The Complete Guide to School District Device Refresh Cycles

Your district’s Chromebooks are 5 years old. Performance is declining. Support is ending. You need to replace 400 devices before school starts in August.

Who specs the new devices? Who handles procurement? Who images and configures them? Who deploys them to classrooms? Who manages the old device disposal?

For many Michigan school districts, device replacement is a months-long project that pulls IT staff away from everything else. It doesn’t have to be.

Here’s what decades of Michigan school device deployments has taught us about making refresh cycles seamless.

Why Device Refresh Cycles Matter

Most districts operate on tight technology budgets with limited capital funding. Stretching device lifecycles saves money short-term but costs more long-term.

Aging devices slow down. Students wait for Chromebooks to boot. Teachers struggle with frozen applications. IT staff spend more time troubleshooting old hardware than supporting instruction.

Performance degradation happens gradually. You don’t notice it until the comparison is stark. New devices boot in seconds. Applications respond instantly. The productivity difference is measurable.

Security becomes a problem too. Manufacturers stop providing updates after a set period. According to Google’s Chromebook support policy, devices receive automatic updates for a specific timeframe. After that, security vulnerabilities don’t get patched. Your district data sits on unsupported devices.

Budget planning requires predictability. Planned refresh cycles let you forecast capital needs that align with bond funding windows. Crisis replacements when devices fail cost more and create chaos.

Understanding Device Lifecycles by Type

Different devices serve different purposes and have different replacement timelines.

Chromebooks: 4-5 Year Refresh

Student Chromebooks take the most abuse. Dropped in hallways. Shoved in backpacks. Used daily for 6-8 hours. Battery health degrades. Keyboards wear out. Hinges loosen.

Lenovo education Chromebooks feature reinforced hinges and spill-resistant keyboards that extend durability. HP Chromebook models pass MIL-STD testing for K-12 environments. But even ruggedized devices need replacement after 4-5 years of student use.

Google’s Auto Update Expiration (AUE) policy defines support windows. Check AUE dates before purchasing to maximize usable life. Buying devices near their AUE date wastes money.

Laptops: 4-5 Year Refresh

Teacher and staff laptops run more demanding applications than student Chromebooks. Multiple browser tabs, video conferencing, gradebook software, and productivity tools stress older processors and limited RAM.

Lenovo ThinkPad models deliver business-class reliability for education. HP ProBook and EliteBook lines provide long-term support with education pricing. Dell Latitude series offers strong warranty programs and consistent availability.

Battery replacement around year 3 extends laptop life but doesn’t solve performance issues. Processors and RAM determine whether devices keep pace with software updates.

Desktops: 5-6 Year Refresh

Computer lab desktops and specialty program workstations last longer than portable devices. No battery degradation. Less physical stress. More upgrade potential.

Lenovo ThinkCentre and HP ProDesk models serve general lab needs. Dell OptiPlex systems offer small form factor options for space-constrained labs. High-performance configurations support CTE programs, video production, and graphics work.

Plan desktop refreshes around program changes. New software requirements often exceed old hardware capabilities.

Displays: 6-8 Year Refresh

Monitors outlast the computers they connect to. Samsung displays provide eye comfort features for extended student use with reliable performance across large deployments. Lenovo, HP and Dell monitors offer cost-effective options with education pricing.

Replace monitors when technology changes demand it. Higher resolution requirements, USB-C connectivity for modern laptops, or classroom redesigns trigger display updates more than failure rates.

The Complete Refresh Process

Successful device replacement requires planning across five phases.

Phase 1: Planning and Specifications

Match devices to actual use cases. Elementary students using Google Classroom need different specs than high school video production students. Teachers running multiple applications need more power than students taking standardized tests.

Budget determines options but use case determines requirements. We help districts balance cost and capability, so you don’t overspend on unused performance or undersell needs.

Consider total cost of ownership. Cheaper devices with shorter support windows cost more over time than quality devices with longer lifecycles and better warranties.

Phase 2: Procurement

E-Rate Category 2 funding changes the procurement equation for eligible districts. E-Rate supports internal connections including network equipment and some endpoint devices under specific circumstances.

Form 470 requirements and competitive bidding rules add complexity. We provide competitive quotes for E-Rate purchases.

For non-E-Rate purchases, education pricing through Lenovo, HP, Dell, and Samsung channels delivers competitive rates. Volume purchases across multiple buildings improve pricing further.

Phase 3: Configuration and Imaging

Standard images ensure consistency across hundreds of devices. District software, security settings, network configurations, and user policies deploy automatically instead of manual setup on each device.

Microsoft System Center expertise matters here. We assist IT teams with imaging configurations for Lenovo, HP, and Dell devices so standard images deploy correctly regardless of manufacturer.

Quality assurance catches problems before classroom deployment. Testing images on representative devices from each model prevents mass deployment failures.

Phase 4: Deployment and Distribution

Summer implementation windows create tight timelines. Devices must be ready when teachers return for professional development. Students need working devices on day one.

We staff accordingly and work extended hours to meet school schedules. On-site deployment teams deliver devices to buildings, set up classroom carts, and provide initial troubleshooting.

Teacher training happens before students arrive. Even familiar devices have new features. Quick orientation prevents first-week support floods.

Phase 5: Old Device Management

Secure data disposal protects student information. NIST standards require proper data wiping before surplus or recycling. Simply deleting files isn’t sufficient.

Environmental compliance matters too. E-waste regulations govern electronics disposal. Working with certified recyclers ensures compliance and provides documentation for audits.

Some districts donate functional older devices to families or community organizations. Data security must come first. Wiped devices help bridge digital divides.

Manufacturer Selection Guide

Different manufacturers excel in different areas. The right choice depends on your specific needs.

When to Choose Lenovo

ThinkPad and ThinkCentre reliability suits districts prioritizing durability and long-term support. Education-specific Chromebook models handle student use well. Strong warranty programs and consistent availability across product lines make multi-year standardization easier.

When to Choose HP

HP’s K-12 focus shows in ruggedized Chromebook designs and MIL-STD testing. ProBook laptops balance cost and performance for teacher deployments. Comprehensive peripheral options from one manufacturer simplify purchasing.

When to Choose Dell

Latitude laptops and OptiPlex desktops offer long lifecycle support with education-specific configurations. PowerEdge servers anchor district infrastructure. Consistent product availability and strong commercial warranty programs support multi-building standardization.

When to Choose Samsung Displays

Professional display technology with eye comfort features suits all-day student use. Range from basic monitors to interactive panels covers diverse classroom needs. VESA mounting flexibility adapts to different learning spaces.

We compare options based on your requirements, not manufacturer incentives. Districts get honest recommendations for their specific situations.

Full-Service or Collaborative Support

Every district has different IT capacity and different needs.

Full-Service Device Replacement

We handle everything from needs assessment through deployment and old device disposal. This works best for districts with limited IT staff, large deployments, or complex multi-manufacturer environments.

You get manufacturer recommendations, competitive procurement, imaging and configuration, on-site deployment, and secure disposal. Your IT team focuses on supporting teaching and learning instead of managing logistics.

Collaborative Support

We assist with specific steps where you need expertise. Spec recommendations while you handle procurement. Imaging services while you manage deployment. Microsoft System Center configuration support for your IT team.

This works best for districts with capable IT staff who need expert support, not full outsourcing. You maintain control while accessing specialized knowledge.

“We are a proud participate in the 87^Th MSBO Annual Conference & Exhibit Show on April 21-23 at the Amway Grand Plaza Hotel. Please come by our Booth #405 and say ‘Hi’ and we can discuss your cybersecurity and technology needs.”

Get Your Refresh Cycle Right

Device replacements don’t have to overwhelm your IT team. With the right partner and access to Lenovo, HP, Dell, and Samsung education programs, refresh cycles become predictable projects instead of annual crises.

Planned cycles save money compared to emergency replacements. Consistent standards reduce support complexity. Students and teachers get reliable tools that support learning instead of fighting technology.

Planning a device refresh? Schedule a consultation to discuss your timeline, budget, and specific needs. We’ll show you exactly how we can help and which manufacturers and models fit your district best.

Schedule Your Device Planning Consultation

At Yeo & Yeo Technology, we’ve managed device deployments for Michigan school districts for over 20 years. From 50 devices to over 1,000. We know what works.

Patch management has been a cornerstone of good cybersecurity and IT hygiene for decades, but many organizations still struggle to get it right. Even with built-in tools and regular update cycles, patches too often fail to install, break critical systems, or get delayed indefinitely, leaving networks exposed and IT teams scrambling for answers. Understanding why this happens and how to modernize patching efforts is essential for any organization serious about security, uptime, and operational efficiency.

The Real Challenges Behind Patching Failures

At its core, patch management is simple: identify updates, test them, deploy them, and verify success. In practice, however, a patch moves through a chain of conditions, and any weak link can break the process. Devices must be online, services must be running, prerequisites must be present, storage must be available, and the update agent itself must be healthy. If any of those aren’t stable, the patch fails.

