly for intellectual property (IP). Weak IP laws or minimal enforcement might enable other companies to use your logo, patents or trade secrets without consequences. Litigation to fight such activities can be expensive, and claims may be difficult to prove. And if you do attempt to sue, a foreign legal system could treat your business differently than it treats locally owned companies.

Large banks and other financial institutions generally have people, processes and technology to prevent fraud. But smaller foreign banks sometimes struggle to prevent sophisticated fraud schemes, including cybertheft. This could result in thieves gaining access to your business accounts and proprietary assets.

Steps to reduce risk

If you decide to operate abroad, you can help reduce fraud exposure by engaging legal and financial professionals familiar with your destination country. Your advisors can inform you about such critical matters as the culture, business practices, politics, labor conditions and regulatory environment.

Work with your advisors to identify possible fraud risks and evaluate the effectiveness of your existing internal controls. (Once you’re up and operating in the country, you can add or revise controls as necessary.) Also conduct thorough due diligence on all potential suppliers, business partners and major customers in the country before giving them your money, products or trust.

Develop hiring policies and programs for foreign-based employees, including antifraud training. Make sure your employee handbook specifies that activities such as accepting bribes will result in termination.

Pros and cons

There may be other downsides associated with operating abroad, including tax, currency exchange, regulatory, infrastructure and political disadvantages. Before deciding to expand globally, contact us to help you find foreign opportunities and minimize threats.

Tax credits reduce tax liability dollar-for-dollar. As a result, they can be more valuable than deductions, which reduce only the amount of income subject to tax. One tax credit that hasn’t been getting much attention lately but that can still be valuable for some small businesses is the credit for providing health insurance to employees.

Who’s eligible?

Under the Affordable Care Act (ACA), certain small employers that provide employees with health care coverage are eligible for this tax credit. Although it’s been available for more than a decade and generally can be claimed for only two years, some small businesses may still be eligible. These may include newer businesses as well as older ones that only recently have begun offering health insurance.

The maximum credit is 50% of group health coverage premiums paid by the employer, if it contributes at least 50% of the total premium or of a benchmark premium. For 2025, the full credit is available for employers with 10 or fewer full-time equivalent employees (FTEs) and average annual wages of $33,300 or less per employee. Partial credits are available on a sliding scale to businesses with fewer than 25 FTEs and average annual wages of less than $66,600. (These amounts are annually adjusted for inflation and increase to $34,100 and $68,200, respectively, for 2026.)

As noted, the credit can be claimed for only two years. Also, those years must be consecutive. (Credits claimed before 2014 don’t count, however.) If you started offering employee health insurance in 2025, you may be eligible for the credit on your 2025 return (and again on your 2026 return next year). If you’re offering coverage beginning in 2026, you may be able to claim the credit when you file your 2026 return next year (and then again on your 2027 return the following year).

Keep in mind that additional rules apply to the health care coverage credit. But premiums that aren’t eligible for the credit generally can be deducted, subject to the rules that apply to deductions for ordinary business expenses.

Can your business claim the credit?

If you’re not sure whether your business is eligible for a full (or partial) credit for health care coverage, contact us. We can help assess your eligibility. We can also advise on whether you may be eligible for other tax credits on your 2025 return and if you can take any steps this year so you can potentially claim credits on your 2026 return next year.

Yeo & Yeo is pleased to welcome Connor Braun, CPA, to the firm as a Manager. He is an experienced advisor specialized in business and individual tax planning.

“Connor brings a solid foundation in tax planning and a dedication to client service that aligns well with our firm’s values,” said Dave Jewell, Managing Principal and Tax & Consulting Service Line Leader. “We look forward to the role he’ll play in supporting our clients and contributing to the team during a busy and important time of year.”

Braun brings more than four years of experience in public accounting, serving manufacturing, construction, and real estate clients. He holds a Bachelor of Science in Business Administration with a focus on accounting from Central Michigan University, and is a member of the American Institute of Certified Public Accountants and the Michigan Association of Certified Public Accountants. He joins Yeo & Yeo from Plante Moran, where he served as a Senior Tax Accountant. Braun is based in the firm’s Saginaw office.

“Yeo & Yeo has a strong reputation for putting people first—both clients and team members,” Braun said. “I’m grateful for the opportunity to grow here and to contribute to a firm that truly values collaboration, community, and long-term relationships.”

Businesses and other types of organizations now commonly rely on independent contractors to stay flexible, competitive and cost-effective. But in the day-to-day hustle and bustle of working with these providers, it’s easy for reporting and withholding requirements to slip through the cracks. Even small oversights on either obligation can lead to IRS notices, penalties and administrative headaches. Here’s a brief refresher on handling nonemployee compensation.

