Michigan Department of Treasury Acknowledges Notices Issued in Error

Incorrect underpayment notices

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

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

Erroneous refund checks for penalties and interest

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

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

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

Next steps

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

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

Why they’re conducted

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

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

How far they reach

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

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

Who stays independent

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

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

How the work gets done

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

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

What they produce

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

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

When they happen

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

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

Choosing the right mix

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

© 2026

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

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

Everyone is affected

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

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

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

Supervisor stress

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

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

Consistency matters

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

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

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

It’s financial, too

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

© 2026

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

DAFs in action

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

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

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

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

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

Estate planning benefits

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

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

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

Coordination is key

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

© 2026

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

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

What the law says

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

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

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

Go a step further

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

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

Legal and financial advice

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

© 2026

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

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

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

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

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

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

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

Register for the Webinar

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

View the Government Accounting & Operations Webinar Series

When new GASB standards are issued, government finance teams often ask the same question: What do we need to do differently—and when? With GASB Statements 103, 104, and 105 on the horizon, now is an ideal time to begin answering that question.

While each of these standards addresses a different aspect of financial reporting, they share a common theme: improving clarity, consistency, and transparency for financial statement users. For governments, successful implementation will depend less on last-minute compliance efforts and more on thoughtful preparation.

A practical starting point is understanding scope and applicability. Not every provision of each standard will affect every government in the same way. Taking time to evaluate how your entity’s financial statements, disclosures, and processes align with the new guidance can help narrow the focus to areas that truly require attention.

For GASB 103, governments should consider how changes to the financial reporting model may affect internal reporting, communication with governing bodies, and comparison to prior periods. Even presentation-focused changes can require coordination across teams to ensure consistency and accuracy. This may be particularly true for the newly required budgetary comparison disclosures.

Documentation is an important consideration early in the implementation process. GASB 104 introduces new financial reporting requirements that may require governments to reassess how certain information is identified, evaluated, and captured for disclosure. This standard involves an element of judgment because a new disclosure is now required for significant capital assets that are expected to be sold within one year of the financial statement date.

GASB 105 should also be evaluated carefully, even if the amendments appear narrow or technical. The statement makes targeted changes to existing guidance, and those changes may affect how certain transactions or balances are reported. Governments should review the updates closely to determine when events occurring after the reporting period are required to be recorded, disclosed, or both.

Another practical step is engaging in early conversations with your auditors and advisors. These discussions can help identify common implementation challenges, confirm interpretations, and align expectations well before the standards take effect. Proactive communication can also reduce audit adjustments and last-minute surprises.

To support governments in this process, Yeo & Yeo will be hosting a CPE-eligible webinar on May 27, 2026, dedicated to GASB 103, 104, and 105. The session will provide a practical overview of each standard, discuss implementation considerations, and include live Q&A with experienced government professionals. 

Register for the Webinar

View the Government Accounting & Operations Webinar Series

In some workplaces, employees stay late — not to finish pressing company projects — but to use their employers’ resources to pursue unauthorized side work. These workers might use their employers’ equipment and materials, not to mention run up utilities costs. Although side jobs may seem benign relative to outright theft, they can be costly in ways you might not have imagined.

Unexpected risks

Abuse of company resources — for example, computers, printers, paper and electricity — is the most obvious risk of after-hours hustles. Tools used for personal projects may wear out faster or break without direct supervision. What’s more, products created with company tools can blur ownership lines, especially if those products rely on your proprietary technology.

Also consider what might happen if an employee is injured, or injures someone else, while working off-the-clock in your office or factory. Your company could be held liable, especially if a manager knew about the activity and didn’t do anything to stop it. Then there’s the risk of employees claiming overtime for hours they’re actually spending on their own projects.

Employees may think their activities are harmless, particularly if management hasn’t explicitly forbidden such activities or is inconsistent in enforcing rules. But if you don’t establish and enforce rules and monitor workers, side jobs can evolve from one-off projects to routine misuse of resources and ongoing fraud.

