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Oct 01
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Understanding Mark-to-Market

By Blog

Understanding Mark-to-Market

What is Mark-to-MarketThe term mark-to-market is an important phrase in corporate finance that has many nuances and industry-specific uses. Mark-to-market is a corporate finance term that provides businesses with a way to evaluate a holding’s fair value for both assets and liabilities. Since values can change over time, this gives a rational assessment of a business’ present fiscal circumstances based on the latest market climate.

When it comes to securities, an investment that is mark-to-market shows its current value. It’s a way to look at how much a business might get if it sells assets under current market conditions. This measurement is opposed to historical cost accounting, which keeps the asset’s value according to the asset’s price when first purchased.

When a business prepares its balance sheet, some assets will be recorded at their historical cost or original purchase price, while others will need to reflect current market value. One type of asset that needs to be marked down is accounts receivable. If a business permits a 5 percent or 10 percent discount to collect on those to generate cash flow, it needs to reduce that item’s value via an adjustment for doubtful accounts or similar terms.

One important consideration is how mark-to-market is different from impairment. Since retailers or manufacturers store most of their operation’s values in property, plant, and equipment (PPE), along with accounts receivable, such assets are documented at historical cost. If the assets lose value due to obsolescence, theft, damage in transit, a natural disaster, or uncollected accounts receivables, they would be impaired.

When it comes to derivatives that businesses use, mark-to-market assessment may be needed, according to ASC 815-30 for a cash flow hedge or ASC 815-35 for a net investment hedge of a foreign operation. Specifically, whatever is “excluded from the assessment of effectiveness” is attributed to earnings via a mark-to-market procedure or through amortization.

Dissecting Derivatives

A derivative, according to Accounting Standards Codification (ASC) 815-10-15-83, is a contract that derives its value based on the underlying variable. Examples of underlying variables include commodities, indexes, or the occurrence or nonoccurrence of an event (natural disaster). These types of contracts can be used to hedge or preserve the owner’s ability to buy the underlying at the agreed-upon price, especially if it increases in the future. Other uses include speculating on the movement of stock prices or engineering financing arrangements.

A derivative is defined as a financial instrument or other contract that has all of the following characteristics:

  1. The underlying, which is either the price of an individual or the index of a commodity, security, interest rate, exchange rate, etc., is one-half of how a derivative contract is settled.
  2. The other half is a contract having either a notional amount (how much money it controls) or a payment provision. Notional amounts are characteristics of calls, futures contracts, and interest rate swap contracts. A payment provision may take the form of a payment being made in the case of a natural disaster breaching a financial damage threshold or if a commodity or interest rate index reaches or breaches a specified threshold.
  3. The next requirement to be considered a derivative is the contract for the underlying has “an initial net investment” of a nominal price compared to a near identical financial product that would obtain the same financial results due to the same market action.
  4. The final attribute necessary for a contract to be considered a derivative is that it’s subject to “net settlement.” This means that when the contract has matured, it’s able to be settled via cash, as opposed to physical delivery of the asset. As long as it can be settled through one of the following methods, it’s considered a derivative: 1. specified in the contract; 2. through a market mechanism; 3. an asset or derivative contract easily able to be transformed to cash.

Conclusion

It’s important to factor in periods of high volatility or when there are illiquid markets or few buyers and sellers of investments; what the market prices applicable to investments doesn’t always give a true reflection of an asset’s price. One recent example was when the market for mortgage-backed securities during the 2008-2009 crisis evaporated, the market gave an inaccurate value of the securities.

Businesses that navigate the intricacies of when and how to use mark-to-market assessments are using an important tool to help keep their books in order.

Oct 01
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Common Financial Reporting Mistakes and How to Correct Them

By Blog, General Business News

Common Financial Reporting Mistakes and How to Correct Them

Common Financial Reporting MistakesWith accounting fraud and financial reporting mistakes creating a lack of confidence, understanding how financial reporting mistakes occur and are detected is an important topic. According to the Association for Federal Enterprise Risk Management and the U.S. Securities and Exchange Commission, the first nine months of 2018 saw 8.8 percent more accounting fraud enforcement action cases versus 2017.