Reporting requirement

Generally, businesses or other organizations aren’t responsible for withholding federal employment taxes from nonemployee compensation — though certain payments may be subject to income tax withholding, as we’ll discuss below. That said, if you paid $600 or more to an independent contractor in 2025, you must report that compensation to the IRS.

Important: For payments made after December 31, 2025, the threshold has increased to $2,000 under the One Big Beautiful Bill Act (OBBBA). It will be annually adjusted for inflation.

Independent contractor payments are reported on Form 1099-NEC, “Nonemployee Compensation.” You must file the form by January 31 of the year following the payment in question (or the next business day if it falls on a weekend). Note that this is a hard deadline. Unlike other information returns, Form 1099-NEC isn’t subject to an automatic 30-day filing extension. An extension may be available under certain hardship conditions, but it must be requested before the filing deadline using Form 8809, “Application for Extension of Time to File Information Returns.”

Withholding obligation

Independent contractor compensation that must be reported on Form 1099-NEC may be subject to backup withholding, which helps ensure the IRS receives tax due on certain nonwage income. Examples of these situations include when 1) a payee (the contractor) hasn’t provided you with a Taxpayer Identification Number (TIN), or 2) the payee provided a TIN, but the IRS notifies you that it doesn’t match the payee’s name.

A payee’s TIN is either a Social Security Number, an Employer Identification Number, an Individual TIN or an Adoption TIN. When backup withholding is required, a flat 24% rate applies. (This percentage was made permanent under the OBBBA.)

Backup withholding is reported on Form 945, “Annual Return of Withheld Federal Income Tax.” It generally must continue until you receive proper certification from the IRS or corrected information from the payee. In limited cases, contractors may also be able to stop backup withholding by showing that it will cause them undue hardship. If the IRS determines that backup withholding should stop, the payee will receive a written certification to that effect.

Essential part

If you engage independent contractors, reporting their compensation correctly — and properly applying backup withholding when so required — is an essential part of your tax compliance responsibilities. With a strict filing deadline for Form 1099-NEC, and very limited availability of an extension, preparation and accurate recordkeeping are key. We can help you meet your reporting obligations and comply with current IRS requirements.

Yeo & Yeo has been awarded on USA TODAY’s list of America’s Most Recommended Tax & Accounting Firms 2026. The award list was announced on February 4, 2026, and can currently be viewed on USA TODAY’s website.

For the third time, USA TODAY and Statista are awarding the titles of “America’s Most Recommended Tax Firms” and “America’s Most Recommended Accounting Firms” through an independent survey based on the number of recommendations received from peers, clients, and additional company data.

Respondents were recruited via an online survey and through a carefully profiled online-access panel. Recommendations from professionals working at tax and accounting firms (peers) and professionals working with tax and accounting firms (clients) were considered in equal measure. Self-recommendations were excluded from the analysis, and multiple quality reviews were conducted before publication. In total, around 3,300 recommendations were considered.

Based on the results of the survey, Yeo & Yeo is proud to be recognized on USA TODAY’s list of America’s Most Recommended Tax & Accounting Firms 2026. This recognition solidifies Yeo & Yeo as an exceptional firm, respected by our peers and valued by our customers. In total, 100 tax firms and 100 accounting firms were awarded, respectively.

Statista publishes hundreds of worldwide industry rankings and company listings with high-profile media partners. This research and analysis service is based on the success of statista.com, the leading data and business intelligence portal that provides statistics, relevant business data, and various market and consumer studies and surveys.

Uncertainty regarding inflation, demand and foreign tariffs has made inventory management even harder for businesses than it was previously. Although there are many unknowns right now, one thing is generally certain: Carrying excess inventory is expensive. If you’d like to trim your buffer stock and maximize profitability, there are effective ways to do it without risking customer service.

Count and compare

Inventory management starts with a physical inventory count. Accuracy is essential for knowing your cost of goods sold and for identifying and resolving discrepancies between your physical count and perpetual inventory records. An external accountant can bring objectivity to the counting process and help minimize errors.

The next step is to compare your inventory costs to those of your peers. Trade associations often publish benchmarks for gross margin [(revenue – cost of sales) / revenue], net profit margin (net income / revenue) and days in inventory (average inventory / annual cost of goods sold × 365 days).

Your company should strive to meet — or beat — industry standards. For a retailer or wholesaler, inventory is simply purchased from the manufacturer. But the inventory account is more complicated for manufacturers and construction firms where it’s a function of raw materials, labor and overhead costs.