Policies and procedures

Stopping employees from engaging in after-hours hustles requires several simple yet effective controls, starting with a written policy prohibiting the practice. Your policy should stipulate what constitutes business property and how it can be used, when employees are allowed to be on your premises, and what approval they need to work on-site after hours. Be explicit about what qualifies as overtime and who must approve it. And make sure the same policies apply to management as to ordinary workers.

Consider these additional control measures to help reduce financial and operational risk:

Monitor and limit access to company facilities. Install a key card system to control access to your facilities. Pay attention to unusual entry and exit patterns and follow up when employees appear to be on-site outside of expected hours.

Install cameras. Visible cameras can reinforce your written policies and key card entry system — and help prevent other criminal activity. Camera footage can also provide information and evidence for official investigations and disciplinary proceedings.

Make surprise visits. Unexpectedly showing up at your facility may help you catch an employee engaging in unauthorized activity. Even if it doesn’t, it can discourage workers who might be tempted to break the rules.

Implement an employee hotline. If you haven’t already, provide workers with an anonymous mechanism (for example, a toll-free tipline or web portal) to report rule infractions and suspected fraud. Often, employees know more about their colleagues’ activities than supervisors do.

Between control and trust

Most employees who work late are on-site to perform legitimate company projects, not to pursue side hustles. So be careful not to accuse someone of misuse or fraud unless you have good evidence of bad intent. After all, you likely want to encourage workers to assume ownership of their work and assert initiative! The best way to prevent after-hours hustles is to balance trust with structure. Contact us to investigate any suspicious activities, conduct a risk assessment and implement internal controls to help prevent financial losses.

© 2026

The passive activity loss (PAL) rules may limit your ability to deduct losses from a business structured as a limited liability partnership (LLP) or limited liability company (LLC). Depending on how your ownership interest is treated under these rules, you may have more or less flexibility to claim losses in the current year. Here’s a closer look.

The basics

Under the PAL rules, you generally can use passive activity losses only to offset income from other passive activities. (Keep in mind that other limitations, such as basis and at-risk rules, may apply before the PAL rules.)

There are two types of passive activities: 1) trade or business activities in which you don’t materially participate during the year, and 2) rental activities, even if you do materially participate (unless you qualify as a real estate professional under the PAL rules). Disallowed losses may be carried forward to future years and deducted from passive income or recovered when the passive business interest is sold.

If you’re an LLP or LLC owner, you can avoid passive treatment by materially participating in the business’s activities. This allows you to use LLP or LLC losses to offset nonpassive income, such as wages, interest, dividends and capital gains.

7 factors

Material participation in this context means participation on a “regular, continuous and substantial” basis. Unless you’re treated as a limited partner, you’re deemed to materially participate in a business activity during the year by meeting one of the following seven criteria:

1. You participate in the activity more than 500 hours during the year.
2. Your participation constitutes substantially all the participation for the year by anyone, including nonowners.
3. You participate more than 100 hours and as much or more than any other person.
4. The activity is a “significant participation activity” — that is, you participate more than 100 hours — but you participate less than one or more other people yet your participation in all your significant participation activities for the year totals more than 500 hours.
5. You materially participated in the activity for any five of the preceding 10 tax years.
6. The activity is a personal service activity in which you materially participated in any three previous tax years.
7. Regardless of the number of hours, based on all the facts and circumstances, you participate in the activity on a regular, continuous and substantial basis.

Limited partners face more restrictive rules; they can establish material participation only by satisfying criterion 1, 5 or 6.

Supporting your deductions

If you’re an LLC or LLP owner, it’s important to track the time you spend on business activities. In addition, if your spouse also participates in an activity, you can combine your hours to meet the material participation standards. Contact us for additional guidance on documenting your hours, applying the material participation test and maximizing business loss deductions.

© 2026

Even financially sound businesses can be vulnerable to market volatility and unexpected disruptions. Many companies discover too late that their financial position, internal controls or contingency plans aren’t built to withstand sudden shocks, potentially leading to cash shortfalls, debt covenant violations and reduced profitability. A “stress test” models how your cash flow, liquidity and overall financial structure would perform under adverse scenarios. Here’s how stress testing can help you proactively evaluate your business’s resilience and strengthen its ability to adapt to changing market conditions.

