College Grads Love New York, But Not for Long

College Grads Love New York, But Not for Long

The State University of New York (SUNY) system does an exceptional job attracting students and helping them get started in their careers. What’s concerning is how the story is changing after these graduates’ careers begin to take off.

The Washington Post reports Washington D.C., Colorado and New York have the most impressive brain gains in the nation. Not only do they retain most students graduating from their state university systems, but they also attract the most college graduates from out-of-state. What’s more, New York is ranked 4th in the nation for retaining students who have graduated from its public colleges and universities.

That’s impressive and shows New York’s investment in higher education is reaping a strong return, which is good for students, residents, businesses, and the state. Of course, New York has some key advantages working in its favor:

  • The SUNY system has great schools, with very strong reputations across numerous fields.
  • The state offers some strong incentives to attend a SUNY school, including Excelsior Scholarships which pay 100% of the cost of two- and four-year programs in exchange for an agreement that the student will work in New York after graduation.
  • Giving credence to the saying “It’s not what you know, it’s who you know,” New York college graduates acknowledge it’s helpful to have a local network – either at their school or where they grew up – to tap into when jumpstarting their careers.
  • Plus, there’s no denying, the state offers a wide range of job opportunities in a variety of fields.

However, the situation is starting to change as young professionals’ careers take off. CNBC reports, “A survey conducted by SmartAsset tracked the movement of so-called ‘rich young professionals,’ which it described as anyone under 35 earning an adjusted gross income of at least $100,000. It seems young professionals are most eager to leave New York. With a net outflow of 15,788, this state had the highest number of individuals leaving by a significant margin.”

Where are they going? According to SmartAsset, Texas, Florida, Washington, Colorado, New Jersey, North Carolina, Arizona and Connecticut top the list. (Interestingly enough, Texas and Florida have no state income tax.)

Bloomberg.com reports, “Hiring for early-career professionals in New York flatlined in the spring and has been declining ever since, falling roughly 30% in recent months even as the broader labor market remained robust, according to Kory Kantenga, a senior economist at LinkedIn.”

The combined effects of an above average cost of living; inflation’s impact on rent, food, utilities, transportation and more; and an increase in crime seems to be mitigating the positive progress New York has made attracting and retaining college students. Whether this is a short-term issue, or a long-term trend remains to be seen. We’ll keep you posted.

In the meantime, if you need any assistance with your accounting, tax, or audit needs, keeps us in mind. We’re RBT CPAs, a leading accounting firm in the Hudson Valley and beyond. We believe we succeed when we help you succeed. Interested in learning more? Give us a call.

How to Keep Your Medical Practice Safe from Telemedicine Fraud

How to Keep Your Medical Practice Safe from Telemedicine Fraud

Now that the Biden Administration has extended the Public Health Emergency (PHE) for another three months through January 11, Federal regulations put in place for the duration of the PHE continue, including those governing telemedicine. What’s more, certain telemedicine flexibilities will continue for five months after the PHE ends. While this may prompt a collective sigh of relief from all parties that benefit from the relaxed regulations, the need for heightened vigilance remains due to significant fraud.

As the COVID crisis escalated, so did the role of telemedicine. Patients weren’t the only ones who benefited. As reported on BenefitsPro.com, “Unscrupulous international and domestic telemarketing call centers, staffing companies, marketers, brokers and practitioners, among other individuals and entities, have recognized the potential to line their pockets, and many have done so—and continue to do so.”

In late July, the U.S. Department of Justice filed criminal charges against 36 defendants – including health care professionals, durable medical equipment (DME) companies, marketing organizations, a telemedicine company executive, and clinical laboratory owners and executives — for more than $1.2 billion in fraud, of which $1 billion related to telemedicine. At the same time, the U.S. Department of Health and Human Resources Office of the Inspector General (OIG) issued a fraud alert, encouraging medical practices and practitioners to proceed with caution.