Controls are procedures implemented to lower the chance of financial reporting issues. While these mechanisms are meant to prevent an overload of problems, they are not always foolproof. Corporations also are required to show that sufficient financial oversight is in place for financial records and assets by the Sarbanes-Oxley Act of 2002. There are two types of controls: preventive and detective.

As the name implies, preventive controls are devised to avert mistakes before they happen. Methods include ongoing training, worker evaluations, and mandating different layers of authorization for transactions.

Detective methods look at the granular accounting steps. Having internal and external audits performed and comparing real-world activity against what’s been budgeted or forecasted are two ways to implement this approach. However, performing account reconciliation where the business’ financial data is compared against third-party documentation can provide near real-time insight into what is actually occurring. This includes analyzing checks and cash the business has collected and documented on their books but that may not be reflected on bank statements. Another factor in the reconciliation process is checks the company has sent out that have not been processed by the business’ vendors, etc.

Since detective controls alert companies to errors after the fact, it is important that they are conducted in a timely manner – daily, monthly, quarterly, or annually. If there’s a discrepancy between the company’s ending cash balance and the bank’s monthly statement, there might be differing balances. This can be due to the financial institution’s service fees and checks taken into account by the business that aren’t yet reflected on the financial institution’s statement.  However, other cases of discrepancies could point to signs of fraud.

According to the University of California Los Angeles, there are many ways to split tasks. Doing this is integral to successful mitigation of errors and unauthorized behavior because it deters the likelihood of multiple workers collaborating. Specifically, when it comes to authorizations, reconciliations, and responsibility for the assets, it is a high priority for businesses to break tasks up among multiple workers.

Examples include dividing the duties between opening the mail/preparing a list of checks to review and the individual who deposits the checks. The individual who oversees accounts receivables should be separate from the person who creates a list of checks received. It’s not advisable for a sole employee to initiate, approve, and record a transaction. Similarly, reconciling balances, handling assets, and reviewing reports should not be done by a single employee. A minimum of two individuals should be available to handle any transaction.

While the most diligent accounting professional has made a mistake from time to time, learning how to identify financial reporting mistakes can reduce the likelihood of even rare mistakes being unknowingly shared with others.

Sources

Wrong Numbers: The Risks of Inaccurate Financial Statements

Oct 01
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IRS Plans to Use AI and Ramp Up Enforcement on Millionaires, Partnerships and Crypto

By Blog, Tax and Financial News

IRS Plans to Use AI and Ramp Up Enforcement on Millionaires, Partnerships and Crypto

IRS Plans to Use AIRecently, IRS Commissioner Danny Werfel spoke of changes within the IRS, announcing several initiatives focusing on high-income earners and partnerships, as well as integrating the use of AI within the agency’s work. According to the commissioner, the initiatives were made possible by additional IRS funding provided by the Inflation Reduction Act. Without the funding from this bill, the agency would not have the budget to implement these ramp-ups in enforcement.

Millionaires with Tax Debt

The new initiative on millionaires is not just because they are high-earning taxpayers; it will focus on those with open tax debt. Currently, the IRS has identified approximately 1,600 millionaires who are in debt to the IRS for $250,000 or more. The agency plans to designate agents to focus on these high-impact collection cases. A prior campaign resulted in a collection of more than $38 million in tax debt.

High-Income Earners with Foreign Bank Accounts

Another new initiative focusing on high-earning taxpayers includes ramped-up inspection for those who have foreign bank accounts and use them to evade taxes.

By law, every U.S. resident who has a financial interest in or control over a foreign financial account must disclose this information if he or she had $10,000 or more at any point in the year by filing an FBAR.

The IRS conducted an analysis and identified potentially hundreds of taxpayers who should be filing an FBAR and are not, with average balances of more than $1 million. The most egregious cases are planned to be audited in fiscal year 2024.

Partnerships and Corporations

Starting in 2021, the IRS began the initial stages of a new compliance program focusing on complex partnership tax returns. Now, the IRS is set to expand this initiative over more partnerships.

In total, the IRS has plans to open examinations on the 75 biggest U.S. partnerships. “Biggest” means these businesses have, on average, more than $10 billion in assets, so it’s safe to say small and medium size businesses won’t be affected.

