Category: Blog

How Businesses Can Recognize and Combat Employee Burnout

Employee BurnoutAccording to the job site Indeed, COVID-19 has taken a toll on workers even more in 2021, compared to 2020. The survey conducted by Indeed found that 52 percent of those surveyed felt “burned out” in 2021. Sixty-seven percent of those asked said that feeling burned out has become more pronounced as COVID-19 has progressed. It’s more noticeable among remote workers (38 percent), compared to 28 percent of employees working in person.

Gallup reported in October 2020 that between 2016 and 2019, worker burnout was already on the radar. Once COVID-19 hit workers in 2020, those working remotely 100 percent of the time are reporting even higher levels than those who work outside the home.

Pre-COVID-19, when employees worked remotely either 100 percent of the time or via a hybrid approach, they had lower levels of burnout compared to those who worked at their place of employment full-time.

When it comes to remote-only employees who “experience burnout at work always or very often,” levels have gone from 18 percent pre-pandemic to 29 percent during the coronavirus pandemic.

This phenomenon is blamed on not being able to choose to work remotely or at the workplace – the choice is not there with COVID-19. As of September 2020, 4 in 10 full-time employees worked exclusively from home, compared to 4 percent pre-COVID.

According to the Mayo Clinic, “job burnout is a special type of work-related stress.” Internal factors, according to the Mayo Clinic and Gallup, include uneven treatment by management, excessive work assigned to an individual, a toxic workplace and ambiguous or unclear assignment instructions.

Outside factors such as their personal life, their natural disposition, mood disorders, etc. may add to it. When a worker is fatigued, physically or intellectually, this also grips the worker with a feeling of lower productivity and a loss of who they are professionally.

For those who can’t manage job-related stressors, burnout often leads to negative results. According to the Centers for Disease Control and Prevention (CDC), this includes feeling dubious about one’s future at the company, experiencing an inability to sleep, an inability to concentrate, feeling tired and having little motivation to complete one’s work.

If there’s a completely new way of working, unpredictability of being exposed to COVID-19, having to juggle work and personal obligations throughout the workday and the inability to have the right tools to get work tasks completed, burnout will likely ensue.

Managing Burnout

There are many recommendations to regain control and keep work-related stress in check. This includes creating a schedule for both regular sleep and time to fulfill work tasks, if feasible. Taking strategic breaks and finding constructive non-work interests can lessen the stress of work as part of a balanced schedule.

According to Gallup, managers must harmonize maintaining high-performance expectations with employee commitment to the organization and worker welfare.

Gallup credits effective managers and “organizational communication” with keeping full-time remote workers fully engaged by making them feel like an integral part of their company. Through purposeful training and crystal-clear expectations, workers are set up for success.

The CDC recommends how workers can reduce the effects of burnout. Staying diligent with emotional wellbeing treatments and recognizing and getting treatment for new substance abuse issues is recommended. Staying in touch with others can help both sides feel supported mentally and lower stress. Taking a break from constant negative news is also recommended.

Much like businesses, employees are unique. With COVID-19 impacting each of us differently, managers must evaluate their organization’s circumstances and employees to find a balance between employee performance and their ability to maintain wellbeing.

Sources

https://www.cdc.gov/coronavirus/2019-ncov/community/mental-health-non-healthcare.html

https://www.gallup.com/workplace/323228/remote-workers-facing-high-burnout-turn-around.aspx

https://www.mayoclinic.org/healthy-lifestyle/adult-health/in-depth/burnout/art-20046642

https://www.indeed.com/lead/preventing-employee-burnout-report

Potential New Tax on Stock Buybacks and What it Could Mean for the Financial Markets

Tax on Stock BuybacksPresident Biden’s latest spending bill could result in a new tax on corporate stock buybacks. In its most recent incarnation, the Senate version of the plan includes a 2 percent excise tax on stock buybacks. Still, this isn’t enough for many critics of stock buybacks, who claim they incentivize short-term behavior in lieu of long-term investment.