Signs that there could be fraud involved include:

  • Patients – who are oftentimes the elderly or disabled – are solicited via the internet, TV, social media, telemarketing or sales agents, and via other channels for free or low-cost care, items or services they don’t need. For example, these patients are duped into going for cardiovascular genetic testing and prescribed products that aren’t used in their treatment.
  • The medical practitioner doesn’t have enough information or patient contact to assess medical necessity of items ordered or prescribed (i.e., prescriptions, DMEs, tests, or wound care supplies). He/she is compensated based on the number of medical records reviewed and/or volume of items or services ordered or prescribed, but is given no way to follow up with a patient or on treatment.
  • The telemedicine company only accepts Medicare, Medicaid and other federal insurance, but no private insurance; says they don’t serve Medicare/Medicaid covered individuals but then bill those programs; or only provides one product/class of products (i.e., DME), predetermining the course of treatment and limiting treatment options.

Going a step further, the OIG reviewed over 700,000 telemedicine billing records from the first year of the pandemic and identified seven red flags in billing that could indicate fraud.

The DOJ continues to prosecute providers for fraud and whistleblowers can reap significant rewards. Even senior citizens are being educated about telemedicine fraud and how to report it.

It’s evident that telemedicine is here to stay. While New York’s Governor Hochul ended the PHE in the state earlier this month, she also showed her support of telemedicine as a valuable health care delivery channel by introducing a $3 million grant program to “invest in new technologies that will improve access and adoption of telehealth in underserved communities.” The state also launched online training programs to help medical providers learn best practices for adopting telemedicine.

For more information,  please see the Special Fraud Alert: OIG Alerts Practitioners To Exercise Caution When Entering Into Arrangements With Purported Telemedicine Companies.

As you continue navigating the ever-changing healthcare landscape and regulations, RBT CPAs is here to help you navigate ever-changing accounting, audit, and tax requirements. We’re one of the largest CPA firms in the Hudson Valley, providing professional, ethical and quality services for over 55 years. We believe we succeed when we help our clients succeed. If you need a partner you can trust to handle your accounting, audit, and tax needs so you’re freed up to focus on other things like the healthcare landscape and changing regulations, give us a call.

Lease Accounting Standards Reminder

Lease Accounting Standards Reminder

Is your municipality stretched a little thin trying to meet GASB 87 requirements, much less GASB 96? Take heart – you’re likely not alone, but there is light at the end of the tunnel.

In a survey conducted at the end of May/beginning of June for Visual Lease Data Institute’s GASB readiness study, 44% of government survey participants indicated they weren’t completely prepared for GASB 87 and only 18% felt they had moved onto the maintenance phase. (Hopefully, a lot more are in the maintenance stage now.)

Beyond-stretched resources embarking on yet another learning curve for new lease policies, protocols, and technology seem to have little left in the tank to comply with GASB 96, which focuses on how government organizations account for Subscription-Based Information Technology Agreements (SBITAs) for fiscal years that start after June 15, 2022. In essence, you must do the same thing for software agreements as you did for leases. Hopefully, the second time around should be a bit easier.

If you’re finishing up your GASB 87 compliance efforts, here are resources that may help:

Changes Ahead for Governmental Lease Accounting by RBT CPAs

Lease Accounting Standard Changes FAQ by RBT CPAs

NYS Resources on GASB Standards

NYS: How to Implement GASB 87

NYS Annual Financial Reports Filing Deadlines

The Complete Guide to GASB Lease Accounting by Governing.com

RBT CPAs has partnered with Trullion – a lease management software company – to use modern technology to streamline the process for initial GASB 87 compliance and ongoing maintenance. If you are interested in learning more about how this may benefit your organization, give us a call. If you have any questions or need clarification, please don’t hesitate to reach out to your RBT CPAs contact.

Family Matters: Mind Your Business with Succession Planning

Family Matters: Mind Your Business with Succession Planning

Handing over the reins to a family business should be a source of pride, accomplishment, and peace of mind; unfortunately for many, it results in family strife, erodes wealth, and leads to business collapse. So, how do you protect your family and a business you – and maybe even a few generations before you – spent life building? A strategic, well-thought-out, and executed succession plan is key.

At its simplest, a succession plan is a way to set up the next generation for success by defining how to transition management and ownership of a business. In Deloitte’s Business Succession Planning collection, it’s noted that a succession plan can drive business growth, lower taxes, set the stage for retirement, and preserve family harmony. It is also anything but simple.

According to ScholarWorks, 90% of the global economy is represented by family businesses; unfortunately, 70% of those have a first-generation failure rate. The goal of a succession plan should be to understand, preserve, and grow the business’ value and pass it on.  Without a strong succession plan, families break up and go to court. Performance and reputation suffer, while disruption, conflicts, and uncertainties arise.