Here are some challenges IT teams commonly run into:

1. Lack of Control Over When and How Patches Install
   Relying on users to approve updates or run installers on their own devices results in inconsistent compliance and unpredictable outcomes. End users may postpone updates to avoid disruption, leaving systems behind on critical fixes.
2. Inadequate Visibility Into Failures
   Native system tools may report that a patch “failed” without context and provide no clear insight into why, forcing technicians to guess or blindly re-run updates. Without rich logs and dashboards showing root causes, remediation becomes slow and inefficient.
3. Scaling Issues Across Distributed Environments
   Patching 10 devices in a single office is one thing; patching hundreds or thousands across remote sites or hybrid workforces is another. Uncontrolled downloads can saturate networks, and machines that go offline regularly often miss maintenance windows entirely.
4. Fragmented Toolchains and Manual Workflows
   When monitoring, patching, automation, and reporting live in separate tools, technicians juggle dashboards and manual tasks rather than addressing the underlying issues. This “tool sprawl” increases workload and amplifies risk.

Why This Matters to Your Business

Patches aren’t just about keeping software up to date; they’re a critical frontline defense against cyber threats. Unpatched systems are vulnerable to malware, ransomware, and exploits that attackers can weaponize quickly. In regulated industries such as healthcare, finance, and government, failing to maintain patch compliance can lead to audit failures, fines, and loss of trust.

For small and mid-sized businesses without large IT teams, these challenges translate into tough choices: devoting scarce personnel to repetitive patch tasks, or risking gaps that can expose the organization.

The Shift to Modern Patch Management

To move past these problems, organizations need patching approaches that are operationally resilient, not just automated at the surface level.

Centralized Policy and Control
A consistent set of patch policies enforced across all endpoints removes guesswork. Rather than relying on user-initiated updates, IT teams can ensure patches are applied at predictable times with clear approval workflows.

Pre-Deployment Testing and Staging
Testing patches in safe environments before broad rollout prevents disruptions. This detects compatibility or dependency issues in advance, preventing downtime later.

Deep Visibility and Reporting
Seeing exactly which patches succeeded, failed, and why they failed empowers faster remediation. Dashboards and failure analytics turn reactionary work into proactive maintenance.

Intelligent Automation with Built-In Logic
Automation that understands common failure patterns — retry logic, dependency awareness, and remediation sequencing — drastically reduces technician involvement in routine updates.

Network-Aware Distribution
Smart caching and staged rollouts prevent networks from bogging down when hundreds of devices check in for updates simultaneously. This matters especially for organizations with remote sites or limited bandwidth.

How Yeo & Yeo Technology Helps You Overcome These Challenges

Patch management doesn’t have to be a recurring headache. But to get it right, it requires more than clicks and schedules — it needs visibility, testing discipline, intelligent automation, and an orchestrated process tailored to your environment. By modernizing patch workflows and leveraging expert-managed services, organizations protect themselves against vulnerabilities and free up IT teams to focus on what matters most.

At Yeo & Yeo Technology, we take patch management beyond simple updates and orchestrate the process to ensure it runs reliably at scale for your business.

Voice over Internet Protocol (VoIP) has replaced traditional phone systems for many organizations because it’s flexible, scalable, and often more cost-effective than legacy telephones. But with IP-based communications come new security risks: cybercriminals are actively probing voice systems for vulnerabilities, from intercepting calls to executing toll fraud and disrupting service. As VoIP becomes a critical operational system for businesses of all sizes, security must be treated as a foundational element of your communications strategy — not an afterthought.

Fortunately, modern VoIP platforms and best practices give organizations powerful tools to protect sensitive communications, safeguard revenue, and maintain compliance with industry regulations.

1. Protect Voice Traffic with Encryption and Network Controls

Unlike traditional analog phone lines, VoIP sends voice and signaling data over the internet, which means traffic can be intercepted if it’s not properly secured. That’s where encryption comes in: a robust VoIP environment encrypts both call setup (signaling) and the conversation itself (media), so eavesdroppers can’t read or reconstruct communications in transit.

To fully protect your environment, strong network controls are essential as well. These include firewalls configured for VoIP traffic, session border controllers (SBCs) that validate signaling and block malformed requests, and network segmentation that keeps voice systems isolated from general data traffic.

Why this matters: Encrypting your VoIP traffic prevents attackers from listening in on calls or harvesting credentials. At the same time, network controls limit the pathways attackers can exploit — strengthening your security posture without compromising call quality.

2. Strong Access Controls and Identity Protection

One of the most common causes of VoIP security breaches is compromised credentials. If attackers gain access to your VoIP admin portal or user credentials, they can reroute calls, generate unauthorized toll traffic, or disrupt services.

To guard against this, implement strong identity protections:

• Multi-factor authentication (MFA) for administrative and user access
• Role-based access controls to restrict users to only what they need
• Device restrictions that limit softphones to managed endpoints

By tightening who can access your voice platform — and from where — you significantly reduce the chances that stolen credentials lead to a costly breach or fraudulent calling activity.

3. Monitor, Detect, and Block Fraudulent Activity

VoIP systems can be targeted for fraud, especially through “toll fraud” attacks where malicious actors generate large volumes of international calls, racking up substantial charges before anyone notices.

Real-time monitoring tools can analyze calling patterns, detect anomalies (like spikes in call volume or unusual destinations), and trigger automated alerts. Some systems can even enforce automated blocking rules, stopping suspicious activity before it impacts your business.

Additionally, protecting endpoints, such as softphones on laptops and mobile devices, is crucial. These devices expand the attack surface and often sit outside traditional network defenses, so enforcing secure logins and ensuring managed updates are in place helps reduce risk.

4. Secure Cloud Infrastructure and Compliance

Most modern VoIP solutions are delivered from the cloud, shifting parts of the security responsibility to your provider’s infrastructure. A secure cloud foundation includes hardened data centers, regular patching, strict access governance, and redundant systems to ensure communications stay up and running even in adverse conditions.

From a compliance perspective, features such as encrypted call recordings, detailed access logs, and audit trails help regulated organizations — such as healthcare practices, financial institutions, and government contractors — demonstrate they’re protecting sensitive information in accordance with HIPAA, PCI, or other mandates.

Ensuring your VoIP provider supports these capabilities enhances both your security and your ability to meet regulatory requirements.

5. Partner With Specialists Who Understand VoIP Security

Implementing and maintaining advanced VoIP security features can be complex, especially for small- and mid-sized organizations with limited IT resources. That’s where managed services and dedicated partners become invaluable.

At Yeo & Yeo Technology, we help organizations:

• Assess current VoIP security posture and risks
• Configure and enforce industry-specific security settings
• Monitor calling environments for anomalies and threats
• Maintain compliance documentation and reporting

Whether you’re deploying VoIP for the first time or looking to strengthen your existing setup, our team can design a solution that balances security, usability, and performance — all while aligning with your broader IT and business goals.

Information used in this article was provided by our partners at Intermedia.

Modern organizations rely on technology more than ever, from secure networks and compliant data systems to reliable remote access and cloud platforms. But managing all of that internally isn’t always practical. That’s where a Managed Service Provider (MSP) comes in: a partner that takes on your ongoing IT needs so your team can focus on core priorities. Choosing the right MSP matters — the wrong fit can slow growth, expose security gaps, or lead to unpredictable costs. Here’s how to evaluate managed services and find a partner that aligns with your business goals.

Understand What You Need First

Before evaluating providers, clarify your current IT pain points and strategic goals. Are you looking to improve cybersecurity, streamline compliance, support a hybrid workforce, or reduce downtime with 24/7 monitoring? Defining these objectives helps you ask the right questions and compare vendors objectively, rather than getting swayed by buzzwords. Understanding your internal needs ensures the provider you choose will deliver the services that matter most to your organization’s success.

Look for Experience, Specializations, and Industry Fit

A strong MSP brings deep technical expertise and a track record of solving the kinds of challenges your organization faces. Certifications, years in business, and documented client success stories are all indicators that a provider understands best practices in networking, cloud services, and managed security. More importantly, industry experience demonstrates familiarity with your specific regulations, technologies, and workflows. Providers with experience in your industry can implement solutions faster, anticipate common challenges, and ensure compliance best practices are embedded into day-to-day operations.

Evaluate Their Service Portfolio

Managed services can encompass a wide range of IT functions, but not every provider offers the same depth or breadth. Essential offerings to consider include:

• 24/7 network monitoring and remote support — to catch issues before they become outages
• Cybersecurity services — including threat detection, device protection, and incident response
• Cloud and infrastructure management — from migrations to ongoing optimization
• Help desk and end-user support — reliable assistance when your team needs it
• Backup, disaster recovery, and business continuity planning

A larger or more diverse portfolio means fewer vendors to manage and a smoother, more integrated IT environment. Ask potential MSPs to outline what’s included in their managed services and what would require an add-on — transparency here is key.