Additionally, the IRS will be looking into smaller (but albeit still large) partnerships with more than $10 million in total assets that have balance sheet mismatches. The focus is on partnerships with balance sheet discrepancies where the prior year’s ending balance sheet is not equal to the next year’s opening balance sheet without any explanation. The IRS uses this as a red flag because they have found through full inspections that balance sheet issues are often the proverbial canary in the coal mine for other areas of non-compliance.

Once again, the focus will be on larger partnerships with balance sheet mismatches. The agency plans to send notices to approximately 500 partnerships. Depending on the initial follow-up, an audit may result.

Digital Assets, Including Crypto

The IRS plans to continue its virtual currency compliance campaign, educating taxpayers on the rules, regulations, and reporting obligations surrounding cryptocurrencies. The rules around the taxation of digital assets have evolved in recent years, and more and more taxpayers are invested in these types of assets.

The IRS subpoenaed transaction information from centralized exchanges and found that potentially an estimated 75 percent of taxpayers involved in crypto are non-compliant, some as a form of tax evasion and others simply from ignorance. In any case, the IRS plans to ramp up digital asset enforcement this coming year.

Artificial Intelligence

Lastly, the IRS is looking to utilize artificial intelligence to help agents do their job more effectively. The IRS is particularly interested in how AI can help flag tax returns for audit in important areas.

The agency plans to invest in the latest analytic solutions that can detect patterns, trends, and activities that are typically linked to tax evasion, thereby freeing up employees to focus on other matters.

Conclusion

Overall, the IRS’s focus is on high-income, tax-debt-burdened individuals, the largest partnerships, and sizable crypto players. This means that these enforcement campaigns shouldn’t have much of an impact on the average taxpayer. However, the growing use of AI will impact everyone from top to bottom.

Sep 01
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IRS Announces End of Unannounced Taxpayer Visits (Mostly)

By Blog, Tax and Financial News

IRS Announces End of Unannounced Taxpayer VisitsYou wake up in the middle of the night. Heart racing, drenched in sweat, and breathing heavily. Thankfully, it was just a nightmare when the IRS showed up at your doorstep unannounced. Recently, however, this was the reality for some taxpayers – and not just a bad dream. The IRS just publicized a significant shift in policy, effectively ending the vast majority of surprise taxpayer visits. The change comes in an effort to create safer conditions for IRS officers as well as ease public concerns.

Who’s Knocking at My Door?

In order to understand the change in policy, you’ll need to understand the three categories of IRS employees that typically interact with taxpayers: Revenue Officers, Revenue Agents, and Special Agents.

IRS Revenue Agents are tax return auditors. They don’t typically show up unannounced.

IRS Revenue Officers, of which there are approximately 2,300, have duties that include paying visits to taxpayers to collect back taxes and tax returns not filed. They are not auditors but instead focus on collection efforts, including issuing liens and levies. Revenue Officers are the main category of IRS employees impacted by the policy change.

Special Agents deal with criminal matters and are part of one of the largest law enforcement agencies in the United States. The change in policy does not impact Special Agents.

Safety

Why the shift to (mostly) eliminating surprise visits from IRS Revenue Officers? Safety is cited as the main concern. Unannounced visits to taxpayers, whether at home or their business, can be risky. Historically, IRS Revenue Officers faced contentious and sometimes dangerous conditions during their unannounced visits.

Taxpayer Confusion

There is also a growing number of scam artists pretending to be IRS agents or officers. As a result, taxpayers are increasingly wary of unannounced visits, and this causes confusion for both the taxpayer and law enforcement.

The difficulty in distinguishing between IRS representatives and fakes has caused concern for taxpayers already on guard for scam artists. The IRS believes that maintaining trust among the public will go a long way to maintaining the legitimacy of the organization.

Appointment Letters In Lieu of Visits

In place of these previously unannounced visits, the IRS will contact taxpayers through a 725-B letter, more colloquially known as an appointment letter.

An appointment letter will facilitate scheduling in-person meetings, with the opportunity for the taxpayer to prepare any information and documentation beforehand, allowing for quicker resolution of cases. These meetings occur at a pre-determined time, date, and place.