Short-Term Incentives

Stock buyback programs have long been criticized for giving a short-term boost to share prices with funds that could have been used for long-term investment instead. Critics, including the current president, believe stock buybacks come at the expense of capital investment in new or updated factories, research, worker training, etc. These critics believe this type of long-term investment is the key to sustainable growth.

Changing Behavior with Taxes

Some critics advocate for an outright ban on stock buybacks, but they are in the minority. Instead, the recent Senate bill proposes a 2 percent tax on stock buybacks. This tax is dual purpose. First, it aims to discourage buybacks and encourage longer-term investment. Second, it’s a revenue generator to help fund the trillions in new spending in the bill.

Will the 2 Percent Tax be Enough to Matter?

While a 2 percent excise tax on buybacks may not be draconian, it appears to be significant enough to drive a change in behavior. In a CNBC poll, more than half of CFOs indicated the 2 percent tax is enough for them to curtail their buyback program. Only 40 percent said they would not change their buyback program plans (CNBC Global CFO Council Survey).

Impact on the Capital Markets      

Stock buybacks have had a significant impact on the markets. Not only are companies using excess cash to buy back shares, but with interest rates so low for so long, many companies have even taken on debt to buy back shares. Still, excess cash that can’t just sit on the corporate balance sheet is the main driver of the largest buyback programs. Established, cash-flush tech companies such as Apple, Alphabet and Microsoft are the dominant players, accounting for nearly one-third of all buyback activity in the first half of 2021.

Given the recent run-up in the markets, buyback programs have not kept up. Couple this with the proposed increases in corporate tax rates from 21 percent to 25 percent, and there’s even less cash to fund buyback programs. Generally, most experts believe these macro-economic factors combined with the new 2 percent tax will cause a shift toward dividend payouts as they will be more favorable to shareholders.

Conclusion

The main idea behind the proposed 2 percent excise tax on stock buybacks is to both raise revenue and encourage corporate investment. Critics of stock buyback programs believe this is better for the economy and workers, whereas buybacks favor corporate shareholders at their expense. While a 2 percent tax might not be enough to create wholesale change, it appears to have enough teeth combined with corporate tax rate changes to change most public company CFOs.

Increasing the Debt Limit, Extending Government Funding, and Protecting Vets, Veteran Moms and the Capitol Police

Increasing the Debt Limit, Extending Government Funding, and Protecting Vets, Veteran Moms and the Capitol PoliceIncrease of Public Debt Limit(S 1301) – This bill was enacted on Oct. 14 in order to increase the public debt limit. The debt was increased by $480 billion, the amount projected by the Treasury Department to be needed through early December in order to avoid surpassing the public debt limit. Had this stopgap legislation not been passed, it would have created the potential for a severe economic crisis in which the government would have run out of money to pay back existing debts, government salaries and other pre-existing obligations. The bill was initially introduced by Sen. Sherrod Brown (D-OH) on April 22; it passed in the House on Sept. 29 and in the Senate on Oct. 7. It was signed into law on Oct. 14.

Extending Government Funding and Delivering Emergency Assistance Act (HR 5305) – The bill was both introduced by Rep. Rosa DeLauro (D-CT) and passed in the House on Sept. 21; then passed by the Senate on Sept. 30. It authorizes appropriations for federal agencies for the fiscal year ending Sept. 30, 2022, including providing emergency assistance for activities related to natural disasters and evacuees from Afghanistan. The bill is also known as a continuing resolution (CR), which prevented a government shutdown that would otherwise have occurred if the 2022 appropriations bills had not been enacted by Oct. 1, when the new fiscal year began. The legislation was signed and enacted in the nick of time by the president on Sept. 30.

Protecting Moms Who Served Act of 2021 (S 716) – This bill was introduced by Sen. Tammy Duckworth (D-IL) on March 17. The purpose of the legislation is to codify maternity care coordination programs at the Department of Veterans Affairs. Specifically, the VA must work with local non-VA maternity care providers for training and support related to the unique needs of pregnant and postpartum veterans, particularly with regard to mental and behavioral health conditions. The bill passed in the Senate on Oct. 7 and is currently under consideration in the House.