Check Their Approach to Security and Compliance

Security threats continue to rise across all industries. Your MSP should address this proactively, not reactively. Look for partners with layered cybersecurity protections, ongoing threat monitoring, vulnerability assessments, and compliance support tailored to your industry’s regulations (e.g., HIPAA, PCI, SOC). Robust security practices reduce risk and help you maintain trust with clients and regulators. A provider that puts cybersecurity at the core of their services minimizes the chance of data breaches and operational disruptions.

Ask About Scalability and Flexibility

Your technology needs today may look very different in a year, and strong MSPs plan for that. Choose a partner that can grow with you, adding users, devices, locations, or services as your business evolves. Providers that lock you into rigid packages or long, inflexible contracts can create headaches when change is needed. Scalable, adaptable service models mean you only pay for what you need, while still leaving room to expand as you grow.

Explore Support, SLAs, and Responsiveness

Downtime and unresolved IT issues cost time and money. When evaluating MSPs, carefully review their Service Level Agreements (SLAs). These documents outline guaranteed response times, supported hours, escalation paths, and uptime commitments. A strong SLA has clear expectations around how issues are prioritized and resolved, giving you confidence that critical systems won’t be left waiting for help. Providers should also make support easily accessible, whether through remote assistance, on-site visits, or hybrid models that fit your operations.

Transparency in Pricing and Partnership

Beware of providers who are not transparent about pricing or bundle essential services into confusing tiers. Transparent pricing structures (like per-user or per-device monthly plans) help with budgeting and avoid unexpected fees. Additionally, choosing a partner who communicates clearly and regularly — with performance reports, regular review meetings, and proactive recommendations — fosters a healthier, long-term relationship.

Consider Onboarding, Communication, and Culture Fit

Transitioning IT to a new managed services partner can be a major change. Ask about their onboarding process: How will they learn your systems? How long will the transition take? Who will be your point of contact? A provider that invests time in onboarding and understanding your environment reduces disruption and builds trust. Candid communication is just as important — you need a team that explains technology in a way that makes sense and keeps you informed about key decisions and issues as they arise.

Why Yeo & Yeo Technology Is a Trusted MSP Choice

At Yeo & Yeo Technology, we don’t just offer managed services — we build partnerships that help organizations run securely, efficiently, and with confidence. Our team delivers:

• Proactive monitoring and cybersecurity to protect networks and endpoints before problems occur.
• Cloud and infrastructure support that aligns with your business goals.
• Reliable help desk services to resolve issues quickly and get your team back to work.
• Customized solutions for evolving IT needs, delivered with transparency and responsiveness.

We work with businesses across industries — from healthcare practices needing HIPAA-aligned solutions to credit unions, governments, and auto dealerships — tailoring services to address your unique challenges and opportunities.

Financial Literacy Month is a helpful reminder that money isn’t just about spreadsheets, investment accounts, or retirement calculators. At its core, financial literacy is about confidence—the confidence to make informed decisions, plan with intention, and navigate uncertainty at every stage of life.

If I’m honest, I wish I had been exposed to financial education much earlier. Like many people, I learned by trial and error, and sometimes the hard way. No one sat me down to explain how compound interest really works, how debt can quietly limit opportunity, or how much peace of mind comes from simply having a plan. That knowledge came later, after experience, mistakes, and time.

That experience shaped my belief that financial literacy isn’t just personal. It’s something we need to talk about openly, share more often, and introduce earlier. When people understand how money works—and how it works for them—the impact extends beyond individuals to families, organizations, and entire communities.

Why This Matters—and Why It’s Never Too Late

One of the best pieces of financial advice I was ever given was simple but powerful: “Don’t wait for perfect conditions to start—progress matters more than precision.” That advice applies to investing, saving, and financial planning overall. Too often, people delay action because they feel they don’t know enough or don’t have enough. Confidence grows not from perfection, but from engagement.

That belief sets the foundation for how I think about financial literacy: not as a single lesson or milestone, but as a lifelong conversation that evolves as life changes.

What Financial Confidence Really Means

Financial confidence doesn’t mean having all the answers or never feeling uncertain. It means understanding where you stand, knowing your options, and having a plan—even if that plan changes over time. It’s the difference between reacting to money challenges and proactively managing them.

Confidence grows when education keeps pace with life. And life, as we all know, rarely stays still. Below are a few practical insights and steps I encourage anyone to take at different stages in their financial journey.

Building Financial Literacy Across Every Stage of Life

Early Life & Youth: Building Awareness

Financial literacy should start early—not with complexity, but with familiarity.

• Learn the basics of earning, saving, and spending.
• Understand the trade‑off between spending now and saving for later.
• Introduce concepts like delayed gratification, simple budgeting, and saving for goals.

Early exposure builds comfort. Comfort builds confidence.

Early Career: Creating Strong Habits

The first working years are foundational.

• Understand your paycheck, benefits, and taxes.
• Build a simple budget aligned to priorities.
• Start saving early and learn how compound growth works over time.
• Be intentional about debt, especially student loans and high-interest credit.

These habits often matter more than income level.

Mid‑Career & Growing Families: Managing Complexity

As income grows, life gets more complex.

• Balance competing priorities: housing, family, education, career growth.
• Build and maintain an emergency fund.
• Invest with intention, not reaction.
• Revisit goals regularly and adjust as life changes.

At this stage, financial literacy becomes less about tactics and more about alignment— ensuring money supports the life you’re building, not the other way around.

Pre‑Retirement & Retirement: Sustaining Confidence

Financial education doesn’t stop when you’ve accumulated wealth.

• Understand income strategies, tax efficiency, and withdrawal planning.
• Reassess risk tolerance as priorities shift.
• Plan for healthcare, longevity, and legacy goals.
• Stay engaged. Confidence comes from understanding, not ignoring finances.

Even at higher levels of wealth, clarity matters. Education remains critical to preserving peace of mind and flexibility.

Practical Steps That Apply at Any Stage

No matter where you are in your journey, these principles remain constant:

1. Understand Your Starting Point: You can’t plan where you’re going without knowing where you are. Take time to know your income, expenses, savings, and obligations—even at a high level. Awareness alone often reduces financial stress.
2. Be Intentional With Your Money: Budgets aren’t about restriction. They’re about aligning resources with what matters most. Start simple, adjust as life changes, and remember that consistency is more important than precision.
3. Protect Against the Unexpected: An emergency fund is one of the most powerful tools for financial confidence. It provides flexibility when life doesn’t go as planned—because it won’t. Even starting small can make a meaningful difference over time.
4. Manage Debt Strategically: Understand how interest and repayment terms impact long‑term outcomes. A clear plan creates momentum.
5. Think Long‑Term: You don’t need to be an expert to start investing, but understanding basic concepts like compound growth and time horizon can be life-changing. Starting earlier—even with modest amounts—often matters more than trying to time the market.
6. Keep Learning—and Ask for Help: Financial literacy is ongoing. Ask questions, use reputable resources, and don’t be afraid to seek professional guidance. Confidence grows when you understand not just what to do, but why you’re doing it.

A Shared Responsibility

Financial literacy is not a one‑time milestone—it’s a lifelong skill. The earlier it begins, the more powerful it becomes, but it’s never too late to build confidence and security. Small, consistent steps compound over time, just like good financial habits.

As leaders, employers, parents, and peers, we all have a role to play in encouraging conversations about money that are honest, practical, and empowering. My hope is that by sharing knowledge more openly, we help others avoid learning the hard way—and instead move forward with confidence.

Financial literacy isn’t just about money. It’s about freedom, opportunity, and peace of mind—at every stage of life.

Yeo & Yeo CPAs & Advisors, a leading Michigan-based accounting and advisory firm, has expanded its Ann Arbor office as part of the firm’s continued investment in its people and its ability to serve organizations across Southeast Michigan. The expanded office now spans nearly 14,000 square feet—an increase of 4,000 square feet from its previous footprint—and includes additional meeting rooms, workspace for professionals, and a large training room designed for collaboration with colleagues and clients.

As part of the expansion, Yeo & Yeo HR Advisory Solutions (YYHR) will relocate from SPARK East into the Ann Arbor office effective April 1.

The move follows Yeo & Yeo’s January 2024 acquisition of Amy Cell Talent, an Ann Arbor-based recruiting and HR advisory firm. Over the past year, the firm has expanded those services under the YYHR brand as demand for workforce strategy, outsourced and fractional HR, recruiting, and leadership development support continues to grow.

“Investing in our Ann Arbor office reflects our commitment to our people and to the organizations we serve across Southeast Michigan,” said David Youngstrom, President & CEO of Yeo & Yeo CPAs & Advisors. “As businesses navigate talent shortages and leadership transitions, bringing our HR advisors together with colleagues across accounting, advisory, and technology services allows us to deliver integrated solutions—when our clients need them most.”