Identify your organization’s exposure points

Start by identifying your business’s exposure points. Risks are often classified in four categories:

1. Operational risks. These risks encompass the company’s internal operations. Examples include cybersecurity incidents, supply chain breakdowns or natural disasters.
2. Financial risks. How well does your company manage its finances? Key financial risks may include liquidity constraints, interest rate exposure and the threat of fraud.
3. Compliance risks. This category includes issues that might attract the attention of government regulators, such as evolving tax, reporting and industry-specific requirements.
4. Strategic risks. This term refers to the company’s market focus and its ability to respond to changes in customer demand, competition and technology.

Build a practical response framework

Once you’ve identified key business risks, meet with your management team to improve your collective understanding of their potential financial impacts and the organization’s capacity to absorb them. Encourage team members to share additional risks and model downside scenarios, such as revenue declines, delayed receivables or increased borrowing costs — along with their impact on cash flow and profitability.

In addition to evaluating downside risk, stress testing can help your team identify opportunities to reallocate resources to higher-performing products or services, adjust pricing strategies in response to shifting demand, or make targeted investments when competitors pull back. This approach allows you to respond proactively rather than defensively to emerging threats.

From there, your management team can develop a plan to mitigate risk. For example, if your company operates in an area prone to natural disasters, you should maintain and periodically test a disaster recovery and business continuity plan. If your company relies heavily on a key individual, consider implementing a succession plan and evaluating key person insurance. For financial risks, your plan may include maintaining adequate liquidity buffers, diversifying your revenue base, revisiting debt covenants and strengthening internal controls to reduce fraud risk.

Reassess and refine regularly

Effective risk management is an ongoing process. New risks emerge as markets, technology and regulations evolve, while previously significant risks may diminish over time. Meet with your management team at least annually — or more frequently in periods of change — to review and update your risk management plan. If your organization has recently faced a disruption, use that experience as a learning opportunity. Evaluate how well your plan performed, identify gaps and missed opportunities, and implement improvements to strengthen your response going forward.

Build resilience now

A well-executed stress test identifies blind spots that can affect financial performance and provides a roadmap for building resilience. In today’s environment, proactive risk assessment is a key component of sound financial management and governance. We can help you quantify potential cash flow gaps, evaluate tax and financial risks across multiple scenarios, and identify practical steps to fortify your financial position and uncover strategic opportunities. Contact us to design and perform a stress test tailored to your organization, so you can make timely, data-driven decisions.

© 2026

With the April 15 tax filing deadline in the rearview mirror, you’re likely to turn your attention to other things. But before you do, it’s in your best interest to tie up a few tax-related loose ends.

IRS statute of limitations

Generally, the IRS’s statute of limitations for auditing a tax return is three years from the return’s due date or the filing date, whichever is later. However, some tax issues are still subject to scrutiny after three years. For example, if the IRS suspects that income has been understated by 25% or more, the statute of limitations for an audit extends to six years. If no return was filed or fraud is suspected, there’s no limit on when the IRS can launch an inquiry.

It’s a good idea to keep copies of your tax returns indefinitely as proof of filing. Supporting records generally should be kept until the three-year statute of limitations expires. These documents may also be helpful if you need to amend a return.

So, which records can you throw away now? Based on the three-year rule, in late April 2026, you’ll generally be able to discard most records associated with your 2022 return if you filed it by the April 2023 due date. Extended 2022 returns could still be vulnerable to audit until October 2026. But if you want extra protection, keep supporting records for six years.

What records should you retain?

Documentation supporting your income, deductions and credits that you generally should retain following the three-year rule may include:

• Various series 1099 forms, such as Form 1099-NEC, “Nonemployee Compensation,” Form 1099-MISC, “Miscellaneous Income,” and Form 1099-G, “Certain Government Payments,”
• Form 1098, “Mortgage Interest Statement,”
• Property tax payment documentation,
• Charitable donation substantiation,
• Records related to contributions to and withdrawals from Section 529 plans and Health Savings Accounts, and
• Records related to deductible retirement plan contributions.

