Outsourcing Year-End Closing and Financial Statements: Eight Benefits for School Districts

Outsourcing Year-End Closing and Financial Statements: Eight Benefits for School Districts

Financial management is a weighty responsibility for all organizations. School districts’ fiscal activities have the added burden of standing up to the multi-faceted demands and scrutiny of parents and taxpayers. More and more, school districts are outsourcing accounting – especially when it comes to budgeting, payroll, year-end closing, and financial statement preparation – to promote accuracy and compliance, while saving money, especially in smaller districts with limited resources and financial expertise.

The end of the fiscal year is a particularly busy time for school districts, with numerous financial responsibilities such as closing books, reconciling accounts, and preparing financial statements. This period requires a high level of knowledge and meticulous attention to detail to avoid errors and ensure compliance with financial reporting standards. By outsourcing these tasks to a professional accounting firm, school districts can ensure that their financial records are accurate, up-to-date, and in line with the latest regulations.

Accounting firms have the expertise and experience to handle complex financial tasks effectively. They are well-versed in the latest accounting software and technologies, which can streamline processes and improve accuracy. Additionally, their understanding of financial regulations and reporting standards ensures that a district’s financial statements are compliant and transparent.

Outsourcing year-end closing and financial statement preparation also allows school districts to focus more on their core mission—education. Rather than juggling administrative tasks, school staff can concentrate on improving student outcomes and implementing strategic initiatives. This not only improves efficiency but also leads to better use of resources and, ultimately, a higher quality of education.

Cost-effectiveness is another significant advantage of outsourcing the accounting function. By doing so, school districts can avoid the overhead costs associated with maintaining an in-house accounting department, such as salaries, benefits, training, and software. Instead, they can leverage the services of a professional accounting firm, which often proves to be more economical in the long run.

Like most fields today, there are not enough accountants for all of the roles available. Having to fill or replace an in-house accountant can take a lot of time and resources to complete a candidate search and subsequent vetting process and ensure a good fit. What’s more, changes like an in-house accountant leaving for another job or taking a leave to care for a family member can open a district up to disruptions – that risk doesn’t exist with an accounting firm that has extra staff on hand to do what’s required.

Moreover, accounting firms can provide a fresh, unbiased perspective on the district’s financial management. They can identify inefficiencies, suggest improvements, and help implement best practices. This can lead to better financial stewardship, improved budgeting, and more informed decision-making.

Risk mitigation is another crucial benefit. Errors in financial statements can lead to reputational damage and legal consequences. Professional accounting firms have stringent quality control procedures to minimize errors and omissions. They also maintain confidentiality and data security, protecting the district from potential financial and data breaches.

Lastly, outsourcing provides flexibility. School districts can scale up or down their accounting needs based on their requirements. This is particularly beneficial during peak periods, like the year-end closing when the workload increases substantially.

For over 55 years, RBT CPAs has been providing accounting, advisory, audit, compliance, and tax services to school districts throughout the Hudson Valley and beyond. If you’re interested in learning more about how your school district and RBT CPAs can be Remarkably Better Together, click here to request an introductory meeting.

 

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.

Is There Someone Missing from Your Team?

Is There Someone Missing from Your Team?

As a business owner, you wear a lot of hats from CEO and CFO to HR expert, technology guru, and more – and that’s in addition to your brewery-distillery-distributor-focused responsibilities. Over time, especially as your business grows, you may find yourself wanting or needing deeper expertise in a particular area. While a full-time staff member may not be warranted, you may want to explore opportunities to outsource work, engage professionals for a defined number of hours a month, or simply have resources lined up for you to access as needed or on demand.

For example, have you been wondering whether you are effectively using financial data to identify opportunities or recognize red flags for your business? Do you think about possibly adopting a retirement or other benefit plan to strengthen your employee value proposition but don’t know where to start? Do you know what options are available for your business over the long-term and how this intersects with your personal financial legacy?

Here’s how some experts can support you and your business on a part-time, full-time, outsourced, or contract basis…

Accountant: Prepares and examines financial records, including accurate, complete, and compliant financial statements. Helps you understand, meet, and navigate tax obligations and liabilities while maximizing tax opportunities. Completes tax filings. Provides assistance with banking, finance, financial technology, and more.

