Beyond the Budget: How Nonprofits Can Forecast with Confidence

For many nonprofit leaders, budgeting is a familiar annual exercise. A budget is created, approved, and used as a guide for the year ahead. While budgets remain important, I’ve found that the organizations best equipped to navigate uncertainty don’t stop there. They treat forecasting as an ongoing process rather than a once-a-year event.

After serving as a fractional and interim CFO for numerous nonprofits, I’ve seen firsthand how effective forecasting helps organizations make informed decisions, adapt to changing conditions, and position themselves for long-term sustainability. Forecasting isn’t about predicting the future with perfect accuracy. It’s about understanding what may lie ahead and preparing your organization to respond.

Building Stability Through Diverse Revenue Streams

One of the biggest forecasting challenges nonprofits face is uncertainty around funding. Economic conditions, donor behavior, grant availability, and community needs can all shift unexpectedly. When that happens, organizations that rely heavily on a single source of revenue often find themselves in a difficult position.

That’s why I encourage nonprofits to think strategically about diversifying their revenue streams. Organizations with multiple funding sources are generally better positioned to weather unexpected changes. This may mean strengthening annual giving campaigns, pursuing additional grant opportunities, developing corporate partnerships, or identifying other sources of support that align with the mission.

Consider asking: How dependent are we on a single funding source?

Organizations that are actively evaluating funding risk often look for opportunities to diversify through:

Annual giving campaigns
Local and regional grant opportunities
Corporate sponsorships and partnerships
Individual donor development
Fee-for-service or earned revenue programs, when appropriate

Even small shifts toward diversification can improve financial resilience over time.

What If Your Nonprofit Relies Primarily on Donations or Grants?

A question I frequently hear is how to forecast when an organization relies primarily on donations or grant funding.

The answer often starts with looking backward before looking forward.

Historical information can provide valuable context, especially during periods of economic uncertainty. If current conditions resemble a previous period your organization has experienced, that historical data can offer useful insights into donor behavior, funding patterns, and financial performance.

For example, if donations are slowing due to economic conditions, reviewing comparable periods from prior years may help establish realistic expectations. The same principle applies to grant-funded organizations. If the most recent year was unusually strong or unusually weak, it may not be the best benchmark for future planning. Looking at broader trends often produces a more reliable forecast than focusing on a single year.

Forecasting is most effective when it combines historical performance, current realities, and informed assumptions about what may come next.

A Simple Forecasting Reality Check

When evaluating your forecast, ask:

Are we basing projections on current conditions or last year’s assumptions?
Have donor or grant trends changed significantly?
What happens if a key funding source decreases?
Do we have a contingency plan if revenue falls short?

These conversations often uncover risks—and opportunities—that may not be obvious in the budget alone.

Moving Beyond the Static Budget

One of the most valuable forecasting tools available to nonprofits is the rolling forecast.

Unlike a traditional annual budget, which is typically developed once and revisited periodically, a rolling forecast is continuously updated. As one month ends, another month is added to the forecast horizon. The organization is always looking ahead rather than relying solely on assumptions made many months earlier.

In my experience, rolling forecasts provide nonprofit leaders with a much clearer picture of where the organization is headed. They allow leadership teams to identify challenges earlier, evaluate opportunities more effectively, and make adjustments before small issues become larger problems.

A budget remains an important planning tool, but a rolling forecast helps organizations stay connected to current conditions throughout the year.

What If Your Nonprofit Doesn’t Have Historical Data?

New and emerging nonprofits face a unique challenge: they often don’t have years of financial history to guide their planning.

When that’s the case, I encourage leaders to look outside their own organization. Similar nonprofits can provide valuable benchmarks for understanding revenue expectations, staffing needs, program costs, and growth patterns.

One of the strengths of the nonprofit sector is the willingness of organizations to share knowledge and experiences. Reaching out to leaders at organizations with similar missions, sizes, or service models can provide practical insights that help build more realistic forecasts.

No forecast will be perfect, especially for a newer organization. The goal is to create a reasonable framework that can be refined as more information becomes available.

Creating Ownership Across the Organization

Forecasting should never be the sole responsibility of the finance department.

The most effective budgeting and forecasting processes involve department leaders, program managers, and key decision-makers throughout the organization. In fact, I believe those closest to the work are often best positioned to help build realistic budgets and forecasts.

When leaders participate in the planning process, they gain a greater understanding of financial expectations and are more likely to take ownership of the results. Regular meetings to review actual performance against the budget or forecast create opportunities to answer questions, identify issues, and make corrections when needed.

These conversations also help uncover common challenges, such as revenue or expense misclassifications, before they become larger concerns.

Whether an organization has three departments or thirty, the principle remains the same: consistent communication creates accountability.

Forecasting as a Leadership Tool

The nonprofits that navigate uncertainty most successfully are not necessarily the ones with the largest budgets or the most resources. More often, they are the organizations that consistently evaluate their financial position, adapt to changing circumstances, and make decisions based on reliable information.

Forecasting provides leaders with the visibility needed to do exactly that.

When viewed as an ongoing process rather than a once-a-year exercise, forecasting becomes much more than a financial tool. It becomes a strategic tool that helps nonprofit leaders make informed decisions, manage risk, and create a stronger future for the organizations and communities they serve.

You’re Not Alone in Navigating These Challenges

Whether you’re evaluating funding risks, strengthening internal financial processes, preparing for growth, improving board effectiveness, or planning for leadership transitions, having the right advisors can make a meaningful difference.

At Yeo & Yeo, our nonprofit team brings together professionals with experience in audit and assurance, accounting and advisory services, outsourced and fractional CFO support, strategic planning, governance, HR consulting, and operational improvement. Because these areas are often interconnected, we work collaboratively to help organizations build stronger foundations for long-term success.

If you’d like to discuss your organization’s goals, challenges, or planning process, get in touch.

You may already know that hiring a family member in your small business can create tax advantages. In the right situation, the arrangement can support a business deduction, shift income within the family, potentially reduce payroll taxes, and create earned income for retirement savings.

But, it’s not as simple as just putting a relative on payroll. You have to identify a legitimate business role, pay reasonable compensation, and structure the arrangement in a way that matches the tax rules. That’s where many owners get into trouble. The tax benefits can be meaningful, but only when the arrangement is handled with the same discipline as any other employment relationship.

Start with the right question

Hiring a relative works best when you start with substance. Is there real work in your business that a family member can perform?

That’s how these arrangements usually begin. A child might be able to help with inventory, filing, basic marketing tasks, or seasonal work. A spouse may already be handling bookkeeping, scheduling, or client communication. A parent may be helping with administrative support. The tax benefit is not the reason the role exists; it’s the byproduct of formalizing a role the business actually needs.

Once that role exists, formality matters. The IRS looks to the actual facts of the relationship, not just what you call it. A written job description, time tracking, reasonable pay, and proper payroll reporting help establish that this is real employment, not a personal payment dressed up as a wage.

Where the tax advantages can be real

Wages paid for legitimate services are generally deductible whether the employee is related to you or not. The opportunity here is that, in the right circumstances, hiring a family member can stack several planning benefits at once.

You may be able to deduct the wages at the business level, move income to a family member in a lower tax bracket, reduce payroll taxes if you are hiring a child through the right type of entity, and create earned income that can support an IRA contribution. That combined effect is what makes the strategy valuable.

But those results depend heavily on structure and execution.

Hiring your child

Hiring your child is where the tax planning opportunity is usually strongest, but only when the facts support it.

In a sole proprietorship, or in a partnership in which each partner is a parent of the child, wages paid to a child under 18 are generally exempt from Social Security and Medicare taxes, and wages paid to a child under 21 are generally exempt from FUTA. Those wages are still subject to income tax withholding rules. If the business is a corporation, or a partnership in which even one partner is not that child’s parent, the special exception generally doesn’t apply.

That can add up quickly in practice. Let’s say your sole proprietorship pays your 16-year-old child $10,000 for legitimate summer and after-school work, and the pay is reasonable for the job. The business may deduct the $10,000 wage, reducing the income that would otherwise flow through to you as the owner. Because the child is under 18 and employed in a parent’s sole proprietorship, those wages are generally not subject to Social Security and Medicare taxes. Using the current combined 15.3% FICA rate, that’s about $1,530 of payroll tax avoided.

The income-tax side can be just as meaningful. If that same $10,000 had remained in the business, it generally would have flowed through to you and been taxed at your marginal rate. If your combined marginal tax rate is around 30%, that is about $3,000 of tax on the same $10,000. By contrast, if your child has no other income, a $10,000 wage would generally be fully sheltered by the dependent standard deduction for 2026, which is earned income plus $450, up to $16,100. In that fact pattern, the child would typically owe no federal income tax on the $10,000. So between the income-tax shift and the payroll-tax savings, the family-level benefit on $10,000 of wages could easily exceed $4,500, depending on your tax bracket and overall facts.

And the benefit doesn’t have to end there. If the child is otherwise eligible, some of those wages may also be contributed to an IRA. For 2026, the IRA contribution limit is $7,500, or the amount of the child’s taxable compensation if less. That can turn a short-term payroll decision into long-term tax-advantaged savings. And those dollars aren’t necessarily untouchable for decades. IRA rules generally include exceptions to the 10% early distribution penalty for certain higher education expenses and up to $10,000 for a first-time home purchase, although a traditional IRA withdrawal is generally still taxable.

