How to Drive and Get the Best Fuel Efficiency

4 min read

We’re all feeling the pain at the pump. Unless you decide to walk, bike or take public transportation, you might feel stuck. But all is not lost. Here are some fuel-efficient driving techniques that can help you save hundreds of dollars in fuel each year.

Don’t Drive Too Fast

Of course, when you’re on the highway, you must maintain a certain speed. However, cars, vans and pickups are typically the most fuel-efficient when driving between 50 and 80 mph. If you go any faster, you’ll use more gas. Consider this: When you’re driving roughly 75 miles per hour, you use 20 percent more fuel than you would if you were going around 60 mph. On a 15-mile trip, if you’re driving faster, you’ll only save two minutes. Only you know if shaving two minutes and gulping extra gas from your tank is worth it.

Maintain a Steady Speed

When you drive in bursts, slowing down and then accelerating, your fuel consumption increases. Specifically, tests have shown that varying your speed up and down between 75 and 85 mph every 18 seconds can bump up fuel usage by 20 percent. If your car has cruise control, use that. Word from the wise: Slow and steady wins the race.

Accelerate Gently

The heavier your foot is when putting the pedal to the metal, the more gas you use. Here’s how to accelerate and save gas: From a stop, take five seconds to get to 12 mph. You’ll speed on up after that, but the point is to pay attention to when you’re just starting and ease into your journey.

Coast to Decelerate

If you tend to have a heavy brake foot, you’re thwarting your forward momentum. Granted, you want to control your car if you’re in rain or snow. But here’s the trick: Look ahead to see what traffic is like and, if you have some room when you’re headed down that hill, take your foot off the gas and the brake, and enjoy the ride – you’ll conserve fuel and save money.

Try Not to Idle

Except when you’re in traffic, if you’re stopped longer than a minute, turn off your engine. The average vehicle with a three-liter engine drinks in over a cup of fuel for every 10 minutes it idles. Ouch!

Measure Tire Pressure

Do this every month. If your tires are under-inflated by 56 kilopascals (aka 8 pounds per square inch), fuel consumption rises by up to 4 percent. If you don’t know the right tire pressure for your car, look on the edge of the driver’s side door. If your tires are low, it also can reduce the life of them. Make it a habit to check your tires.

Use Credit Cards with Gas Rewards

few more. Another smart way to save is to get an app like GasBuddy that shows you the cheapest gas near you.

No one knows when gas prices will go down. In the meantime, the only thing you can do is try to work around the situation as best you can. The good news is that nothing lasts forever.

Sources

https://www.nrcan.gc.ca/energy-efficiency/transportation-alternative-fuels/personal-vehicles/fuel-efficient-driving-techniques/21038

https://money.com/people-combatting-high-gas-prices/

How to Drive and Get the Best Fuel Efficiency

July 1, 2022 · Blog, Tip of the Month, Uncategorized

4 min read

How to Get the Best Fuel Efficiency We’re all feeling the pain at the pump. Unless you decide to walk, bike or take public transportation, you might feel stuck. But all is not lost. Here are some fuel-efficient driving techniques that can help you save hundreds of dollars in fuel each year.

Don’t Drive Too Fast

Maintain a Steady Speed

Accelerate Gently

Coast to Decelerate

Try Not to Idle

Measure Tire Pressure

Use Credit Cards with Gas Rewards

These cards are usually issued in partnership with a bank and offer a discount on gas, like saving five or six cents off a gallon. Yes, mere pennies; but when you add it up, it makes a difference. A few of the top cards to check out are Citi Custom CashSM Card, Blue Cash Preferred® Card from American Express, and Discover it® Cash Back. Here are a few more. Another smart way to save is to get an app like GasBuddy that shows you the cheapest gas near you.

No one knows when gas prices will go down. In the meantime, the only thing you can do is try to work around the situation as best you can. The good news is that nothing lasts forever.