Enough said? Don’t rush to name your next CEO or get your estate planning underway just yet. While you may have the best of intentions, a succession plan involves a lot more than that. It could include a CEO job description, governance, and future strategic business plans while accounting for different skills and interests of new leaders, business context, and the changing marketplace and business environment.

A succession plan may define the process for planning; choices of entity structure, valuation, and financing; talent assessment, development, and compensation; estate planning including gift taxes, life insurance, and investments; and balancing business needs and family concerns to drive success. FamilyBusinessMagazine.com’s 9-step roadmap for succession planning suggests also addressing business transition, business strategy, risk assessment and contingency, and organizational business management planning.

An EY survey of large, longstanding family businesses around the world revealed that “they lay the groundwork for new leadership long before succession occurs” by defining who is responsible for succession; focusing on preparing the next generation; nurturing an entrepreneurial culture, and attracting top talent.

As reported in Harvard Business Review, “Just as a business must reinvent itself as markets shift, so must a business family reinvent (or at least thoughtfully revisit and refresh) its ownership and leadership model.” It suggests doing a few things in advance of making succession decisions:

  • Articulating family dynamics and how they’ve changed since the start of the business (or transition from the last generation).
  • Learn from other business families about how they managed the transition, who helped them, what worked and what didn’t, and any other advice they may have.
  • Respect tradition but don’t be trapped by it; be open to new ideas and leave behind outdated preconceptions.
  • Take time to let your plans evolve. Regularly review, update, and change directions when necessary.
  • Be transparent and maintain open communication with all interested parties so there’s a shared view of the future that family, employees, and communities can buy into.

Remember, succession planning is a long-term, ongoing process – not an event. A successful succession plan can fill a need brought on by a variety of planned (i.e., retirement) and unplanned (i.e., health issues or death) events. Finally, the best time to put a plan in place is before it’s actually needed.

For more information on taxes, estate planning, and accounting in general, contact RBT CPAs, which has been serving Hudson Valley businesses for over 55 years.

Has the Supply Chain Changed for Good?

Has the Supply Chain Changed for Good?

We’re over two-and-a-half years out from when COVID basically shut down the world, setting off global supply chain issues that have yet to return to normal. While price and supply are stabilizing for some construction materials, they’re increasing in volatility for others. This may be one time the pendulum will not swing both ways. Even though we have a grip on Covid (for the most part), several other factors that caused the supply chain to implode continue, and there’s no timeline for resolution.

The labor shortage (which is expected to worsen as U.S. infrastructure work gets underway); the war in Ukraine; China’s faltering economy; a huge increase in supply chain cybercrime; and regulations all have a role to play in the supply chain’s recovery. The outlook is literally changing month-to-month, with some estimating a return to normalcy by the end of 2023 or, maybe, 2024. This begs the question: by that time, won’t new approaches have taken root, forever changing how the supply chain works (or doesn’t work)?

Border States, a supply chain solutions company, reported in mid-September that while lead times are decreasing, they’re still “85% longer than pre-pandemic across all markets and products.” Similarly, port backlog is decreasing but it is not back to normal. For construction, categories that still require long lead times include distribution equipment (circuit breakers, load centers, panels, switches); EMT fittings (1/2”–4” compression and set screw connectors); wiring devices and wall plates; PVC and weatherproof boxes; fuses; meter sockets and hubs; ground rods, and automation products controls.

ConstructionDive.com reported in September: “The reduction in oil prices is slowly being reflected in materials like roofing products, but that remains an area of concern. Similarly, delivery costs are easing, but there is still a shortage of drivers…Our greatest challenges are anything that involves metal, wood or glass in construction.”

In October, FreightWaves.com reported that all major indices used to track supply chain performance show it’s improving, but still has a long way to go to get back to pre-pandemic levels. For example, “ship-position data and queuing lists showed 109 container vessels waiting off U.S. ports as of Sunday. That’s down from a high of over 150, but still far above the pre-COVID normal in the single digits.”

ForConstructionPros.com also reported in September, “Expect disruptions in the supply chain to improve but not fully return to normal in 2022. Lead times will come down for many products, especially those with fewer component parts and those manufactures in onshore or nearshore locations. However, expect labor shortages to persist in 2022, causing strains on manufacturing as well as the trucking and logistics sector. Also expect backlogs in ports and on cargo ships around the world as pent-up demand continues to outstrip the supply of containers, ships and port-space.”

