by Daniel Kittell | Accounting News, Industry - Veterinary Medicine, News
To provide optimal client care, veterinarian practices need to maintain healthy finances. Establishing effective financial management strategies will help clinics allocate resources efficiently, invest in quality care, and improve their overall capacity to serve their clients and their pets. Read on…
Implement a Budget and Tracking Expenses
Creating a comprehensive budget provides your practice with a road map to keep on track with goals. It allows you to plan and allocate funds strategically. Begin by determining necessary expenses, such as staffing, medical supplies, equipment maintenance, and facility costs. Be sure to regularly track and review expenses. By managing a balanced budget, clinics can ensure that funds are appropriately allocated to provide the highest level of care to their clients and patients.
Optimize Revenue Streams
Your clinic can optimize revenue streams by setting competitive and fair pricing. Additionally, you should regularly review your clinic’s fee structures and evaluate the potential for additional revenue streams, such as retail sales of pet products or providing specialized services. Effective communication between staff and clients regarding the value of services provided can also contribute to revenue growth. By optimizing revenue streams, clinics can reinvest in their technology, infrastructure, and staff training, all of which ultimately benefit the overall quality of care.
Manage Inventory and Supply Costs
Efficient inventory management systems help to minimize waste, prevent overstocking, and avoid expired or outworn supplies. A few ways to achieve this include:
- Periodically review supplier contracts and negotiate favorable terms to lower costs.
- Consolidate orders or join group purchasing organizations (GPOs) to take advantage of volume discounts.
- Explore opportunities to collaborate with pharmaceutical companies or suppliers to obtain cost-effective medications and medical supplies.
Invest in Technology and Equipment
Investments like advanced diagnostic equipment, electronic medical records systems, and telemedicine platforms can streamline operations, improve accuracy, and improve the overall patient experience. Though they may require a significant upfront investment, they can lead to more efficient workflows and lowered overhead costs, as well as increased peace of mind for clients. It’s also important to stay informed of emerging technologies within the industry and make informed decisions about investments that will ultimately benefit client care as well as the financial health of your clinic.
Build Strong Client Relationships
When you cultivate trust and communication with clients, your practice will reap the benefits, including repeat visits, referrals, and a positive reputation within the community. Communication strategies such as transparent discussions about fees and payment options will help manage expectations and reduce miscommunications regarding financial responsibilities. Offering payment plans can also support clients in taking care of their end of financial obligations. Prioritizing communication with clients helps to build trust and foster long-term partnerships. This, in turn, contributes to financial stability and helps enable your practice to deliver exceptional client care.
by Daniel Kittell | Accounting News, Construction, Industry - Construction, News
Construction firms are catching on to the value that drones – or unmanned aerial vehicles (UAVs) – add to construction projects. In this article, we’ll explore some of the benefits of construction firms using drone technology.
Enhanced Accuracy
Drones have the capability to collect detailed, high-resolution images of construction sites, equipping construction firms with a level of accuracy that may not be feasible with traditional methods. This can be especially useful for surveying and mapping sites. Creating and updating topographical maps are traditionally expensive and time-consuming tasks that require critical attention to accuracy. By employing drones, which can map large areas of land, construction firms can create more precise and detailed maps, which can help with planning, design, and overall project management.
Increased Efficiency
Drones can quickly and easily capture data and images of construction sites, offering firms the ability to swiftly evaluate progress and identify any issues that may need to be addressed. This use of drone technology saves time and resources compared to more traditional approaches such as manual inspections or using manned aircraft. And because drones can cover vast areas in a shorter amount of time, construction firms are able to gather more data and make informed decisions faster.
Improved Safety
Drones provide an effective and economical way to monitor safety. Because drones can be used for site inspection and monitoring, the need for workers to engage in more physical tasks, like climbing scaffolds or ladders, can be reduced, thereby avoiding potential falls or other accidents. Additionally, drones can monitor hard-to-reach areas, capturing real-time information without risking health and safety of personnel. Drones can also help determine possible hazards and unsafe conditions, enabling workers to address them before they become problematic.
Better Communication
Construction firms can use drones to capture aerial footage, providing a visual representation that communicates site progress in a way that is easy to understand and keeps all parties, including clients and investors, on the same page. Drones can also help project leaders quickly identify malfunctions and breakdowns and communicate with equipment owners, who can take speedy action to assess issues, which can cut down on delays and added costs.
Cost Savings
Drones can help construction firms save money in many ways. Two significant money-saving attributes this technology provide are:
- Labor costs: By using drones for tasks such as inspections and mapping, firms can reduce the need for workers to physically visit sites.
