Month: July 2023

Why Your Business Needs to Focus on ESG Planning Right Now

Later this year, new rules are expected to be issued, standardizing what and how large public companies report on ESG (environment, social and governance).

Even if your business is not subject to these rules, it will likely feel the impact, so it’s a good idea to get acquainted with ESG and start preparing (or updating) your own ESG plans now.

As previously reported by RBT CPAs, “This October, the Security and Exchange Commission (SEC) is expected to issue rules to standardize how companies assess, measure, manage and disclose ESG related risks, including emissions resulting from assets not owned or controlled by a reporting organization. So, even if you aren’t subject to SEC rules, someone may be asking for your ESG measures for their own reporting purposes.

Investors want information about it. Clients are looking for it. Lenders and credit rating agencies may consider it and it’s becoming a growing part of insurance and regulatory conversations. Communities judge by it, as do employees and recruits. It can impact business valuations and capital raising, and increase interest from larger organizations looking to grow through mergers and acquisitions.”

Let’s look at what this means specifically for manufacturers. A recent Forbes.com article, entitled ESG Principles: Why Manufacturers Must Embrace Sustainability (Henrichsen, Jorge Gonzalez. July 11, 2023), defines ESG for manufacturing this way: “Environmental principles refer to a company’s environmental impact, including its carbon footprint, waste management and energy consumption. Social principles refer to a company’s impact on society, including employee welfare, diversity and inclusion, and community engagement. Governance principles refer to a company’s internal policies and procedures, including transparency, accountability, and risk management.”

It goes onto say, “Pressure continues to mount on manufacturers to meet these sustainability standards, a chorus joined by governments, boards, investors and consumers.”

At the same time, though, one of the biggest motivators for getting on the ESG bandwagon is very simply that it’s good for business. It can help your business operate more efficiently, identifying new ways to get work done and reducing waste. It can help you attract and retain talent – employees feel good about working for a company that genuinely cares about them and the planet. And, it can even help you compete and lead you to new business opportunities, as buyers look to source locally (and reduce fossil fuel use for transportation, for example) and look for businesses that can contribute to their ESG goals (by using more sustainable packaging, as an example).

Another Forbes.com article — Behind All The ESG Virtue Signaling, There’s A Real Opportunity For Manufacturers (Karp, Ethan. March 31, 2023) – discusses three ways small manufacturers can jumpstart their ESG plans:

Adopt industry 4.0 technology. “Sensors help factories increase machine efficiency on the production line and reduce fuel consumption. Automation can increase profits and employee safety. If manufacturers look for opportunities to use technology to simultaneously improve the bottom line and advance ESG, it will make significant Industry 4.0 investments even easier to justify.”
Innovate using ESG. Numerous start-up manufacturers are building their businesses around an ESG value proposition, both in terms of what they make and how they make it. As a result, they’re working smarter and tapping into the growing percentage of consumers willing to pay a premium for products that reflect ESG values.
Focus on your supply chain. From increasing dependability and reducing the risk of ESG violations (i.e., using child labor) to promoting competitiveness and managing operating expenses, reinventing a supply chain to align with ESG values can offer numerous advantages.

We’ll provide more information when the new SEC rules and standards are issued this Fall. In the meantime, if you need time to focus on ESG plans and other work, remember, you can count on RBT CPAs to handle your accounting, tax, audit, and business advisory needs. We believe we succeed when we help our clients succeed. To learn more, give us a call today.

RBT CPAs does not outsource work to any other country. All of our work is prepared in the U.S.A.

Protecting Profits from Increasing Labor Costs

It’s a catch 22. You need to expand your staff to increase income, but additional labor costs have the potential to cut into profits and cash flow.

There is an option: complement your recruiting plan with a proactive business plan to manage the impact of potential labor cost increases.

Let’s start with what you need to consider when developing your recruiting plan. We’re all familiar with the data. There are more veterinary jobs than candidates and according to the 2023 AVMA State of the Profession report new graduates are experiencing the highest rates of job offers ever.

Competitive pay and meaningful benefits are table stakes for Millennials and Gen Zers. In fact, pay and benefits are the number one reason Gen Zers left a job in 2022, and many indicate they won’t apply to a company that doesn’t include pay information right in a job posting.