YYHR provides recruiting, HR advisory and compliance consulting, compensation strategy, leadership development, and fractional HR services designed to help organizations attract, develop, and retain talent in an increasingly competitive workforce environment.

“We’ve always been deeply connected to the Ann Arbor and Ypsilanti community,” said Amy Cell, President of Yeo & Yeo HR Advisory Solutions. “This next chapter allows us to remain rooted here while continuing to support organizations across Michigan and throughout the country as they navigate today’s evolving workplace.”

The Ann Arbor office expansion reflects Yeo & Yeo’s continued investment in Southeast Michigan and strengthens the firm’s ability to support businesses, nonprofits, and community organizations across the region.

Yeo & Yeo plans to commemorate the office expansion and YYHR relocation with a ribbon cutting in May in partnership with the Ann Arbor/Ypsilanti Regional Chamber.

According to the FBI, staged auto accidents account for approximately $20 billion a year in losses. This type of insurance fraud is particularly harmful to the insurance companies that must pay out liability, disability, medical and other types of claims.

All of this may sound troubling, but what does it have to do with noninsurance businesses? Insurance fraud raises rates for everyone and generally increases your company’s insurance costs. And if your employees either stage accidents or are victims of staged accidents while driving for business purposes, your company could suffer more direct consequences.

Just the facts

Staged accidents are often part of coordinated fraud schemes. In some cases, they may include unscrupulous attorneys and “medical mills” — groups of doctors and other health practitioners who prescribe unnecessary procedures and bill for unperformed services. In some cases, complicit law enforcement officers (and in at least one large-scale scam, 911 operators) are involved.

These illegal enterprises recruit people to sustain “injuries.” Often, crash victims are innocent individuals recruited off the street and promised a quick buck to act as passengers. In staged crashes, one car usually rear-ends, sideswipes or “T-bones” another. After the crash, the claimants or the attorney coordinating the scam submit a police report documenting it.

Passengers are referred to participating doctors, physical therapists, chiropractors and other specialists. The medical practitioners then write up fake treatment plans and send them to insurers for payment. When insurance payments (or legal damages if a case proceeds to litigation) are processed, scheme participants receive kickbacks.

Actual harm

Aside from the aggravation (and, potentially, real physical injuries) they cause, staged accidents pose a serious threat to your company’s insurance coverage. If an innocent employee driving a company vehicle is involved in a staged accident, you could experience commercial liability rate increases and possible reduction — or even elimination — of coverage. The same is true of your company’s health or disability premiums if a dishonest employee fraudulently files claims.

In fact, insurers may either adjust coverage or withdraw from entire geographic areas where medical mills and staged accidents have caused them big losses. Staged accidents are particularly prevalent in big cities and in such states as Florida, New York, California, Texas and Maryland, according to National Insurance Crime Bureau data.

Your business might also be sued for the “pain and suffering” of so-called victims. If your insurance coverage is inadequate, you could incur significant out-of-pocket costs.

Your role in prevention

To help protect your business, establish a company vehicle use policy that documents zero tolerance for intentional involvement in insurance fraud. Also ensure that authorized drivers meet all requirements under your insurance coverage. And train employees who drive on company business on what to do if they’re involved in a collision — for example, wait for the police to arrive, document accident details, and, if possible, obtain witness contact information. Employee drivers should be required to inform someone in your company immediately.

You may also want to strengthen internal controls. For example, conduct appropriate background checks on employees with driving roles.

If an auto accident involves injuries or requires costly repairs, work closely with your insurer and attorney. Most insurance companies are familiar with the red flags of staged accidents, such as passengers claiming major medical expenses after what appears to be a minor collision or hiring disreputable lawyers to sue for damages.

Get involved

To help control rising insurance costs, it’s important to take an active role in preventing insurance fraud. If you’re concerned about the legitimacy of a work-related accident, treat the event like any potential fraud and investigate with the support of appropriate legal and forensic accounting advisors. Contact us. We can help you assess fraud exposure, strengthen internal controls and evaluate the adequacy of your insurance coverage.

© 2026

Companies that engage in research and development activities may qualify for a federal tax credit for some of those expenses. The credit is complicated to calculate, and not all research activities are eligible — but the tax savings can be significant. Here are answers to questions you might have about this potentially lucrative tax break.

What’s it worth?

The federal research credit — sometimes referred to as the research and development (R&D) credit — is for increasing research activities. Generally, it’s equal to 20% of the amount by which qualified research expenditures (QREs) in a tax year exceed a base amount derived from your company’s historical research expenditures. (There are alternative computation methods for start-ups and other companies without sufficient historical data.) QREs include wages, supplies, and certain consulting and contract research fees related to qualified research activities.

The credit is nonrefundable — that is, it can’t be used to generate a loss — but unused credits may be carried back one year or forward up to 20 years. Limits on general business credits also prevent companies from using tax credits to erase their tax liability entirely.

In addition, start-ups may elect to offset research credits against up to $500,000 in employer-paid payroll taxes. For this purpose, “start-ups” are generally businesses in operation for less than five years with less than $5 million in gross receipts.

And sole proprietors and owners of small pass-through entities (including S corporations, partnerships and most limited liability companies) can use the credit to reduce their alternative minimum tax liability. For this purpose, “small” businesses are generally those with average gross receipts of no more than $50 million for the three preceding tax years.

What costs qualify?

The research credit isn’t just for scientific research. Generally, to qualify for the credit, a research activity must:

• Relate to the development or improvement of a “business component,” such as a product, process, technique or software program,
• Strive to eliminate uncertainty over how (and whether) the business component can be developed or improved,
• Involve a “process of experimentation,” using techniques such as modeling, simulation or systematic trial and error, and
• Be technological in nature — that is, it must rely on “hard science,” such as engineering, computer science, physics, chemistry or biology.

To claim the credit, you must bear the financial risk associated with the research and enjoy substantial rights to the results. Otherwise, it will be considered “funded research,” which is ineligible for the credit.

These criteria are broad enough to encompass a wide range of business activities. Examples include developing new products, improving processes (including business or financial processes that involve computer technology) and developing software for internal use.

Finally, only domestic research costs qualify for the federal research credit. Foreign research expenses are excluded and must instead be capitalized and amortized over 15 years.

Can businesses claim the research credit for deductible R&E costs?

Research-related expenses may qualify for two tax breaks. The first is the research credit; the second is the deduction for research and experimental (R&E) costs. Businesses can immediately deduct domestic R&E expenditures paid or incurred in tax years beginning after December 31, 2024. However, you can’t claim both breaks for the same expenses.

In general, the expenses that qualify for the research credit are narrower than those that qualify for the R&E deduction. If you claim the research credit, you must reduce the amount otherwise deductible (or capitalized) for R&E expenditures by the amount of the credit. However, under the One Big Beautiful Bill Act, the amount deducted or charged to a capital account for R&E costs is reduced by the full amount of the research credit, as opposed to being subject to a more complex calculation in effect under prior law.

Next steps

Many businesses overlook the federal research credit because of its complexity. But the tax savings can be substantial — and many states offer research tax incentives in addition to those available at the federal level. If your business invests in developing or improving products, processes or software, we can help you assess eligibility, quantify potential benefits and ensure your research-related tax breaks are properly supported. Contact us for more information.

© 2026

Many small business owners start with simple accounting processes. But as their companies grow, the choice of accounting method can significantly impact taxes, financial reporting and access to financing. Understanding the differences between the cash and accrual methods — and when each makes sense — can help you make more informed decisions as your business develops.

Cash-basis accounting: Simplicity and tax flexibility

Under the cash method, companies recognize revenue when payments are received and expenses when they’re paid. As a result, cash-basis entities may report fluctuations in profits from period to period, especially if they’re working on long-term projects. This can make it hard to benchmark a company’s performance from year to year — or against other entities that use the accrual method.

Small businesses with average annual gross receipts below an inflation-adjusted threshold may qualify to use the cash method for federal tax purposes. For the 2025 tax year, the inflation-adjusted gross receipts threshold was $31 million. For 2026, the threshold increases to $32 million. These tax thresholds apply to most small businesses, including sole proprietorships, partnerships and corporations.

Businesses that are eligible to use the cash method of accounting for tax purposes may have some ability to manage the timing of income and deductions within the boundaries of tax rules. This typically involves planning around when income is received and expenses are paid.

In some cases, businesses may benefit from deferring revenue and accelerating expenses near year end to reduce current-year taxable income. However, this approach should be evaluated carefully, as it may also make the business appear less profitable to lenders or investors. Conversely, if tax rates are expected to increase substantially in the coming year, it may be advantageous to accelerate revenue recognition and defer expenses at year end. This strategy may increase current-year tax liability but could result in overall tax savings if future rates change.