You’ll also want to hang on to some tax-related records beyond the statute of limitations. For example:

• Retain Forms W-2, “Wage and Tax Statement,” until you begin receiving Social Security benefits. That may seem long, but if questions arise regarding your work record or earnings for a particular year, you’ll need your W-2 forms as part of the required documentation.
• Keep records related to investments and real estate for as long as you own the assets, plus at least three years after you sell them and report the sales on your tax return (or six years if you want extra protection).
• Hang on to records associated with retirement accounts until you’ve depleted the accounts and reported the last withdrawal on your tax return, plus three (or six) years.
• Retain records that support figures affecting multiple years, such as carryovers of charitable deductions or casualty losses, until they have no effect, plus seven years.
• Keep records that support deductions for bad debts or worthless securities that could result in refunds for seven years because you have up to seven years to claim them.

Other tax-related chores

As you can see, keeping tax-related records is critical. So put yourself in a good position for filing your 2026 return next year by carefully tracking expenses potentially eligible for deductions or credits on an ongoing basis.

For example, if you’re self-employed and use your personal vehicle for business purposes, maintain a mileage log recording the date, mileage, purpose and destination of each trip. Or if you regularly donate to charity, keep the receipts or written acknowledgments you receive. (Additional substantiation may be required depending on the size and type of donation.)

In addition, this is a good time to reassess your current tax withholding to determine if you need to update your Form W-4, “Employee’s Withholding Certificate.” You may want to increase withholding if you owed taxes this year. Conversely, you might want to reduce it if you received a hefty refund. Changes also might be in order if you experience certain major life events, such as marriage, divorce, birth of a child or adoption, this year.

If you make estimated tax payments throughout the year, consider reevaluating the amounts you pay. You might want to increase or reduce the payments due to changes in self-employment income, investment income, Social Security benefits and other types of nonwage income.

To preempt the risk of a penalty for underpayment of tax, consider paying at least 100% of the tax shown on your 2025 tax return (110% if your 2025 adjusted gross income was over $150,000 — or over $75,000 if you’re married and filed separately) through withholding and/or four equal estimated tax payments.

What’s this? A letter from the IRS?

After filing your tax return, you may receive a letter in the mail from the IRS. While such letters can be alarming, don’t assume the worst. The letter might simply inform you of a refund adjustment (up or down) based on a math or similar error on your return. If you agree with the change, generally no response is needed. If you disagree, contact the IRS by the date indicated.

Or the letter might propose a change to your return based on information reported by third parties, such as employers or financial institutions. In this case, follow the instructions to respond, include any required documentation, and note whether you agree or disagree with the proposed change.

Of course, an IRS letter could inform you that your return is being audited. It’s important to remember that being selected for an audit doesn’t always mean there’s a significant error on your return. For example, your return could have been flagged based on a statistical formula that compares similar returns for deviations from “norms.”

Further, if selected, you’re most likely going to undergo a correspondence audit. These account for a majority of IRS audits. They’re conducted by mail for a single tax year and involve only a few issues that the IRS anticipates it can resolve by reviewing relevant documents. According to the IRS, most audits involve returns filed within the last two years.

If you receive notification of a correspondence audit, you and your tax advisor should closely follow the instructions. You can request additional time if you can’t submit all the documentation requested by the specified deadline.

Don’t ignore the letter. Failure to respond can lead to the IRS disallowing some tax breaks you claimed and issuing a Notice of Deficiency (that is, a notice that a tax balance is due).

Be proactive

Organizing your past and current-year tax records now can facilitate a smoother tax filing next year or a less painful audit of a recent return. Similarly, adjusting your withholding or estimated tax payments can mean more money in your pocket now or no (or smaller) underpayment penalties next April.

If you have questions on what files to keep and for how long or how to adjust withholding or estimated tax payments, we can help. And if you receive an IRS letter, contact us as soon as possible. We can advise you on complying with any IRS requests.

© 2026

Cybercrime continues to escalate at an alarming pace, with the latest data from the FBI underscoring both the growing financial impact and the increasing sophistication of modern attacks. According to the FBI’s most recent Internet Crime Complaint Center (IC3) report, cybercriminals caused more than $20 billion in reported losses, marking a significant year-over-year increase and highlighting the expanding role of artificial intelligence in cyber-enabled fraud.