Limited Visits Will Still Occur

The policy change does not completely eliminate unannounced visits by the IRS. In “extremely limited situations,” such as serving summonses and subpoenas and the seizure of assets, unannounced visits will still occur. To give some perspective, these types of visits will account for only a few hundred per year compared to the tens of thousands of unannounced visits under the old policy.

Conclusion

Unannounced IRS visits are (almost) a thing of the past. They will be carried out only in rare, necessary cases, with most Revenue Officer visits being pre-scheduled. This should ease taxpayer anxiety and make case resolution more efficient.

Sep 01
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How to Identify and Avoid Cash Flow Pitfalls

By Blog, General Business News

Cash Flow Pitfalls, Cash Flow problemsLooking at expenses for one’s business is essential to reduce cash flow issues. For example, it would show if there’s too much money leaving the business or what type of scenario the business might face if there’s an unexpected and large expense that guts the business’ cash position. Tracking expenses on a monthly basis is one way to determine a company’s financial health.  

Estimating sales by starting with last year’s month-by-month figures is one way to start. Looking at credit and cash sales from a business’ monthly income statements provides historical reference. Examining both fixed and variable past expenses, specifically, is a good starting point. However, it’s important when projecting future sales and reasonable increases to remember that the business could be impacted negatively by a new competitor or positively if one goes out of business.

Determining when payment will be received is a good way to project cash flow. If it’s cash, then it’s instant and no further calculation is necessary. However, if payment is conducted by invoices, credit lines, etc., businesses are encouraged to perform the Days Sales Outstanding (DSO) calculation. This calculates, on average, how long customers take to pay outstanding invoices.

DSO = (Monthly accounts receivables/Total sales) x Days in the month

This is a good way to measure how long customers actually take to pay invoices versus what terms are specified in contracts or invoices.

Another consideration is to look at fixed and variable expenses. While fixed expenses are just that, fixed, it’s important to monitor variable expenses because they can fluctuate. One example is inflation, which can increase the cost of input materials, salaries, overhead, etc. Depending on the volume of production or sales, electricity, commission, or similar costs can also vary.

Once this information is gathered, the current month’s projected cash flow can be calculated.

The formula is as follows: (Last month’s cash balance + Current month’s projected receipts) – Projected expenses.

Preventing Bad Debt from Happening Before Collections is Necessary

According to SCORE, there are many things a business can do to reduce the likelihood of customer debt default and increase cash flow. Businesses can check the creditworthiness of both individual and commercial clients before offering credit to determine the likelihood of defaulting. 

Similarly, if Net 30 is the standard timeframe to pay an invoice, offering a 5 percent discount if it’s paid within seven days is one way to encourage prompt payment. Businesses that get a deposit when signing the contract or before beginning work will generate a more consistent cash flow.

Operating Cash Flow Ratio Example

This looks at how easily a company can satisfy current liabilities from its cash flows that are produced from the business operations. If there’s negative cash from operations, a business might be relying too heavily on financing or selling assets to run its operations. If earnings are steady, but cash flow from operations is falling, this is a negative indication of a company’s health. It’s calculated as follows:

(Operating Cash Flow/Current Liabilities) = ($15 billion/$45 billion) = 0.33

Businesses with an operating cash flow ratio greater than 1 have produced more cash in an operating period than is necessary to satisfy current liabilities. Businesses that have a reading less than 1 did not produce enough cash to satisfy current liabilities. However, further investigation is required to ensure that it’s not taking some of its excess cash to reinvest in projects with the potential to create future rewards.

While there’s no way to predict future cash flow trends, making projections can help businesses compare actual results to projects and adjust their plans more efficiently.

Sources

https://www.score.org/resource/article/10-ways-improve-collections-and-cash-flow

Sep 01
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Widow/er Social Security Benefits

By Blog, Financial Planning

Widower Social Security BenefitsA widow or widower is eligible for a survivor’s benefit from Social Security even if they never worked – as long as the deceased spouse qualified for benefits based on his or her own income record. Also, note that surviving spouses must have been married to their most current spouse for at least the nine months prior to their passing or for 10 years if the couple was divorced.