While a number of factors impact pay, according to the American Veterinary Medical Association (AVMA), veterinarians who graduated in 2022 received an average salary of $111,242 ($124,686 at corporate practices and $105,637 at private practices). In addition, 81% of corporate practices offered a sign on bonus (averaging $27,181) while 42% of private practices offered one (averaging $10,678).

As for benefits, medical and 401(k) plans top the list, but they are only the start. Considering the amount of student loan debt many new vets carry, student loan repayment and financial advisory services are also of interest. (The AVMA reports, “Among new veterinarians, 38% had $200,000 or more in debt from earning their veterinary degree, inclusive of 13% who had $300,000 or more in debt. Another 18% had no such debt, while 10% had debt of less than $100,000, and 34% had debt of $100,000 to less than $200,000.”)

In general, new generations of workers put more value on working to live rather than the other way around. So, work-life balance via time-off benefits and flexible schedules are priorities. According to the American Animal Hospital Association (AAHA), paid time off is one of the biggest negotiation points of recruits resulting in demands for weekends off, four-day/ 32-hour work weeks, and three to four weeks of time off.

As for the actual job, new workers want stability and are looking for an employer that offers learning and development (especially mentoring), a career path, and a sense of purpose/opportunity to make a difference. In fact, Peoplekeep.com reported, “A Linkedin Learning report found that 94% of employees say they would stay at a company longer if their employer invested in their personal and professional development.”

Beyond the work, new employees are looking for fit and how a potential employer treats employees. Many are defining their own professional brand and values and using that criteria to see how a potential workplace aligns. (Remember, these digital natives grew up with social media and smart phones and will no doubt go online to check out your reputation as an employer and a place to work.)

With these factors top of mind, how can you design an employment offer that enables you to compete for talent without putting profits and cash flow at risk? Consider your options and potential financial impact before ever making an offer. For example, can you negotiate lower pay for more time off or flexibility? How can you work differently to fulfill a new hire’s mentoring, learning and development needs? Do you really need that non-compete agreement or can it be a negotiation point?

Once you’ve developed an offer, calculate its potential impact on profits and consider whether operational changes can help offset cost increases.

Financial management: Do you regularly track and update your budget, expenses, and revenue? Are there ways to reduce expenses (i.e., group purchasing for supplies)?
Fee structure: Is it competitive? Do you review it regularly?
Operational efficiencies: Have you used process mapping to identify potential process efficiencies (i.e., scheduling, billing, inventory management, etc.)?
Billing and collections: Review procedures to promote accuracy and timeliness; promptly follow-up on outstanding payments; and institute a process for overdue account collections. Consider whether payment plans or an online payment channel can help.
Inventory management: Track inventory levels and reordering; review usage patterns; and negotiate with suppliers.
Expand/diversify revenue streams: Consider offering additional services (i.e., telehealth or pet grooming/boarding).
Tax strategy: Consider conducting a cost segregation study to determine the impact of increasing depreciation of facility components on new construction.

If you need support to create a winning employment deal or more insights into business changes that can help pay for higher salaries, more benefits and other new hire demands, RBT CPAs and our affiliates are here to help. Give us a call to find out how we can help you with financial planning, cash flow management, accounting, taxes, audits, pricing, recruiting, retention, and more.

RBT CPAs is proud to say all of our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your operation’s financial and confidential information is handled by full-time, local staff who have met our high standards for quality, ethics, and professionalism.

ESG: It’s Not Just for Big Construction Companies Anymore

As you make summer plans for your business, consider adding ESG assessment, measurement, and management as a priority.

ESG stands for environmental, social and governance – three areas growing in importance to investors, project owners, lenders, customers, suppliers, regulators, employees, insurers, and communities. This October, the Security and Exchange Commission (SEC) is expected to issue rules to standardize how companies assess, measure, manage and disclose ESG related risks, including emissions resulting from assets not owned or controlled by a reporting organization. So, even if you aren’t subject to SEC rules, someone may be asking for your ESG measures for their own reporting purposes. Now is the time to prepare.

Construction is recognized as a key industry for driving ESG progress globally, especially since it uses over 30% of the world’s natural resources, and is responsible for 30% to 40% of greenhouse gas emissions, and 40% of energy use. (Linstroth, Tommy. Growing Demand for ESG Reporting in Construction. November 4, 2022. Forconstructionpros.com.)