In August, a Supply Chain Management Review article advises firms to “proactively address supply chain disruption; focus on building a diversified supply chain with enough slack to ride out uncertainty; build for continuity; invest in systems that enable smooth operations in periods of high labor turnover; and consider smart hedges. Make strategic decisions about where to hedge (e.g., pre-buying raw materials) and consider areas most susceptible to destabilization.”

Rather than risk an influx of projects and construction growth, some firms are opting for early-stage procurement over the Just in Time inventory strategy of the past. With early-stage procurement, all supplies and materials are purchased and stored at the start of a project, rather than in phases. This can impact everything from warehouse space and equipment to staffing, procurement, project timelines, budgets, insurance policies, and cash flow. As noted by Jason Earnhardt, Austin Commercial Supply Chain Manager, on Building Design + Construction, “We have essentially become our own in-house logistics company, all in the name of keeping our clients’ projects on track.”

While you’re working to keep client projects on track, please know you can count on RBT CPAs to keep your taxes, audits and accounting on track. We’ve served clients in and around the Hudson Valley for more than 50 years. We’re an Employer of Choice. And, we hold ourselves to the highest levels of professionalism and ethics. Give us a call today.

Consider Making Silent Alarms Part of Your School Safety Plan – It’s the Law

Consider Making Silent Alarms Part of Your School Safety Plan – It’s the Law

In June, Governor Kathy Hochul signed Alyssa’s Law, which requires schools in New York to consider the use of silent panic alarm systems as part of their school safety plan reviews/updates.

Named after 14-year-old Alyssa Lhadeff, who was killed in a mass shooting at Marjorie Stoneman Douglas High School in Parkland, Florida, the law advocates for systems that directly alert law enforcement of an active shooter situation requiring immediate response. That way, there’s no delay and the minutes saved could also save lives. Ultimately, it is designed to make New York schools safer.

New York schools join those in Florida, New Jersey, and Kansas, which have similar laws. While not a mandate, New York schools should consider the alarm’s usefulness and inclusion in building safety plans.

A panic/silent alarm system can cost a few thousand dollars and can be implemented via a smartphone app (there are also hard-wired and lanyard options). The system bypasses 911 and connects directly with law enforcement. In addition to an active shooter situation, it can be used for medical and fire emergencies, and also alert school staff in addition to first responders.

As reported on Lohud.com, the law “allows state reimbursement for districts that add the systems,” as well as related technology updates. A news report from the Finger Lakes region of New York indicates schools are working with their insurance carriers to learn about the silent alarm options available to them and the best prices. In Olean city schools, a silent alarm system was funded with a grant.

A month before Alyssa’s Law was signed, Hochul strengthened New York’s Red Flag Law. As reported via RochesterFirst, “On May 18, 2022, Governor Hochul signed an Executive Order to require State Police to file for an Extreme Risk Protection Order (ERPO) whenever they have probable cause to believe that an individual is a threat to themselves or others.” Training was on the radar for educators and mental health professionals.

So, if reviewing or updating your school safety plan is on the agenda in the weeks or months ahead, be sure to become acquainted with Alyssa’s law, the Red Flag Law, and training and other resources that may be available to you and your staff. To learn more, visit New York State Schools Against Violence in Education (SAVE) or the New York Center for School Safety.

As always, it’s always a good idea to check with your legal counsel to ensure compliance. While you’re focused on boosting your school’s safety, please know you can count on RBT CPAs to support your school’s/district’s accounting, audit, and tax needs. We’ve been serving businesses, municipalities, and school districts in the Hudson Valley and beyond for over 50 years and have gained a reputation for our professional and ethical practices and services. Give us a call to see what we can do for you today.

How Biden’s Student Loan Relief Impacts Employer Plans and Planning

How Biden’s Student Loan Relief Impacts Employer Plans and Planning

Some employers had found a competitive edge in recruiting and retention by offering student loan assistance benefits. Others were considering adding them to their rewards programs. Then, Biden’s student loan relief was passed, leaving employers to ponder their next move.