When Can You Claim?

A widow/er may apply for benefits once she turns age 60, age 50 if she qualifies as disabled or if she is responsible for the care of a child under age 16 (or a mentally or physically disabled child aged 16 or older). However, if the widow/er applies for a surviving spouse’s benefit starting at age 60/50, that benefit will be permanently reduced from the maximum amount available if she were to wait until her own full retirement age.

What Is Full Retirement Age for the Widow/er?

For anyone born from 1945 to 1955, their full retirement age (FRA) is 66. If born between 1955 and 1959, FRA increases by two months each year from age 66 to 67. FRA is age 67 for anyone born in 1960 or later.

How Much Can You Get?

First and foremost, all Social Security beneficiaries receive the highest benefit for which they qualify. Therefore, if a surviving spouse would receive a higher benefit from her own record of earnings than that of the deceased spouse, then that’s the amount she will receive.

If the deceased was receiving Social Security disability benefits when he passed, the survivor benefit is based on the deceased’s disability benefit.

Normally, the spousal benefit equals half the benefit of the higher-earning spouse. However, the surviving spouse’s benefit equals 100 percent of what the deceased worker would have received, including any delayed retirement credits he earned by postponing benefits to age 70.

The minimum surviving spouse benefit at age 60 is 71.5 percent of the available amount. This represents a permanent loss of 28.5 percent of the benefit available at FRA. The widow/er benefit is reduced for each month shy of his or her own FRA, so the closer they get to FRA before applying, the higher the benefit. The amount freezes once they begin drawing benefits, although it will increase incrementally based on cost-of-living adjustments.

The maximum benefit a widow/er may receive is 100 percent of what the deceased spouse would receive if he was still alive. However, that amount may already be reduced. For example, if the deceased began drawing benefits at age 62 instead of waiting until FRA, then that is the maximum benefit the widow/er is eligible for. If she begins drawing early before her own FRA, that benefit will be reduced further.

Ideally, the deceased will not have started receiving Social Security before his death. In this scenario, even if he died in his 50s, his maximum benefit is what he would have received at FRA. Now it’s up to the widow/er to time her survivor benefit – she can wait until her own FRA or take a permanently reduced benefit.

Delay Strategy

One strategy a widow/er may want to consider is to begin her own benefit at age 62, even if it is less than what she would draw as a survivor. Then, she can delay drawing the survivor benefit until it grows higher – ideally, the highest benefit at her FRA.

If the widow/er does not have her own benefit from earnings or can’t live on that amount alone, she may want to withdraw income from other sources, such as retirement savings or an annuity. While that may reduce her overall net worth, it’s important to remember that the Social Security benefit continues for life, so it may be worthwhile to get the highest benefit possible. Other accounts, such as an IRA or 401(k), will stop paying out income once they are depleted.

If the widow/er has a stronger earnings record, another option is to begin drawing the survivor’s benefit early and delay taking her own benefit until FRA or age 70, to receive a higher benefit for life based on her own record. Once she applies for her own benefit, the payout will increase to a higher amount.

Seek Professional Advice

Knowing when to begin drawing a widow/ers benefit can be challenging. The best option is usually based on factors such as other income resources and even the widow’s health. If in poor health and not expected to live many years, it may be wise to begin the survivor’s benefit as soon as possible. Otherwise, it’s probably better to wait and get a higher payout for as long as she lives.

Another thing to keep in mind is that if the widow/er doesn’t know the deceased spouse’s FRA benefit at the time of death, she is not likely to find out until age 60. The Social Security shuts down the deceased’s account at death and won’t reveal the benefit until the widow/er is of qualifying age to begin receiving it. It’s always a good idea for both spouses to check (and share with each other) their accrued benefits each year so that they have accurate numbers to plan with in case one spouse passes away.

Sep 01
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How to Write an Awesome Accounting Bio

By Blog, Tip of the Month

How to Write an Accountant Bio, How to write CPA Bio, How to write a Tax Preparer Bio, How to write a Bookkeeper bioEven though numbers are probably the biggest thing in an accountant’s wheelhouse, getting people in the door with the right words in your bio can make all the difference in the world. Here are a few tips to make sure that how you present yourself to the public via your wording is powerful, succinct, and engaging.