Sources

https://www.nrcan.gc.ca/energy-efficiency/transportation-alternative-fuels/personal-vehicles/fuel-efficient-driving-techniques/21038

https://money.com/people-combatting-high-gas-prices/

Disclaimer

Big Data Storage: What You Need to Know

4 min read

Today, businesses have to grapple with vast amounts of data from different sources, including emails, mailing lists, customer orders, system logs, mobile apps, social media networks, etc. This data is crucial to businesses in various ways. When analyzed, a business can identify operational issues, personalize the customer experience and manage supply chains – all contributing to better decision-making.

However, big data also has challenges, especially regarding its storage due to size and other factors such as collection speed, processing, retrieval and format. This becomes more complicated as the data keeps growing with time and cannot be stored in traditional storage devices, necessitating a need for facilities that store and process the data efficiently.

Depending on the business type, a choice can be made between storing data in a warehouse or in the cloud. A data warehouse is a building facility that stores and processes data for a business. This in-house data storage offers the advantage of speed. However, when more space is needed, it will be necessary to acquire more physical storage.

On the other hand, a business may choose to opt for cloud storage. Cloud storage offers the benefit of convenience, accessibility, cost and maintenance, which the service provider handles.

Considerations in Storing Big Data

Regardless of the means a business chooses to store its data, there are various issues to consider:

Understand your data – before choosing a data storage method, it is essential to first understand the company’s data in terms of the type of data collected, quantity, storage period, retrieval speeds, use cases, etc. This helps choose a data management system that can handle the data efficiently.
Data governance – with so much data collected and with data growing exponentially, it is likely that users can be lost in a sea of data. Therefore, a business should define a strategy that aligns with business goals to avoid collecting unnecessary data that takes up storage space.
Data integration tools – data is collected from multiple sources, and it is necessary to have adequate integration tools that allow for different file formats.
Cost – it is difficult to determine the actual cost of storing data. Hence, a business should not base the cost decision on the upfront cost alone. This is because other factors are involved, including operating costs, the need for scalability, training or hiring users, new technologies, and the cost of backup. Businesses must evaluate whether the initial investment in the best data storage technologies is worthwhile by looking at the potential long-term results.
The data storage provider – before settling on a service provider, thorough research should be conducted. Some considerations when choosing from a variety of providers should include the availability of technical support to solve problems quickly, scalability, fault tolerance, pricing models, and reviews from existing customers.
Disaster recovery plan – ensure it is possible to recover data quickly. This is crucial with attacks that deny access to data without paying a ransom. A business should consider keeping secure offsite backups.
Enhanced security is required – the expanding IoT network adds to the number of endpoints and devices storing or retrieving data. Therefore, big data comes with a huge responsibility to preserve data in an environment where hackers are pervasive and never stop coming up with new ways to break into systems. It is recommended to choose the safest option even when it costs more, as data security is vital for the survival of any business.
Employee training – big data may require a business to hire new staff to help in analytics, such as data scientists. Regardless, a business should consider training existing employees on handling big data and using new tools that will be introduced. Big data also requires collaboration among different departments in an organization. Data-literate employees can better interpret data, ask the right questions, and generally make data-driven decisions.

Compliance with data security regulations – this especially applies to highly regulated industries such as finance or health. It is essential to ensure that even when outsourcing data storage and management, the service provider adheres to compliance regulations to avoid heavy fines that come with a violation.

Protecting SCOTUS, Veterans in Special Circumstances, Disaster Victims, Potential Firearm Victims, and America’s Water Resources

4 min read

Supreme Court Police Parity Act of 2022 (S 4160) – In response to potential threats and protests outside the homes of Supreme Court judges following a leak of their preliminary judgement on a case related to Roe vs. Wade, this bill authorizes extra security for the justices and their families. Specifically, Supreme Court justices and their families would be provided with security detail similar to that of other top government officials and families in the executive branch (e.g., the president and vice president) and legislative branch (e.g., Speaker of the House and Senate Majority Leader). This type of detail generally cannot be declined. The bill was introduced by Sen. John Cornyn (R-TX) on May 5. It passed in both the Senate and the House on June 14 and was signed into law by the president on June 16.