Guide to cutting

The composition of your company’s cost of goods will guide you on where to cut. You may be able to reduce inventory expenses by renegotiating prices with your suppliers or seeking new vendors. And don’t forget the carrying costs of inventory, such as storage, insurance, obsolescence and pilferage. Brainstorm ways to mitigate such threats and improve margins. For example, you might negotiate a net lease for your warehouse, install antitheft devices or opt for less expensive insurance coverage.

To lower your days-in-inventory ratio, compute product-by-product margins. You might stock more products with high margins and high demand — and less of everything else. Whenever possible, return excess supplies of slow-moving materials or products to your suppliers.

To help prevent lost sales due to lean inventory, make sure your product mix is sufficiently broad and in tune with consumer needs. Before cutting back on inventory, negotiate speedier delivery from suppliers or consider giving suppliers access to your perpetual inventory system.

Reality check

Right now, many businesses are sitting on strategic stockpiles they purchased to combat marketplace uncertainty. If this is true of your business and you haven’t been able to move goods fast enough, you may want to consider new inventory management methods. We can advise you on such challenges as using software to accurately forecast inventory needs, pricing goods to increase profitability without alienating customers, and modeling the cost impacts of tariffs and other economic variables.

Yeo & Yeo, a leading Michigan-based accounting and advisory firm, has been named a 2026 ClearlyRated Best of Accounting^® Award winner for both Client Satisfaction and Employee Satisfaction. The Best of Accounting Awards are based entirely on independent survey feedback from clients and employees and recognize firms that consistently deliver outstanding service and experience.

Firms earning this distinction demonstrate industry-leading Net Promoter^® Scores (NPS) and satisfaction ratings that far exceed national benchmarks. Earning both awards in the same year highlights a defining strength of Yeo & Yeo: a culture where employee experience and client experience reinforce one another. The firm’s ability to consistently deliver trusted guidance to clients is directly connected to the engagement, growth, and sense of belonging experienced by its people.

That alignment between people and experience didn’t happen overnight. It’s the result of a firm that has intentionally grown and adapted while staying rooted in its values.

For more than 100 years, Yeo & Yeo has served clients through changing regulations, challenging business environments, and shifting expectations. Throughout that time, the firm’s focus has remained constant: listen closely, adapt thoughtfully, and build relationships that endure. This ability to evolve while staying grounded in purpose has defined Yeo & Yeo’s legacy and continues to shape how it serves clients today through its five interconnected companies: Yeo & Yeo CPAs & Advisors, Yeo & Yeo HR Advisory Solutions, Yeo & Yeo Medical Billing & Consulting, Yeo & Yeo Technology, and Yeo & Yeo Wealth Management.

By the Numbers: Client Experience

86.6% of clients rated Yeo & Yeo a 9 or 10 out of 10 for satisfaction, compared to an industry average of 48%.
Yeo & Yeo earned a Net Promoter^® Score of 85.5, more than double the accounting industry average of 38.

“The way we serve clients today looks different from how it did decades ago, and that’s by design,” said Dave Youngstrom, President & CEO of Yeo & Yeo. “We’ve evolved by listening, adding depth, perspective, and connection where clients need it most. Earning this recognition confirms that staying adaptable while grounded in relationships still matters.”

Just as importantly, Yeo & Yeo’s employee survey results reflect a workplace built on belonging, growth, and shared purpose where professionals are empowered to do meaningful work while maintaining balance and well-being. Yeo & Yeo continues to expand benefits in response to employee feedback, ensuring the firm remains aligned with the changing needs of its team. Employees also benefit from access to Boon Health, which provides personalized coaching to support professional development and personal growth. To further promote work-life balance, Yeo & Yeo offers a flexible work environment and hybrid work options, along with initiatives such as half-day summer Fridays that encourage a healthy integration of work and personal life.

By the Numbers: Employee Experience

The firm achieved a Net Promoter^® Score of 58.6%, which exceeds the 50% global NPS standard for an “excellent” employee experience rating.
95.2% of employees say they have the autonomy and authority needed to perform their job effectively.
94.2% of employees say Yeo & Yeo’s leaders are genuinely interested in their well-being.

“Client experience and employee experience are inseparable,” Youngstrom added. “When our people feel supported, challenged, and connected, they’re able to show up fully for clients. This recognition belongs to our entire team and the culture they help shape every day.”