Accrual-basis accounting: Clearer financial picture for decision-making

The accrual method is more complex but provides a more complete view of a company’s financial performance. It conforms to the matching principle under Generally Accepted Accounting Principles (GAAP), meaning companies recognize revenue and expenses in the period they’re earned or incurred. This method reduces major fluctuations in profits from one period to the next, making performance easier to benchmark.

For example, a business that delivers services in December but isn’t paid until January would still report that revenue in December under the accrual method — providing a more accurate picture of when the work was performed.

In addition, accrual-basis businesses report several asset and liability accounts that are generally absent on a cash-basis balance sheet. Examples include prepaid expenses, accounts receivable, accounts payable, work-in-process inventory and accrued expenses.

The U.S. Securities and Exchange Commission requires public companies to issue financial statements that conform to GAAP, which prescribes the usage of the accrual method. Private companies that are large enough to consider going public, or that are contemplating mergers or acquisitions, may want to issue GAAP financial statements to facilitate these transactions. Likewise, many lenders prefer GAAP financials for underwriting and due diligence purposes.

Some states also require sales tax returns to be filed on an accrual basis. If you don’t track and plan carefully in these states, you might get hit with a sales tax bill on payments you haven’t yet collected. This can affect your cash flow.

Which method is right for you?

Many businesses begin with the cash method but revisit that choice as operations become more complex. Choosing the wrong accounting method — or failing to revisit your approach as your business grows — can affect everything from tax liability to financing opportunities. We can help you evaluate whether your current method remains appropriate and guide you through the transition if a change makes sense. Contact us to evaluate your financial reporting options and help you make an informed decision.

© 2026

Among employers, the notion of focusing more on skills than education when hiring has gained momentum over the last several years. A recent survey indicates the trend is continuing.

At the end of 2025, Western Governors University (WGU) released its inaugural Workforce Decoded report. It includes results from a survey of more than 3,100 U.S.-based participants representing organizations of various sizes across a range of industries. Notably, 78% of respondents said work experience is equal to or more valuable than a degree, and 86% cited nondegree certificates as valuable indicators of job readiness.

Considerable adjustment

Skills-based hiring represents a considerable adjustment for people raised on the idea that going to college automatically and significantly increases the likelihood of getting a good job. It also suggests that societal attitudes toward university education are changing.

The escalating price tag of tuition and anxiety about student debt have many younger people rethinking whether they want to attend traditional colleges. Meanwhile, the WGU report suggests that employers increasingly value specific job-ready skills alongside or, in some cases, over traditional degrees.

There are other reasons for the ascendance of skills-based hiring. Proponents argue that it may help reduce bias, strengthen objectivity and boost diversity. They say job candidates are more likely to be judged on the skills they bring to the table rather than the prestige of the institution of higher learning they attended. It can also expand candidate pools and influence how your organization defines roles, evaluates performance and compensates workers.

Practical reasons … and risks

If you’re looking for more practical reasons to adjust your organization’s hiring approach, there are plenty. Focusing on skills rather than education may lead to better “job matching” — that is, aligning job listings more closely with qualified applicants. This can reduce time to hire while improving employee engagement and retention. Employees are brought on to do what they do best, rather than based on an educational background that may not fully align with the organization’s needs.

Of course, skills-based hiring has risks all its own. Employers that focus too narrowly on technical abilities may overlook other critical qualities, such as:

• Adaptability,
• Communication skills,
• Leadership potential, and
• Alignment with organizational culture.

There’s also the challenge of accurately assessing whether candidates can apply their skills in real-world situations. Resumés, certificates and interviews may provide useful insight, but they don’t always tell the whole story. One way to dig deeper is to incorporate brief, carefully designed and low-pressure skills exercises into the hiring process. It’s also important to consistently evaluate employees’ performance to better assess the long-term results of hiring decisions.

Direct impact

Ultimately, skills-based hiring is an important trend worth keeping an eye on. After all, how your organization fills open positions directly impacts its financial performance. Successful job matching reduces turnover and builds stronger teams, bolstering your ability to control labor costs and support long-term growth. We’d be happy to help you measure and analyze hiring, compensation and labor costs so you can make informed decisions that support both operational goals and financial success.

© 2026

Life insurance can provide peace of mind. But if your estate is large enough that estate taxes are a concern, it’s important not to own the policy at death. Why? The policy’s proceeds will be included in your taxable estate. To avoid this result, a common estate planning strategy is to set up an irrevocable life insurance trust (ILIT) to hold the policy.

However, there may come a time when you no longer need the ILIT. Does its irrevocable nature mean you’re stuck with it forever? Maybe not. Depending on the ILIT’s terms and applicable state law, you might have the option of pulling a life insurance policy out of an ILIT or even unwinding the ILIT entirely.

How does an ILIT work?

An ILIT shields life insurance proceeds from estate tax because the trust, rather than the insured, owns the policy. (Note, however, that under the “three-year rule,” if you transfer an existing policy to an ILIT and then die within three years, the proceeds remain taxable. That’s why it’s preferable to have the ILIT purchase a new policy, if possible, rather than transferring an existing policy to the trust.)

The key to removing the policy from your taxable estate is to relinquish all “incidents of ownership.” This means, for example, that you can’t retain the power to change beneficiaries; assign, surrender or cancel the policy; borrow against the policy’s cash value; or pledge the policy as security for a loan (though the trustee may have the power to do these things).

What are the options for undoing an ILIT?

Generally, there are two reasons you might want to undo an ILIT:

1. You no longer need life insurance, or
2. You still need life insurance, but your estate isn’t large enough to trigger estate tax, and you’d like to eliminate the restrictions and expense associated with the ILIT structure.

Although your ability to undo an ILIT depends on the ILIT’s terms and applicable state law, potential options include:

Allowing the insurance to lapse. This may be a viable option if the ILIT holds a term life insurance policy that you no longer need (and no other assets). You simply stop making contributions to the trust to cover premium payments. Technically, the ILIT continues to exist. But once the policy lapses, the ILIT owns no assets. It’s also possible to allow a permanent life insurance policy to lapse, but other options may be preferable — especially if the policy has a significant cash value.

Swapping the policy for cash or other assets. Many ILITs permit the grantor to retrieve a policy from an ILIT by substituting cash or other assets of equivalent value. If you have illiquid assets but need cash, you may be able to gain access to a policy’s cash value by swapping the policy for illiquid assets of equivalent value.

Surrendering or selling the policy. If your ILIT holds a permanent insurance policy, the trust might surrender it, which will preserve its cash value but avoid the need to continue paying premiums. Alternatively, if you’re eligible, the trust could sell the policy in a life settlement transaction.

Distributing the trust assets. Some ILITs give the trustee the discretion to distribute trust funds (including the policy’s cash value, other trust assets or possibly the policy itself) to your beneficiaries, such as your spouse or children. Typically, these distributions are limited to funds needed for “health, education, maintenance and support.”

Going to court. If the ILIT’s terms don’t permit the trustee to unwind the trust, it may be possible to obtain a court order to terminate it. For example, state law may permit a court to modify or terminate an ILIT if unanticipated circumstances require changes to achieve the trust’s purposes or if the grantor and all beneficiaries consent.

We’re here to help

These are some, but by no means all, of the strategies that may be available to unwind an ILIT. Bear in mind that some of these solutions can have tax implications for you or your beneficiaries. Contact us to learn more about ILITs.

© 2026

How to Protect Student Data

Michigan school districts hold something incredibly valuable: student data.

Names, addresses, social security numbers, medical records, behavioral assessments, financial aid information. And unlike banks or hospitals, most districts don’t have dedicated cybersecurity teams protecting it.

That makes schools prime targets. Here’s what every Michigan school administrator needs to know about protecting student data in 2026.

Why Hackers Target School Districts

School districts face a unique combination of vulnerabilities that make them attractive to cybercriminals.

Rich data, limited security budgets. School IT budgets average 2-3% of total operating costs. Private sector organizations spend 12-15% on IT. That gap creates vulnerability. Districts have valuable data but limited resources to protect it.

Aging infrastructure. Budget constraints delay technology upgrades. Legacy systems run outdated software. Unpatched vulnerabilities accumulate. Attackers know this and exploit it.

Limited IT staffing. Most districts have 1-2 IT staff members supporting 1,000 to 3,000 students. They can’t monitor systems 24/7. They can’t specialize in security while also managing daily help desk requests, device deployments, and infrastructure maintenance.

High attack success rate. Schools pay ransoms 50% more often than businesses, according to cybersecurity research from Sophos. Average ransoms exceed $500,000. Attackers know schools will pay to restore access quickly and avoid extended closures.

Summer vulnerability window. Attacks often happen during breaks when monitoring is reduced. Districts discover breaches when school resumes in fall. Maximum disruption at the worst possible time.

How AI Has Made It Worse

Artificial intelligence hasn’t just improved technology for schools. It’s improved technology for attackers too.