- Problem identification: Drones can help identify issues promptly, which can prevent costly delays or rework later on in the project.
Increased Competitiveness
Construction firms can stay ahead of the curve by using drone technology. The construction industry is becoming progressively technology-driven, so the sooner firms embrace new tools and technologies, the better positioned they’ll be to succeed in the long run.
by Daniel Kittell | Accounting News, IRS, News, Tax, Tax Planning, Tax Planning - Individual, Tax Preparation - Individual
The IRS makes tax adjustments every year but because of high inflation, the adjustments for the 2023 tax year are more significant, including changes to standard deduction amounts and tax brackets. Read on for an understanding of the most significant changes in order to plan your finances through 2023.
Standard Deduction
The standard tax deduction, which is based on filing status, is a fixed amount that the IRS allows taxpayers to deduct from their taxable income, thus reducing their tax liability. It is adjusted each year for inflation. Most taxpayers already take the standard deduction rather than itemizing their deductions, and with the inflation adjustments for 2023, even more taxpayers may move into claiming the standard deduction.
For single taxpayers and married couples filing separately, the standard deduction increased from $12,950 in 2022 to $13,850 in 2023. For married taxpayers filing jointly, the standard deduction increased from $25,900 in 2022 to $27,700 in 2023. For those filing head of household, the standard deduction increased from $19,400 in 2022 to $20,800 in 2023.
Additionally, taxpayers who are blind or at least age 65 can claim a further standard deduction of $1,500 per person (an increase of $1,400 from tax year 2022) or $1,850 if they are unmarried and not a surviving spouse.
Tax Bracket Thresholds
Because of inflation, the federal income tax brackets for both ordinary income and capital gains increased by roughly 7% for tax year 2023. For example, the top tax rate of 37% applies to individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly, which is up from $647,850 in 2022), and the lowest tax rate of 10% applies to individual single payers with incomes of $11,000 or less ($22,000 for married couples filing jointly, which is up from 20,550 in 2022).
Retirement Plan Contribution Limits
The IRS has also increased contribution limits for several retirement plans in 2023. For 401(k), 403(b), and most 457 plans, the contribution limit will increase to $20,500 in 2023 (up from $19,500 in 2022). For catch-up contributions for taxpayers age 50 and older, the limit will increase from $6,500 in 2022 to $7,500 in 2023. Traditional and Roth IRA accounts will also see an increase in contribution limits from $6,000 in 2022 to $7,000 in 2023 (the catch-up contribution limits for taxpayers age 50 and older will not change).
Gift Tax Exclusion
In 2023, the annual exclusion for gifts increases by $1,000, from $16,000 in 2022 to $17,000 in 2023. This means that taxpayers can now give up to $17,000 to each recipient without having to pay gift tax.
Earned Income Tax Credit
The maximum EITC amount for qualifying taxpayers who have three or more qualifying children was $6,935 for tax year 2022. In 2023, this amount increases to $7,430 for qualifying taxpayers.
Alternative Minimum Tax
This tax for high-income earners is imposed on taxpayers who make a certain income. In addition to their income tax, the AMT ensures that they pay their fair share in taxes even when taking many deductions. The AMT exemption amount increases from $75,900 for tax year 2022 to $81,300 for tax year 2023. The AMT for joint filers is $126,500.
Health Flexible Savings Account
For tax year 2023, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements increases to $3,050. For cafeteria plans that approve of the carryover of unused amounts, the maximum carryover amount will be $610.
by Daniel Kittell | Accounting News, Industry - Retail & Distribution, News, Retail & Distribution, Uncategorized
The retail industry has experienced considerable changes in the past few years, and 2023 is on track for continued transformation. Retail companies can expect to see several key trends impacting businesses this year, including the growth of e-commerce, the focus on personalized experiences, and a shift to adopting sustainable practices. Below we discuss the key trends that are affecting retail businesses.
An Increase in E-Commerce
Online shopping escalated dramatically during the Covid-19 pandemic, and it doesn’t appear to be slowing down anytime soon. Online shopping provides consumers with convenience, access to wider ranges of products, and competitive prices. If they haven’t already, retailers need to embrace the new e-commerce era and optimize their online shopping experiences to level with customer expectations. Even strictly brick-and-mortar stores should think about offering best-selling products in an online storefront.
Additionally, a continuing e-commerce trend can be seen in the integration of social media commerce and marketing strategies. Social commerce lets customers buy products directly through social media platforms, sometimes with the assistance of influencers or brand ambassadors, and it’s an ideal way for retailers to interact with clients and drive sales.