In a business environment marked by increasing complexity, Yeo & Yeo’s results reflect a steady focus on its core values: putting people first, listening intently, building trust, navigating challenges, and supporting communities. These principles have guided the firm through generations of change and will continue to shape its future.

Did your business make repairs to tangible property, such as buildings, equipment or vehicles, in 2025? Such costs may be fully deductible on your 2025 income tax return — if they weren’t actually for “improvements” that must be depreciated over a period of years.

Betterment, restoration or adaptation

In general, a cost that results in an improvement to a building structure or any of its building systems (for example, the plumbing or electrical system) or to other tangible property must be capitalized, with depreciation deductions spread over a few years or longer (depending on depreciation method and property type). An improvement occurred if there was a betterment, restoration or adaptation of the unit of property.

Under the “betterment test,” you generally must capitalize amounts paid for work that’s reasonably expected to materially increase the productivity, efficiency, strength, quality or output of a unit of property or that’s a material addition to a unit of property.

Under the “restoration test,” you generally must capitalize amounts paid to replace a part (or combination of parts) that is a major component or a significant portion of the physical structure of a unit of property.

Under the “adaptation test,” you generally must capitalize amounts paid to adapt a unit of property to a new or different use — one that isn’t consistent with your ordinary use of the unit of property at the time you originally placed it in service.

Immediate deduction safe harbors

Costs incurred on incidental repairs and maintenance can be expensed and immediately deducted. But distinguishing between repairs and improvements can be difficult. A few IRS safe harbors can help:

Routine maintenance safe harbor. Recurring activities dedicated to keeping property in efficient operating condition can be expensed. These are activities that your business reasonably expects to perform more than once during the property’s “class life,” as defined by the IRS.

Amounts incurred for activities outside the safe harbor don’t necessarily have to be capitalized, though. These amounts are subject to analysis under the general rules for improvements.

De minimis safe harbor. Amounts paid for tangible property can be currently deducted for tax purposes if those amounts are deducted for financial accounting purposes or in keeping your books and records. However, a dollar limit applies:

$5,000 if you have an “applicable financial statement,” generally meaning one that’s audited by a CPA, or
$2,500 if you don’t have an applicable financial statement.

Additional rules apply that may limit or eliminate your current deduction for a particular expense.

Small business safe harbor. For buildings that initially cost $1 million or less, qualified small businesses may elect to deduct the lesser of $10,000 or 2% of the unadjusted basis of the property for repairs, maintenance, improvements and similar activities each year. A qualified small business is generally one with average annual gross receipts of $10 million or less for the past three tax years.

A variety of tax-saving opportunities

As you can see, various options may be available to immediately deduct repair and maintenance costs safely. But keep in mind that improvements might also be eligible to be deducted immediately in certain circumstances, such as if they qualify for 100% bonus depreciation or Section 179 expensing. Contact us to discuss what you can deduct on your 2025 return and to start planning for tax-efficient repairs, maintenance and improvements in 2026.

Once considered a temporary workaround, remote auditing is now a permanent part of how audits are planned and performed. Technological advances and evolving workforce expectations have pushed audit firms to rethink traditional, fully on-site approaches. The question isn’t whether remote auditing will continue (it will), but how firms and clients can use it effectively while maintaining audit quality.

How remote auditing gained momentum

The concept of remote auditing didn’t emerge overnight. Even before remote work became commonplace during the COVID-19 pandemic, accounting firms were gradually expanding the use of off-site audit procedures. Many firms invested in staff training and technology — such as cloud computing, secure remote access and videoconferencing tools — to work off-site. Moreover, advanced analytics software and continuous auditing tools enabled real-time testing, reducing reliance on certain traditional manual testing procedures.

These efforts were driven largely by a desire to reduce business disruptions and costs while improving flexibility for both auditors and clients. The pandemic served as a catalyst for the widespread adoption of remote auditing techniques. As firms became more comfortable with these tools, they found that some procedures could be completed just as effectively, if not more so, outside the traditional on-site model.

Why hybrid audits are the new standard

Even with well-established remote capabilities, certain audit areas still benefit significantly from being conducted in person. Auditing standards emphasize that auditors must obtain sufficient appropriate evidence, whether collected on-site or off-site. Your auditor’s risk assessment dictates how and where procedures are performed.

Today, most auditors use a hybrid approach. By combining off-site and in-person procedures, they can balance efficiency with effectiveness. Some examples include:

Internal control testing. Auditors must evaluate whether controls are properly designed and implemented, and if they’re operating effectively. Gaining a full understanding of a company’s control environment can be challenging through virtual meetings alone. In addition, auditors often need to reassess how transactions are processed when employees work remotely or in hybrid settings. Controls that were effective in prior periods may need to be updated or supplemented, and in-person observation can provide critical context.