Some say it’s about risk management, while others assert the focus is environmental and resiliency. There are those that say it’s about current and future performance and sustainability. It’s broad, measured and defined in multiple ways encompassing hundreds of data points. According to an issue of Mckinsey Quarterly published in August of 2022, more than 90% of S&P companies publish some form of ESG report, as do 70% of Russell 1000 companies. Progress is being reported using different frameworks like the Stakeholder Capitalism Metrics, the United Nation’s Sustainable Development Goals, MSCI ESG Focus Indexes Methodology, SASB Standards, and more.

Perhaps the best explanation we came across was on Groundbreakcarolinas.com, which reported: “Many project owners and financiers are now requiring construction companies to report on ESG measures because activities completed by contractors are considered part of the owner’s value chain and must therefore be incorporated into their own ESG reporting. In addition, ESG aspects of projects are increasingly becoming part of the project financing evaluation process. While ESG reporting is growing in significance, contractors are still learning how to track, measure and report ESG metrics across their organization.” (Gallagher, Brian and Palys, Michelle. What Construction Firms Need to Know About ESG. January 23, 2023. Groundbreakcarolinas.com.)

Overall, it promotes environmental sustainability, social responsibility, and good governance which can enhance reputation, mitigate risks, ensure regulatory compliance, and create value for all stakeholders. To learn more, check out:

com’s ESG in the Construction Industry (Adoor, Craig and Ryan, Lynn. February 15, 2023.)
An ESG framework for North American Building by Green Builder Media.
Contractor’s Commitment. (Melton, Paula. “Contractors Pledge Greener Construction in New Commitment.” com.)

If you need time to focus on ESG plans and other work, remember, you can count on RBT CPAs to handle your accounting, tax, audit, and business advisory needs. We believe we succeed when we help our clients succeed. To learn more, give us a call today.

RBT CPAs does not outsource work to any other country. All of our work is prepared in the U.S.A.

Fortifying Construction Sites: Tips for Preventing Equipment Theft

The National Equipment Register (NER) places the annual cost of losses due to equipment theft at up to $300 million for residential construction sites and $1 billion for commercial sites, with a $30,000 average price tag per theft. Beyond the actual cost, equipment theft can significantly add to the challenge of completing a project on time and in budget; hurt your reputation; drive up insurance; tie up cash and credit renting or buying replacements; and cause you to miss out on future business opportunities. While there are no guarantees, having a comprehensive anti-theft plan can turn the odds in your favor.

According to TheRepublic.com, “The people who do the stealing range from individuals committing small-time, spur-of-the-moment thefts to organized crews who go from state to state, hitting construction sites and then blowing town.” Top heavy equipment thefts according to Tenna.com include skid steers; wheeled and tracked loaders; towables; backhoes; tractors; wheel loaders; utility vehicles; UTVs; excavators; forklifts; bulldozers; rollers; generators; welders; and compressors.

Especially if the work site is in a remote location or the job timeframe includes extended periods of inactivity (i.e., a long holiday weekend), a comprehensive strategy can help reduce the chance of equipment theft. Here are some tips to consider:

Create a job site security plan and assign security-related responsibilities. Have your team spend time at the start of a project identifying and addressing potential security weaknesses.
Prequalify contractors before hiring them. According to LevelSet, most theft happens internally and subcontractors can easily identify your weak spots.
Have a system to ensure only approved personnel enter the work site (i.e., photo ID badges).
“Mark your equipment with an identification system, such as a driver’s license number (state initials, number, followed by DL). This is the only traceable number in all 50 states. Put numbers in two spots: one that’s obvious and one that’s hidden.” (Source: Great American Insurance Group.)
Take inventory. For all equipment and tools that will be used at a site, create an inventory including a photo, name, description, serial number/VIN, date of purchase, worksite, and who is approved to use it.
Invest in equipment-related technology. GPS asset tracking hardware, operating systems, video telematics (with forward and rear-looking dash cams), and geolocation technology as a standard feature on new equipment (OEMs are increasingly offering it) can help you see where equipment is, get alerts when it turns on or moves, and more.
Register heavy equipment with the National Equipment Register (NER), an organization that manages a database with detailed information about equipment ownership and potential matches with theft reports to help facilitate information sharing with insurers, equipment owners, and law enforcement.
For smaller equipment, create a storage area. Assign and label a space for each piece so you can quickly and easily see when something is missing.
Disable or make large equipment difficult to remove from a site. ConExpoConAgg suggests removing fuses and circuit breakers; and installing fuel shut-off equipment, wheel locks, battery switches, ignition locks and other deactivation devices. Also park equipment in a wagon-train circle and place easier to move pieces like generators in the middle.
Create a check-in/check-out procedure. Have workers sign out equipment as they use it and sign it back in when finished.
Set a policy to report any theft or vandalism to management immediately, so there’s a greater chance of recovery (which is said to happen only 25% of the time).
Adopt additional security measures. Security cameras, fencing and access control systems, lighting and security guards help deter theft and can provide proof should a theft occur. Engaging local law enforcement and crime stopper groups to report anything suspicious outside of normal hours of operation can also help.
Create an end of day security checklist. Is all equipment properly locked away/secured? Are lights, motion sensors, and security equipment turned on and working? Is the perimeter fence solid and secured? Have all entryway locks been closed and double-checked?
Train employees and contractors on your equipment management plan and security protocols.

While developing a plan to keep an eye on your worksite equipment and machinery, you can count on RBT CPAs to keep an eye on your accounting, tax, audit, and business advisory needs. Interested in learning more? Give us a call.

Lunch Money: What’s the Latest on Free Meals in New York Schools?

In May, when the New York State Education Department Office of Child Nutrition hosted a webinar reviewing how schools and districts could take advantage of a 2023-2024 Executive Budget enhancement to help the state move closer to realizing universal free meals at all K-12 public and charter schools, there were three open questions:

Will the USDA approve the state’s request for an extension to file CEP applications? The answer is yes! The deadline is now August 31 as noted on the top of the NYS Education Department Office of Child Nutrition’s webpage. If your district/school(s) has/have not applied yet, your School Food Authority (SFA) can determine if a school, group of schools or entire district are eligible using this list . If eligible, apply as soon as possible so the application can be processed before the start of the school year and there is time to fulfill the requirement to notify families about participation (templates will be provided with the approval email you receive). If you need assistance determining eligibility, contact your Child Nutrition Program Representative at 518-473-8781 or by email.
- REMEMBER: Receiving an approval on an application means a district/school(s) will be able to take advantage of the Community Eligibility Provision State Subsidy (Section 925), as amended by the 2023-2024 NYS Executive Budget. Starting with the upcoming school year, the state will increase reimbursements for CEP meals so they are free. This additional funding is only available to subsidize federal rate of reimbursement through CEP. It is not available to buildings where all meals are already fully reimbursed through CEP or for meals at buildings that do not participate in CEP.
Do we know reimbursement rates for the 2023-2024 National School Lunch Program and School Breakfast program? Yes, on July 7^th the rates were published and take effect from July 1, 2023 through June 30, 2024. According to the School Nutrition Association (SNA), the base reimbursement rate for each lunch and breakfast increased 8.27%. At the same time, though, Keep Kids Fed Act (KKFA) funding expired, resulting in 37 cents less per paid category school lunch and 8 cents less for free and reduced price lunch. The SNA is encouraging school administrators to urge legislators to extend KKFA funding via the SNA’s Action Network.
Are there any updates on the U.S. Department of Agriculture’s Food and Nutrition Service’s proposed rule to lower the minimum identified student percent (ISP) participating in the Community Eligibility Provision (CEP) from 40% to 25%? Nope, no news yet and while many are hoping a final rule and guidance will be issued before the start of the 2023-2024 school year, there are no guarantees. If approved, more schools will have the option to elect CEP and, when financially viable, offer all students school meals at no cost. As of now, it remains a proposal with no timeline. If approved, and a final rule and guidance published, the state will communicate with School Food Authorities (SFAs).

This story is to be continued. In the meantime, according to NYCFoodpolicy.org, some New York municipalities, like New York City, Albany, Rochester and Yonkers already offer universal free school meals. Some states – like California, Colorado, Maine, Minnesota, New Mexico and Vermont– have made universal free meals for K-12 public school and charter school students permanent. And more than half of the remaining states currently without universal school meals are in various stages of moving the proposition forward in the coming year. So, stay tuned.