A bill to direct the Secretary of Veterans Affairs to designate one week each year as Buddy Check Week for the purpose of outreach and education concerning peer wellness checks for veterans, and for other purposes. (S 544) – This bill directs the Department of Veterans Affairs to designate one week each year as Buddy Check Week for veterans to conduct peer wellness checks. It also mandates that the VA ensure the Veterans Crisis Line has a plan to handle potential increases in calls during that week. The bill was introduced by Sen. Joni Ernst (R-IA) on March 2 and passed in the Senate on Oct 7. It is currently under consideration in the House.

Emergency Security Supplemental Appropriations Act, 2021 (HR 3237) – This legislation provides $1.9 billion in emergency supplemental appropriations for the legislative branch and federal agencies for preventive measures in response to what happened at the U.S. Capitol Complex on Jan. 6. Because this funding is designated as emergency spending, it is exempt from discretionary spending limits. The funding is allocated for expenses such as security-related upgrades, repairs to facilities damaged by the attack, reimbursements for the costs of responding to the attack, support for prosecutions, the establishment of a quick reaction force within the District of Columbia National Guard to assist the Capitol Police, and mandatory use of body-worn cameras by Capitol Police officers who interact with the public. The bill was introduced by Rep. Rosa DeLauro (D-CT) on May 14. It was passed in the House on May 20, in the Senate on July 29, and signed into law by the president on July 30.

Why you should automate your accounts payables

automate your accounts payablesAccounts payable (AP) is a crucial function to any business, as errors in the process put a company in problems. Although many businesses still use manual methods as they find the system to work fine, it requires a lot of precision from the accounts payable team. There are better – and more efficient – ways to manage AP through automation.

Challenges of the Process 

An AP team is responsible for receiving invoices, reviewing invoices, approving invoices, and paying suppliers and vendors. Some AP departments also handle other functions, depending on the nature of the business. However, AP can be a time-consuming, strenuous and paper-intensive process.

An AP team helps a business control costs, maintain a good supplier relationship and analyze spending. Various challenges might indicate that your business is using outdated practices. Such challenges might include:

  • Dealing with double payments
  • Difficulties in tracking invoices, especially when your business has many transactions
  • Forgotten payments
  • Fraud
  • Disappearing invoices
  • Missing purchase orders
  • Poor business reputation as suppliers lose trust in your business
  • Negative cash flow
  • Too much paperwork taking up employees’ time to sort and organize
  • Skipped processes
  • Manual processes that result in errors and delays

These challenges not only affect your business negatively, but they also affect your supplier’s business. Consider that late payments cost small businesses $3 trillion per year, which means your late payments create a domino effect. Your business will also be subjected to late payment fines.

To avoid the challenges mentioned above, you should automate the accounts payable process.

Accounts Payable Automation 

Automation removes slow and repetitive manual tasks and lets you digitally submit and approve purchase orders and invoices.

However, when making any investment, businesses are more concerned about the return on investment (RIO). Rest assured that through automation, you can achieve ROI through reduced employment costs, fewer late fees, savings on invoice processing costs, and reduced losses caused by errors, among other non-financial benefits.

Following are the benefits achieved by streamlining the accounts payable workflow through automation:

  1. Get a more accurate picture of your finances – using automation software gives you access to reporting capability that makes it is easy to get a quick overview of business spending.
  2. Have a better command over cash flow – manage cash better with the help of reports that can be created and reviewed in real-time, which improves AP team visibility and forecasting. Automation will help in invoice prioritization as well.
  3. Improve user productivity – employees do not have to waste time sorting documents. With the data centrally stored, employees only need to run a query to find the necessary invoice or purchase order.
  4. Enable remote work – using cloud-based software makes remote access possible and enables approvals to be done remotely.
  5. Auditing is easy – all data is stored in a central database and can be easily accessed.
  6. Cost-effective – it enables timely payments and helps avoid unnecessary penalties and interest fees.
  7. Reduce overhead staff costs – automation will help reduce the accounts payable team, with no need to hire more staff even when a business grows.
  8. Dashboard and analytics tools – allow access to separate dashboards for the team and approvers, each using individual login credentials. At the same time, analytics gives a quick overview of the whole process.
  9. No manual data entry – scan documents to capture data and avoid manual data entry.
  10. Standardized accounts payable workflow – ensures consistency even if your business has different teams responsible for handling the invoicing data.
  11. Payment reminders – set your system to have reminders when pay dates are near. This will help avoid late or forgotten payments.
  12. Qualify for discounts – with a smooth workflow, the accounts payable cycle will require less time, and you may qualify for discounts from suppliers for early payments.