Fraud-related inquiries. Auditing standards emphasize that inquiries of management and those charged with governance regarding fraud are most effective when conducted face-to-face. On-site discussions allow auditors to observe body language, assess tone and evaluate interpersonal dynamics — insights that are harder to capture through a screen.

Inventory observations. Auditors are required to obtain sufficient appropriate evidence that inventory exists and is in good condition. While technology, such as live video feeds, drones and security cameras, can support this process, these tools have limitations. Observing inventory counts in person, at least for a sample of locations, often remains necessary to verify accuracy and completeness.

Companies that are unwilling to allow in-person procedures in these areas may raise concerns about audit risk. And when auditors decide to use remote procedures, they must apply heightened professional skepticism and be well-trained in using technology effectively.

Remote auditing, together

The future of auditing is flexible, adaptable and often remote. However, maintaining audit quality requires using the right tools in the right situations. The optimal mix of remote and on-site procedures will vary based on a company’s size, industry, systems and risk profile. Contact us to discuss what makes sense for your organization. We’ll work closely with your internal finance and accounting team to design an audit approach that streamlines the process while upholding audit quality.

If your organization sponsors a qualified retirement plan for employees, you’re no doubt aware of the many compliance risks involved. But there’s one requirement in particular that many employers overlook: the written explanation — or “notice” — that employee-participants must receive when withdrawing money from the plan.

In Notice 2026-13, the IRS recently updated its model rollover notices to reflect changes set forth under the SECURE 2.0 Act. Although this update doesn’t require employer-sponsors to materially change their plans, it does affect the proper handling of certain types of distributions and the notices sent to employees about them.

What the law requires

Participants typically take eligible rollover distributions from a qualified plan when they experience a major transition, such as changing jobs, retiring or leaving the workforce. Internal Revenue Code Section 402(f) requires that participants receive a written rollover notice “within a reasonable period” before the distribution — generally no more than 180 days in advance, and at least 30 days before the distribution unless the participant waives that period. The notice must explain:

Their option to roll over the money into another plan or IRA,
The tax consequences of taking the money in cash vs. rolling over,
Any required tax withholding, and
Special rules that may apply to Roth funds vs. non-Roth funds.

As mentioned, the IRS provides model notices for plan administrators (and, in some cases, payors) to use as templates to help ensure compliance. If a notice is missing or inaccurate, it can create compliance and operational risks for the administrator/payor — and potentially the sponsor as well.

Areas of impact

The content of Notice 2026-13 is largely driven by SECURE 2.0, which significantly changed plan distribution rules. For starters, the IRS has updated its two safe-harbor explanations and issued them as two model notices. The first covers distributions from non-Roth accounts, such as traditional 401(k) plans. The second applies to distributions from designated Roth accounts, such as 401(k)s with a Roth option. If an employee is eligible to receive both types of distributions, both notices must be provided.

In addition, Notice 2026-13 addresses four other areas of impact:

1. Expanded exceptions to the early withdrawal penalty. Normally, unless an exception applies, distributions taken before age 59½ are subject to a 10% early withdrawal penalty. SECURE 2.0 expanded the list of exceptions, among other changes, to include certain distributions for:

Emergency personal expenses,
Domestic abuse victims,
Terminally ill individuals,
Qualified disaster recovery, and
Eligible long-term care.

The updated IRS model notices clarify the exceptions and their associated tax treatment to help employees understand their options.

2. Required minimum distribution (RMD) changes. SECURE 2.0 also changed the age at which employees must begin taking RMDs. The starting age is now 73 or 75 (up from 72), depending on the individual’s birth year. Also, lifetime RMDs have been eliminated for Roth accounts held in employer-sponsored retirement plans. The revised model notices no longer explicitly reference age in determining a participant’s required beginning date for RMDs. They also reflect changes to the RMD rules for surviving spouses and the elimination of RMDs for Roth accounts.

3. Higher “cash out” amount. SECURE 2.0 increased the dollar threshold below which a plan may make an immediate lump-sum distribution without a participant’s consent following a qualifying event. The new model notices disclose the higher threshold of $7,000 (up from $5,000), which also applies to automatic rollovers of mandatory distributions.

4. Special rules for “pension-linked” emergency savings accounts (PLESAs). Introduced under SECURE 2.0, PLESAs allow eligible participants in defined contribution plans to build emergency funds they can draw on rather than tapping their retirement savings. The revised model notices now include an explanation of the PLESA distribution rules.