As reported on BenefitsPro.com in September, 4 of 10 employers are taking another look at what to do with student loan benefits following the release of Biden’s plans. “The administration is directing the U.S. Department of Education to cancel $10,000 in federal student loan debt for borrowers earning less than $125,000 annually. Pell Grant recipients will see up to $20,000 eliminated. According to the White House, this initiative will assist up to 43 million borrowers, including eliminating the full remaining balance for roughly 20 million people.”

In an International Foundation of Employee Benefits Plans survey, almost 9% of participating employers offer a company student loan benefit and 16% are considering offering one. 11% are going to take another look at their strategy; 60% don’t plan on making any changes; and 31% don’t know what they’re going to do. Of the employers that do offer a benefit, 28% reimburse the employee directly; 21% offer refinancing; and 3% provide a match in a defined contribution account. Participating employers indicate student loan benefits help with retention and recruitment; reduces employees’ financial stress; and drives employee engagement. On the other hand, some employers have faced pushback from employees who don’t benefit.

What do employees think? As reported on BenefitNews.com, a survey conducted by Betterment at Work found almost 60% of employees felt their employer should help them pay off debt. 74% indicated they’d leave their jobs for another company offering loan repayment benefits.  Perhaps the most potent finding: 86% would stay with an employer for at least five years if they offered repayment benefits.

Employers striving to regain their footing following the Great Resignation and Great Reshuffling may want to take note, especially since the impact of Biden’s plan is limited to those who incur Federal student loan debt by June 30, 2022 and who meet certain income requirements. Even after Biden’s plan pays out benefits, 23 million will still have student loan debt (not including new debt incurred after June 30.)

According to Forbes, more than 50% of today’s students leave college with debt, the average being $28,950. 92% of loans are federal, with the balance being private. Borrowers between 25 and 34 owe about $500 billion in federal student loans; between 35 and 49 owe $620 billion; between 50 and 61 owe about $282 billion; and 2.4 million aged 62 or older owe $98 billion in student loans.

The application for student loan forgiveness under the Biden plan is scheduled to open this month. Eight million people are expected to receive automatic forgiveness; the balance need to apply, but there are some issues being worked through. Just last week, eligibility was scaled back due to legal challenges. In addition, some borrowers want to opt out of the loan forgiveness to avoid state taxes that they would not be subject to otherwise. The number of cases on the docket challenging the law is rising.

While details surrounding Biden’s plan are being settled, the clock is ticking on another benefit offered under the Coronavirus Aid, Relief and Economic Security (CARES) Act to employers. As reported by The College Investor,  “Section 2206 of the CARES Act allows a portion of employer provided student loan assistance to be excluded from income. Whether those payments are made directly to the employee or the lender, they will be tax-free. The income exclusion is up to $5,250 per year per employee.” As of now, this tax advantage is available through December 31, 2025.

For updates on Federal Student Loan Forgiveness, sign up on the U.S. Department of Education subscription webpage.

While we’re not benefit experts or lawyers, at RBT CPAs, we do know taxes, audits and accounting. If you have any questions about how the CARES Act income inclusion may impact your company, give us a call. We’ve been supporting businesses and municipalities in and around the Hudson Valley for over 50 years.

Save Your Energy – Taxpayers Will Thank You

Save Your Energy – Taxpayers Will Thank You

With all the financial uncertainties that exist today, no doubt your constituents would be pleased to know your municipality is doing its part to bring down costs and operate responsibly by conducting an energy audit.

As an added benefit, your actions can serve as an example and help others in your community save, while living greener and cleaner.

Energy Star, EPA sets the standard for energy audits.

According to its website, it “has helped dozens of state and local governments design and implement voluntary policies and programs focused on commercial and multifamily buildings to save energy, reduce greenhouse gas emissions, and stimulate local economic growth. And for the dozens of governments that have chosen to pass laws requiring the use of Portfolio Manager and ENERGY STAR metrics, EPA has provided expert advice on the most appropriate use of the program’s tools and resources.”

Its online benchmarking tool helps you create a comprehensive energy management program by identifying buildings to target for improvements; learning best practices; prioritizing investments; verifying savings; reporting performance; and more. It can also help you measure and track water use, waste and materials, and greenhouse gas emissions. As an added benefit, making improvements can help maintain the integrity of municipal buildings and decrease the need for more costly updates in the future. (Here’s an overview of how the program benefits local and state governments and policymakers.)