Your district needs new wireless access points. Also a server. Plus licensing renewals for Microsoft 365. And someone just requested new monitors for the library.

That’s four different vendors. Four different quotes. Four different procurement processes. Four different invoices. Four different support contacts.

What if there was one partner who could handle all of it with competitive pricing, expert recommendations, and over 20 years of Michigan school experience?

Here’s how comprehensive technology procurement actually works.

The Multi-Vendor Problem

School business managers and technology directors spend countless hours managing vendor relationships.

One vendor for network equipment. Another for computers. A third for software licensing. A fourth for monitors and peripherals. Each requires separate quotes, purchase orders, delivery coordination, and payment processing.

Comparing quotes across vendors takes time you don’t have. Is the Dell server comparable to the HP server? Are the Lenovo laptop specs equivalent to the HP specs? Does the Samsung monitor warranty match the Dell warranty?

E-Rate adds another layer of complexity. Not all vendors can participate. Form 470 requirements demand competitive bidding. Eligible equipment verification takes research.

Budget constraints mean every dollar matters. You need competitive pricing but lack time to research market rates across multiple product categories.

Support becomes fragmented too. Server issues go to one vendor. Laptop problems to another. Network questions to a third. No one sees the complete picture of your technology environment.

Complete Technology Procurement Under One Roof

Yeo & Yeo Technology provides everything Michigan school districts need through a single partnership.

Infrastructure and Networking

HPE ProLiant, Lenovo ThinkSystem and Dell PowerEdge servers anchor district infrastructure with reliable performance and strong education pricing. Network switches from managed enterprise models to basic unmanaged units support different building needs. Fortinet next-generation firewalls and wireless access points deliver security and connectivity designed for high-density school environments.

We recommend configurations based on student count, building layouts, bandwidth requirements, and growth projections so infrastructure scales with your district.

End-User Devices from Industry Leaders

Lenovo brings ThinkPad and IdeaPad laptops, ThinkCentre and ThinkStation desktops, and education-focused Chromebooks with ruggedized designs for K-12 use. Durability and reliability suit districts prioritizing long-term performance.

HPE offers ProBook and EliteBook laptops, ProDesk and EliteDesk desktops, and MIL-STD tested Chromebook models with strong K-12 focus. Comprehensive education portfolio covers student devices through teacher workstations.

Samsung delivers professional displays from 19-inch monitors to 34-inch ultrawide models, interactive panels for classrooms, and high-resolution displays for specialty programs. Display quality and eye comfort features suit all-day student use.

We match manufacturers to your specific requirements based on use case, budget, and existing infrastructure instead of pushing one brand.

Complete Peripheral and Accessory Line

Standing desks, Keyboards, mice, webcams, and headsets for remote learning and testing. Document cameras and projectors for instruction. Network printers and scanners. UPS systems for servers and critical equipment. Charging carts for Chromebook and laptop programs.

Bulk purchasing creates consistency across your district. Compatible accessories work with devices from any manufacturer. Volume pricing improves cost-effectiveness.

Cloud and Software Licensing

Microsoft 365 for Education licensing (A1, A3, A5 plans) with guidance specific to school needs. Azure cloud services for infrastructure and applications. Licensing optimization prevents overpaying for unused features.

According to Microsoft’s education programs, schools have access to specialized pricing and licensing options. We help districts navigate these programs to maximize value.

Educational software procurement through volume licensing agreements. Implementation support ensures software actually gets used instead of sitting unused after purchase.

Specialized Solutions

Security cameras and access control systems. PA systems and intercoms. Digital signage for announcements and wayfinding. Interactive displays and document cameras for classrooms. Testing lab equipment including Chromebooks and secure browser configurations.

Integration with existing systems matters. New technology should enhance what you have, not create incompatibility problems.

E-Rate Purchasing

E-Rate provides 20% to 90% discounts on telecommunications, internet access, and internal connections for eligible schools and libraries.

Category 1 covers internet and connectivity. Category 2 covers internal connections including wireless infrastructure, switching, and firewalls. Districts can leverage significant funding for technology upgrades that would otherwise strain operating budgets.