Conclusion 

A disorganized accounts payable process can run your business down. Choosing the right AP automation software will help improve accuracy, efficiency, quality and speed for your business accounts payable function. Your business also will have a balance between a healthy cash flow and, at the same time, maintaining a good supplier relationship.

10 Ways to Pay Off Student Debt Faster

Pay Off Student DebtIf the thought of paying off your student loan causes a bit of anxiety, worry no more. Here are some ways to pay it off faster. Check them out.

Sign Up for Auto-Pay

This might seem like the most obvious thing to do, and yet, some alums don’t take full advantage of it. The psychology of this works well. When you decide to put your payment on auto-draft, you never miss it. You get used to living on a certain amount of money. Better still, there are lenders who offer refinancing at lower rates, ranging from 1.8 percent to 7.84 percent. But there’s more: Some lenders offer cash-back bonuses. With that said, the catch is you give up important benefits like income-driven repayment and student loan forgiveness. However, refinancing can help you save a bunch – like thousands of dollars.

Pay Bi-Weekly

If you can swing this, it makes good sense. Why? Interest on your student loan accrues daily. Just cut your monthly payment in half and make two payments per month. This way, it might be easier to juggle your finances, as opposed to doling out one big chunk every month. Also, paying more often gives you the feeling that you’re making progress – and you are because of the daily accrual. #WinWin

Use the Debt Avalanche Method

With this approach, you’re paying off your highest interest debt first. Makes sense, right? After you do this, make minimum payments on all of your other loans. If you have any extra cash left over, pay your highest interest loan. Keep at this until you’re paid in full.

Claim the Student Loan Tax Deduction

This is cool. You can write off up to $2,500 of your student loan interest. Now, the amount you can write off depends on your income because there are phaseouts and gradual reductions in place. Just use the 1098-E form (you can get this from your loan servicer) to figure out how much interest you’ve paid. Then get going.

Pay While Still in School

Talk about getting a head start.You’ll cut down on interest (a good thing) while forgoing in-school deferment, and start paying down your debt pronto.

Pay Off Private Student Loans First

Should you have public and private student loans, this is the best strategy. Here’s why: private loans don’t offer student loan forgiveness or income-driven repayment. And they have limited deferment options. You’ll be better off doing this, given all the stipulations that exist for these kinds of loans.

Use Employer Repayment Assistance Programs

This is a sweet deal. Check with your employer to see if they offer such a program. Generally, they offer reimbursement or allocate funds to help you. Don’t forget to ask!

Pay During the Grace Period

This is the six-month period after graduation. While this might not be something that’s initially appealing, think it through. It helps keep interest in check and prevents your balance from growing during your grace period. Also, starting earlier means you’ll finish earlier. Gotta love that.

Consolidate Federal Student Loans

This is a great idea for those with limited resources. You can lower your payment and extend the repayment terms. You’ll most likely pay more interest, but for a short-time solution it’s a good one.

Exceed the Minimum Payment

If you have the means to make this happen, by all means, do it. Another great way to make incredible progress is to make double payments. If you can’t pay double, at least try to pay over the required amount. It’ll help eat away at the interest and eventually, the principal.

Student loans are great while you’re in school, right? They enable you to get the education you want. And while paying them off might be overwhelming, if you use these methods, you’ll be ahead of the game and pay them off sooner than you think.