While you’re at it, check out the resources available through the Hudson Valley Regional Council, mid-Hudson’s representative for the NYSERDA Clean Energy Communities Institute (CECI).

While reducing energy costs, CECI actions can help move your municipality forward in supporting and driving clean energy goals. “NYSERDA developed a list of high-impact actions that local governments can take to save energy, cut costs, and earn designation.” Earn points for grant funding with a variety of programs:

  • Make it easier and faster to install solar in your community. View Toolkit
  • Improve energy code compliance for new and renovated buildings. View Toolkit
  • Establish a Property Assessed Clean Energy (PACE) Financing program. View Toolkit
  • Save energy and money by replacing old equipment with new smart and efficient technology. View Toolkit
  • Convert a municipal facility to all electric with ground- or air-source heat pumps. View Toolkit
  • Purchase renewable energy for municipal electricity needs. View Toolkit
  • Reduce greenhouse gas emissions. View Toolkit
  • Reduce streetlight energy use by up to 65% with energy-efficient LED lighting. View Toolkit
  • Need new vehicles? Go electric. View Toolkit
  • Adopt a policy that requires annual reporting of energy used in buildings. Set up a system for measuring and sharing energy use data to help identify opportunities to cut energy waste and associated costs. View Toolkit
  • Engage your community with a campaign promoting solar, clean heating, and cooling and energy efficiency. Action grants are eligible up to $60K. View Toolkit
  • County-hosted training on how to manage clean energy development in your community. View Toolkit
  • Choose your community’s energy supply, negotiate lower rates, and support the use of renewable resources. View Toolkit

For detailed information on each of these actions, including requirements and recommendations, or to determine which actions are right for you, read the Guidance Document [PDF] or contact your Clean Energy Community Coordinator.

While you’re focusing on how to help your municipality and ultimately taxpayers save money on energy, you can count on RBT CPAs to get the numbers right. We’re a leading accounting, tax and audit firm in the Hudson Valley and beyond, that believes we succeed when we help you succeed. Give us a call today.

Business Continuity: What’s in Your Plan?

Business Continuity: What’s in Your Plan?

The world is changing faster than ever. Is your business continuity plan keeping pace?

Between the COVID pandemic and ensuing shutdowns, supply chain debacles, the labor shortage, gas price hikes, increased cyber threats, the war in Ukraine, catastrophic weather events, and now, uncertainties surrounding the economic environment, the last three years have proven time and time again that continuity planning should be a regular, ongoing part of running a business.

A business continuity plan proactively anticipates internal (i.e., you suddenly become incapacitated) and external (i.e., a global pandemic) events that can disrupt your business and defines how you’ll prevent, mitigate, respond, and recover. At the end of the day, a plan can help you maintain operations, minimize impact on your business and others that depend on you for their business; protect staff, finances and brand; and return to normal as quickly as possible.

Take a ransomware attack as an example, since it can shut down operations an average of 20 days. Your plan would detail what you’re doing to prevent an attack; how to minimize the impact should an attack occur; how to keep operations going despite an attack; and what you would need to do to get business operations back to normal ASAP.

Developing the plan should be a team effort among key people in your organization. That way, everyone knows the protocols to follow and can react with speed and clarity should the need arise.

According to InvenioIT – an industry leader in business continuity, data protection and IT security, your plan should identify objectives and include important contact information; risk assessments; business impact; prevention; response plan; systems planning; backup locations and assets; communication plan; testing protocols; and gaps and recommended fixes. (Refer to InvenioIT for details.)

As noted by Everbridge.com – a critical event management platform company, manufacturers should make sure their plan includes backup vendors, machinery and facilities; alternative workflows, routes, and scheduling; response to IT outages and disruptions; and how you’ll communicate with key stakeholders.

The U.S. Department of Homeland Security along with FEMA developed a free, downloadable business continuity planning suite. It includes training resources, a plan template, and test scenarios.

Perhaps one of the most challenging parts of continuity planning is figuring out how to prioritize what your plan should focus on first.

RiskMethods.net provides some ideas to help get the ball rolling: “In manufacturing, consider events that can cause significant unplanned downtime in operations like severe weather; hazardous materials issues; supply chain disruptions; and equipment failure. If you’re a manufacturing company, any business processes that make you unable to continue producing an important share of your product portfolio should be labeled as critical business processes.”