Make it Short and Engaging

Yes, attention spans in our world are woefully short, much like that of gnat. You have seconds to grab someone’s attention. Write your bio as if you were looking for an accountant. How would you word it? What would catch your eye? Of course, you’d start with your name and title, but what after that? Spend time thinking about this.

Don’t Use First Person

While social media is all about saying “I this” and “I that,” when it comes to bios, it’s best not to do that, use the third person as if you were talking about someone else. For instance, “John Davis is a CPA at Ernst & Young.” After that, you can launch into telling the world just how awesome you are.

Use Active Voice

And avoid passive voice. An example of this would be something like, “John’s team was involved in the overhaul of the payroll system.” For active voice, you’d write it like this:  “John’s team overhauled the payroll system.” See the difference? You’ve cut out extra words and adjusted your verb to be active. A quick way to check your writing for passive voice is to do a search in your document for an “of.” If you spot these babies, fix them right away.

Update Your Social Media Profiles

While most people use LinkedIn, many others who are looking for a job include their bios on their social media pages. In fact, you might update your bio on your LinkedIn page and then share it on Facebook, Instagram, or other platforms you use. This way, when employers are casually scrolling, you’ll appear in their feed. And if they’re looking for someone, all the better.

End Strong

The abbreviation in the marketing world is CTA, or Call to Action. You see it on nearly every digital ad as a button. But if you reimagine it in terms of the last sentence of your bio, it can leave a lasting impression and, hopefully, trigger a response. You might end your bio with a short, friendly statement, your email, and your phone number: “John is actively seeking employment, can be reached at [FILL IN INFO], and is just a ping or phone call away.” No matter what you choose to end with, it should reflect you and your personality.

If you need a little help to get started, here are two different samples:

Sally Smith is a CPA and a Senior Accountant at ABC Company, a full-service tax and bookkeeping firm in Home Town, USA.

John Jones joined ABC Company in 2000. In his current role, he is a seasoned tax preparer with a focus on international taxes. This involves staying up-to-date with current and future tax regulations for foreigners living and working in the United States and abroad, as well as state tax regulations in California and Florida.

Writing an accountant bio that will stand out from the crowd will take a bit of time, but it is well worth it. You want to present yourself in the best possible light to your audience. When you do this, you’ll get more traction and, in turn, more business.

Sep 01
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How Businesses Can Leverage Data and Personalization for Targeted Campaigns and Growth

By Blog, What's New in Technology

Data and Personalization, Targeted CampaignsMarketing efforts today depend on collecting, analyzing, and leveraging data to make informed decisions. Therefore, business owners need to understand how to harness the power of data and personalization to create targeted campaigns that drive growth.

Importance of Data and Personalization in Modern Business

Businesses today collect loads of data, enabling them to understand their customers’ preferences, behaviors and interests. The data comes from different channels, such as a business website, emails, or social media. It is then used to identify patterns and trends to make informed marketing decisions. This yields valuable insights that help craft highly personalized and effective marketing strategies.

Data is the foundation of personalization strategies. Personalization involves tailoring customer experiences to meet individual interests, needs, and preferences. It aims to build strong customer relationships, encourage engagement, and drive revenue and growth.

Personalization takes different approaches, such as recommendations based on previous purchases, creating unique landing pages, or sending emails based on customer browsing behavior. For example, e-commerce websites recommend products based on user browsing history and search queries.

Business owners can’t afford to ignore personalization since customers today are more informed, can easily access information, have more options, and have more control over purchase decisions. Furthermore, customers are more demanding and want to be recognized as individuals, expecting to receive personalized experiences. This has rendered traditional, one-size-fits-all marketing strategies obsolete.

How Businesses Can Use Data and Personalization for Targeted Campaigns and Growth

Using a data-driven approach, a business can create campaigns that deliver the right message to the right audience at the right time by doing the following:

1. Audience segmentation

Capturing the attention of a specific audience segment leads to higher conversion rates. To do this, a business can leverage data insights to segment the target audience. This means it is possible to categorize potential customers based on demographics, interests, or browsing behavior.