Honoring our PACT Act of 2021 (HR 3967) – Introduced by Rep. Mark Takano (D-CA) on June 17, 2021, this bill recently passed in both the House and the Senate, but was returned with changes to the House on June 16. PACT is an acronym for Promise to Address Comprehensive Toxins Act. The bipartisan legislation, with 100 sponsors, would permit veterans who were exposed to burn pit smoke and other environmental hazards that caused cancers and other illnesses during their service, to receive health coverage for those ailments.

Air America Act of 2022 (S 407) – Air America was a government-owned airline deployed between 1950 and 1976 for the purpose of conducting certain covert operations in Southeast Asia during the Vietnam War. This bill is designed to restore benefits to the employees who worked for Air America during that period. Benefit applications must be filed within two years of the bill’s enactment. This legislation was introduced on Feb. 24, 2021, by Sen. Marco Rubio (R-FL). It passed in the Senate on June 14 and is currently in the House for consideration.

Post-Disaster Assistance Online Accountability Act (HR 2020) – Introduced by Jenniffer González-Colón, Resident Commissioner for Puerto Rico (R-PR) on March 18, 2021, this bill establishes a centralized website to publish information on disaster assistance. The Small Business Administration, the Department of Housing and Urban Development and other federal agencies that provide disaster assistance must submit the following information for publication on a quarterly basis: 1) the total amount of assistance provided by the agency; 2) the amount provided that was disbursed or obligated; and 3) a detailed list of all projects and activities to which assistance was allocated. The bill passed in the House on May 13 and is under consideration in the Senate.

Protecting Our Kids Act (HR 7910) – The bill was introduced by Rep. Jerry Nadler (D-NY) on May 31 and passed in the House on June 8. The purpose of this legislation is to ban the sale or transfer of certain semiautomatic firearms to anyone under age 21; establish new federal criminal offenses for gun trafficking; regulate guns that do not have serial numbers (ghost guns); regulate the storage of firearms on residential premises at federal, state and tribal levels; regulate bump stocks under federal firearms laws; and generally prohibit the import, sale, manufacture, transfer and possession of large capacity ammunition feeding devices. The bill is currently facing significant challenges in the Senate, where a bipartisan committee is working on an alternative.

Water Resources Development Act of 2022 (HR 1766) – This legislation authorizes the U.S. Army Corps of Engineers to implement projects associated with water resources development, including water supply and wastewater infrastructure, flood control, navigation and ecosystem/ shoreline restoration. The Act was introduced by Rep. Peter DeFazio (D-OR) on May 16. It passed in the House on June 8 and is currently under consideration in the Senate along with other similar bills.

Tax Break for Commercial Real Estate Investors

3 min read

COVID-19 impacted the economy dramatically and commercial real estate was no exception in terms of decreased values. Often, the real property could no longer service the debt used to finance it. This debt restructuring and resulting debt forgiveness can result in taxable income.

Taxable Income and Debt Cancellation

If you have a $80,000 loan and the bank reduced the amount you owe down to $50,000, then you have an economic benefit of $30,000, which should be treated as taxable income. This is indeed how cancellation of debt is treated, but there are exceptions such as in the case of bankruptcy or insolvency. There is another unique scenario that applies only to commercial real estate.

Assuming that the taxpayer is not a C-corporation, debt cancellation is excludable from taxable income if it results from qualified real property business indebtedness (QRPBI). QRPBI is debt taken on to buy real property used for commercial purposes. Starting in 1993, debt used for building or improving a property also qualify.

As we all know, there is no such thing as a free lunch. In order for debt cancellation to not be considered current taxable income, the taxpayer must reduce their basis in the real property by this same amount. This does not cancel the income; instead, it defers its recognition and helps cash flow as a result. Below, we look at an example of how this works.

Illustrative Example

Assume David bought a property in 2017 and he uses it for business purposes. In 2022, the property has a first mortgage of $200,000 and a second mortgage of $100,000 (both with the same bank), with a fair market value (FMV) of $240,000. He negotiates with the bank to reduce the second mortgage down to $20,000, resulting in income from the cancellation of debt of $80,000.

The amount of debt cancellation that can be deferred is equal to the amount of the second mortgage before the debt cancellation, less the FMV minus the first mortgage. In David’s case, before debt cancellation, the FMV ($240k) minus the first mortgage ($200k) was $40,000. The balance of the second mortgage ($100k) exceeded this by $60,000. Out of the total debt cancellation of $80,000, this $60k is subject to deferral, with only the remaining $20,000 reported as immediate taxable income.