Employer actions

Use of the IRS model notices isn’t required, but they’re generally considered a good place to start. Plan administrators/payors may customize their notices by removing inapplicable sections. Just be sure yours clearly include all required information.

So, where should you go from here? First, confirm that your internal benefits team or third-party administrator/payor is aware of the new model notices and is considering their impact. Second, review who’s responsible for delivering rollover notices, and verify that the issuance process reflects the current rules under SECURE 2.0.

Good for everyone

Clear, accurate rollover notices protect your organization, reduce compliance risk and deliver important information to participants. We can help you review your qualified retirement plan to identify vulnerabilities and align it with your budget and strategic objectives.

Does your family business keep its strategic decisions within the family? It’s common for family businesses to assign relatives to positions of authority and require other employees to defer to them. But “common” doesn’t necessarily mean “good.” Not only is outside input recommended, but it can help reduce the risk of certain problems (such as unaccountability and fraud) and promote long-term financial health. Here’s how your family business might benefit from an advisory board made up primarily of nonfamily members.

A consulting body

An advisory board serves only in a consulting capacity. So it doesn’t carry the fiduciary responsibilities or legal authority of a formal board of directors. Small business advisory boards generally are less formal and enjoy greater freedom to develop creative solutions and suggest new business opportunities.

Advisory boards can also act as mediators. Board members may provide perspective and potential solutions for family disagreements over:

Your company’s strategic direction,
Growth and expansion opportunities,
Mergers and acquisitions,
Loans and other financing initiatives,
Compensation and promotion decisions,
Interpersonal conflicts, and
Succession plans.

Depending on your board’s composition, it may also be qualified to offer opinions on legal, regulatory and complicated financial issues.

Building the base

You’ll want a mix of professionals from varying fields, demographics and backgrounds on your board. One effective way to recruit advisory board members is to network with business, industry, community, academic and philanthropic organizations. You may also want to involve professional advisors, such as your CPA, banker, insurance agent, estate planner or legal counsel. These advisors will likely already be familiar with your company’s goals, issues and operations.

Specify the mix of traits and qualifications — leadership skills, experience, competencies, education, affiliations and achievements — needed in members to fulfill your board’s purpose. Ensure these individuals are willing to make candid observations and provide constructive advice. They must also maintain confidentiality and exercise discretion regarding sensitive business and family matters.

It may be practical for you or another family member to serve as the advisory board’s chair. But as your business grows in size and complexity and the demands on your time increase, consider delegating this responsibility to a board member.

Nail down the details

Other details to work out include the frequency of advisory board meetings. Meeting at least monthly initially will help the group build rapport and become relevant to your business. Once the board is established, quarterly meetings may suffice. However, emergency meetings scheduled on short notice may become necessary at certain points.

Your business should cover advisory board members’ travel costs and pay them for their time. Cash compensation makes sense for family businesses that intend to remain closely held. However, companies planning to go public often issue stock or equity-based compensation (subject to legal and tax considerations).

Impartial perspectives

If your family business doesn’t already have one, consider creating an independent advisory board to provide impartial perspectives on your company’s pressing challenges and opportunities. Contact us to discuss how we can help you design an effective advisory board — or participate as an independent financial advisor to support governance and long-term planning.

Business owners generally experience a range of emotions — including anger, bewilderment and embarrassment — if fraud occurs in their organization. Fraud can feel personal because it may imply management incompetence or misplaced trust. For their part, managers and ordinary employees often fear punishment when fraud is revealed. So they may minimize or rationalize the incident, or simply keep their mouths shut. Such silence can be dangerous.

Emphasize accountability

If you and your managers downplay a fraud incident or try to keep information from employees, it will likely only fuel the rumor mill and lower morale. Silence and inaction (such as failing to upgrade internal controls) can also empower fraud perpetrators. Those bent on theft may feel reassured they won’t be exposed or suffer consequences, even if misconduct is discovered.

When potential fraud comes to light, promptly interview witnesses and gather physical and digital evidence in a way that preserves integrity and chain of custody. Instead of accusing a person who might have enabled the fraud, you should investigate how it was possible. What decisions, controls and signals — for example, inadequate management oversight or infrequent audits — helped facilitate the fraud? Just keep in mind that identifying which management or employee decisions or actions contributed to the incident should be a byproduct of your investigation, not its primary focus.