Sources

107 Ways to Pay Off Student Loans and Save

How to Develop Company Travel Policies Post-COVID

Company Travel Policies Post-COVIDAccording to a recent U.S. Travel Association forecast, only about one-third of companies are requiring their employees to travel. With business travel still at a low, how can companies develop a travel policy that reduces the risk of COVID-19?

Occupational Safety and Health Administration

When it comes to business travelers, whether employees are traveling domestically or internationally, OSHA recommends employers consult the Centers for Disease Control and Prevention (CDC) for guidance.

Travel Guidance

The CDC advises against traveling internationally if someone is not vaccinated, is exposed to, sick with, tests positive and/or is waiting results from COVID-19 exposure. Even for travelers who are fully vaccinated, the CDC reminds us that becoming infected and/or spreading the virus is still possible.

Travelers should similarly follow all guidelines at their point of departure, on the airline, and at their destination (e.g., wear face masks, get tested to show proof of being COVID-19 negative, maintain social distancing) to be compliant with requirements during each point of the journey.

For those returning to the United States, fully vaccinated travelers must have a negative COVID-19 test taken within 72 hours of travel. Fully vaccinated individuals are suggested to test three to five days post travel, keep an eye out for symptoms and test and isolate if there are symptoms. Travelers who are not fully vaccinated must have a negative COVID-19 test within 24 hours of travel. Travelers who are not fully vaccinated are advised to test three to five days after, along with self-quarantining for seven days, post return. Even if the COVID-19 test is negative, self-quarantining for seven days after travel is advised. If the COVID-19 test is positive, travelers should isolate. If you don’t get tested, stay at home and self-quarantine for 10 days post travel. If symptomatic, test and isolate.

When it comes to domestic travel, differences exist between fully vaccinated and partially/non-vaccinated travelers. Along with masking and government mandates for fully vaccinated travelers, upon return they need to keep an eye out for symptoms and isolate if any develop. However, there are no recommendations for testing or self-quarantining for fully vaccinated or those who have recovered from an infection within the past three months.

For unvaccinated travelers, along with following masking, social distancing, hand hygiene practices, and government mandates, testing 24 to 72 hours before departure is recommended. Upon return, travelers are advised to get tested three to five days later and isolate for one week. If non-vaccinated travelers don’t test, a 10-day quarantine is recommended. If a test is done and it’s negative, a one-week isolation period is recommended.

Assessing Financial/Legal Risk

Employers must determine if the work that requires travel is truly essential, and if it is in all jurisdictions, it should be documented. There are a few types of potential financial and/or legal liabilities if employees travel to perform their work duties. If an employee becomes infected, a workers’ compensation claim could be opened. If an employee does not receive an accommodation, either not having to travel or unable to work safely in the office with a worker who may have been exposed to COVID-19, legal issues may develop. Additionally, a whistleblower lawsuit may exist if an employee alleges the company has violated public health requirements. However, if business travel can’t be delayed, there must be guidelines to reduce the risk of travel becoming a way to catch COVID.

Protect Employees Before Travel Begins

Businesses are advised to give their employees adequate personal protective equipment (PPE). Depending on how and where the employee is traveling, he or she is required by federal law to wear a mask in and on mass transit (e.g., airplanes, trains). It also may help to provide gloves, hand sanitizer and wipes.

Study Transit and Destination COVID-19 Policies

Whether it’s domestic or international travel, different cities, states and countries have different requirements for those who are vaccinated and those who are not. Depending on where the traveler has a layover, there could be testing, proof of vaccination or masking/social distancing requirements in place at various spots.

Agree to Travel-Related Activities

By highlighting the risks of visiting certain venues that may pose higher risks (e.g., restaurants, gyms), an employer also can mandate employees to wear masks, socially distance, wash hands frequently, etc., regardless of the locale’s requirements.

Plan Ahead for Post-Travel Office Work

Another important component of a travel policy is how the business and its employee(s) will return safely to work and interact with co-workers and clients. For the most extreme cases, there could be a 14-day work-from-home policy to reduce the risk. Businesses can mandate testing for employees as long as they cover testing costs and testing requirements are applied fairly companywide.