The $60,000 is not considered as taxable income only to the extent that David has sufficient adjusted tax basis in the depreciable real property to absorb this as a reduction in basis. Assuming this is the case, the reduction in basis applies the first day of the tax year after the debt cancellation (unless the property is sold before year-end – then it applies immediately).

In the example above, David would include the $10,000 of cancellation of debt income on his 2022 tax return and adjust his basis in the real property by $60,000 as of Jan. 1, 2023.

Filing Mechanics

For real estate held via partnerships instead of by individuals, determining if debt is QRPBI qualified happens at the entity level, although reductions of basis are done at the individual level for each partner, allowing individual planning. The election to defer cancellation of debt income is recorded on Form 982.

Conclusion

The COVID pandemic caused many real estate investors to restructure their debts. The option to defer debt income cancellation offers a great tax planning opportunity by delaying taxable income and improving cash flows.

How to Calculate the Cash Conversion Cycle

4 min read

The Cash Conversion Cycle, also known as the Net Operating Cycle, answers the question, “How many days does it take a company to pay for and generate cash from the sales of its inventory?” However, before an analysis like this can take place, it’s important to consider the company’s primary line of business.

If the company sells software, it’s more challenging to measure performance if it generates revenue primarily on intellectual property – by developing computer code and licensing its use to clients. For online marketplaces, especially those that make the majority of their profits from third-party sellers that manage product sourcing, listing their inventory and shipping products on their own won’t measure the online marketplace’s own inventory. Since these types of businesses don’t act like a manufacturer that produces and sells products to other businesses or the general public, this type of analysis will be less helpful.

To start with the formula for the Cash Conversion Cycle (CCC), it’s calculated as follows:

CCC = Days of Sales Outstanding (DSO) + Days of Inventory Outstanding (DIO) – Days of Payables Outstanding (DPO)

Days of Sales Outstanding, Defined

DSO is the average number of days it takes a company to collect payment once a sale has completed. The beginning and ending Accounts Receivable figures from a fiscal year are added together and divided by 2. Then revenue from the income statement for the entire fiscal year must be divided by 365 days to get a daily average.

DSO = Beginning Accounts Receivable + Ending Accounts Receivable / 2 = Revenue / 365 days

The fewer the days, the better; however, it can’t be so fast that such tight payment terms push customers away.

Days of Inventory Outstanding, Defined

DIO is the average number of days a business keeps its inventory before it’s purchased.

The beginning and ending inventories of a fiscal year are added together and divided by 2 to find an average. The resulting figure is then divided by the daily average of the cost of goods sold over a fiscal year, which is often 365 days.

DIO = Beginning Inventory + Ending Inventory / 2 = Cost of Goods Sold / 365 days

The lower the number, the faster inventory is sold. While there’s nothing wrong with moving it fast, there is the danger that orders might not be able to be fulfilled.

Defining the Operating Cycle

As the CFA Institute explains, putting DIO and DSO together constitutes the Operating Cycle. This is defined as the period of days that it takes a business to transform basic materials and/or goods into stock and obtain money from the completed transaction. When this number is small, it means product is moving and customers have no issue making prompt payments.

Days of Payable Outstanding, Defined

Days of Payable Outstanding determines the number of days a business takes to fulfill its debts to suppliers.

DPO = Beginning Accounts Payable + Ending Accounts Payable / 2 = Cost of Goods Sold / 365 days

Considerations for DPO include finding a balance between how long a business can take to pay their suppliers, but also not missing out on pre-payment discounts or being penalized with late fees, financing charges, etc.

Going Beyond the Results

When analyzing the Cash Conversion Cycle for the right type of company, it can provide great insight into a company’s efficiency in collecting billings; how long inventory is up for sale; and the time it takes to become current with its own suppliers. Depending on the results of the CCC analysis, performing financial analyses can provide insight into not only how the company is performing financially, but why the company is performing financially.