While you and your team are moving ahead with CEP applications and/or awaiting word on what’s next, you can count on RBT CPAs to free you up by focusing on your accounting, tax, audit, and advisory needs. Give us a call and speak with our professionals to learn what we can do for you.

RBT CPAs is proud to say all of our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your school district’s financial and confidential information is handled by full-time, local staff who have met our high standards for quality, ethics, and professionalism.

NOTE! While every effort has been made to ensure the integrity of the information contained herein, the situation is fluid. It is always a good idea to consult legal counsel before making any changes.

Section 174 – Let’s Get You Up to Date

Elected officials, the Association of International Certified Professional Accountants (AICPA), business leaders, and others were holding their collective breath waiting to see if debt ceiling negotiations would result in the repeal or alleviation of Internal Revenue Code (IRC) Section 174 changes, but no such luck. So, IRC Section 174 – which changes how businesses expense research and experimentation (R&E) costs effective plan years January 1, 2022 and later – is the law.

Per a provision of the 2017 Tax Cuts and Jobs Act (TCJA), Section 174 R&E expense changes became effective January 1, 2022 going forward. The hope was – and continues to be – that the pre-2022 expense provision gets restored, but that hasn’t happened. The AICPA has requested additional guidance, but that hasn’t been provided. So, the law stands, and it means there are changes to how businesses must account for R&E expenses.

Before the change, you could immediately deduct the full cost of R&E expenses from taxable income. As of tax years starting January 1, 2022 and going forward, under Section 174, all R&E expenditures will be capitalized and amortized for five years if conducted in the U.S.; 15 years if conducted outside the U.S. What’s more, they now include R&E for software development. This means, your tax liability will likely change and possibly increase significantly.

Costs subject to capitalization include wages and nontaxable benefits for researchers; 100% of contract research costs; supervisor wages for researchers; supply costs; overhead expenses (i.e., rent and utilities); equipment depreciation; pilot model costs; and software development expenditures.

One of the biggest challenges businesses face is finding all of the R&E costs that fall under Section 174. Since other IRC codes (i.e., Section 41) come into play, identifying R&E expenses should be a priority.

According to Thomson Reuters, to qualify, activities have to meet the IRS four-part test for business purpose; technological in nature; elimination of uncertainty; and process of experimentation. (Britton, Nadya. “5 things you need to know now about Sec. 174 capitalization.” May 25, 2023. Thomsonreuters.com.)

Businesses will also need to follow accounting method change procedures (File Form 3115), except for the first year when a business can include a white paper statement that contains defined elements with its tax return. Plus, businesses should check whether their state conforms to IRC 174 (which is the case in New York).

Those are the highlights. For additional information, the RSMUS Alliance – of which RBT CPAs is a member – has comprehensive Q&As and a resource center available. If you have any questions about this or business accounting, tax, audit or advisory services, please remember RBT CPAs is here to help you succeed — give us a call. Also keep an eye out for more updates from RBT CPAs on Section 174 in the weeks ahead.

RBT CPAs is proud to say all of its work is prepared in the U.S.A. We never outsource outside the U.S.A.

New York’s Economy: An Update on the Ups and Downs

Tax revenues are slowing. Spending is up.

Talk of an economic downturn continues, with a lot of speculation about when, how intense, and how long. What does all of this mean? Let’s take a look.

Starting with the NY State Budget

In May, New York State Comptroller Thomas DiNapoli released an Enacted Budget Report for FY 2023-2024. Spending is increasing by 3%. Much of the increase represents recurring expenses (i.e., full funding of school Foundation Aid, mental health service investments, and increased funding for health care and human services workers). There’s also temporary budget increases for emergency rental assistance and the MTA.

While the state’s reserve funds of $6.26 billion will help, there could be challenges ahead due to the new recurring costs occurring at the same time Federal Covid aid ends and a possible economic downturn. To address a budget gap, tax increases and/or spending cuts may need to be on the agenda for future budget discussions.