Auditor: Reviews and verifies the accuracy of financial records and accounting methods to ensure tax compliance and protect against financial crimes (i.e., embezzlement and fraud). Recommends best-in-class practices, processes, and systems to protect the financial integrity of the business, benefit plans, and more.

Benefits administrator: Designs benefit plans (i.e., retirement, health, life insurance, disability, and more); provides administration, actuarial, and recordkeeping services; performs compliance services; and educates employees.

Bookkeeper: Records and maintains all financial transactions for your business; manages payroll; processes invoices; produces financial reports; automates transactions; and organizes data.

Chief Financial Officer: Manages financial operations and serves as a senior business advisor. Develops, monitors, and updates financial plans and goals. Advises on taxation, investing, and cash flow management. Analyzes strengths, weaknesses, and course corrections. Identifies opportunities and strategic financial moves based on your industry, geographic location, competitive environment, and national trends, and a deep understanding of economics, finance, business, and compliance.

Estate planner: A financial expert who creates a plan defining your personal wishes and wealth legacy. Ensures your wishes are documented and legally protected while helping you employ financial vehicles and strategies (i.e., trusts and gifting) so more of your wealth goes to the people and causes you care about rather than taxes.

Human resources expert: Someone with expansive knowledge of the people side of running a business, so you have the processes, plans, and infrastructure to attract and retain the right talent to promote business success. Includes everything involved with recruiting, hiring, and onboarding; benefits and compensation; legal compliance; engagement; training and development; performance management; succession planning; diversity, equity, and inclusion; retention; and more.

Valuation expert: Provides the information you need to understand your business’s worth, potential, and options, so you can make informed decisions to help you meet future goals. Conducts professional business valuations, intangible asset appraisals, and financial consulting to define, enhance, and protect business value. Includes business valuation, forensic accounting, equipment appraisal, appraisal review, economic damages, and business planning.

If you are interested in learning how any, some, or all of these experts can help your business without adding to the headcount, give RBT CPAs a call. Our team of world-class professionals and those at our affiliates – Advent Valuation Advisors; Spectrum Pension & Compensation; and Visions Human Resource Services – can help you assess your needs, explore options, and design an engagement that fits your business and budget, proving we can be Remarkably Better Together.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.

Comments and Reevaluation Requests Due for Fiscal Year 2025 Fair Market Rents (FMRs)

Comments and Reevaluation Requests Due for Fiscal Year 2025 Fair Market Rents (FMRs)

On August 14, HUD published Fiscal Year (FY2025) Fair Market Rents (FMRs), as well as a Federal Register notice, entitled “Fair Market Rents (FMRs) for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program; and Other Programs; Fiscal Year 2025.” The notice provides details about the FMRs and instructions on how to submit comments or request a reevaluation.

The recently published FMRs take effect October 1, 2024. As explained in 2024 FMR FAQs, “FMRs are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40 percent of the rental housing units in an area. FMRs are used in several HUD programs, including determining the maximum amount a Housing Choice Voucher will cover.”

The updated FMRs may result in changes to the rent level subsidies. For areas where FMRs are increasing, owners may be able to raise rents (within defined limits). On the other hand, for areas where FMRs are decreasing, owners may see tighter rent controls. Ultimately, this will impact residents’ costs for rent as well.

Mandatory Small Area FMR (SAMFR) use has been expanded to another 41 metropolitan areas, which are identified in the Federal Register notice.

According to the notice, comments are due before October 1 and requests for reevaluation of FMRs are due 30 days after the Federal Register notice was published (although some sources indicate HUD may accept reevaluation requests submitted before October 1).