AI-powered phishing now targets school employees with perfect grammar and local context. Attackers use ChatGPT and similar tools to research districts through LinkedIn, school websites, and public records. They craft personalized emails referencing real projects, real vendors, and real administrators.

Automated attacks can hit dozens of districts simultaneously. What used to require a skilled hacker focusing on one target now happens at scale with minimal human effort.

AI helps attackers bypass traditional email filters that look for spelling errors and obvious red flags. The threats look legitimate because AI makes them legitimate-looking.

For Michigan schools, this means attacks that used to target Fortune 500 companies are now reaching small rural districts with 500 students.

The Real Cost of a Breach

When a cyberattack succeeds, the damage goes far beyond the ransom payment.

Financial impact: Ransom payments range from $50,000 to $500,000. Recovery costs add another $200,000 to $800,000. Legal fees run $50,000 to $150,000. Total cost for a typical district breach: $1 to 3 million.

Operational impact: Schools close for 3 to 10 days. Lost instructional time can’t be recovered. Manual processes for attendance, grades, and lunch payments create chaos. Staff work overtime during recovery.

Compliance and legal impact: FERPA violations cost $50,000 per incident. State data breach notification requirements add administrative burden. Potential loss of federal funding. Board accountability questions. Superintendent and CIO job security at risk.

Reputational impact: Community trust takes years to rebuild. Parents question whether their children’s data is safe. Local media coverage brings unwanted attention. Some families choose other districts.

A single successful attack can define a superintendent’s tenure and a district’s reputation for years.

Layered Security: The Only Real Defense

No single security tool protects schools. You need multiple layers working together.

Layer 1: Next-Generation Firewall

Fortinet firewalls provide network perimeter protection with application control and intrusion prevention. They block threats before they enter your district network. Fortinet’s wireless access points extend this protection across your buildings with enterprise-grade security designed for high-density school environments.

Layer 2: Endpoint Protection

SentinelOne EDR/XDR/MDR protects every device in your district. Staff laptops, student Chromebooks, servers, administrative workstations. Behavioral detection catches threats that traditional antivirus misses. When malware tries to encrypt files or connect to suspicious servers, SentinelOne stops it automatically. Works across Windows, Mac, and Chromebook environments.

Layer 3: Email Security

Ninety percent of attacks start with email. Advanced filtering goes beyond basic spam detection to analyze attachments for unusual behavior and protect against phishing attempts. Link protection prevents clicks on malicious URLs.

Layer 4: Network Segmentation

Separate networks for administration, staff, students, guests, and IoT devices limit damage when one area is compromised. A breach in the student wireless network doesn’t reach the student information system server.

Layer 5: Access Controls

Multi-factor authentication on all systems means compromised passwords don’t grant full access. Privileged access management restricts and monitors administrative credentials. Least-privilege principles limit what each account can access.

Layer 6: Security Awareness Training

KnowBe4 provides quarterly training for all staff with education-specific content. Simulated phishing campaigns test whether employees can recognize threats. Track completion rates and identify who needs additional training. Humans are both the weakest link and the strongest defense when properly trained.

Layer 7: 24/7 Monitoring and Incident Response

Security Operations Center teams watch for threats around the clock. When attacks happen at 2 AM on Saturday, someone is watching and responding. Immediate action prevents small incidents from becoming major breaches.

One layer fails? The others catch it. That’s how real protection works.

Yeo & Yeo: Protecting Michigan Schools

For over twenty years, Yeo & Yeo Technology has been protecting Michigan school districts. We understand the unique challenges schools face: tight budgets, complex compliance requirements, limited IT staff, and the critical importance of protecting student data.

• Cybersecurity Solutions
  We design and implement layered defense systems with SentinelOne endpoint protection, Fortinet firewalls and wireless infrastructure, and KnowBe4 security training so your district stays protected against evolving threats while meeting FERPA compliance requirements.
• IT Specializations
  Our managed IT services extend the capacity of small IT teams with 24/7 monitoring, help desk support, and after-hours emergency response so your limited staff can focus on supporting teaching and learning instead of fighting fires.
• Microsoft Specializations
  We optimize your Microsoft 365, Azure, and Copilot for Education investments with expert implementation and licensing guidance so you get maximum value without overspending on unused features.
• E-Rate Competitive Pricing
  We provide competitive bidding for E-Rate including cyber security hardware and software.

We’ve worked with districts across Michigan for two decades. We answer our phones. We show up on-site. We know Michigan schools because we’ve been serving them since 1984.

“We are a proud participate in the 87^Th MSBO Annual Conference & Exhibit Show on April 21-23 at the Amway Grand Plaza Hotel. Please come by our Booth #405 and say ‘Hi’ and we can discuss your cybersecurity and technology needs.”

Protect What Matters Most

Student data is a public trust. Parents trust schools to protect their children’s information. Communities trust schools to be responsible stewards of taxpayer dollars. Students deserve learning environments where technology enables education instead of disrupting it with breaches and outages.

Layered cybersecurity isn’t essential for Michigan schools to protect their students.

Schedule Your Free K-12 Security Assessment

Together, we will evaluate your current defenses, identify gaps, and show you how to build layered protection that fits your budget and meets FERPA compliance requirements.

At Yeo & Yeo Technology, we’ve been protecting Michigan schools for over 20 years. We’re here to make sure your district stays secure.

With caregiving costs rising faster than inflation, it’s harder than ever to juggle parenting young children or caring for elderly relatives while also working nine to five. Your business can help support caregiving employees and boost productivity by offering dependent care flexible spending accounts (FSAs). This benefit provides a tax-advantaged method to pay for eligible caregiving expenses using pretax dollars.

Or maybe you want to make a bigger commitment but are concerned about the costs. If you provide child care directly to workers — for example, by setting up a day care facility in your building — your company may qualify for a significant tax credit.

When employees opt in

To sponsor dependent care FSAs, you’ll need to implement a dependent care assistance program (DCAP), which enables you to retain ownership of your workers’ FSAs. Participating employees must opt in, typically during your company’s open enrollment period or after experiencing a qualifying life event. Then they make pretax compensation deferrals to their accounts, up to $7,500 annually for married couples filing jointly, single filers and heads of households, $3,750 for those married and filing separately. These amounts aren’t indexed for inflation.

Workers can use their FSA balances to pay for eligible expenses, including day care, before- and after-school care, summer day camps, and care for dependent adults who can’t care for themselves. Qualifying expenses must enable participants (and, if applicable, their spouses) to work or seek employment. Using pretax dollars to fund accounts allows participants to pay for qualifying care while reducing their taxable incomes.

Employers win, too

For employers, sponsoring dependent care FSAs also offers potential advantages. First, these accounts can help attract strong job candidates and retain employees.

Second, because participants’ contributions occur pretax, they’re exempt from Social Security and Medicare taxes. That reduces your business’s (and your employees’) payroll tax burden. To increase dependent care FSA participation, you may make contributions to employees’ accounts. However, the $7,500/$3,750 annual contribution limits apply to combined employer-employee contributions. Note that you can’t deduct contributions as a business expense.

You’ll need to ensure that your DCAP complies with IRS regulations, including nondiscrimination rules. Proper recordkeeping, timely reimbursements and clear communication are also critical. Be sure to educate participants about the “use-it-or-lose-it” rule that says FSA balances generally must be spent by the end of the year. (Unused account funds generally revert to employers.) Be sure to train employees to estimate expenses and submit claims to minimize the risk of losing FSA funds. And let participants know their FSAs aren’t portable — meaning they can’t take their balances with them if they leave your company.

Tax help with costs

Another way to retain loyal, hardworking staff is to provide child care directly. For 2026, you may be able to claim an employer-provided child care tax credit equal to 40% of your qualified expenses for providing child care to employees, plus 10% of qualified resource and referral expenditures, up to $500,000. For eligible small businesses, these amounts are 50% and up to $600,000, respectively. The maximum dollar amount will be adjusted annually for inflation after 2026. (The additional 10% credit for resource and referral expenses will continue to be available.)

Qualified costs include those spent to acquire, construct, renovate and operate a child care facility. Or you can claim expenses for contracting with a licensed child care facility. If you provide on-site care, at least 30% of the enrolled children must be your employees’ dependents.

Competitive package

Dependent care FSAs and employer-offered child care can be competitive additions to your employee benefits package. But because of the resources involved, think carefully before designing a DCAP or establishing a child care facility. Your workforce may not want them. Consider distributing a survey to gauge interest before you commit to offering new fringe benefits.

And to help ensure you’re offering the most cost- and tax-effective benefits to your workforce, contact us. We can review your benefits lineup, potentially suggest changes and advise on program setup and administration.

© 2026

Yeo & Yeo CPAs & Advisors is proud to announce that Steven Treece, CPA, PFS, has received the Tomorrow’s 20 Award presented by the Auburn Hills Chamber of Commerce. This award recognizes emerging leaders who demonstrate influence in the community through excellence in business leadership, dedication to innovation, and community service.