Sources

https://blogs.cfainstitute.org/insideinvesting/2013/05/21/a-look-at-the-cash-conversion-cycle/

How Social Security Benefits Are Affected by Earned Income

4 min read

Thanks to the Great Resignation trend over the past year, there is a high availability of jobs. Therefore, now is a good time for retirees who would like to go back to work to ease into the job market. However, if you’ve already begun drawing Social Security benefits, you should understand how earning income will affect those payouts.

First of all, you have two options if you’d like to stop receiving Social Security. One option is available only if you’ve been drawing benefits for a year or less. In this case, you may cancel your application; but be aware that you must repay all the benefits that you and your family have received to date. That includes spousal benefits and even Medicare premiums that were deducted from your payout. You will still be able to reapply for Social Security later.

The second option is available only if you have reached full retirement age but have not yet turned 70 years old. In this case, you may request to have your Social Security payouts suspended.

There are two benefits associated with these strategies: 1) foregoing Social Security income will likely reduce your tax bill; and 2) your Social Security benefits will start accruing again based on the delay and calculations that include your new wages.

However, you may continue receiving Social Security while you work, which could be important if your spouse is receiving benefits based on your earnings record. Under this scenario, a portion of your benefit may be withheld or even subject to higher taxes. It all depends on how much you earn. If your annual income is $19,560 or less (2022), it won’t impact your Social Security benefits.

Note that only wages from a job or self-employment count toward your Social Security income limit for withholding purposes. Distributions you receive from pensions, annuities, investment income, interest, veterans benefits or other government or military retirement benefits are not considered earned income.

Once your income totals more than $19,560, the impact depends on your age. If you have not yet reached “full retirement age,” Social Security will withhold $1 in benefits for every $2 you earn over the limit.

During the year you reach full retirement age, your annual total earnings limit increases to $51,960 (2022), and the subsequent benefit reduction drops to $1 for every $3 you earn over that amount. In fact, they count only how much you’ve earned up to the month before your birthday – not what you end up earning in a whole year. Once you’ve reached full retirement age, it doesn’t matter much how you earn, there will no longer be any withholding of benefits.

Better yet, starting in January of the year after you turn full retirement age, regardless of whether you continue working or not, your Social Security benefit will increase to reflect any previously withheld benefits due to your income exceeding the limit. And if the years you subsequently worked rank among your 35 highest earning years, your payout will increase even more to reflect a higher benefit calculation (since you paid FICA taxes on that income).

Tax Considerations

In the case of all beneficiaries, at least 15 percent of Social Security income is exempt from federal income taxes. Be aware though, that for tax purposes, your reportable income includes half of your Social Security benefit plus all other forms of income, such as a job, pension or investment income. If your total annual income is between $25,000 and $34,000, then as much as 50 percent of your Social Security benefit is taxable. If you earn more than $34,000 in a year, then up to 85 percent of your Social Security benefit is subject to taxes.

This is a general overview of what happens to your Social Security benefits when mixed with earned income. There are additional details, so it’s a good idea to work with a Social Security expert to decide if you should cancel or suspend payouts, and to understand how your income and tax situation may be impacted by going back to work.

With that said, if your portfolio has taken a beating this year, you might want to stop investment distributions for now and give it time to grow. Fortunately, the United States is currently enjoying a robust job market in which highly experienced candidates can negotiate a flexible work schedule, job site and higher salary, so it may be worth it to go back to work for another year or two to help secure your long-term retirement plans.

Tips to Save on A/C This Summer

3 min read

You love summer, don’t you? School’s out, and BBQs are on. But what you probably don’t love are those higher air conditioning bills. Here are some tried-and-true ways to help lower the cost of keeping cool.

Change Air Filters

Make sure you switch out your filters before those sizzling summer temps arrive, then once a month after that. When filters are dirty, they block the airflow, which causes your air conditioner to work harder when cooling your home. You’ll not only lower your bills by five to 15 percent, but you will also extend the life of your entire A/C system. If you don’t change those clogged filters, it could create a malfunction, and you’ll have to get your unit repaired.

Turn Up Your Thermostat

Set it to 78 degrees and shed a few layers. Yes, this might not be preferable to your icy 72 degrees, but you know what will feel good? Seeing your electricity bill go down 18 percent.