Not all vendors can participate in E-Rate. Working with E-Rate vendors ensures eligible products, compliant procurement processes, and proper documentation for reimbursement.

How Yeo & Yeo Helps with E-Rate

We support competitive bidding processes with compliant quotes. We verify product eligibility before procurement, so you don’t request reimbursement for ineligible equipment.

Beyond Procurement: Managed Services

Buying technology is one thing. Managing it long-term is another.

Many Michigan school districts operate with one or two IT staff supporting thousands of students. They need ongoing support, not just one-time purchases.

Managed IT Services for Schools

Help desk support for staff extends your IT team’s capacity without hiring additional employees. Network monitoring catches problems before they impact instruction. Server and infrastructure management keeps critical systems running. After-hours and emergency support means help is available when regular IT staff aren’t.

Summer project work happens when your IT staff focus on other priorities or when reduced staffing makes large projects difficult. We handle network upgrades, server migrations, and infrastructure improvements during break periods.

Managed Cybersecurity Services

24/7 security monitoring watches for threats around the clock so attacks get caught at 2 AM instead of discovered Monday morning. Threat detection and response stops incidents before they become breaches. Firewall and endpoint management with SentinelOne and Fortinet keeps defenses current.

KnowBe4 security awareness training educates staff on recognizing phishing and social engineering. FERPA and CIPA compliance support ensures your security approach meets regulatory requirements.

Project Services

Network upgrades and expansions for growing districts or aging infrastructure. Server migrations and virtualization to modernize data centers. Wireless network deployments across buildings with Fortinet access points. Cloud migrations to Azure and Microsoft 365. Summer technology refresh projects when students are gone.

One-time expertise without permanent hiring. Projects get completed by specialists who’ve done them dozens of times.

The Yeo & Yeo Advantage for Michigan Schools

20+ Years of Michigan K-12 Experience

We’ve worked with school districts from 300 students to over 10,000. Small rural districts. Large suburban systems. Urban schools. We understand tight budgets, board approval processes, summer implementation windows, and the unique challenges of K-12 technology.

• One Partner, Multiple Manufacturers

Instead of managing separate relationships with Lenovo, HPE, Dell, Samsung reps plus procurement, and support coordination, you work with one team. Hardware for your IT network infrastructure, workstations, tablets, wireless, standing desks, peripherals, and more. One quote comparing options across manufacturers. One purchase order. One invoice. One support contact who knows your complete environment.

SentinelOne, Fortinet, and KnowBe4 for cybersecurity. We recommend what’s best for your specific needs based on use case, budget, existing infrastructure, and long-term support requirements.

You’re not locked into one manufacturer because we sell only that brand. You get honest recommendations for your situation.

• Competitive Pricing Through Education Channels

Education pricing programs, volume discounts, and manufacturer partnerships deliver competitive rates. Enterprise-grade technology at education budgets. Bulk purchasing across multiple buildings improves pricing further.

Instead of managing separate relationships with Lenovo, HPE, Dell, Samsung reps plus procurement,

• Michigan-Based and Locally Accessible

We’re here. Michigan-based professionals answer when you call. We show up on-site when you need hands-on support. We understand 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.”

Simplify Your Technology Procurement

Technology procurement doesn’t have to involve juggling multiple vendors, comparing incompatible quotes, and coordinating separate support relationships.

With access to Lenovo, HP, Dell, Samsung, SentinelOne, Fortinet, and KnowBe4 through one partnership plus Microsoft licensing knowledge, and 20+years of Michigan K-12 experience, procurement becomes streamlined and actually helpful.

You save time. You get competitive pricing. You work with a team that understands your complete technology environment instead of vendors who only see their piece.

Have technology needs coming up? Schedule a consultation to discuss how we can help. Whether you’re comparing Lenovo vs HP Chromebooks, planning a district-wide laptop refresh, pursuing E-Rate funding for wireless infrastructure, or need ongoing managed services, we’ll show you exactly how we simplify the process.

Schedule a Procurement Consultation

At Yeo & Yeo Technology, we’ve been the technology partner for Michigan school districts for over two decades. From servers to mice. From procurement to ongoing support. We handle it all.