While the world is reopening to commerce, especially instances when business deals necessitate face-to-face meetings with people from different cities and continents, safety with COVID-19 is paramount.

Sources

https://www.ustravel.org/press/new-forecast-signals-long-road-recovery-business-travel

https://www.osha.gov/coronavirus/control-prevention/business-travelers

https://www.cdc.gov/coronavirus/2019-ncov/travelers/travel-during-covid19.html

https://www.cdc.gov/coronavirus/2019-ncov/travelers/international-travel-during-covid19.html

New Proposed Tax Laws

New Proposed Tax Laws 2022The House recently released a nearly 900-page proposed bill that would make major changes to current tax laws. The bill is intended in large part to help pay for both the Biden Administration’s budget and infrastructure stimulus bill.

It’s important to keep in mind that the provisions and changes outlined below are by no means settled. Changes can (and likely will) still be made as the Senate ratifies the bill; however, the remainder of this article should give readers a good idea of the most significant provisions.

Income Tax Rates are Rising

The increase in the top income tax rate is probably the most talked about proposed change in the bill, bringing it up from 37 percent to 39.6 percent. The top marginal rate would apply to single filers with taxable income over $400,000, heads of household over $425,000 and married filing jointly taxpayers making over $450,000. The impact starts with income earned on Jan. 1, 2022, and after.

Capital Gains

The highest capital gains rate would increase from 20 percent to 25 percent and apply to qualified dividends. The increase is effective on gains made from sales that happen on or after Sept. 13, 2021, but any gains from sales incurred before or that result from binding contracts executed before this date fall under the old rate. For example, gains received post-Sept. 13, 2021, under an installment sale entered on Aug. 31, 2021, would be subject to the old 20 percent rate.

Expansion of the Net Investment Income Tax

The bill also would redefine net investment income (NIIT) to include any income earned in the ordinary course of business. Currently, the 3.8 percent NIIT surcharge applies only to passive income. The NIIT is applied to single taxpayers with more than $400,000 in taxable income and joint filers with over $500,000, and would start Jan. 1, 2022.

New 3 Percent Surcharge on High Income Individuals

Starting after Dec. 31, 2021, a new 3 percent tax will be placed on Adjusted Gross Incomes (AGI) over $5 million ($2.5 million if married filing separately).

Small Business Tax Increases

Under the bill, the current 21 percent flat corporate (C-Corporation) tax rate would change to a three-tiered system. The structure would tax net income at 18 percent up to $400,000; 21 percent from $401,000 to $5 million; and 26 percent on net income over $5 million.

Other Miscellaneous Changes

As you can imagine in an 881-page bill, there are only so many changes that can be covered in this article, but here is a smattering of miscellaneous provisions.

  • Crypto currencies would become subject to the constructive and wash sale rules (like most marketable securities such as stocks) starting Jan. 1, 2022. This means that if you are holding a position at a loss, you have until the end of 2021 to harvest the loss and immediately buy back in.
  • IRAs will no longer be allowed to invest in an entity where the IRA owner has a 10 percent or greater ownership interest (down from the current 50 percent threshold) or if the IRA owner is an officer of the entity.
  • $80 million is earmarked for the IRS to step up enforcement and audit more taxpayers.
  • Smokers will feel the pain as the bill also doubles the excise taxes on cigarettes, small cigars and roll-your-own tobacco.

Conclusion

Remember that this is only the House version of the bill, and nothing is final. Also remember that Democrats control the House, and the Senate is split 50/50 with the Democratic VP as the tiebreaker. As a result, while there will be changes, the major provisions outlined above will likely be in the final law in some form or another.

Why the IRS Should Love NFTs

nonfungible NFTsSales and trading of nonfungible tokens (NFTs) are soaring recently. With the emergence of major marketplace platforms such as Opensea, NFTs are no longer an obscure segment of the blockchain technology world. Even old guard auction houses such as Sotheby’s are getting in on the action. In early September, the auction house facilitated the sale of a set of “Bored Apes” NFTs that sold for more than $24.4 million.