None of this means any amount of pay works. It still has to be reasonable. Paying a teenager an inflated salary for minor tasks is exactly the kind of fact pattern that turns planning into a problem.

Hiring your spouse or parent

Hiring your spouse is usually less about a special payroll-tax break and more about aligning compensation with reality. Wages paid to a spouse in your trade or business are generally subject to income tax withholding and Social Security and Medicare taxes, but not FUTA. That can still matter if your spouse is already doing meaningful work and formal compensation may support retirement plans or benefit participation that depends on employee status, compensation, and plan terms.

Hiring a parent can also make sense, but the rules are different. In a child’s trade or business, wages paid to a parent are generally subject to income tax withholding and Social Security and Medicare taxes, but not FUTA. As with any family hire, the work has to be real, the pay has to be reasonable, and the records need to support the arrangement.

The mistakes to avoid

The biggest risk in family payroll planning is not that you hired a relative. It’s failing to treat the arrangement like real employment.

The first mistake is unreasonable pay. If compensation is inflated, poorly documented, or disconnected from the work performed, the deduction becomes harder to defend.

The second is worker misclassification. A family relationship does not let you skip the employee-versus-contractor analysis. If you control what work is done and how it is done, the worker may well be an employee.

The third is ignoring labor law. Tax rules and employment rules are not the same system, especially when minors are involved. Federal youth-employment rules may allow children to work in a parent-owned business in some cases, but hazardous occupation restrictions still apply, and state law may be stricter.

A fourth issue to review is the impact on any retirement plan your business already sponsors. If you have a 401(k) or other qualified plan, adding relatives to payroll can affect the analysis because family attribution rules may cause a spouse, child, parent, or grandparent of a 5% owner to be treated as a 5% owner for highly compensated employee purposes. That can affect nondiscrimination testing and other plan compliance considerations, so it’s worth reviewing before you add family members to payroll.

The simplest way to protect yourself is to create the same paper trail you would want for any employee. Write down the role. Describe the duties. Track hours. Use payroll. Pay by check or direct deposit, not with vague year-end adjustments. Match the wage to market reality.

The real planning opportunity

Hiring a family member can be smart tax planning, but only when it reflects a real job, a reasonable wage, and correct payroll treatment. The opportunity is not in treating relatives casually. It’s in treating them formally enough that the tax benefits are actually defensible.

If you’re considering hiring a family member, this is a good issue to review before you run payroll, not after. Our office can help you evaluate whether the role is structured properly, whether the wages are reasonable, and whether the expected tax benefits actually apply to your entity and family situation. Reach out if you would like guidance before putting a relative on payroll.

A new tax year brings new contribution limits, but the real planning opportunity is in using them early enough to matter.

For 2026, the IRS has increased several key retirement plan and IRA contribution limits, while HSA limits have also moved higher. For high-income households, these limits should be viewed as a planning prompt. The earlier the year’s savings strategy is set, the easier it becomes to coordinate payroll deferrals, tax projections, cash flow, employer matches, Roth decisions, and health care planning.

The households who benefit most are often not the ones that simply “max everything out.” They are the ones that decide, deliberately, which account should receive the next dollar.

The 2026 retirement limits are higher

The headline number for many employees is the 2026 elective deferral limit. Participants in 401(k), 403(b), most governmental 457 plans, and the Thrift Savings Plan may contribute up to $24,500 in employee deferrals for 2026. For participants age 50 or older, the general catch-up contribution limit is $8,000, allowing total employee contributions of up to $32,500 where the plan permits catch-up contributions.

There is also a special catch-up opportunity for certain older workers. Under SECURE 2.0, employees who are ages 60-63 may be eligible for a higher catch-up contribution. For 2026, that higher catch-up limit is $11,250 for many 401(k), 403(b), governmental 457, and Thrift Savings Plan participants.

That means a 62-year-old employee in an eligible plan may be able to defer up to $35,750 in 2026: the $24,500 regular limit plus the $11,250 enhanced catch-up amount.

For business owners and highly compensated employees, several other 2026 limits also matter. The annual additions limit for defined contribution plans increases to $72,000, and the annual compensation limit for qualified retirement plan purposes increases to $360,000. These figures can affect profit-sharing plans, owner-only 401(k)s, safe harbor plans, and other plan design strategies.

The practical takeaway is simple: if you intend to use these limits, waiting until the fourth quarter may leave too little time to adjust payroll elections, manage cash flow, and capture the full planning benefit.

Why early action matters

A contribution limit is an annual number, but most employees fund retirement plans paycheck by paycheck. That makes timing important.

For example, an employee who wants to contribute the full $24,500 to a 401(k) over 26 pay periods would need to defer roughly $942 per paycheck. A participant age 50 or older using the full $32,500 limit would need to defer $1,250 per paycheck. A participant aged 60 through 63 eligible for the enhanced catch-up amount would need to defer roughly $1,375 per paycheck to reach $35,750 over 26 pay periods.

Starting early makes those numbers more manageable. It can also help you invest more consistently throughout the year, rather than trying to time the market or making one large contribution at a single point in time. Contributing from each paycheck can create a dollar-cost averaging effect, which may reduce the risk of investing a large amount immediately before a market decline.

Early action can also reduce the risk of deferring too aggressively early in the year and maxing out before receiving all available employer matching contributions.

This is especially important for executives, employees with large bonuses, and workers with uneven compensation. Some employer plans provide a “true-up” contribution if an employee reaches the annual limit before year-end. Others do not. Without a true-up, maxing out too early can unintentionally leave employer match dollars on the table.

Early planning also gives you time to decide whether contributions should be made on a pretax basis, Roth basis, or a combination of both. That decision should not be made in isolation. It belongs inside a broader tax conversation that considers current tax brackets, future retirement income, Roth conversion opportunities, charitable giving, equity compensation, business income, and estate planning goals.

IRAs remain useful, but be mindful of the rules

The IRA contribution limit increases to $7,500 for 2026. The catch-up contribution limit for individuals age 50 or older increases to $1,100, allowing eligible older taxpayers to contribute up to $8,600.

However, for many affluent households, the IRA conversation is less about the limit and more about eligibility, deductibility, and tax reporting.

For traditional IRAs, income can limit deductibility when the taxpayer or spouse is covered by a workplace retirement plan. For Roth IRAs, income can limit the ability to contribute directly. Importantly, these limits are based on modified adjusted gross income (MAGI), which may differ from taxable income or gross compensation.

In 2026, the Roth IRA contribution phaseout range is $153,000 to $168,000 for single filers and heads of household, and $242,000 to $252,000 for married couples filing jointly.

That doesn’t mean IRA planning is unavailable for high earners. It does, however, require a more deliberate strategy. Backdoor Roth IRA contributions may be appropriate for some, but existing pretax IRA, SEP IRA, or SIMPLE IRA balances can create pro rata tax consequences. Nondeductible IRA contributions also need proper tax reporting, including Form 8606.

For higher income households, the question should not be, “Can I put money into an IRA?” The better question is, “What kind of IRA contribution makes sense, and what are the tax consequences of making it?”

HSAs deserve retirement-level attention

Health Savings Accounts are often treated as benefit-plan side notes. If you are eligible to contribute to one, that can be a missed opportunity.

For 2026, the HSA contribution limit is $4,400 for self-only high-deductible health plan coverage and $8,750 for family coverage. The 2026 minimum deductible for an HSA-compatible high-deductible health plan is $1,700 for self-only coverage and $3,400 for family coverage. The maximum out-of-pocket limit is $8,500 for self-only coverage and $17,000 for family coverage.

The HSA catch-up contribution for individuals age 55 or older remains $1,000.

If you are eligible and can afford to pay current medical costs from cash flow, an HSA can be a powerful long-term planning account. Contributions may be deductible or made pretax through payroll. Growth is tax-deferred. Distributions are tax-free when used for qualified medical expenses.

That combination can make the HSA especially valuable in retirement planning, where health care expenses are often a significant and underappreciated future cost. An HSA can help cover qualified medical expenses later in life, including certain Medicare premiums, out-of-pocket health care costs, and eligible long-term care expenses.

But HSAs also come with rules that require coordination. Employer contributions count toward the annual contribution limit. Married spouses who are both age 55 or older generally need separate HSAs if both want to make catch-up contributions. And Medicare timing matters: once you are enrolled in Medicare, your HSA contribution limit generally becomes zero beginning with the first month of Medicare coverage. That does not mean you lose access to your existing HSA. You can still use HSA funds for qualified medical expenses, but you generally can no longer make new HSA contributions after Medicare enrollment begins.

If you are approaching Medicare age, that timing deserves attention. Depending on your employment, health coverage, and Medicare enrollment decision, you may want to evaluate whether it makes sense to contribute more to your HSA before enrolling. You should also be careful with delayed Medicare enrollment, because retroactive Medicare coverage can cause contributions made during the retroactive coverage period to be treated as excess contributions.

This is another reason early-year planning matters. HSA contributions should be coordinated with health coverage, employer funding, payroll elections, Medicare timing, and household cash flow.

Business owners should look beyond the basic limits

If you own a business, the higher 2026 limits are a reason to revisit plan design, not just contribution amounts.