So you’ve decided to start your own business — congratulations! Many new owners open a business to be their own boss and chart their own course. However, along with those benefits come some complications compared to being someone else’s employee. Planning and budgeting are critical, and you’ll have plenty of new tax compliance responsibilities.

1. It starts with funding

Starting a business takes money. To help you gain access to bank loans and attract equity investors, write a formal business plan that tells your backstory, describes your products and services, and highlights your market research. The plan should explain how you intend to use any capital you raise to grow the business and, of course, why your business will be successful.

Because your new business won’t have a financial track record, you’ll need to create a projected balance sheet, income statement and statement of cash flows using market-based assumptions. Lay out multiple scenarios — including best, worst and most likely results — and identify which variables are critical.

2. Accounting matters

When you set up your business, separate its finances from your personal finances. Commingled financial records can cause tax and financial reporting headaches as your business grows.

Next, understand that lenders and investors will want to know whether your business is meeting performance targets. Establish an accounting system to record transactions and generate financial statements that can easily communicate results to stakeholders. We can recommend cost-effective software solutions.

Initially, you may elect to use the cash-basis or income-tax-basis method of accounting to simplify matters. Indeed, it’s often easier for start-ups to maintain one set of books for both tax and accounting purposes. However, if you have an accounting background, you may opt for accrual-basis accounting from the get-go.

3. Tax planning is a must-do

Many start-up ventures aren’t initially profitable. But it’s essential to start planning for taxes from the beginning. One factor that will affect your company’s tax situation is its entity structure. Depending on your tax, legal and other needs, you might choose a sole proprietorship, partnership, limited liability company (LLC), S corporation or C corporation.

Know that C corporations pay tax at the entity level, then the individual owners pay tax when they receive dividends. This results in double taxation. To avoid this, you may want to consider a “pass-through” entity. Pass-through income generally isn’t taxed at the entity level. Instead, it passes through to the individual owners (along with the business’s deductible expenses) and is taxed on their individual returns. However, the top rates for individual taxpayers are higher than the flat 21% rate for C corporations — though the qualified business income deduction for pass-through entity owners can help make up for that.

Another major tax issue to understand is the appropriate tax treatment for your start-up expenses. The timing and amount of expenses are key to determining what’s immediately deductible and what costs must be capitalized and amortized over time.

New businesses need to plan for other taxes, too. You may need systems in place to file and pay property, sales and employment taxes. Look into initially outsourcing these administrative tasks to third-party specialists so you’ll have time to focus on daily business operations.

4. Estate planning now can save tax later

Another smart consideration if you’re starting a business is estate planning. New entrepreneurs often solicit help from friends and family members. In exchange, founders may make gifts of ownership interests while the business’s fair market value is relatively low, removing potential future appreciation from their estates.

A business valuation professional can help determine the fair market value of your new business based on objective market data and financial projections. Proactive estate planning at this phase can save significant tax dollars over the long run as the company’s value grows.

5. Employees may want equity

Most start-ups operate lean, with only a few employees — each wearing multiple hats. Early employees may agree to forgo high salaries for equity-based compensation, which can help your start-up avoid a cash crisis while still attracting top talent. What’s in it for staffers? Business equity can grow into a valuable financial asset. Plus, employees who own equity may feel more invested and, thus, enjoy greater fulfillment.

There are several types of equity-based compensation to consider, including outright transfers of ownership interests in the business, profits interest awards (partnerships, LLCs and S corporations) and restricted stock or stock options (C corporations). We can help you determine the best form of compensation.

Thoughtful execution

Launching a successful business requires more than vision alone. It also calls for thoughtful execution, informed decision-making and ongoing attention to financial and operational details. Approach start-up matters with strategic foresight by consulting legal, financial and tax advisors. We can help you get off the ground.

© 2026

Many small businesses don’t have enough employees to worry about the play-or-pay provisions of the Affordable Care Act (ACA). However, as your business grows, these rules can apply sooner than expected. This issue also may not be on your radar because there’s a common misconception that the repeal of ACA penalties under the Tax Cuts and Jobs Act applied to both individuals and businesses. While the individual mandate penalty was eliminated beginning in 2019, the employer shared responsibility rules are still in effect.