2. Crafting personalized content

Once segmentation is complete, it becomes possible to create tailored campaigns that resonate with each segment’s unique preferences. Aside from addressing customers by their names, it involves delivering content that speaks directly to their needs, interests, and pain points. This could include product recommendations based on past purchases or sending targeted offers that align with customer browsing history.

3. Omnichannel personalization

Customers interact with businesses using various channels, such as a business website, social media, emails, and mobile apps. A business can integrate data and personalization efforts to ensure a seamless journey for customers, regardless of where they engage. Additionally, it is crucial to deliver consistent and personalized experiences across these channels.

4. Continuous improvement in data-driven campaigns

Data insights also help guide businesses on the most suitable content and distribution strategies. They can analyze types of content performing well and in which channels. For example, a business can conduct A/B testing to compare campaign and content variations to identify the most effective approach for each segment.  

5. Measuring and analyzing results

To establish the effectiveness of personalized campaigns, a business will need to develop clear key performance indicators (KPIs) and measurement methods. One way to measure the impact of personalization is through customer engagement. This is done by measures such as click-through rates on personalized emails, customer retention rates, customer lifetime value, customer feedback, and number of sales.

It is worth noting that to make the most out of data insights. It is helpful to invest in advanced analytics tools or collaborate with data experts.

6. Adapting to changing trends

The digital landscape is evolving constantly, with new technologies and trends emerging regularly. Businesses must stay updated on these changes and adapt their personalization strategies accordingly. Remaining flexible and open to innovation ensures that the company’s targeting efforts are relevant and effective.

Data Privacy and Security

Although personalization in modern business is crucial, it must be balanced with privacy concerns. First, a business must be transparent about the data it collects and how it will be used. In addition, businesses need to be careful with the data they collect. They must ensure data security by safeguarding data storage and using safe transmission methods, have access control limits, and regularly audit data privacy policies and practices. Customers should be allowed to opt out of data collection and personalization efforts easily.

Customer data must be well protected to ensure compliance with relevant regulations. It also helps build trust with customers. Besides, a breach of trust can severely affect a business’s reputation and growth.

Sep 01
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Monitoring Trade Agreements with Taiwan, Promoting Plain-Language Rules, and Expanding Recruiting and Training for Law Enforcement

By Blog, Congress at Work

United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act (HR 4004) – This bipartisan bill was introduced on June 12 by Rep. Jason Smith (R-MO). The purpose of this bill is to convey approval by Congress of the June 1 trade agreement between the United States and Taiwan. The bill addresses customs administration and regulatory practice issues, as well as dictates conditions for negotiations of subsequent trade agreements. Among its provisions, the bill requires that the U.S. Trade Representative share all negotiating texts with Congress prior to being sent to Taiwan or any parties outside of the executive branch. The bill passed in the House on June 21 and in the Senate on July 18. It was signed into law by the President on Aug. 7.

Providing Accountability Through Transparency Act of 2023 (S 111) – This bill, which was signed into law on July 25, requires each agency to provide a 100-word plain language summary of each new proposed rule posted at regulations.gov. The legislation was introduced by Sen. James Lankford (R-OK) on Jan. 26; passed in the Senate on June 22; and in the House on July 17.

Securing the U.S. Organ Procurement and Transplantation Network Act (HR 2544) – This bipartisan bill was introduced by Rep. Larry Bucshon (R-IN) on April 10. It modifies operations of the Organ Procurement and Transplantation Network, which is managed by the Health Resources and Services Administration (HRSA). In the past, the network of professionals was managed by only one organization, but this new bill allows the HRSA to award multiple grants, contracts or cooperative agreements for network management. The legislation was passed in the House on July 25, in the Senate on July 27 and is currently awaiting signature by President Biden.

Strong Communities Act of 2023 (S 994) – Introduced by Sen. Gary Peters (D-MI) on March 28, this bill permits funding by the Community Oriented Policing Services (COPS) grant program to be used to train officers and recruits who agree to serve in law enforcement agencies in their local communities. The bipartisan bill passed in the Senate on July 26 and is currently under consideration in the House.