The Federal Register notice includes details about how PHAs can submit comments or request a reevaluation. (Others who want to request a reevaluation should work through their local PHA.) Refer to the notice for complete details. Highlights include:

  • Reference Docket No. FR-6479-N-01 and the notice’s title: “Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs; Fiscal Year 2025.”
  • The PHA for the area or PHAs representing at least 50% of voucher tenants in an FMR area must agree reevaluation is necessary.
  • The requestor must provide HUD with more recent data than the 2022 ACS data used to calculate FY 2025 FMRs. Details are in section V.A.(2) of the Federal Register notice.
  • Indicate whether the FY 2024 FMR will be maintained or the FY 2025 FMR will be implemented during the reevaluation period. (Per the notice: PHAs requesting reevaluation of newly designated SAFMR areas may adopt FY 2024 SAFMRs or FY 2025 SAFMRs during the reevaluation period. Following the comment period, HUD will post a list, at https://www.huduser.gov/​portal/​datasets/​fmr.html, of the areas requesting reevaluations where FY 2024 FMRs remain in effect.)
  • Submit electronically via the Federal eRulemaking Portal at https://www.regulations.gov. Submissions can also be made via mail, although electronic submissions are encouraged. The mailing address is Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500.

As you navigate the FY 2025 FMRs and what they may mean to your organization or tenants, you can count on RBT CPAs to focus on your accounting, audit, tax, and advisory needs. Give us a call to find out how we can be Remarkably Better Together.

 

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your organization’s confidential financial data.

Six Advantages of Outsourcing Accounting for Local Unions

Six Advantages of Outsourcing Accounting for Local Unions

In the ever-evolving business landscape, local unions are increasingly recognizing the need for strategic financial management. One potential solution that’s gaining significant traction is outsourced accounting.

Access to expertise is the most appealing advantage of outsourcing accounting. Accounting firms are equipped with seasoned professionals who are well-versed in financial regulations, tax laws, and financial management best practices, and they stay up-to-date on changes and evolving trends. These professionals can provide advice on financial decision-making and ensure compliance with tax regulations, minimizing the risk of costly errors and penalties.

Cost savings is another major benefit. Hiring an in-house accounting team can be financially draining, with costs associated with recruitment, training, salaries, benefits, and office space. In contrast, outsourcing accounting offers a flexible pricing structure, allowing unions to pay for the services they need when they need them. This may reduce overhead costs.

By delegating financial management tasks to outsourced accountants, union leaders can concentrate on their primary roles, such as advocating for members’ rights, negotiating collective agreements, and organizing campaigns. What’s more, they get peace of mind that all accounting-related and regulatory requirements are covered.

Outsourcing accounting also provides an opportunity for enhanced data security. Reputable accounting firms invest in state-of-the-art security systems to protect data from unauthorized access and cyber threats. This level of security may be hard to achieve with an in-house team, particularly for local unions with budget constraints.

There’s also a technology advantage that comes from outsourcing. With an outsourced accounting firm, local unions can benefit from the use of cutting-edge technology. Most accounting firms employ the latest accounting software and tools, facilitating efficient, accurate, and timely financial reporting.

In addition, while in-house accountants can resign, fall ill, or go on vacation, leaving the union with a void to fill, accounting firms usually have staff on hand to ensure uninterrupted service.

What does outsourcing accounting entail for a local union? Initially, the union would need to define exactly what it is looking for in an outsourcing arrangement. Armed with this information, it may issue a “request for proposal,” asking potential firms to provide detailed information about their experience, approach to the work, timeline and costs, the team who will support the client, references, and more.

Beyond the proposal, the local union should meet face-to-face with representatives from the contenders to get answers to additional questions, clarify any arrangement, and ensure fit.

The outsourcing firm selected for the engagement then takes over the financial management tasks, which may include bookkeeping, payroll processing, tax preparation, financial reporting, internal and external auditing, advisory services and strategy setting, and budget planning and monitoring.

The firm should keep you informed through ongoing communication and may even provide value-added resources and information to support your union’s financial compliance, performance, and success. As your local union’s accounting requirements change, you can adjust your outsourcing arrangement to meet evolving needs.

For over 55 years, RBT CPAs has been providing accounting, advisory, audit, compliance and tax services to organizations and businesses – including local unions – across the Hudson Valley and beyond. If you’re interested in learning more about how your local and RBT CPAs can be Remarkably Better Together, click here to request an introductory meeting.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.