Don’t let ACA compliance become a blind spot for your business. Here’s what you need to know to comply with the law’s requirements.

The play-or-pay threshold

The ACA’s employer shared responsibility rules apply to applicable large employers (ALEs). In general, ALEs are businesses with 50 or more full-time employees, including full-time equivalents (FTEs). Once a business crosses that threshold, it must comply with several requirements related to employee health coverage. An employer’s size for the year is determined by the number of full-time employees plus FTEs in its prior year. The challenge is that many business owners don’t realize they’re approaching the ALE threshold until it’s too late.

First, for ACA purposes, a full-time employee generally is an individual employed on average at least 30 hours of service per week or 130 hours per month. So some employees you might consider to be part-time because they work less than 40 hours a week may be considered full-time for ACA purposes.

Second, FTEs are determined by adding all hours of service for the month for employees who weren’t full-time employees (but no more than 120 hours per employee), and dividing by 120. This can push a company into ALE status faster than expected. For example, a small company with 35 full-time employees and a significant number of part-time workers could exceed the 50-full-time-employee threshold once part-time hours are aggregated.

2 types of penalties

Under the ACA, an ALE may incur a penalty if it doesn’t offer minimum essential coverage to its full-time employees and their eligible dependents or if it offers such coverage, but that coverage isn’t affordable and/or fails to provide minimum value. The penalty is typically triggered when at least one full-time employee receives a premium tax credit for buying individual coverage through a Health Insurance Marketplace.

One of two penalty structures may apply, depending on the circumstances. First, under Section 4980H(a), a penalty may be assessed if an ALE fails to offer coverage to at least 95% of its full-time employees and their dependents. This penalty is calculated based on the total number of full-time employees, excluding the first 30. Second, under Section 4980H(b), a penalty may apply for each full-time employee who receives a premium tax credit for purchasing coverage through a Health Insurance Marketplace because the employer’s coverage is unaffordable or doesn’t provide minimum value.

Updated penalties for 2026

The adjusted penalty amounts (per the applicable number of full-time employees used to calculate the specific penalty) for failures occurring in the 2026 calendar year are:

• $3,340 (up from $2,900 in 2025) under Sec. 4980H(a), for ALEs not offering health coverage, and
• $5,010 (up from $4,350 in 2025) under Sec. 4980H(b), for ALEs offering coverage but that have employees who qualify for premium tax credits or cost-sharing reductions.

The IRS uses Letter 226-J to inform ALEs of their potential liability for an employer shared responsibility penalty. A response form — Form 14764, “ESRP Response” — is included with Letter 226-J so that an ALE can inform the IRS whether it agrees with the proposed penalty. A response is generally due within 30 days. Be on the lookout for this letter so that you’re prepared to promptly review and respond if the IRS contacts you.

Considerations for growing businesses

As your workforce expands, it’s important to address the following questions:

• How close is your company to the 50-full-time-employee threshold?
• Are you properly identifying who’s a full-time employee under the ACA and calculating your number of FTEs based on part-timers’ hours?
• If your company becomes an ALE, how will it structure health coverage to satisfy affordability and minimum value requirements?
• Are your payroll and human resource systems prepared to support ACA reporting requirements, including Forms 1094-C and 1095-C?

Addressing these issues early can help ensure that expansion plans don’t come with unexpected ACA penalties.

For more information

Careful compliance with the ACA remains critical for companies that qualify as ALEs. Growing small businesses should be particularly wary as they become midsize ones. Contact us with questions about your obligations and ways to better manage the costs of health care benefits.

© 2026

How often should we review our IT setup?

At least once a year. Your business changes, and your technology should change with it.

How soon should we remove old employee accounts?

As soon as someone leaves the business. Unused accounts are easy entry points for attackers. If someone doesn’t work for you anymore, their access shouldn’t exist.

Can cyber insurance replace good security?

No. Insurance helps with recovery, not prevention. Insurers expect security basics (at the very least) to be in place.

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

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.