A SIMPLE IRA may be appropriate for some smaller employers because of its administrative simplicity. For 2026, the general SIMPLE IRA and SIMPLE 401(k) salary reduction contribution limit increases to $17,000, with a general age-50 catch-up limit of $4,000. Certain SIMPLE arrangements may have different enhanced limits under SECURE 2.0 rules.

But simplicity is not always the highest-value answer. If your business has strong and stable cash flow, it may be worth comparing a SIMPLE IRA with a SEP IRA, solo 401(k), safe harbor 401(k), profit-sharing plan, or even a cash balance plan. The right design can substantially change how much you can contribute, how much must be contributed for employees, how predictable the annual funding obligation is, and how the tax deduction works.

The 2026 defined contribution limit of $72,000 and annual compensation limit of $360,000 are particularly relevant in this analysis. For owner-only businesses, closely held companies, and professional practices, those limits may create room for more meaningful retirement funding than a basic IRA strategy would allow.

This is not a December conversation. Plan design, payroll setup, employee notices, nondiscrimination testing, and cash-flow projections require lead time. Safe harbor 401(k) plans, for example, may require annual notices to eligible employees before the start of the plan year. IRS guidance generally treats a safe harbor notice as timely if it is provided at least 30 days, and no more than 90 days, before the beginning of the plan year.

If you are considering a new plan, changing an existing plan, or adding safe harbor features, those discussions should happen as early as possible. Waiting until year-end may leave too little time to evaluate the options, prepare documents, notify employees, coordinate payroll, and implement the plan properly.

Roth catch-up rules add another layer

If you are a higher-income employee and age 50 or older, you should also pay attention to the Roth catch-up rules created by SECURE 2.0.

For 2026, the wage threshold tied to mandatory Roth catch-up treatment increases to $150,000. In general, if your prior-year wages from the same employer exceed the applicable threshold, you may be required to make catch-up contributions as Roth contributions rather than pretax contributions, if you make catch-up contributions at all.

This rule makes coordination with your employer, payroll provider, and plan administrator more important. It also makes tax planning more nuanced. A Roth catch-up contribution does not reduce current taxable income, but it can improve future tax diversification by shifting more retirement savings into an account that may be distributed tax-free if Roth distribution requirements are met.

That trade-off may be attractive if you are intentionally building Roth assets or expect higher tax rates in the future. But if you are in peak earning years and are counting on pretax catch-up contributions to reduce current taxable income, the Roth catch-up requirement may call for broader planning adjustments elsewhere in your tax strategy.

Common mistakes to avoid

The most common mistake is also the simplest: failing to update your contribution elections. A deferral percentage that was adequate in 2025 may not fully use the higher 2026 limit.

Other mistakes are more technical. You may max out a 401(k) too early and miss employer match dollars if your plan does not provide a true-up contribution. You may contribute directly to a Roth IRA despite being over the income limit. You may fund an HSA without accounting for employer contributions, which count toward the annual limit. You may continue making HSA contributions after Medicare enrollment begins, even though you can still use an existing HSA for qualified medical expenses. Or you may attempt a backdoor Roth IRA without first considering existing pretax IRA balances and the pro rata rule.

None of these issues are unusual. Most are preventable when you review the rules, update elections early, and coordinate retirement and HSA contributions with your broader tax plan.

Turn higher limits into better planning

The 2026 limits create more room for tax-advantaged saving. But room is not the same as results.

If you act early, you can spread contributions across the year, protect employer match opportunities, coordinate Roth and pretax decisions, use HSAs more strategically, and align retirement funding with the rest of your tax plan.

A good savings year can be wasted by waiting too long or funding accounts without a clear strategy. Before simply increasing contributions, consider which accounts to prioritize, how much to contribute, and how those choices fit within your broader retirement, tax, estate, and cash-flow plan.

Our office can help you evaluate the 2026 limits in the context of your full financial picture and identify planning moves that make sense for your situation. Reach out to discuss how to use this year’s retirement and HSA opportunities deliberately.

Are you newly married or about to get married this year? Congratulations. But somewhere between the honeymoon and unpacking, there’s a list of tax changes that most couples simply don’t think about. And that’s exactly the problem. The IRS treats marriage as a significant life event, which means your tax situation changes whether you’re ready for it or not. For many couples, especially dual-income earners, missing these changes can mean a surprise tax bill in April.

The good news is that many of these issues are straightforward to address now, before the year ends. Handling them proactively keeps you from scrambling in March or discovering problems when you file. Here’s what you need to know.

Your filing status just changed, even if nothing else did

Your marital status on December 31st determines your filing status for the entire tax year. Even if you get married in May, June, or later this year, you’ll file as married for 2026. This single change affects your tax brackets, standard deduction, and eligibility for certain credits, which is why it matters far more than most couples realize.

For most married couples, filing jointly is the right move. You’ll benefit from wider tax brackets, a higher standard deduction, and access to valuable credits like the child tax credit and education credits that may not be available if you file separately. Filing jointly also simplifies your return and often results in a lower overall tax bill.

However, there are situations where married filing separately deserves consideration. If one spouse is pursuing income-driven repayment on federal student loans, filing separately can keep that spouse’s income lower on their individual return, which directly lowers their monthly payment obligation. Similarly, if one spouse has significant liability concerns or anticipates collection issues, filing separately can provide a layer of protection. These scenarios are nuanced, and the decision hinges on your specific circumstances. Before you choose to file separately, talk to your CPA. The tax savings or liability protection may be real, but so are the downsides you might not see coming.

The withholding problem no one warns you about

Once your filing status is settled, the next thing to address is your withholding. And for two-income couples, this is where the most expensive surprises tend to hide.

Federal income tax is a pay-as-you-go system. Your employer withholds tax from each paycheck based on the information you provide on Form W-4, and the default withholding tables were designed with a single income in mind. When two earners file jointly, their combined income gets taxed at rates that reflect the full household total, but each employer is only withholding based on one salary in isolation.

Here’s what that looks like in practice: if you each earn $70,000, your household income is $140,000. The marginal rate that applies to the top portion of $140,000 is higher than what either employer assumed when calculating withholding for a $70,000 earner on their own. Unless you both update your W-4s to account for this, you will likely end up owing money next April.

The IRS has a free withholding estimator at IRS.gov that walks through this calculation. It takes about ten minutes and tells you exactly how much additional withholding to request on each spouse’s W-4. Federal underpayment penalties are modest but entirely avoidable, and discovering a large tax balance due on April 15th is a stressful way to start a marriage.

One additional note for couples with self-employment income or significant non-W-2 earnings: estimated quarterly payments may also need to be revisited. Underpaying throughout the year can trigger penalties even if you settle the full balance when you file.

Update your name and address in the right order

If you changed your name after marriage, the Social Security Administration needs to hear about it before you file your tax return. Your name on the return must match what is on file with Social Security. A mismatch will delay your refund and can generate a notice that takes time and paperwork to resolve.

The fix is straightforward: file Form SS-5 with the SSA to update your records. Do this first, then update your name with your employer for W-2 purposes.

Address changes are simpler. If you moved, file Form 8822 with the IRS to update your address on file. This is not just administrative tidiness. Notices, refund checks, and correspondence go to the address the IRS has on record. If a notice sits undelivered at an old address, response deadlines keep running regardless.

Healthcare coverage gets more complicated

Marriage is a qualifying life event that allows both spouses to make mid-year changes to employer-sponsored health plans. That flexibility is valuable, but the decisions that follow it have real tax implications.

If you both carry employer-sponsored coverage, consider whether it makes more financial sense to consolidate onto one plan or maintain separate coverage. The answer depends on the quality and cost of each plan, but do not overlook the tax treatment of premiums. Employer-paid premiums are excluded from your taxable income. If one spouse’s employer offers a significantly better or cheaper plan, consolidating may reduce your combined tax liability in addition to simplifying your coverage.

If either spouse has a Health Savings Account (HSA), marriage changes the contribution limits and household eligibility rules in ways that are easy to mishandle. HSA eligibility requires enrollment in a High Deductible Health Plan (HDHP). If one spouse moves to a non-HDHP plan, they can no longer contribute to their HSA going forward, and the timing of that change matters for calculating the annual contribution limit. Excess HSA contributions carry a 6% excise tax, so getting this right before year-end is worth a quick review.

Dependents: who claims whom, and what changes

If either spouse has children from a prior relationship, the dependency picture becomes more layered. Dependency exemptions have been eliminated under current law, but the child tax credit, the child and dependent care credit, and head-of-household filing status all hinge on who qualifies as a dependent on whose return.

Generally, the custodial parent claims the child unless there is a written agreement or court order directing otherwise. That arrangement may have worked cleanly when each parent filed as a single individual, but it interacts with your new joint return and your spouse’s income in ways that can affect credit eligibility. The child tax credit, for instance, phases out at higher income levels. Adding a second income to the household may reduce or eliminate credits that were previously available.

If your spouse has no children but you do, updating your W-4 to reflect dependent-related credits is one of the withholding adjustments that often gets missed in the transition.

A note on state taxes

This article focuses on federal taxes, but your state may have its own wrinkles. Some states do not conform to federal filing status rules. A small number of states require or allow separate returns regardless of federal treatment. If you moved to a new state in connection with your marriage, you may have a part-year residency situation on both state returns. These scenarios are worth confirming before you assume your federal approach carries over cleanly.