While the emerging space of NFTs is full of excitement, risk and opportunity, there’s the boring tax side of the equation. Unlike most other forms of assets or income, creating, trading and investing in NFTs can trigger a tax event.  

Creators

NFTs are classified as “self-created intangibles” like other works of art. The IRS allows the artist to deduct the expenses of creating the NFT immediately – even if the artwork is not sold. As a result, the creator typically has zero “basis” in their work. This means when they do sell their work, they’ll have no deductions, so a $100,000 sale means $100,000 of taxable income.

There is little formal guidance, but general principles indicate that NFTs are their creator’s inventory instead of a capital asset. This means that this income is treated as ordinary income and not capital gains – and it is subject to self-employment taxes as well.

Lastly, with certain NFTs, while the NFT itself is a unique blockchain token, the creator might retain copyright to whatever underlying artwork was used to make the NFT. Here, the creator may sell multiple NFTs based on the same original artwork as limited-edition, signed reprints. When the copyright is retained and copies are sold, the income is considered a royalty.

Traders and Investors

Trading NFTs is not as simple as trading stocks.

NFTs are purchased with cryptocurrency (most commonly Ethereum). Since the IRS treats cryptocurrency as property instead of currency, the purchase itself creates a taxable event. Swapping your Ethereum for an NFT means you’ll have to pay tax on any gain you have in your Ethereum position between its value at acquisition and the moment of using it to acquire the NFT.

Second, taxpayers will trigger a taxable event when they sell the NFT, thereby subject to capital gains taxes on the sale of the NFT at the 28 percent collectibles rate.

Conclusion

NFTs offer fantastic opportunities at tremendous risk. As a result, there will be winners and losers, but one thing is certain: the IRS should love NFTs for the taxes.

Enhancing Agency Budget Transparency, Opportunities to Study Science and Environmental Protections

Congressional Budget Justification Transparency Act of 2021 (S 272)Congressional Budget Justification Transparency Act of 2021 (S 272) – This bill mandates that federal agencies must make budget justification materials publicly available online. The Office of Management and Budget will be required to publish details regarding the agencies that submit budget justification materials to Congress and dates the materials are posted online, along with links to the materials. The bill was introduced by Sen. Gary Peters (D-MI) on Feb. 8, passed in the Senate and the House on Aug. 23 and is awaiting enactment by the president.

National Science Foundation for the Future Act (HR 2225) – Introduced by Rep. Eddie Johnson (D-TX) on March 26, the bill authorizes appropriations for the National Science Foundation for fiscal years 2022 through 2026. It is designed to assess opportunities and award grants for Pre-K through 12 science, technology, engineering and mathematics programs, including computer science and STEM education research. The legislation passed in the House on June 28 and is in the Senate for consideration.

Driftnet Modernization and Bycatch Reduction Act (S 273) – This bill was introduced by Sen. Dianne Feinstein (D-CA) on Feb. 8. The purpose of the legislation is to prohibit the use of large-scale gillnets with a mesh size of 14 inches or greater. Gillnets are used for driftnet fishing, in which nets with panels of webbing are placed in the water and allowed to drift with the currents and winds to passively catch fish by entangling them in the webbing. Presently, gillnets are limited in size to less than 2.5 kilometers in length. However, the bill will not go into effect within the U.S. exclusive economic zone for five years in order for the Department of Commerce to facilitate the phase out of large-scale driftnet fishing and promote the adoption of alternative practices to minimize the incidental catch of living marine resources. Furthermore, the bill authorizes the Commerce Dept. to award grants to program participants. The bill passed in the Senate on Sept. 14 and is currently under consideration in the House.