Turning to Tax Revenues

For state fiscal year (SFY) 2022-2023, New York’s tax revenue was $2.9 billion more than expected, but $9.5 billion or 7.8% less than the prior year largely due to a decrease in personal income tax revenue. For SFY 2023-2024, revenues are projected to decrease for the second year in a row by 3.9%, as temporary federal aid is depleted and tax collections decline.

While personal income tax revenues are down, sales revenues are up but slowing. In the first quarter of 2023, sales revenues increased 7.1% over the same period in 2022, but slowed as the quarter progressed (from 9.2% in January to .03% in March).

By May, state sales tax collections increased 1.1% over the prior year, making it the third consecutive month where growth was lower than 2%, which can make it tougher to maintain fiscal balance, especially since much of the increase was from NYC collections (in fact, 47 out of 57 counties experienced a decline). Click here to see Monthly Local Sales Tax Collections by County and Region.

Unemployment

New York’s unemployment rate dropped from 4.1% to 3.9% from May of 2022 through May of 2023, with a steady decrease from March through May of 2023. The state’s labor force grew from 9,633,295 in May of 2022 to 9,703,853 in May of 2023, which includes steady growth continuing March through May of 2023. This positive momentum echoes what is happening nationally. According to CNN.com, “Morgan Stanley seems to agree, telling clients that the May jobs report ‘continues to point to a soft landing for the economy,’ a Fed term for raising rates without triggering a recession.”

Inflation

As reported by CNBC.com, “Inflation slowed in May to the lowest rate in two years (4%), largely due to declining energy (i.e., gas and electricity) prices, the U.S. Bureau of Labor Statistics said. Still, household budget items are up and there may be more inflationary pressure with more infrastructure projects getting underway.

Interest Rates

According to TheAscent.com, between May of 2022 and May of 2023, Federal Reserve interest rates increased from .75% – 1% to 5% – 5.25%. In other words, it’s more expensive to borrow money. The hope is periodic increases will help cool down inflation rather than lead us into a recession.

Recession?

On June 8, RSM reported, “We estimate a 75% probability of an economic downturn over the next 12 months. While that is significant, it also implies a 25% chance of a soft landing for the economy.”

Credit Rating

As shared on PIMCO.com, credit rating downgrades aren’t expected, but upgrades may slow down: “In the first quarter of 2023, Moody’s upgraded three times as many U.S. public finance credits than it downgraded… Local governments have seen similar upgrade momentum, even in cities like New York and Chicago that have projected budget deficits. Many have used unprecedented federal fiscal relief and better-than-expected tax collections to boost their reserves, and will likely benefit from the relative stability of property tax revenues.”

What Next?

For a while now, NY State Comptroller DiNapoli has regularly repeated the same message: “Being prepared for a slowdown is especially important in this uncertain economy.” If you agree and are looking for next steps, the Academy for New York State’s Local Officials is offering an upcoming webinar entitled “Multiyear Financial Planning” on July 19. It’s designed to “help local governments create an effective multiyear financial planning process that helps identify and manage potential fiscal difficulties before crises emerge.” The webinar discussion will include making good long-term revenue and expenditure projections; measuring benefits from proposed local actions; and documenting projections. Click here to register.

While you’re focusing on staying up to speed on all of the factors impacting your municipality’s finances, you can trust RBT CPAs professionals to hand your accounting, tax, audit, and advisory service needs. RBT CPAs is here to help you succeed — give us a call.

RBT CPAs is proud to say all of its work is prepared in the U.S.A. We never outsource outside the U.S.A.

Seven Tips to Recruit and Retain Drivers

What is it that makes a driver choose to apply to and work at one employer over another?

Find the right answers and you’ll be better to compete for and win this highly sought-after talent despite the shrinking talent pool and tight labor market.