What to do now

The adjustments covered here are time-sensitive because withholding corrections and benefits elections need to happen before year-end to affect your current-year return. Waiting until you sit down to file in February or March means absorbing any underpayment consequences rather than preventing them.

Getting these details right in year one sets a much cleaner foundation for everything that follows. If you have questions about what you need to do we’re glad to work through it.

If you run your own business and contribute to a SEP IRA, SIMPLE IRA, or solo 401(k), there’s a good chance you have mishandled the deduction; not by missing it, but by reporting it in the wrong place on your return.

It’s one of the most common errors among self-employed taxpayers, and it’s easy to understand why: you own the business. The money came out of your business account. Naturally, you assume the deduction belongs on Schedule C, with business expenses.

But, it usually doesn’t. And where a deduction lands on your return isn’t just an accounting formality. It can affect how much tax you owe, distort other calculations, and in some cases, cause you to leave money on the table.

Here’s what you need to know.

The basic rule and why it exists

If you are a sole proprietor (or a single-member LLC treated as a sole proprietor for tax purposes), contributions you make to a retirement plan for yourself are generally deducted on Schedule 1 of Form 1040, not on Schedule C.

Contributions made for your employees are a different story. Those generally belong on Schedule C as an ordinary business expense.

The owner-versus-employee distinction is the entire issue. As a self-employed owner, your retirement contribution isn’t calculated like a regular business expense. It’s determined under a special formula tied to your net earnings from self-employment (earnings that must first be adjusted for the self-employment tax deduction before the retirement contribution calculation can even begin). Because the deduction is computed under a separate set of rules, the IRS treats it separately. It belongs on the individual side of your return, not embedded in the business profit calculation.

What happens when you get it wrong

Deducting your own contribution on Schedule C instead of Schedule 1 isn’t just a technical error; it creates a cascade of downstream problems.

Consider a simple example. Say you have $100,000 in net Schedule C profit and make a $20,000 retirement contribution for yourself.

If the deduction is incorrectly placed on Schedule C:

Reported Schedule C profit: $80,000
Self-employment tax is computed on $80,000 (understated)
The SE tax deduction is too small
The allowable retirement contribution itself may be miscalculated, since the formula depends on correctly stated SE earnings

If reported correctly on Schedule 1:

Schedule C profit: $100,000
SE tax is computed on the full $100,000
SE tax deduction is taken on Schedule 1
The retirement deduction is then calculated correctly and also taken on Schedule 1

Misplacing the deduction doesn’t just move a number; it corrupts the sequence of calculations that flow from it. When preparers catch this, the fix typically requires unwinding several connected figures.

Does this apply to you? It depends on your entity

These rules generally apply to sole proprietors, single-member LLCs disregarded for federal tax purposes, and partners in a partnership. For partners, the same logic holds: the partnership can deduct contributions made for common-law employees on the partnership return, but each partner’s own retirement contribution is deducted on the partner’s individual return through Schedule 1.

S corporation shareholders are a meaningful exception. An S corp shareholder-employee is treated as an employee of the corporation, receiving W-2 wages. Retirement plan contributions (both the elective deferral and any employer match) are generally handled at the entity level on Form 1120-S, not through the shareholder’s individual Schedule 1. The planning dynamics, tax treatment, and reporting mechanics are all materially different for S corp owners, and that distinction often factors into the entity selection conversation.

If you operate as an S corp or are weighing whether to make that election, the retirement contribution treatment is one of several factors worth analyzing carefully.

A note on SIMPLE IRAs

SIMPLE IRAs sit in an interesting position. If you have employees, their SIMPLE contributions, including any matching contributions you make as the employer, are generally deductible as business expenses. Your own contributions as the self-employed owner are handled separately, through the self-employed retirement deduction rules.

So within a single plan, contributions can flow to different parts of the return depending on who they’re for.

The Solo 401(k) question: when you’re both employer and employee

Solo 401(k) plans create another layer of confusion (and a genuine planning opportunity) because they use terminology borrowed from traditional employer plans: employee elective deferral and employer profit-sharing contribution. As a self-employed individual, you’re technically filling both roles.

Here’s the important clarification: for a sole proprietor, both components are still deducted on Schedule 1. The plan’s internal labeling doesn’t change where the deduction lands on your tax return. What it does change is how much you can potentially contribute.

This is where structure matters for planning purposes. Compare two self-employed individuals, each with $100,000 in net Schedule C profit in 2026:

SEP IRA contributor: The SEP contribution is limited to roughly 25% of net self-employment earnings after the SE tax deduction (approximately $23,200 in this scenario).

Solo 401(k) contributor:

Employee elective deferral: up to $24,500 (up to $32,000 if age 50-59 or 64+; up to $35.750 if age 60-63).
Employer profit-sharing contribution: approximately $23,200 (up to 25% of net earnings) Total limit lesser of 100% of compensation or $72,000 ($80,000 if 50-59 or 64+; $83,250 if 60-63)
Combined total: approximately $47,700 (if under age 50)

Same income. Same tax situation. Roughly twice the deduction and tax-sheltered growth, simply by choosing the right plan.

The gap narrows at higher income levels, and at very high incomes the two plans approach the same ceiling (the 2026 IRC §415 limit is $72,000, or $80,000/$83,250 for those in the applicable catch-up ranges). But for self-employed individuals with moderate incomes who want to maximize contributions, the solo 401(k)’s ability to stack an employee deferral on top of the employer contribution can be a meaningful advantage.

The Schedule 1 placement is actually a feature, not a consolation

Here’s a framing shift worth making: the fact that your retirement deduction lands on Schedule 1 rather than Schedule C isn’t a quirk to work around. In some respects, it’s advantageous.

Schedule 1 deductions reduce your AGI and AGI is the input for a number of other calculations that Schedule C profit, on its own, doesn’t directly affect. A lower AGI can:

Help you stay below IRMAA thresholds that trigger Medicare premium surcharges (2026 initial threshold $109,000 single/$218,000 MFJ)
Reduce exposure to the 3.8% net investment income tax, which applies above $200,000 single/$250,000 MFJ
Keep you within the QBI deduction range before phase-outs begin (2026 thresholds, $197,300 single/$394,600 MFJ)

When retirement contributions are large enough to meaningfully affect AGI, these secondary benefits can be worth more than the straightforward income tax savings on the contribution itself. That’s not a reason to over-contribute, but it is a reason to think holistically about how the deduction interacts with the rest of your return.

The right reporting does more work than most people realize

The mechanics aren’t necessarily complicated once you understand the logic, but they’re easy to get wrong.

If you’re not certain where your retirement contributions are landing, or whether you’re in the right plan to begin with, it’s worth a conversation with your CPA before the next filing season arrives.

For more personalized guidance, please contact our office.

When was the last time you replaced a perfectly usable work computer, simply because it had become slow or unreliable?

For a lot of businesses, that moment is coming sooner than it used to.

Hardware prices have risen, upgrades cost more, and replacing machines that should have had a few good years left in them is now a painful expense rather than a routine decision.

The good news is that most computers don’t wear out suddenly. They slow down gradually, often because of small, fixable issues rather than failing hardware.

And with Windows 11, there are a few sensible habits that can extend the life of your devices.

One of the biggest drains on performance is software clutter.

Over time, PCs collect apps that start automatically, run in the background, and use up memory and processing power.

The computer feels old, but in reality, it’s overloaded.

Keeping startup apps under control and removing software that’s no longer used helps your PC spend its energy on actual work, not housekeeping.

Updates also matter more than many people realize.

They’re not only for new features or security warnings. Updates fix bugs that cause crashes, performance issues, and file corruption.

Left unresolved, those problems can snowball into system failures that make a device feel beyond saving.

Staying up to date can be the difference between a PC that lasts four years and one that lasts six.

Storage is another hidden pressure point.

When a drive gets too full, everything slows down: Updates fail, apps struggle, and the system has less room to manage itself properly.

Regularly clear out unused files and applications. That gives Windows space to breathe and reduces wear on modern solid-state drives (which are expensive to replace).

Security also plays a role in longevity.

Malware doesn’t just steal data; it consumes resources, increases background activity, and can shorten the life of a system.

Make sure you have the right security tools in place to keep your business protected. And keep your people up to date on cybersecurity best practice.

For laptops, power habits matter too. Constant heat, full charging all the time, and deep battery drain all accelerate battery wear.

Small changes in how devices are charged and used can delay the point where a laptop becomes desk-bound because the battery no longer holds up.

Finally, backups deserve a mention.

When something does go wrong, businesses often replace machines in a rush because they’re worried about losing data.

Reliable backups remove that panic. If data is safe, you can repair or recover a system instead of writing it off early.

None of this is dramatic. There’s no single magic tweak. But taken together, these small habits add up.

With hardware costs rising, extending the working life of your Windows 11 PCs is a smart financial move, as well as good IT hygiene.

Want to see where a few small changes could save your PCs? Get in touch.

Information used in this article was provided by our partners at MSP Marketing Edge.

If phishing scams are supposed to trick people, why do so many of them still feel clumsy?

For years, the answer was simple: Most scams were mass-produced. The same email, the same fake website, sent to thousands of people and hoping a few would fall for it. That approach is still around, but it’s starting to evolve.

When generative AI first appeared, there was a lot of talk about “dynamic websites”.