PFAS Action Act of 2021 (HR 2467) – This legislation would require the Environmental Protection Agency (EPA) to limit the use of and designate perfluoroalkyl and polyfluoroalkyl (PFAS) as hazardous substances. These are manmade materials used in a variety of products, such as nonstick cookware and weatherproof clothing, that may have adverse human health effects. The legislation would classify PFAS under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, which in turn would require appropriate remediation of those substances released into the environment. This bill was introduced by Rep. Debbie Dingell (D-MI) on April 13. It is currently in the Senate after passing in the House on July 21.

Divided Families Reunification Act(HR 826) – This bill directs the State Department to make regular reports to Congress on its work with South Korea to reunite Korean Americans with family in North Korea. The legislation was introduced by Rep. Grace Meng (D-NY) on Feb. 4 and passed in the House on July 19. It is currently under consideration in the Senate.

Mistakes to Avoid When Implementing Business Accounting Technology

Business Accounting TechnologyChoosing to implement new technology for your accounting needs is a big step toward improving your business. Accounting technology helps streamline the accounting system, thereby offering various benefits. However, poor implementation can impact your business negatively. To make your implementation a success, there are several mistakes that you must avoid.

Importance of New Accounting Technology 

Before looking at the potential mistakes, it is important to understand why businesses implement new technologies. Technology advancement has played a great role in various life and business aspects. In businesses accounting, technology such as computerized systems help easily track and record financial transactions. 

Various types of technologies have impacted business accounting, such as cloud-based systems, mobile accounting, big data, artificial intelligence, data analytics, robotic process automation, etc.

Businesses that have successfully implemented some of these technologies have witnessed improved accuracy, faster processing, forecasting, analytics and better external reporting, among other benefits. 

As a result, more business owners wish to enjoy the same benefits as their counterparts. Unfortunately, rushing to implement a system will end up causing more harm to your business than what you are trying to change. Therefore, being prepared before the implementation will save you a lot of trouble. 

In a continuously changing technology landscape, businesses want to remain competitive and do not have much choice but to keep up with technology trends. 

Mistakes that Result in Poor Accounting Technology Implementation 

  • Failure to define your business’ specific requirements
    Rushing to implement a technology solution because a counterpart is benefiting from it is a bad idea. Remember each business is unique and, before implementing a new technology, you should first consider your kind of business. Identify functions to automate and research suitable systems that fit your needs. Failing to do this means you could end up settling for a generic solution that will not properly address your business needs.
  • Failing to plan the implementation process 
    Implementing new technology involves more than installations, configurations, setting up necessary devices and adding users to the new system. It requires – among other things – focus, resources, accountability and follow-up for its success. 
  • Failure to include users in the implementation process
    Users can determine how successful a new system will be. Involving users will help get the business process workflow right, and also plays a part in avoiding resistance to the new solution. If employees are opposed to the implementation, it will fail. 
  • Assuming it is a one-time cost 
    Failing to anticipate post-implementation costs may result in abandoning the new systems you implemented. Any new technology always comes with other hidden costs, such as maintenance fees, subscription fees, training, etc. Find out the involved costs to help you budget properly. 
  • Failure to properly train users 
    Many times, user training is overlooked to cut costs or with an assumption that they will learn on the go. Having the users properly trained will ensure only minimum support is necessary. All users should be well trained before the vendor or consultants finish with the implementation. Continuous training should be carried out to ensure that users leverage advanced features of a system that will help them be more productive.
  • Failure to consult
    Once you decide to implement new technology, most likely other businesses have done it, too. By consulting with other businesses, you will learn what has worked or not. You also may want to check vendor reviews, which can be readily found online. As more businesses choose to outsource accounting, it is best to consult on technologies to use for integration issues. This will help avoid the need to implement different solutions. 
  • Failure to consider security issues 
    In accounting, security is vital as you are dealing with personal and financial data. A data breach can result in financial loss or reputation damage. Consider your internal security, train your employees on security, and implement a security policy. Ensure that the vendors you choose to partner with prioritize security.

Take Away 

One vital point to remember when you want to implement an accounting technology is not to rush to keep up with trends without proper planning. A good implementation strategy will help you avoid the above-mentioned mistakes, ensuring your business enjoys productivity and workflow improvement.