Create a culture people want to be part of. Whether you have 1 driver or 100, creating a work environment that shows you value input; care about safety; respect individuals; uphold high ethical standards; recognize employees; and more can earn your business a reputation as a place people want to work for.
Offer competitive wages. Go onto any job board and search for driver positions to see how much others are willing to pay for the same talent you’re trying to attract. Search for other hourly positions (i.e., warehouse or restaurant worker) in your area to see how your pay scale compares, as you may be competing with these employers as well. Remember, the pay scale you adopt will send a message. If you can’t afford to sweeten hourly pay, consider exploring periodic payroll incentives, whether that’s in the form of a sign-on bonus or based on meeting quarterly or annual performance expectations.
Offer benefits that matter. Medical, dental, vision, and mental health coverage are commonplace, as are plans to build income for retirement and even tuition reimbursement. In addition, to look at how you can build flexibility into scheduling (i.e., home daily or four days on/three days off) and consider including paid time off, especially if you’re looking to hire female drivers (a valuable talent pool worth considering).
Formalize training and career development. Younger generations want more than a job – they want opportunities to grow and make a difference. Meet these needs by formalizing driver training and career development If you don’t have the bandwidth in-house, consider partnering with a local driving school or providing online training (by doing this, you may also be able to access new talent pools like students graduating from these schools).
Be honest and transparent in your job description and posting. How much does the job pay? What benefits are offered? What does the job involve (i.e., activities and hours)? Even if you don’t get many responses, at least you’ll know the ones that applied are genuinely interested in moving forward.
Keep the recruiting and hiring process moving. If you take too long, someone else may beat you to the finish line, and you will have to start all over again.
Put equal effort into Once you find and hire the right employee, keep the momentum going. Maintain open and frequent communications. Ask for employee feedback, input, and ideas. Look for opportunities to recognize and reward stellar performance. Give professional growth assignments (i.e., driver representation on a task force or at important meetings). Check in periodically to make sure all is good. Go back to the first point on this list.

One last tip: know when to ask for help. RBT CPAs affiliate, Visions Human Resource Services, helps clients fill open positions or enhance their internal recruiting, hiring and retention processes. Give them a call. At the same time, remember, RBT CPAs is here to handle your accounting, tax, audit, and business advisory needs. Let us know what we can do to help your business succeed.

RBT CPAs is proud to say all of its work is prepared in the U.S.A. We never outsource outside the U.S.A. To learn more about the accounting, tax, audit, and business advisory services our local team members can provide for your business, give us a call.

New Inspection Standards Are In Effect for Public and Multifamily Housing

Starting July 1, public housing inspections can be conducted using the Final Rule of National Standards for Physical Inspection of Real Estate (NSPIRE)

Designed to strengthen HUD’s physical condition standards, the new standards detail inspectable items; classify whether they are considered life-threatening, severe, moderate or low-risk; define the correction timeframe which ranges from 24 hours to 30 or 60 days; and more. You and your team may want to develop a plan for reviewing the standards and ensuring they are met.

Major changes include:

Life threatening and severe deficiencies must be addressed within 24 hours.
The Smoke Alarm Standard is now consistent with the National Fire Protection Association (NFPA) Standard 72.
Creation of a Fire Door Standard with details about function, operability, and structural integrity requirements.
Installation of carbon monoxide alarms in compliance with 2018 International Fire Code.
Minimum temperature requirements during the colder months and a permanent heating source requirement.
Criteria for when guardrails and handrails are required.
Establish infestation deficiencies based on observations with clarification on citable pests.
Develop deficiencies based on observed mold conditions or elevated moisture levels as measured by a moisture meter.
Add a deficiency for an enhanced visual assessment of deteriorated paint in units where children under age 6 reside to document potential lead-based paint hazards.
Specify Ground-Fault Circuit Interrupter (GFCI) protection as a requirement.
Include affirmative habitability requirements for bathrooms, kitchens, and other rooms used by residents.

HUD is committed to review the standards every three years, at a minimum. In addition to the Final Standards Notice, HUD will be publishing Scoring and Administrative Notices this summer.

For more information on NSPIRE, visit the NSPIRE homepage and view the video of the NSPIRE Standards.

In an unrelated note, we want to make sure you aware of these funding opportunities announced in June:

$25 million to help PHAs help families get access to better housing and schools
$22.5 million to help PHAs help PH residents access work and education opportunities
$75 million for tribal communities focusing on community development

While getting acquainted with the new inspection standards, you can depend on RBT CPAs to handle all of your account, tax, audit and advisory needs. We believe we succeed when we help you succeed. To learn more, give us a call.

RBT is proud to say all of our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your operation’s financial and confidential information is handled by full-time, local staff who have met RBT CPA’s high standards for quality, ethics, and professionalism.