Steven Treece joined Yeo & Yeo in 2013 and has built a reputation as a trusted advisor to clients across Michigan and a respected firmwide leader. As a Certified Public Accountant and Personal Financial Specialist, he focuses on complex tax planning and strategy for individuals and closely held businesses, with expertise in real estate, estate and trust planning, and wealth strategy. He is an active member of Yeo & Yeo’s Agribusiness Services Group, Estate & Trust Services Group, and Real Estate Services Group, working closely with business owners and families navigating growth, transition, and long-term planning.

A graduate of the BDO Alliance USA Emerging Leaders program, Treece brings a forward-looking perspective to practice management and innovation. He has authored articles on tax and industry-specific issues, contributed to implementing Yeo & Yeo’s YeoLEAN Tax process, and helped develop the firm’s Prospective Client Acceptance Matrix—initiatives that enhance efficiency, quality, and sustainable growth.

Treece is also recognized for his commitment to developing others. He serves as a Career Advocate for professionals across multiple offices, teaches best practices in client service, and has hosted internal podcasts focused on elevating service excellence. His leadership has earned recognition both inside and outside the firm, including being named to the Flint & Genesee Group’s 40 Under 40.

As Yeo & Yeo’s presence and client base in Southeast Michigan have expanded, Steve made a purposeful decision to relocate and be based in the Auburn Hills/Troy area to more directly support clients with his technical expertise. That same commitment to being present and engaged extends beyond his professional role. His commitment to community service is longstanding and hands-on. Treece is a past president of the Rotary Club of Burton and has volunteered with Boy Scouts of America, Old Newsboys of Flint, the Food Bank of Eastern Michigan, and Genesee County Habitat for Humanity. As he deepens his roots in the Auburn Hills/Troy area, Treece looks forward to expanding his involvement throughout Southeast Michigan.

“Steve cares deeply about developing the people he leads,” said Tammy Moncrief, CPA, Managing Principal of Yeo & Yeo’s Troy office. “Beyond his professional expertise, he consistently offers encouragement and support as his team takes on new challenges, and his mentorship has a lasting impact. He is a strong role model and well-deserving of this recognition.”

The Tomorrow’s 20 award recipients will be honored at a gala hosted by the Auburn Hills Chamber on April 29 in Pontiac, Michigan.

If you are an IT leader at a Michigan school district, you may be facing an unexpected and significant challenge: the VMware crisis. Following Broadcom’s acquisition of VMware, organizations are reporting massive, unexpected price hikes for their license renewals, in some cases tens of thousands of dollars more than previous invoices. This sudden financial burden is putting immense pressure on already tight budgets and threatening the stability of critical IT infrastructure.

The Perfect Storm: Understanding the VMware Licensing Shake-Up

The root of this crisis lies in Broadcom’s strategic shift away from perpetual licenses to a subscription-based model, coupled with the elimination of discounts that many public sector organizations have long relied upon. The London Grid for Learning, a non-profit serving over 3,000 schools, reported a staggering 268% increase in their renewal quote. This is not an isolated incident; similar stories are emerging from organizations worldwide, including here in Michigan.

These changes are not just about price. The move to per-core licensing, and the (now-reversed) attempt to enforce a 72-core minimum, have created a complex and often confusing landscape for IT departments. For many, the immediate future of their virtualized environments feels uncertain, and the path forward is unclear.

The Impact on Michigan’s Public Sector

For Michigan’s school districts, the timing could not be worse. With budgets already stretched thin, absorbing such a significant and unforeseen cost is simply not feasible for many. The services that run on these VMware environments are not optional luxuries; they are the essential digital backbone of our public institutions. From student information systems to online learning platforms, the potential for disruption is very real.

The choice facing many IT leaders is a difficult one: either find the funds to pay the exorbitant renewal fees, or risk operating without essential security patches and support, leaving their systems vulnerable to attack. Neither option is a good one.

A Path Forward: Finding the Right Alternative

The good news is that you are not alone, and there are viable, cost-effective alternatives to VMware that can provide the performance, reliability, and security your organization needs. At Yeo & Yeo Technology, we have been closely monitoring this situation and are actively helping our clients navigate this challenging transition. We have migrated many clients away from VMware, eliminating the budget crisis.

One of the leading alternatives we recommend for many of our Michigan school district clients is Scale Computing. Scale’s platform is designed specifically for environments like yours, offering a simple, scalable, and self-healing infrastructure that can significantly reduce your total cost of ownership without sacrificing performance. We have seen firsthand how a move to an alternative like Scale can not only solve the immediate budget crisis but also provide a more resilient and easier-to-manage platform for the long term.

If Scale is not a fit, as a long-time Microsoft partner, we have migrated some schools and agencies to the M365 platform and Microsoft Hyper-V as a replacement for VMware. Our experience across multiple platforms means we can help you find the solution that works best for your specific needs and constraints.

Let’s Talk at the MSBO Expo

We understand that every organization’s situation is unique. That is why we invite you to visit the Yeo & Yeo Technology Booth #405 at the 87^th MSBO Annual Conference & Exhibit Show this April 22-23, 2026. Our team of professionals will be on hand to answer your questions, discuss your specific challenges, and provide a no-obligation assessment of your current VMware environment.

It’s Time to Move Past VMware

Book a Complimentary IT Consult and we can help you understand the full implications of the VMware licensing changes, explore the pros and cons of alternatives like Scale Computing, M365, Azure, or other options, and develop a strategic roadmap for your organization’s future. Don’t let the VMware crisis dictate your IT strategy. Let’s work together to find a solution that fits your needs and your budget.

We Are Here To Help You

Visit us at the MSBO Expo to learn more, or contact us today to schedule your complimentary consultation. We look forward to helping you navigate this transition and find the right path forward for your organization.

Annuities have recently gained attention as an employee benefit because of changes in federal retirement law. But their use in workplace plans remains limited. The 68th Annual 401(k) Survey by the Plan Sponsor Council of America, published in late 2025, found that only 8.9% of respondents had an in-plan annuity for the 2024 plan year. That doesn’t mean you should ignore the option, though — particularly if your organization has key employees who’d value this benefit or if it could help attract mission-critical hires.

Defining the concept

Annuities are contracts issued by insurance companies that can provide guaranteed income in retirement, often until the end of the contract owner’s life. Traditional annuity contracts require an individual to make either a lump-sum payment or a series of payments to the insurer in exchange for income paid out at regular intervals during retirement.

Because traditional annuity contracts are typically bought with after-tax dollars, the buyer generally doesn’t receive a current tax deduction. Later, when distributions begin, the earnings portion of each payment is usually taxable as ordinary income, while the portion representing the buyer’s original investment typically isn’t taxed again.

An alternate version is the qualified employee annuity. Under these arrangements, an employer sponsors an annuity through a qualified retirement plan or as a retirement benefit under a plan that meets certain Internal Revenue Code requirements.

In many cases, the annuity serves as an investment or distribution option within a plan rather than as a separate benefit. Contributions are generally made with pretax dollars, earnings grow tax-deferred and distributions are generally taxed as ordinary income. (A portion may be tax-free if after-tax contributions are involved.) In this context, the annuity is simply the investment vehicle — the tax treatment generally follows the rules of the underlying retirement plan.

Recognizing the differences

Annuities and traditional 401(k) plans are similar in that they allow tax-deferred growth of account funds. But they also have key differences, which some employees may appreciate. For example, as mentioned, annuities can provide a predictable income stream that might last throughout a participant’s lifetime. A traditional 401(k) account balance, by itself, doesn’t come with that kind of guarantee.

Also, employee-participants can contribute only a specific amount to their respective 401(k) accounts annually. In 2026, the limit is $24,500 (not including catch-up contributions, if applicable). Whether contribution limits apply to an annuity depends on how it’s offered. If the annuity is held within a qualified retirement plan, the usual limits still apply. That said, some employees may find annuities appealing for their income guarantee rather than for contribution flexibility.

Then again, the fixed rate of return guaranteed by an annuity may be lower than the returns available through other investments. Also, unlike a 401(k), some annuities’ payout options may provide little or no value to heirs after the account owner’s death, depending on the contract terms. (Some annuities can include survivor or death benefit features.)

Another consideration is that annuities typically don’t permit participants to borrow money from their accounts. A loan feature, common to many 401(k) plans, is often appreciated by participants for emergencies, despite the downsides of taking out such loans.

Participants may be able to take early distributions from a qualified employee annuity if the plan permits them. However, the taxable portion is generally subject to ordinary income tax and may also be subject to a 10% additional tax if taken before age 59½, unless an eligible exception applies.