Personalized Experiences
Retailers will need to create a special in-person shopping experience in order to compete with online shopping, increase customer loyalty, and drive sales. This can include online pre-order and curbside pickup as well as personal shoppers who guide customers through the store to offer personalized product recommendations. For example, if a customer is keen on a particular fragrance, the salesperson can point them toward different products with the same fragrance, making sure the customer is aware of any sales, promotions, or customer loyalty rewards programs. A personalized shopping experience elevates the shopping trip for the customer in a way that is difficult for e-commerce stores to do.
Automated Technology
Automation in pricing and inventory management systems is on the rise, which helps retailers lessen staff labor. As the industry continues to experience labor shortages, more retailers will be investing in these technologies. And more companies that specialize in automation solutions are popping up. Implementation of pricing automation can balance profitability and revenue growth, while inventory management systems can pinpoint an accurate amount of inventory to have in stock.
Sustainability
Consumers are becoming increasingly conscious of the environmental impact of the products they purchase and bring into their homes. Retailers and brands can reflect this by offering products that use recyclable or biodegradable packaging materials. They can also take steps to reduce their carbon footprint by embracing more sustainable transportation operations and working with suppliers that have environmentally-friendly practices. Finally, retailers are seeking ways to use more sustainable packaging materials, such as biodegradable packaging and plant-based plastics, and reduce packaging overall.
by Daniel Kittell | Accounting News, News, Retirement, Retirement Savings, Uncategorized
While the purpose of a retirement account is to fund your lifestyle in your golden years, certain situations in life might necessitate dipping into those funds early. Typically, withdrawing from an IRA before age 59 ½ will trigger a 10% early withdrawal penalty. However, there are some key milestones where that penalty is waived. Here’s when you can avoid the IRA early withdrawal penalty.
Medical Expenses
IRA funds can be used to cover unreimbursed medical expenses that exceed 7.5% of your adjusted gross incomes. For example, if your AGI is $80,000 in 2023, you can use a withdrawal to cover unreimbursed medical expenses this year over $6,000. You don’t need to itemize your taxes to take advantage of this exception to the early withdrawal penalty.
Health Insurance
If you are unemployed and have received unemployment compensation via a federal or state program for at least 12 consecutive weeks, you may be able to take IRA distributions without penalty in order to cover health insurance premiums for you, your spouse, and any dependents. The withdrawal must be made in the same year that you received unemployment, or the next year. You must also take the withdrawal within 60 days of being re-employed.
Costs for Higher Education
Penalty-free IRA distributions may be used to pay for some higher education costs for you, your spouse, your children, and grandchildren. Eligible costs include tuition, fees, books, supplies, equipment required for a student’s enrollment, and expenses for certain special-needs services. For students who attend school at least half-time, room and board may also qualify. Keep in mind that IRA withdrawals are considered taxable income and could lower the student’s qualification for financial aid.
Home Purchase
If you are funding a first home purchase with funds from an IRA, the withdrawal may be penalty-free. This doesn’t mean that you need to be a first-time home buyer. The IRS broadly defines a first-time buyer as someone who hasn’t owned a home in the last two years. If you fall into this category, you can withdrawal up to $10,000 ($20,000 for couples) without penalty. If the purchase or building of the home falls through, you have 120 days from the date of distribution to put the money back in your IRA in order to avoid the penalty.
Birth or Adoption of a Child
Parents are eligible to take a penalty-free IRA distribution of up to $5,000 following the birth or adoption of their child. The withdrawal must be made within one year of a child’s birth or legal adoption date.
Disability
Disabled retirement savers under age 59 ½ who are “totally and permanently disabled” aren’t obligated to pay the IRA tax penalty. In order to qualify, per the IRS, one must be unable to do “any substantial gainful activity” for a continued or indefinite duration due to a physical or mental condition, and a physician must certify the severity of the condition.
Military Service
Members of the military reserves in the Army, Navy, Marine Corps, Air Force, Coast Guard, or Public Health Service may be exempt from the tax penalty if they were ordered or called to active duty after Sept. 11, 2001, and in duty for at least 180 days. The distribution must be taken during the active-duty period in order to avoid the 10% early withdrawal penalty.
An Inherited IRA
If you inherit a traditional IRA, you can take penalty-free withdrawals, even before age 59 ½. However, you will need to pay income tax on each distribution. If the original owner of the IRA account passed away after Jan. 1, 2020, you will be obligated to withdraw all assets from the inherited IRA within 10 years of the IRA owner’s death. The exception to this is if you are the surviving spouse or minor child of the original account owner, or if you are disabled, chronically ill, or up to 10 years younger than the original account owner.
For more information on individual tax planning, click here.