ContinuityCentral.com’s article, “Myth Busters: A Business Continuity Statistical Mystery Solved?” (Geary Sikich, Feb. 19, 2020) includes a list of questions that can help you prioritize – here are my favorites:

  • “What are the three to five scenarios that could put our company out of business?
  • Do we have a set of early warning indicators for emerging threats to the business?
  • Are we developing accurate assessments of the issues facing our organization (direct, indirect)?
  • What opportunities have we missed over the past three years due to inaction rather than lack of knowledge?”

You may also want to check out Accenture’s research report on operating through volatility, which includes a five-pillar framework for understanding immediate and potential future risks:

  • “The people that power the organization
  • The overarching strategy of the organization and how it differentiates the company
  • The systems that underpin operations, both internally and with customers
  • The supply chain and operational network that allow the company to fulfill customer needs.
  • The partner and customer ecosystem and its alignment to business goals.”

Since so many factors impacting business can change on a dime, be sure to review and update your continuity plan at least every six months.

While you’re focused on protecting your business, let RBT CPAs focus on protecting you by providing professional, ethical and top-notch accounting, auditing and tax services. We’ve been serving businesses in the Hudson Valley and beyond for over 50 years and believe we succeed when we help you succeed. To learn more about what RBT CPAs can do for you, give us a call today.

Is Your Business Continuity Plan Keeping Pace?

Is Your Business Continuity Plan Keeping Pace?

The world is changing faster than ever. Is your business continuity plan keeping pace?

Between the COVID pandemic and ensuing shutdowns, supply chain debacles, labor shortage, gas price hikes, increased cyber threats, the war in Ukraine, catastrophic weather events, and now, uncertainties surrounding the economic environment, the last three years have proven time and time again that continuity planning should be a regular, ongoing part of running a business.

A business continuity plan proactively anticipates internal (i.e., you suddenly become incapacitated) and external (i.e., a global pandemic) events that can disrupt your business and defines how you’ll prevent, mitigate, respond, and recover. At the end of the day, a plan can help you maintain operations, minimize the impact on your business; protect staff, finances, and brand; and return to normal as quickly as possible.

Take a ransomware attack as an example, since it can shut down operations for an average of 20 days. Your plan would detail what you’re doing to prevent an attack; how to minimize the impact should an attack occur; how to keep operations going despite an attack; and what you would need to do to get business operations back to normal ASAP.

Developing the plan should be a team effort among key people in your organization. That way, everyone knows the protocols to follow and can react with speed and clarity should the need arise.

According to InvenioIT – an industry leader in business continuity, data protection, and IT security, your plan should identify objectives and include important contact information; risk assessments; business impact; prevention; response plan; systems planning; backup locations, and assets; communication plan; testing protocols; and gaps and recommended fixes. (Refer to InvenioIT for details.)

The U.S. Department of Homeland Security along with FEMA developed a free, downloadable business continuity planning suite. It includes training resources, a plan template, and test scenarios.

Perhaps one of the most challenging parts of continuity planning is figuring out how to prioritize what your plan should focus on first.

ContinuityCentral.com’s article, “Myth Busters: A Business Continuity Statistical Mystery Solved?” (Geary Sikich, Feb. 19, 2020) includes a list of questions that can help you prioritize – here are my favorites:

  • “What are the three to five scenarios that could put our company out of business?
  • Do we have a set of early warning indicators for emerging threats to the business?
  • Are we developing accurate assessments of the issues facing our organization (direct, indirect)?
  • What opportunities have we missed over the past three years due to inaction rather than lack of knowledge?”

You may also want to check out Accenture’s research report on operating through volatility, which includes a five-pillar framework for understanding immediate and potential future risks:

  • “The people that power the organization
  • The overarching strategy of the organization and how it differentiates the company
  • The systems that underpin operations, both internally and with customers
  • The supply chain and operational network that allows the company to fulfill customer needs.
  • The partner and customer ecosystem and its alignment to business goals.”

Since so many factors impacting business can change on a dime, be sure to review and update your continuity plan at least every six months.

While you’re focused on protecting your business, let RBT CPAs focus on protecting you by providing professional, ethical and top-notch accounting, auditing and tax services. We’ve been serving businesses in the Hudson Valley and beyond for over 50 years and believe we succeed when we help you succeed. To learn more about what RBT CPAs can do for you, give us a call today.