Catching up with the changes

Although 401(k) plans could include annuity features before 2019, the SECURE Act encouraged wider adoption by:

• Giving plan sponsors a clearer fiduciary safe harbor for selecting insurers, and
• Making certain lifetime income investments easier to preserve when employees change jobs.

SECURE 2.0, enacted in 2022, made several related rule changes. These include updates affecting longevity annuities and retirement plan distributions, which may further support lifetime income planning. In many cases, employers that sponsor annuities do so by offering a lifetime income option within an existing defined contribution plan rather than by replacing the plan altogether.

Assessing the complexities

Many employers remain hesitant to sponsor annuities because of their complexity and fiduciary considerations. For instance, choosing a provider requires a careful review of the insurer’s financial strength, the contract terms and the associated costs. Also, there are generally fees involved with annuities that vary by provider and contract, adding another layer of complexity to administering annuities — particularly when participants leave the organization.

In addition, employers need to think about employee communication. Annuities can be complicated, and participants may need help understanding fees, liquidity restrictions, payout options and beneficiary implications before electing this type of benefit.

Making the right call

For some small and midsize employers, offering an annuity-related benefit may be a worthwhile addition to their benefits package. But, as you can see, these products are hardly simple. Contact us for help determining whether an annuity plan or feature is right for your organization.

© 2026

GASB Statement No. 103, Financial Reporting Model Improvements, is not a full overhaul like GASB 34 was; instead, it is a targeted refinement. Its new requirements directly affect how government entities prepare annual financial statements, particularly in the areas of MD&A, unusual or infrequent items, proprietary fund reporting, component unit presentation, and budgetary comparisons.

A Sharper, More Analytical MD&A

Under GASB 103, the Management’s Discussion and Analysis (MD&A) must focus on five required areas:

1. Overview of the financial statements
2. Financial summary
3. Detailed analyses
4. Significant capital and long‑term financing activity
5. Currently known facts or conditions

This means government entities can no longer rely on template‑style MD&A narratives. Instead, they must provide clear explanations of why property taxes, state funding levels, federal grants, staffing shifts, or capital project activity affected financial results. Think of it as a shift toward an analytical narrative where the MD&A provides explanations as to why things changed, not just what changed. There is also a requirement for a clear distinction between the primary government and any component units.

Reclassification of Unusual or Infrequent Items

GASB 103 replaces “special” and “extraordinary” items with a single category: unusual or infrequent items. For government entities, this may apply to events such as unexpected facility damages, one‑time legal settlements, or rare funding adjustments.

Proprietary Funds

Government entities must follow updated proprietary fund reporting requirements. GASB 103 maintains the distinction between operating and nonoperating activities but updates presentation rules to improve consistency.

Major Component Unit Presentation

GASB 103 enhances consistency in how component units are presented. The standard requires greater disaggregation of major component units to improve consistency and comparability.

Budgetary Comparison Enhancements

Government entities must also adapt to improved consistency requirements for budgetary comparison schedules. These refinements reduce diversity in practice and improve the clarity and comparability of budgetary reporting.

Implementation Timeline

GASB 103 is effective for fiscal years beginning after June 15, 2025, meaning this will be effective starting with the June 30, 2026, financial statements.

If you need assistance or have questions, please contact your auditor or a member of Yeo & Yeo’s Government Services Group. We are here to help. 

Be on the lookout for our upcoming webinar in May 2026, where we’ll explore GASB 103 in greater detail.

Yeo & Yeo’s Education Services Group professionals are pleased to present several sessions during the April 21-23 MSBO Conference & Exhibit Show at the Amway Grand Plaza and DeVos Place in Grand Rapids.

We are excited to share our insights to help districts navigate the complexities of school financial management. We look forward to seeing you there and working together to support MSBO and the broader education community.

Tuesday, April 21

• Accounting and Auditing Update – 9:30-10:30 a.m.

• • Jennifer Watkins, CPA, Yeo & Yeo Principal, shares insights on the latest accounting pronouncements and preparing for this audit season.

Thursday, April 23

• School Nutrition Program Financial Reporting and Auditing Considerations – 8:20-9:20 a.m.
  • Kristi Krafft-Bellsky, CPA, Yeo & Yeo Principal, joins Michelle Needham, MDE, to help you learn about the main compliance and audit issues in the food service fund and how to navigate them.
• Allowable Expenditures – 9:40-10:40 a.m.
  • Jacob Walter, Yeo & Yeo Senior Accountant, and Jeremy S. Motz, Clark Hill PLC, share insights on reviewing guidelines for allowable expenditures.
• Contractor vs. Employee Tax Filing – 9:40-10:40 a.m.
  • Jennifer Watkins, CPA, Yeo & Yeo Principal, joins Jolene Compton, Bay City Public Schools, to share insights into 1099 filing and ensuring you are filing tax forms correctly for staff, vendors, and contractors.
• Frequently Found Audit Issues – 1:15-1:45 p.m.
  • Jennifer Watkins, CPA, Yeo & Yeo Principal, joins Joselito Quintero and Gloria Jean Suggitt, MDE, to help you understand common audit findings, including compliance and internal controls issues.
• Student and School Activity Funds – 1:15-1:45 p.m.
  • Jordan Bohlinger, Yeo & Yeo Manager, revisits GASB 84 to help you understand the rules and accounting guidance, and to answer common questions.

Visit our booth!

Stop by Yeo & Yeo’s booth 403 and enter our prize drawing! Our K-12 Education Services Group members welcome the opportunity to hear about challenges your district may be facing and share helpful insights. Hope to see you there!

Register and learn more about the MSBO Conference sessions.

Yeo & Yeo CPAs & Advisors, a leading Michigan-based accounting and advisory firm, has been named one of West Michigan’s Best and Brightest Companies to Work For for the twenty-second consecutive year.

The Best and Brightest program identifies and honors organizations that excel in their human resource practices and employee enrichment. An independent research firm assesses organizations in categories such as communication, work-life balance, employee education, recognition, retention, and more.

Yeo & Yeo’s long-standing recognition reflects the firm’s commitment to continuous improvement and listening to employee feedback. In the past year, the firm introduced new benefits, including pet insurance, and continues to support employees through its expanded parental leave program and extra time off for long-term team members. A newly formed learning and development committee has enhanced training pathways, refreshed learning guides, and created development plans to support employee growth and advancement.

Beyond professional development, Yeo & Yeo invests in programs that strengthen connection and well-being. From personalized coaching through Boon Health to firmwide appreciation events and summer half-day Fridays, the firm continues to find new ways to help its people thrive—both personally and professionally.

“Receiving this recognition year after year is an incredible achievement and a reflection of the culture we’ve built together,” said David Jewell, Managing Principal of the firm’s Kalamazoo office. “What makes it meaningful is that we’ve never stopped evolving. As we continue to grow and welcome new talent, we remain focused on creating an environment where every employee feels supported, valued, and empowered to succeed.”

The select companies will be honored on Thursday, June 4, 2026, at the JW Marriott Grand Rapids in Grand Rapids, Mich.

“Cross-functional” sales teams that collaborate with other departments often perform more effectively than siloed ones. By providing feedback and support, employees with varied skill sets and knowledge bases can help your sales team create more holistic sales strategies, better align product offerings with customer needs and efficiently adapt to market changes. Here’s how sales can leverage the expertise of marketing, product development, customer service, finance and other internal stakeholders.

Fighting silos

A cross-functional team is any group of employees from different departments brought together to solve a problem or pursue a goal. Your company might assemble such teams to develop new products or services, implement technology upgrades, and complete short-term projects. However, the cross-functional approach really shines when applied to sales and marketing. Even though these departments are closely connected, they often operate in separate spheres.

Silos can also exist within the sales team, where individuals work largely on their own and share limited information. Many salespeople spend their time interacting with prospective customers or clients. They might only “come up for air” to share information and experiences at sales meetings or in conversations with managers. This can result in missed opportunities to communicate insights on customers, prices and other issues.

Team members

By building a cross-functional sales team, you can eliminate such silos. You should aim to create an environment where employees feel comfortable sharing information and working together. Seek early buy-in from employees who communicate well and are open to collaboration. They can help you promote the concept and encourage broader employee buy-in.

Your team will obviously need to include members of both the sales and marketing departments. But don’t stop there. Someone from your IT department could help recommend tech solutions for sales department challenges. A customer service rep might be able to provide insights into how customers are likely to respond to changes in product features. A finance team member could weigh in on profitability by product or customer.

Cross-functional sales teams don’t require complex leadership structures. In fact, appointing a team leader from within the group can encourage open participation and accountability.

Other benefits

The advantages of forming a cross-functional sales team extend beyond improving sales results: Such teams can infuse fresh perspectives into all your departments, inspire greater communication companywide and support more consistent decision-making.

Over time, this approach can lead to clearer visibility into what’s driving revenue and profitability. If you’re looking to better align sales with your overall business strategy, contact us. We can help you identify where cross-functional collaboration will likely pay off.

© 2026