Instead of one fixed site for everyone, pages would be generated on the spot, shaped by who you are, where you are, and what device you’re using. That future never really arrived for everyday businesses. It was complex and rarely worth the effort. Cybercriminals, however, don’t need perfect systems. They need something convincing.

Security researchers have shown how this idea could be used for phishing. While it’s still largely experimental, it gives a clear picture of the next generation of scams.

A victim clicks a link and lands on a webpage that looks harmless. There’s no obvious malicious code sitting on the page. Once it loads, the page asks a legitimate AI service to help generate content. That content is then assembled and run directly in the person’s browser. The result is a phishing page that’s created especially for that visitor.

The wording, layout and code can all be different every time. There’s no single fake website for security systems to spot and block, because the scam doesn’t fully exist until someone opens it.

Before you panic, this method isn’t widespread yet. But the building blocks are in use. AI is being used to write malicious code, malware is increasingly assembled as it runs, and AI-assisted scams are becoming more common. For you, this changes the rules slightly.

Phishing is no longer just about spotting bad spelling or sloppy design. Future scams may look even more polished, personalized and completely legitimate.

That’s why modern protection focuses less on “don’t ever click the wrong thing” and more on limiting the damage if someone does. Tools like multi-factor authentication, secure browsers and email filtering still work, even when a fake page looks convincing.

Remember this: Phishing isn’t going away. It’s getting smarter.

To stay protected now you must assume the next scam will look professional and make sure your defenses don’t rely on people spotting obvious mistakes.

Want to check how exposed your business is? Get in touch.

Information used in this article was provided by our partners at MSP Marketing Edge.

Are you still running Windows 10 because “it’s fine for now”? We hear that a lot. And to be fair, if you’ve enrolled in Microsoft’s Extended Security Updates (ESU) program, Windows 10 probably does still feel fine. It turns on. It works. It gets security updates. No drama.

But that sense of safety is temporary — and it’s important to understand what ESU really is, and what it isn’t.

Windows 10 Standard Support Has Already Ended

Windows 10 reached the end of standard support on October 14, 2025. After that date, Microsoft stopped providing free security updates.

To help organizations that needed more time, Microsoft introduced Extended Security Updates (ESU) — a paid program that provides security updates only, with no feature improvements or quality updates.

ESU Is a Short-Term Safety Net — Not a Long-Term Plan

Microsoft offers ESU for up to three years, ending in October 2028.

That means:

You can continue running Windows 10 with ESU through 2028
But you must pay annually for those updates
And ESU only covers critical security patches
No new features, no performance improvements, no modern protections

Microsoft’s official stance is clear: ESU is a temporary bridge for organizations that need more time — not a recommended long-term solution.

Why Staying on Windows 10 Too Long Becomes a Business Risk

Even with ESU, Windows 10 becomes increasingly outdated. And once ESU ends in 2028, Windows 10 becomes fully unsupported — no patches, no fixes, no safety net.

For businesses, that creates real exposure:

Cyber insurance policies often require supported operating systems
Compliance frameworks (HIPAA, PCI, NIST, etc.) expect current security baselines
Vendors and partners may refuse to work with unsupported environments
Known vulnerabilities will accumulate with no patches available

Running an unsupported OS isn’t just a technical risk — it’s a commercial one.

Upgrade or Replace: The Decision You’ll Eventually Face

When Windows 10 finally ages out, organizations have two options:

Upgrade to Windows 11. Many PCs can be upgraded, but some require configuration changes or hardware checks.
Replace the device entirely. Older systems may not meet Windows 11’s hardware requirements.

Waiting until the last minute often leads to:

Rushed purchases
Unplanned downtime
Staff frustration
Higher costs

Planning ahead avoids all of that.

If you’re unsure whether your current PCs can be upgraded or whether you’re heading toward a last-minute hardware scramble, now is the right time to review your options.

Yeo & Yeo Technology can help you plan a smooth, cost‑effective transition.

Information used in this article was provided by our partners at MSP Marketing Edge.

Have you noticed how many AI projects start with excitement… and then quietly go nowhere? A demo here, a pilot there, plenty of internal chatter, but very little that makes it into day-to-day use. And it’s not because AI doesn’t work or isn’t valuable. In fact, a recent report suggests the opposite.

Around half of AI initiatives are still stuck in proof-of-concept mode, even though most businesses fully expect to increase their AI budgets.

Belief isn’t the problem. Momentum is.

What’s really holding things up is something far more familiar: Uncertainty. Many businesses jump into AI with a vague sense that it’s important, but without a clear business problem they want it to solve. When that happens, projects drift. Teams experiment, but no one can quite say what success looks like, how it will be measured, or when it’s good enough to roll out properly.

Governance is another big blocker.

Leaders worry about security, privacy, and compliance (and rightly so). But instead of putting simple guardrails in place, projects get paused while people wait for perfect answers. The result is often no progress at all.

There’s also a skills gap.

AI sounds plug-and-play from the outside, but in practice, it still needs people who understand how to manage it, monitor it, and step in when something looks wrong. Most organizations aren’t short on ambition; they’re short on confidence.

Interestingly, businesses already know that AI won’t be fully hands-off any time soon. Most AI decisions today are still checked by humans, and many leaders expect a long-term balance where people and AI share responsibility rather than one replacing the other. That’s a sensible starting point.

So how do you keep AI initiatives from stalling?

The businesses making progress tend to do three things well.

First, they tie AI to a specific, boring business outcome. Saving time in IT operations, improving system monitoring, speeding up reporting. Not a grand transformation but a measurable improvement.
Second, they set clear boundaries. What can AI do on its own? What always needs a human check? That clarity reduces fear and speeds up decisions.
And finally, they scale slowly and deliberately. Instead of throwing money at multiple tools and hoping something sticks, they prove value in one area, learn from it, and then expand.

AI doesn’t usually fail because it’s too advanced. It fails because it’s too vague. If your AI projects feel stuck, the answer is clearer goals, better guardrails, and a willingness to move forward imperfectly, with humans firmly in the loop.

If you’re exploring AI but struggling to move forward, Yeo & Yeo Technology can help. Get in touch.

Information used in this article was provided by our partners at MSP Marketing Edge.

It seems like every conversation about the future of work eventually turns to artificial intelligence.

Some people see AI as a revolutionary tool that will unlock new levels of productivity and innovation. Others worry about job displacement, workforce disruption, and what role people will play in an increasingly automated world.

As with most major workplace shifts, the truth is somewhere in the middle.

Throughout my career, I’ve watched organizations adapt to significant changes in technology, economic conditions, and workforce expectations. What makes AI different is the speed at which it’s evolving and the broad range of roles it has the potential to impact. Yet despite all the headlines, I don’t believe the most important question is whether AI will replace people. The more important question is how organizations will help people adapt.

The organizations that succeed in the coming years won’t be the ones that simply adopt the latest AI tools. They’ll be the ones that thoughtfully integrate technology while continuing to invest in their workforce.

Jobs May Change More Than They Disappear

One of the biggest misconceptions about AI is that entire professions will suddenly become obsolete.

In reality, most jobs are made up of dozens of individual tasks. AI may automate some of those tasks, streamline others, and create entirely new responsibilities that didn’t exist before. The result is often job transformation rather than job elimination.

We’ve already seen this happen throughout history. Technology has changed how work is performed in manufacturing, accounting, marketing, customer service, and countless other fields. While certain tasks become automated, new opportunities emerge that require different skills and expertise.

Today’s workforce is likely to experience a similar shift. Employees who spend significant time on repetitive administrative work may find that AI helps them complete those tasks more efficiently. That can free up time for higher-value activities such as problem-solving, relationship building, strategic thinking, and decision-making—areas where human judgment remains essential.

The Human Skills Gap May Become More Important Than the Technical Skills Gap

When organizations discuss preparing for AI, the conversation often focuses on technical skills. While technical literacy is certainly important, I believe many leaders are overlooking something equally critical: human skills.

As technology becomes more capable, skills such as communication, adaptability, emotional intelligence, critical thinking, and leadership become even more valuable. These are the qualities that help people navigate ambiguity, build trust, and make sound decisions in complex situations.

AI can generate information. It can analyze data. It can assist with routine processes.

What it cannot do is replace the uniquely human ability to understand context, build meaningful relationships, inspire teams, or lead through change.

Organizations that continue to develop these skills within their workforce will be better positioned to thrive, regardless of how technology evolves.

Recruiting Is Already Changing

The impact of AI is also becoming evident in recruiting.

Employers have access to more tools than ever before to identify candidates, streamline hiring processes, and improve efficiency. Candidates are also using AI to write resumes, prepare for interviews, and explore career opportunities.

While these advancements can create efficiencies, they also present new challenges. It can be more difficult to evaluate authenticity, assess communication skills, and understand a candidate’s true capabilities when technology is involved at every stage of the process.

For instance, I recently worked with a client where we let someone go after three months because they were clearly not a fit. When I looked back at the resume and cover letter, it became very clear that the candidate had used AI to make it seem like he was the perfect candidate for the role, but the hiring manager should have probed a bit deeper into past experiences and asked more specific situational interview questions to help better assess qualifications next time.

Thus, recruiting may shift from focusing solely on technical qualifications to identifying individuals who demonstrate adaptability, curiosity, learning agility, and the ability to work effectively alongside technology. And, figuring out how to “AI-proof” your hiring processes from tech-savvy applicants.