Recruit and Retain Act (S 546) – Introduced by Sen. Deb Fischer (R-NE) on Feb. 28, this bill expands the Community Oriented Policing Services (COPS) grant program to enable law enforcement agencies to use funding for recruitment activities such as career and job fairs, as well as lower application fees for things like background checks, testing and psychological evaluations. The Act passed in the Senate on July 26 and has been forwarded to the House.

 

 

Department of Veterans Affairs Office of Inspector General Training Act of 2023 (S 1096) – This Act would require new Veterans Affairs (VA) employees to undergo training on how to report misconduct, respond to requests from and cooperate with the Office of the Inspector General. The bill was introduced on March 30 by Sen. Margaret Hassan (D-NH) and was passed in the Senate on July 13. Its fate now rests in the House.

Aug 01
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2023 Sales Tax Holidays for Back-to-School Shopping

By Blog, Tax and Financial News

2023 Sales Tax Holidays for Back-to-School ShoppingNow that we are heading into the backend of summer, it’s time for many states to host their annual sales tax holidays for returning to-school shopping. Numerous states with sales tax (remember, not all states have a sales tax) provide the reprieve to help families with the cost of annual school supplies and clothing.

According to the National Retail Federation, nearly 80 percent of shoppers are expecting increased costs this year versus last year; so more than ever, consumers are looking for ways to save. Furthermore, about two-thirds of back-to-school shoppers take advantage of these tax-free shopping periods.

The vast majority of states offer some type of tax-free shopping for a limited time period, frequently taking place over a weekend. Below, we will look at each state that offers a sales tax holiday for back-to-school shoppers, along with their details. Note that several states, including Alabama, Mississippi, and Tennessee, have their programs in July – and those are excluded from this article due to the timing of publication.

State Programs

Arkansas: From Aug. 5-6, the following items are tax-free for shoppers: clothes and shoes under $100 per piece, fashion accessories $50 and less per piece, as well as electronics, art, and school supplies.

Connecticut: From Aug. 20-26, clothes and shoes priced at $100 or less per piece are tax-exempt. Fashion accessories and sports gear are fully taxable, though.

Iowa: Aug. 4-5, clothes and shoes priced at $100 or less per piece are exempt.

Maryland: From Aug. 13-19, clothes and shoes priced at $100 or less per piece are exempt.

Missouri’s back-to-school tax breaks come Aug. 4-6. Clothes that cost less than $100 per piece are exempt. Also tax exempt on a “per purchase basis” are school supplies under $50, software under $350, and PCs under $1,500.

New Jersey: From Aug. 26 to Sept. 4 all art supplies, instructional materials, school supplies, and sports equipment sold to individuals are sales tax exempt. In addition, computers priced at $3,000 or less are also tax-free.

New Mexico cuts its sales tax charges from Aug. 4-6. Included are clothes, shoes, and backpacks costing $100 or less per piece; school supplies costing $30 or less per piece; and computers costing less than $1,000.

Ohio’s back-to-school deals are during Aug. 4-6. Clothes costing $75 or less per piece; school supplies less than $20; and other instructional materials priced at $20 or less are all tax-free.

Oklahoma from August 4-6; only clothes and shoes costing $100 or less per piece are exempt.

Texas: During Aug. 11-13, clothing, footwear, school supplies, and backpacks priced below $100 per piece are exempt. The exemption applies to both brick-and-mortar sales and those made online or via catalog.

West Virginia: From Aug. 4-7, no sales tax is charged for clothing priced at $125 or less; laptops and tablets costing $500 or less; school supplies purchased for $50 or less; and also certain sports equipment costing $150 or less.

Expirations and Details

If you notice, most states have an exemption for clothes and footwear in a moderate price range. Some are more liberal with their exemptions, while others offer a tax break on a broader scope of items, such as electronics and supplies.

Keep in mind that a few states’ sales tax holidays are permanent, while others are temporary. Also, remember that certain states are very specific about what is exempt from sales tax, so visit your state’s tax revenue website for details. It’s also important to note that some states allow counties or towns to exempt themselves, so check for this provision as well.

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