In the immediate aftermath

Within 24 to 48 hours of learning about a fraud incident, initiate the following actions (potentially with assistance from your attorney or a forensic accountant):

Determine what happened, who did it and how,
Trace the movement of money or data and attempt to recover it,
Identify any red flags management missed,
Assess where internal controls helped — and where they failed, and
Work with your public relations team to decide what information you want to share.

Then prepare a one-page summary that outlines the scheme and the facts you’ve uncovered. Give copies of this document to legal counsel, law enforcement and other third parties that need the information, such as your CPA firm, insurance provider or bank. As your knowledge of the incident evolves, update the summary.

Postmortem and future steps

After you’ve handled the most urgent tasks (including, if applicable, terminating the guilty party), discuss lessons you’ve learned with your managers and put them in writing. If you determine your business needs more effective internal controls, make immediate changes. Also create a log for new fraud incidents and “near misses.” This document should include dates, methods, amounts, root causes and resolutions.

In addition, talk to workers about the threats your business faces. Where appropriate, communicate high-level information about recent incidents and encourage employees to submit tips anonymously via a web-based portal or hotline. You can normalize fraud discussions by sharing a “scam of the month” or recent fraud news. And be sure to praise early reporting of emerging threats and averted incidents.

When to seek help

Despite your best efforts to determine what happened and how policy and procedure changes can prevent it from happening again, some schemes may be too complex to handle internally. Work with your attorney and consider hiring a forensic accountant to investigate. This is particularly critical if you suspect a high-level perpetrator, have significant financial losses, are worried about protecting sensitive customer or employee data, or require an overhaul of internal controls. Contact us for help.

If you own a business or are self-employed and haven’t already set up a tax-advantaged retirement plan, consider establishing one before you file your 2025 tax return. If you choose a Simplified Employee Pension (SEP), you’ll be able make deductible 2025 contributions to it, saving you taxes. Not only is the SEP deadline favorable, but SEPs are easy to set up and the contribution limits are generous. If you have employees, you’ll generally have to include them in the SEP and make contributions on their behalf, which are also deductible.

Deadlines in 2026 for 2025

A SEP can be established as late as the due date (including extensions) of the business’s income tax return for the tax year for which the SEP is to first apply. For example:

A calendar-year partnership or S corporation has until March 16, 2026, to establish a SEP for 2025 (September 15, 2026, if the return is extended).
A calendar-year sole proprietor or C corporation has until April 15, 2026 (October 15, 2026, if the return is extended) because of their later filing deadlines.

The deadlines for limited liability companies (LLCs) depend on the tax treatment the LLC has elected. The business has until these same deadlines to make 2025 contributions and still claim a deduction on its 2025 return.

Simple setup

A SEP is established by completing and signing the very simple Form 5305-SEP, “Simplified Employee Pension — Individual Retirement Accounts Contribution Agreement.” Form 5305-SEP isn’t filed with the IRS, but it should be maintained as part of the business’s permanent tax records. A copy of Form 5305-SEP must be given to each employee covered by the SEP, along with a disclosure statement.

You’ll then make deductible contributions to your SEP account, called a “SEP-IRA,” and, if you have employees, to each eligible employee’s SEP-IRA. Employee accounts are immediately 100% vested. Your contributions on behalf of employees will be excluded from their taxable income. When SEP distributions are taken, likely in retirement, they’ll be taxable.

Discretionary, potentially large contributions

Contributions to SEPs are discretionary. You, as the business owner, can decide what amount of contribution to make each year. But be aware that, if your business has employees other than yourself, contributions must be made for all eligible employees using the same percentage of compensation as for yourself.

For 2025, the maximum contribution that can be made to a SEP is 25% of compensation (or approximately 20% of net self-employed income) of up to $350,000, subject to a contribution cap of $70,000. (The 2026 limits are $360,000 and $72,000, respectively.)

Right for you?

While SEPs are much simpler than most other tax-advantaged retirement plans, they’re subject to additional rules and limits beyond what’s discussed here. To learn more, contact us. We can help you determine whether a SEP is right for you and, if so, assist you with setting it up — and maximizing your 2025 tax savings.

The gift tax annual exclusion allows you to transfer up to $19,000 (for 2026) per beneficiary gift-tax-free, without tapping your $15 million (for 2026) lifetime gift and estate tax exemption. You can double the exclusion amount if you elect to split the gifts with your spouse.

Gift-splitting in a nutshell

Gift-splitting allows married couples to treat a gift made by one spouse as if it were made equally by both spouses. This election can reduce future estate tax exposure and provide greater flexibility in passing wealth to the next generation.