The strongest candidates won’t necessarily be those who know the most about AI. They’ll be the ones who understand how to use it appropriately while continuing to bring human insight and judgment to their work.

Career Paths Will Continue to Evolve

AI is also changing how employees think about their careers.

Some roles will evolve significantly. New roles will emerge. Employees may find themselves needing to develop skills they never anticipated using when they first entered the workforce.

This reality can feel unsettling, particularly for individuals whose responsibilities are changing rapidly. Yet it also creates opportunities for growth and reinvention.

Organizations play an important role in helping employees navigate these transitions. Leaders who invest in learning, upskilling, and career development can help their workforce remain engaged and prepared for the future.

Likewise, individuals who embrace continuous learning will be better equipped to adapt as workplace expectations evolve.

The future of work is unlikely to be defined by a single career path. Instead, it may be characterized by ongoing development, new experiences, and a willingness to learn throughout one’s career.

Leading Through Change

Perhaps the greatest challenge facing organizations today isn’t AI itself—it’s change.

Technology will continue to advance. Workforce expectations will continue to evolve. New opportunities and challenges will emerge.

The leaders who navigate this environment successfully will focus on more than technology adoption. They will communicate openly, invest in their people, and create cultures that encourage learning and adaptability.

AI has the potential to enhance productivity, support innovation, and help organizations operate more effectively. But technology alone doesn’t create successful organizations. People do.

The future of work isn’t about choosing between humans and AI. It’s about understanding how the two can work together.

Organizations that recognize this balance will be the ones best positioned for long-term success—not because they embraced the latest technology first, but because they helped their people grow alongside it.

Blue Cross Blue Shield of Michigan (BCBSM) and Blue Care Network (BCN) are implementing changes to their incident-to billing policy beginning September 1, 2026.

Key Dates to Know

September 1, 2026 – February 28, 2027

Claims billed incident-to a physician or non-physician must include the SA modifier and will be reimbursed based on the submitting provider’s applicable payment rate.
Incident-to claims will no longer qualify for value-based reimbursement (VBR), including those associated with the Physician Group Incentive Program (PGIP).
To receive VBR, services performed by PGIP-participating physicians and non-physicians must be billed directly under the rendering provider.

Beginning March 1, 2027

Physicians and non-physicians eligible to participate directly with BCBSM or BCN will be required to bill under their own National Provider Identifier (NPI).
Eligible providers who continue billing incident-to using the SA modifier will be reimbursed at 80% of the applicable rate and will not qualify for VBR.
Only claims billed directly for services provided by PGIP-participating physicians and non-physicians will be eligible for VBR.
Students, trainees, and providers with provisional licensure will no longer be eligible for reimbursement through incident-to billing in professional settings.

Who Is Not Impacted?

These changes do not apply to:

Medicare Plus Blue℠ and BCN Advantage℠ providers
Certain provider types and services, including anesthesia, dental, laboratory, pharmacy, urgent care, Provider-Delivered Care Management (PDCM), and select support staff who are not eligible for direct participation

What Should Providers Do Now?

Review your current billing practices and determine whether any providers currently billing incident-to will need to enroll directly with BCBSM or BCN before March 1, 2027.

For full policy details, refer to BCBSM’s June 2026 The Record newsletter.

Contact your Yeo & Yeo advisor with questions or for help navigating these changes.

For many organizations, an employer-sponsored retirement plan is a major workforce investment. Yet employees may not fully appreciate it if they don’t understand how the plan works or fits into their long-term financial goals. As a result, some employers can fall short of strategic objectives such as strengthening retention and engagement.

That’s why you shouldn’t view retirement education as a one-time handout during onboarding or even a reminder during annual enrollment. It should be an ongoing part of your broader benefits communication strategy.

Thirst for knowledge

Surveys often show that many employees want to learn about financial planning. For example, Bank of America’s 2025 Workplace Benefits Report explores employee financial well-being, retirement preparedness and the role of workplace benefits. It’s based on nationwide surveys of nearly 1,000 employees and 800 employers.

Among the report’s findings, 36% of employees said they need financial wellness resources related to retirement education and planning. Employees also expressed interest in learning how to generate income in retirement and developing good financial skills and habits, each cited by 33% of respondents.

The takeaway is clear: Retirement education can be an important supplemental benefit. Many employees need help understanding both the plan you sponsor and how to save for the future while grappling with today’s financial pressures. As an employer, you’re in a unique position to provide this education because you have a ready-made audience — your workforce — and multiple avenues to communicate with them.

Topics and teaching methods

A good place to start educating employees about retirement benefits and planning is by teaching them the basics of investing. Many employees are unfamiliar or at least not entirely comfortable with how it works. To stay on safe legal ground, don’t provide individualized investment advice. Focus on general educational guidance. For instance, you might teach them about compounding growth, the tax implications of different types of savings plans, and how much they’ll likely need to save to reach a certain sum at retirement.

Naturally, you should explain in plain language how your retirement plan functions, too. For instance, once enrolled, how do employees decide how much to contribute, how does employer matching work (if you offer it), and how can they adjust their savings rate or investment elections over time? It may also be helpful to address topics employees increasingly ask about, such as:

Roth vs. pretax contributions,
Automatic enrollment features, and
Catch-up contributions for older workers.

As you put together a retirement planning education strategy, be prepared to provide information in various formats. Email campaigns or other online communication methods will resonate with some employees, while others will prefer printed material. By offering a mix of options, you’ll increase the odds of reaching different segments of your workforce.

Strongly consider in-person or virtual learning sessions as well. Even if your business offers printed and electronic materials, seminars or “lunch-and-learns” can help employees better understand your plan and the key concepts of saving for retirement. In addition, these sessions enable you to reinforce the value of your retirement plan as part of each employee’s overall compensation package.

Last, offer educational opportunities regularly. Obviously, open enrollment is a major event, but spread retirement education efforts throughout the year.

Many payoffs

Employers have much to communicate to employees these days, and retirement planning may not always make the top of the list. But helping your workers understand their retirement benefits and how to save for the future can pay off in many ways.

Better-informed employees are more likely to actively participate in your plan — boosting its value and your return on investment. That, in turn, can help support your organization’s broader retention and engagement objectives. Contact us for help assessing the financial, tax and strategic implications of your retirement plan.

Many parents assume an estate plan is only necessary for older adults or those with substantial wealth. However, once your child turns 18, he or she legally becomes an adult, and that change can create unexpected complications for your family. Without basic estate planning documents in place, you may be unable to help your child during an emergency when he or she is away at school. If your child recently graduated from high school and is planning to attend college in the fall, consider these estate planning documents before he or she leaves home.

Health-care-related documents

Perhaps the most critical estate planning document for a college-age child is a health care power of attorney. Because children age 18 or older are usually treated as adults, without a health care power of attorney, you might have no say in your child’s medical treatment should he or she become incapacitated. This document (sometimes referred to as a “health care proxy” or “durable medical power of attorney”) allows your child to appoint someone, such as you, to make health care decisions on his or her behalf.

Your child’s health care power of attorney should provide guidance on how to make medical decisions. Although it’s impossible to anticipate every potential scenario, the document can provide guiding principles.

Another important health-care-related document for college students is a HIPAA release form. Federal privacy laws, including those under the Health Insurance Portability and Accountability Act, prevent doctors and hospitals from sharing medical information with parents once a child reaches adulthood.

If your child is injured in an accident or becomes seriously ill, you may not be able to access information about his or her condition or treatment options. A HIPAA authorization form signed by your child allows you to communicate with his or her health care providers and stay informed during a medical crisis.

Financial power of attorney

Financial matters are another important consideration. College-age students typically have bank accounts and credit cards, and they may also have car loans, apartments or part-time jobs. If an illness or accident prevents your child from handling financial responsibilities, you may not automatically have the legal authority to step in.

A financial power of attorney appoints an individual, such as you, to make financial decisions or execute transactions on your child’s behalf under certain circumstances. For example, a power of attorney might authorize you to handle your child’s affairs while he or she is studying abroad or, in the case of a “durable” power of attorney, incapacitated.

Will

Speaking of financial matters, it isn’t too early to have a will drawn up for your college-age child. It allows your child to specify how personal belongings, financial accounts and digital assets should be distributed in the event of his or her untimely death. It also gives your child the opportunity to express personal wishes.

Without a will, state laws determine how assets are handled. This can create unnecessary complications for your family during an already difficult time.

Peace of mind while away from home

A simple estate plan for your college-age child can help ensure you can provide support when it matters most. If you have questions about any of the documents discussed, don’t hesitate to contact us.

For the 12 months ending in April 2026, the U.S. inflation rate was 3.8%, according to the U.S. Bureau of Labor Statistics. Prices for your business’s products, materials and other operating costs may have risen faster in recent months than you anticipated, making planning and forecasting challenging. How can your business counteract inflation? Start by making prudent cost-cutting decisions and acting swiftly when you spot opportunities.

First things first

Given that periods of elevated inflation are typically temporary, it can be tempting to assume inflation rates will fall in a few months. However, movements in inflation rates have been less predictable since the COVID-19 pandemic began. Waiting it out may work for some businesses, but inaction could also eventually lead to more difficult decisions. For example, delaying pricing adjustments could force you to make steeper increases later.