For example, let’s say that you have two adult children and four grandchildren. You can gift each family member up to $19,000 tax-free by year end, for a total of $114,000 ($19,000 × 6). If you’re married and your spouse consents to a joint gift (or a “split gift”), the exclusion amount is effectively doubled to $38,000 per recipient, for a total of $228,000.

Avoid common mistakes

It’s important to understand the rules surrounding gift-splitting to avoid these common mistakes:

Misunderstanding IRS reporting responsibilities. Split gifts and large gifts trigger IRS reporting responsibilities. A gift tax return is required if you exceed the annual exclusion amount or give joint gifts with your spouse. Unfortunately, you can’t file a “joint” gift tax return. In other words, each spouse must file an individual gift tax return for the year in which you both make gifts.

Gift-splitting with a noncitizen spouse. To be eligible for gift-splitting, both spouses must be U.S. citizens.

Divorcing and remarrying. To split gifts, you must be married at the time of the gift. You’re ineligible for gift-splitting if you divorce and either spouse remarries during the calendar year in which the gift was made.

Gifting a future interest. Only present-interest gifts qualify for the annual exclusion. So gift-splitting can be used only for present interests. A gift in trust qualifies only if the beneficiary receives a present interest — for example, by providing the beneficiary with so-called Crummeywithdrawal rights.

Benefiting your spouse. Gift-splitting is ineffective if you make the gift to your spouse, rather than a third party; if you give your spouse a general power of appointment over the gifted property; or if your spouse is a potential beneficiary of the gift. For example, if you make a gift to a trust of which your spouse is a beneficiary, gift-splitting is prohibited unless the chances your spouse will benefit are extremely remote.

Be aware that, if you die within three years of splitting a gift, some of the tax benefits may be lost.

Proper planning required

Whether gift-splitting is right for you and your spouse depends on your estate size and long-term objectives, among other factors. Because the election involves technical requirements and potential implications for future planning, it’s important to carefully evaluate the strategy. We can help ensure that your split gifts comply with federal tax laws.

Payroll fraud schemes can be costly — and for small businesses, devastating. The Association of Certified Fraud Examiners (ACFE) has found that the median loss from payroll fraud schemes is $50,000. However, some long-term payroll frauds, particularly when perpetrated by upper management, have produced losses in the millions of dollars. Can your company afford that? Probably not.

Payroll fraud incidents can also result in bad publicity, weakened employee morale and, potentially, an IRS investigation. It’s critical that your business take steps to protect its payroll function.

Illegal self-enrichment

There are several ways for fraud perpetrators to illegally manipulate payroll to enrich themselves. For example, cybercriminals often target payroll functions. They might use phishing emails to trick your workers into providing sensitive information, such as bank login credentials. This becomes a form of payroll fraud if they divert payroll direct deposits to accounts they control. Criminals might also target you and accounting department managers by sending fake emails from “employees” requesting changes to their direct deposit instructions.

Also watch out for occupational payroll fraud. In the absence of appropriate internal controls, crooked accounting staffers could add invented “ghost” employees to the payroll. The wages of those ghost employees might then be deposited in accounts controlled by the fraudsters.

And any employee who files for expense reimbursement may inflate expenses, submit multiple receipts for the same expense or claim fictitious expenses. This is considered payroll fraud because reimbursements are often added to paychecks. By the same token, workers eligible for overtime who artificially inflate their work hours are also generally considered payroll fraud perpetrators.

Effective internal controls

To prevent payroll fraud — and uncover it quickly if it occurs — implement and enforce strong internal controls. For instance, require two or more employees to make payroll changes, such as increasing pay rates or adding or removing employees. Payroll staffers should be alert for excessive or unusual pay rates, hours or expenses. And if they receive a request to change an employee’s direct deposit information, they should verify the request with the worker before proceeding.

For their part, department managers must closely monitor employee expense reimbursement requests. They should ask employees to explain discrepancies, such as totals that don’t add up or expense claims that lack receipts.

Other effective controls include:

Audits. Regularly conduct payroll audits to detect anomalies. Also audit automatic payroll withdrawals to confirm proper transfers are made.

Training. Educate employees about payroll schemes, phishing attacks and the importance of not sharing sensitive information.

Confidential hotlines. Offer an anonymous hotline or web portal to employees, customers and vendors to report fraud suspicions. Be sure to investigate every report.

Tax responsibilities

Finally, a scheme that’s most often perpetrated by business owners and executives is deliberately failing to pay required payroll tax. Ensure that upper management and payroll department employees understand their tax responsibilities and that no one individual has the ability to divert funds intended for payroll tax to a personal account. Contact us for more information and assistance with internal controls.