Although it’s always important to monitor expenses, frugal purchasing decisions become even more necessary when prices are rising. If raw material prices jump, consider whether new suppliers might offer discounts. If your cash flow and space can handle it, consider ordering some extra supplies and inventory to help mitigate the impact of future price increases. Also, review your business’s longer-term expenses. If a significant number of employees are working remotely, you might be able to reduce your office footprint or relocate to a less expensive part of the country.

Other ideas

Your ability to slash expenses and boost cash flow will depend largely on your industry and operations. But here are some ideas that most organizations can implement:

Assess the impact. Review the effect of inflation, product line by product line, to help determine whether you need to change your product mix. For instance, it may make sense to boost production or shelf space for items that will appeal to budget-conscious buyers.

Rethink prices. Few customers welcome price increases, but many understand the need for them. Be sure to communicate new prices before they take effect so customers can adjust their budgets.

Consider credit. If your business anticipates needing additional liquidity, determine if it makes sense to secure a loan or a line of credit now. Adequate cash can provide breathing room and enable you to take advantage of unexpected opportunities.

Monitor accounts receivable. If you see customers falling behind on their payments, act quickly. You may need to update your terms and even consider dropping some slow- or nonpaying buyers.

Act on the margins. Be on the lookout for small savings. Can you renegotiate your business’s mobile phone package? Is it possible to reuse packaging materials? Can you place a moratorium on overtime work? Little amounts can add up quickly.

Surviving and thriving

Probably the most important quality for business leaders navigating an inflationary period is flexibility. Be prepared to discontinue lines and strategies if you can no longer contain their costs. Know when to jump on an opportunity that could expand your reach. Remain open to new business partnerships. We can help by reviewing your financial situation and proposing measures that will enable you to survive — and even thrive — in today’s volatile market conditions.

When you open a browser on your phone, what do you think it knows about you?

The websites you visit? Maybe your location? Possibly what you’ve searched for?

The reality is, for many popular mobile browsers, it’s a lot more than that.

A recent analysis looked at how popular mobile browsers handle user data, based on the privacy information they publish in app stores.

And what it found should make you pause for thought.

If you’re using Google Chrome or Microsoft Edge on your phone or tablet, you’re using two of the most data-hungry browsers around.

That doesn’t mean they’re unsafe, or that you need to abandon them tomorrow.

But it does mean you should be paying attention to what they collect, and how you protect yourself.

According to the research, these browsers gather a surprisingly wide range of information. Not just browsing history, but things like location data, payment details, saved files, and even media such as photos or audio in some cases.

The stated reason is usually sensible enough: Making the app work properly, syncing accounts, preventing fraud, or personalizing the experience.

And to be fair, some data collection is unavoidable. A browser can’t function at all without knowing something about what it’s doing.

The concern is how much data is collected, how long it sticks around, and who it may be shared with.

Some browsers confirm that parts of this information can be passed on to third parties. In the best case, that means advertising profiles and targeted offers. In the worst case, it means valuable identifiers floating around that could be exposed in a breach.

This matters more than many people realize, because browsing history tells a story.

Over time, it can reveal business interests, financial activity, health concerns, legal worries, and personal habits. It’s not just “websites you like”. It’s a digital trail of who you are and what you’re dealing with.

What surprised researchers most was how few people really think about this anymore. Only a small minority still describe themselves as privacy conscious. Most of us just tap “accept”, install the app, and move on with our day.

That’s understandable. You’re busy running a business. But the risk isn’t theoretical.

When companies are breached, customer identification data is often what leaks first.

Browser data and identifiers are increasingly valuable targets because they help attackers link activity back to real people and real organizations.

So, what should you do?

You don’t need to ditch your browser of choice. Chrome and Edge are popular for good reasons, especially in business environments.

The key is reducing how much unnecessary data you give away and adding a few sensible layers of protection.

Start by checking your browser’s app permissions on your phone.

Does it really need access to location all the time? Does it need access to files, photos, or media when you’re just browsing? Most people are surprised by how much they’ve allowed without realizing.

And be mindful of how you log into websites.

Using a proper password manager means your browser doesn’t need to remember everything for you, and it reduces the damage if one account is ever compromised. This also makes it far easier to use strong, unique passwords without having to remember them.

None of this requires changing how you work day to day. You still open the same browser. You still visit the same sites. You’re just being more deliberate about what information leaks out in the background.

Your browser is one of the most used tools in your business. It’s also one of the most overlooked when it comes to privacy.

If we can help you keep your data better protected, get in touch.

Information used in this article was provided by our partners at MSP Marketing Edge.

Here’s a question I suspect most business owners haven’t thought about yet.

If one of your team buys something inside an AI chat window… is that okay with you?

Because that’s exactly where things are heading.

You’re probably already familiar with tools like Microsoft Copilot and ChatGPT helping people write emails, summarize documents, or answer questions.

The next step is much more practical. And potentially much more sensitive.

Buying stuff.

Last year, ChatGPT quietly introduced a feature called Instant Checkout. In simple terms, if you ask a shopping-related question, you can be shown products and complete the purchase without ever leaving the chat.

Now Microsoft is rolling out something very similar: Copilot Checkout.

If someone asks Copilot for recommendations, say software, equipment, subscriptions, or services, Copilot can show relevant products.

If the seller supports Copilot Checkout, the user can click “Buy”, confirm delivery and payment details, and complete the purchase right there inside Copilot.

No jumping to a website. No checkout page in a browser. No familiar “are you sure?” pause.

From Microsoft’s point of view, this is powerful.

Its data suggests people are far more likely to complete purchases when Copilot is involved, and they do it faster too.

That’s why this feature won’t just live in one place. It’s expected to appear across Copilot, Bing, Edge, MSN, and more.

For consumers, this feels convenient.

But for businesses, it raises a different set of questions.

The first one is simple: Do you want your team buying things this way?

In many businesses, purchasing is deliberately slow. There are approval steps. Budgets. Supplier lists. Controls. Someone checks what’s being bought, why, and by whom.

Copilot Checkout has the potential to quietly bypass some of that, especially if it’s used casually or without guidance.

Then there’s the data side.

To make checkout work, payment details, shipping information, and account data need to be involved.

Copilot Checkout launches with platforms like PayPal, Stripe, and Shopify. These are reputable systems, but the question isn’t whether they’re trustworthy. It’s whether your policies account for this new way of buying.

If an employee is signed into Copilot with a work account, whose payment method is being used?

What information is Copilot allowed to see or reuse?

Are purchases logged somewhere central, or do they disappear into the noise?

And then there’s behavior.

When buying becomes frictionless, people buy more. Microsoft openly says journeys involving Copilot are far more likely to end in a purchase. That’s great for sellers, but it can quietly inflate costs if nobody’s watching.

None of this means Copilot Checkout is “bad”. But it does mean it’s something you should decide on deliberately, rather than discovering it accidentally after the fact.

If you do want your team to use it, there are a few sensible considerations:

Clear rules around who can buy
What they can buy
Which accounts or payment methods are allowed
Visibility into purchases made through AI tools
Guidance for staff so they understand that convenience doesn’t remove responsibility

If you don’t want it used, that decision also needs to be clear. Because if it’s not written down, explained, and enforced, people will assume it’s fine.

This is a recurring theme with AI features.

They don’t arrive with a big announcement saying, “You should update your policies now.”
They just… appear.

The real question isn’t whether your team can use it. It’s whether you’ve decided if they should.

My team and I can help you decide what’s best for your business. Get in touch.

Information used in this article was provided by our partners at MSP Marketing Edge.

Late customer payments don’t just create temporary cash shortages. Over time, inconsistent collections can disrupt budgeting, increase borrowing needs and make it harder to plan for growth. In response to cash flow challenges, many businesses focus heavily on increasing revenue while overlooking how efficiently they convert receivables into cash. But even a strong top line can mask underlying collection problems. Evaluating your receivables process from a broader perspective may reveal opportunities to improve liquidity and reduce financial strain.

Look beyond the invoice

When payments arrive late, the problem isn’t always the customer’s unwillingness to pay. In many cases, breakdowns elsewhere contribute to collection delays.

For example, unclear proposals, inconsistent pricing, incomplete project documentation or poor communication between departments can lead to disputes after invoices are issued. Customers who are confused about deliverables or billing details may postpone payment while seeking clarification.

Your business can reduce these issues by creating more consistent internal workflows. Sales, operations and accounting teams should communicate clearly about pricing terms, timelines, discounts and customer expectations before work begins. Strong coordination upfront often prevents collection problems later.

Review your payment policies

Some businesses use outdated billing practices simply because they’ve always done things a certain way. But customer expectations and payment technologies have changed significantly in recent years.

Review whether your current processes create unnecessary friction. Questions to consider include:

Are invoices easy to understand?
Do customers have convenient payment options?
Are payment deadlines realistic and clearly communicated?
Is your collection approach consistent across all accounts?

Modernizing payment methods may help accelerate collections. Digital payment portals, automated reminders and recurring billing tools can simplify the process for both your staff and your customers.

Reviewing collection trends may also help you segment customers based on payment behavior. Long-standing customers with reliable histories may deserve greater flexibility, while higher-risk accounts may require deposits, shorter payment terms or more frequent follow-up.

Proactively monitor warning signs

An accounts receivable balance can develop gradually, making it easy to overlook warning signs until cash flow problems become severe. Regularly reviewing aging reports may help identify trends before they escalate. For example, increases in partial payments, repeated billing questions or customers requesting extended terms may indicate elevated collection risk.

Also pay attention to operational metrics tied to receivables performance, such as the average collection period, the percentage of overdue accounts and the frequency of disputed invoices. Additionally, to gauge customer concentration risk, evaluate how much of your revenue each customer generates. Tracking these indicators over time can help you make more informed financial decisions and identify weaknesses in your collection process.

Formalize your collection procedures

Many business owners hesitate to follow up promptly on overdue invoices because they worry about damaging customer relationships. However, avoiding difficult conversations often allows collection problems to worsen.

Establishing a professional, consistent collection process can improve results while preserving goodwill. Staff members responsible for collections should understand when to send reminders, when to escalate concerns and when outside assistance may be necessary.

Document all payment discussions carefully, especially when customers request revised terms or promise future payments. Thorough documentation may be important if legal action, write-offs or insurance claims are later required.

Strengthen your receivables strategy

Receivables management plays an important role in maintaining operational flexibility and financial stability. Businesses that actively monitor customer payment trends and refine their collection practices are often better positioned to manage uncertainty and support long-term growth. We can help you assess your current receivables procedures, strengthen internal controls and identify practical ways to improve cash flow management. Contact us for guidance.

Occupational fraud often starts with an employee’s small behavioral change. For example, a salesperson might suddenly download an unusually large amount of customer data. Or an accounting staffer might access vendor records outside of normal working hours.

Behavioral analytics help detect such anomalies by tracking electronic device, website and other digital activities (often using AI) that might increase your business’s risk. In a nutshell, these results allow you to evaluate the behavior and determine whether it warrants a broader investigation.

Pattern spotting

Behavioral analytics tools generally notify owners and managers when worker activity falls outside expected patterns. The types of patterns and trends considered “abnormal” depend on the business, but might include:

Unusual technology access,
Significant data downloads or file transfers,
Questionable requests for payments or refunds, and
Use of privileges in ways that don’t align with an employee’s role.

It’s important to stress that a behavioral analytics alert should never be viewed as incontrovertible proof that an employee is committing fraud. There are many reasons an employee might trigger an alert — for example, by working late. For this reason, you should carefully consider the worker, context and any other factors before escalating your response.

Ideally, alerts should be investigated by someone knowledgeable about fraud, such as a forensic accountant. Be careful to respect employees’ legal rights. Depending on your location and industry, employee monitoring activities may be subject to privacy, data protection and employment law requirements. If you’re ever in doubt about what you’re allowed to track or investigate, consult legal counsel.

Policies and procedures

Govern your use of behavioral analytics software with a detailed policy. Your policy should answer such questions as: What must employees be told about tracking, and how will it be used? Who may review analytics data? When should alerts be referred for further investigation? And how long should analytics records be retained?

Ask an employment attorney to review your policy for potential legal violations before it’s finalized. And revisit the policy frequently to ensure it reflects changes to your organization and your use of threat detection tools.

Prudent management

If your business conducts a fraud risk assessment, directly link your behavioral analytics to that assessment. Fraud risk assessment reports generally tell you where your business should focus its risk management efforts (possibly through new internal controls) to combat criminal activity. Behavioral analytics helps you monitor the warning signs identified in the report.

However, you should use behavioral analytics sparingly, as part of your broader risk management strategy. Used excessively, these tools may violate employees’ rights, leading to lawsuits, poor morale and costly worker turnover. Even the perception of widespread surveillance can discourage prospective and current employees. So be sure to tie behavioral analytics to actual fraud risks and implement clear policies and procedures. You should also limit data access to authorized personnel with a legitimate business need, including owners and executives, HR leaders, IT security personnel, legal counsel, and outside forensic accounting professionals.

Getting started

We can help you evaluate fraud risks, choose affordable behavioral analytics software, set parameters based on your business’s operations and needs, and train you to use the tools effectively. Contact us to learn more.

Although your business may seem big to you, you may wonder how the government classifies it for tax purposes. If your organization qualifies as a “small business,” you may enjoy several important tax advantages. But the rules for specific tax provisions vary. So, depending on your size, you might be eligible for some so-called small business breaks but not others. Here’s a closer look.

No universal definition

Under federal tax law, there’s no one definition of a small business. Instead, several definitions apply depending on the context, various criteria and certain thresholds. Criteria may include a business’s:

Gross assets,
Gross receipts, and
Number of shareholders and employees.

Even if a criterion such as gross receipts is the same across definitions, different thresholds may apply. Also, for some purposes, the tax code might define a small business in more than one way. Depending on how your performance and operations change over time, you might meet the government’s definition of a small business one year but not the next year.

5 special breaks for certain small businesses

The Section 448(c) gross receipts test serves as a common eligibility standard for several tax provisions available to qualifying small businesses. Under this test, your business may qualify for five potential tax breaks if it had average annual gross receipts of $25 million or less for the prior three-year period. This threshold is adjusted for inflation — for 2026, businesses that had average gross receipts up to $32 million are eligible for:

1. Cash accounting. You’re generally permitted to use the cash method of accounting for tax purposes even if you have inventories or use the accrual method for financial reporting. With certain exceptions, larger businesses — particularly those that carry inventory — must use accrual accounting. Using the cash method will likely allow you to defer more taxable income than you could under the accrual method.

2. Inventory simplification. You’re generally exempt from complex inventory accounting rules and may account for inventories by:

Treating them as nonincidental materials and supplies, or
Conforming to the inventory method you use in your financial statements or books and records.

Treating inventories as nonincidental materials or supplies allows you to deduct their cost when they’re “used or consumed.” Final IRS regulations clarify that materials aren’t used and consumed until the inventory is sold. So businesses can’t treat raw materials as used and consumed when converted into work-in-progress or finished goods.

3. Relief from UNICAP rules. You’re exempt from the uniform capitalization (UNICAP) rules, which require taxpayers to capitalize certain direct and indirect production costs to inventory, rather than deduct them when incurred. Not only can these rules increase your tax liability, but they also make tax reporting more complex.

4. Exemption from the business interest deduction limitation. You’re not subject to the cap on business interest write-offs, which generally limits deductions of net business interest expense to 30% of adjusted taxable income.

5. The completed contract method. If your business is in construction, manufacturing or another industry where long-term contracts are common, you may use the completed contract method rather than the percentage-of-completion method to account for long-term contracts expected to be completed within two years. The completed contract method allows you to defer tax until the contract is substantially complete, while the percentage-of-completion method can accelerate the tax.

When determining your business’s gross receipts, you may need to include those earned by certain related entities, such as those with common control. Special rules apply to organizations in existence for less than three years. Also, tax shelters, including syndicates, don’t qualify for small business status, even if their gross receipts are below the threshold.

Sizing up your business

Of course, these five relief measures aren’t the only tax-saving opportunities for small business owners at the federal and state levels. And determining eligibility can be more complicated than it appears. We can help evaluate your eligibility for these breaks and others — and develop a long-term plan that’s tailored to your situation. Contact us to explore the potential tax benefits of small business status.

One of the greatest risks to your estate plan is the chance of incurring substantial long-term care (LTC) costs. These costs, for services such as nursing home stays or home health aides, can quickly erode the savings you want to pass on to your family after your death. One solution is to purchase an LTC insurance policy.

Understanding the terms

An LTC policy’s terms dictate the amount of benefits you’ll receive each day or month, up to a defined lifetime maximum or number of years. These limits depend on the type of care provided, such as in-home care or a nursing facility.

LTC policyholders are typically subject to a waiting period of 30 to 180 days before being eligible for benefits (90 days is generally the norm). Important: The shorter the waiting period, the more expensive the policy. Similarly, you can expect to pay more for a policy with higher maximum benefits.

LTC policies generally provide benefits when you can’t perform multiple basic activities of daily living — including bathing, dressing, eating, transferring and managing incontinence — or if you experience cognitive impairment. Generally, once benefits start, premium payments stop. But if you stop paying on the policy first, you usually forfeit any future benefits. Be aware that coverage may be affected by several factors. For example, you may not qualify for coverage because of a pre-existing condition.

What to consider before buying insurance

Factors to consider before purchasing an LTC insurance policy include your:

Financial situation. Do you have the funds to pay for long-term care assistance without jeopardizing your overall financial situation? Take an objective look at your entire financial picture.

Estate planning objectives. An LTC policy may make sense if preserving wealth to pass on to your family is a primary estate planning objective.

Age and health. As you grow older, LTC insurance premiums may rise. Additionally, if you have a pre-existing condition, you may pay higher rates or even be denied coverage. Applying early may increase the likelihood that you won’t be denied coverage and that you’ll pay lower rates. But you’ll probably be paying premiums for more years.

There might be ways to obtain coverage without buying a policy privately. For instance, you may be able to participate in a group policy offered by your employer or another affiliation. This can be especially helpful if health conditions would otherwise cause insurers to charge you high premiums or deny you coverage.

Planning for your (and your family’s) future

An LTC insurance policy offers financial protection and peace of mind. With the escalating costs of extended care, this coverage can also allow you to leave more to your family. As with any major financial decision, carefully compare policy options, costs and benefits to find the best fit for your needs and goals. We can help you evaluate what’s appropriate for your situation.