Run the Ceiling Fan

This works in tandem with turning your thermostat to 78 degrees. If you’ve been running your fan clockwise during the previous months, be sure to change the direction so the air moves down into the room.

Invest In a Smart Thermostat

. They’re well worth the cost.

Close Your Curtains and Blinds

When the sun’s rays enter your home, they heat up the room and your thermostat. The best time to shut your curtains and blinds is during the warmest part of the day, between (roughly) 10 a.m. and 3 p.m. This will help insulate your windows and stop the cool air from escaping.

Consider the Placement of Your Thermostat

Where do you have this? If it’s next to a hot window, your poor A/C will work harder than it needs to because it will think the room’s hotter than it is. Other places not to put it are near doors that could let in drafts. Or by bathrooms that are usually warm and steamy. In fact, the U.S. Office of Energy Efficiency and Renewable Energy advises avoiding placing thermostats near lamps or TVs. Why? They release heat that could confuse the sensors of your poor, struggling device.

Avoid Activities that Heat Up the House

Avoid using the oven, dishwasher, or dryer during the middle of the day. This heats up the house. Instead, use the microwave, grill outside, or wash your dishes by hand if you can stand it. If you need to dry clothes, wait until after sundown.

Check Your Air-Conditioner

If you had some issues with it last summer, get someone (a professional) to take a look at it before the high temps descend upon you. If you make a few small repairs, you’ll save mightily in the long run.

If you implement one or all of these tips, you’ll be in a much better, cooler place come full-on summer, the time of year when you most want to chill.

Sources

https://crystalheatingandcooling.com/save-money-on-air-conditioning/

https://www.cnet.com/home/energy-and-utilities/lower-your-electric-bill-this-summer-with-these-air-conditioni

https://www.choosetexaspower.org/the-current/energy-savings/10-tips-saving-air-conditioning-summer/

Tips to Save on A/C This Summer

June 1, 2022 · Blog, Tip of the Month, Uncategorized

3 min read

Tips to Save on A/C This Summer You love summer, don’t you? School’s out, and BBQs are on. But what you probably don’t love are those higher air conditioning bills. Here are some tried-and-true ways to help lower the cost of keeping cool.

Change Air Filters

Turn Up Your Thermostat

Set it to 78 degrees and shed a few layers. Yes, this might not be preferable to your icy 72 degrees, but you know what will feel good? Seeing your electricity bill go down 18 percent.

Run the Ceiling Fan

Invest In a Smart Thermostat

With these babies, you can regulate the temps when you’re not home from an app on your phone or via voice commands. For instance, you can set the A/C to a toasty 80 degrees when you’re not home to save money. Two good brands to check into are Nest and Ecobee. They’re well worth the cost.

Close Your Curtains and Blinds

Consider the Placement of Your Thermostat

Avoid Activities that Heat Up the House

Check Your Air-Conditioner

If you implement one or all of these tips, you’ll be in a much better, cooler place come full-on summer, the time of year when you most want to chill.

Sources

https://crystalheatingandcooling.com/save-money-on-air-conditioning/

https://www.cnet.com/home/energy-and-utilities/lower-your-electric-bill-this-summer-with-these-air-conditioni

https://www.choosetexaspower.org/the-current/energy-savings/10-tips-saving-air-conditioning-summer/

Disclaimer

Ways Technology Can Improve Business Cash Flow

4 min read

Cash flow awareness is vital in running the day-to-day activities of a business. Keeping track of the inflows and outflows helps a company make better plans and decisions, such as the right time to expand. Cash flow knowledge reveals where a business is spending money and can protect business relations, among other benefits. However, tracking cash flow is a challenge for many businesses.

To avoid business failure due to poor cash flow management, business owners are investing in software applications to help manage cash flow challenges. Modern technology enables access to these applications over the cloud, giving small- and medium-sized businesses the opportunity to benefit from them. These cash flow management tools help companies improve cash flow in various ways.

Remove Manual Paper Systems that Cost Time and Money
Using a cash flow automated system, it’s possible to create and send invoices directly to clients through email. This saves on time that would otherwise be used for printing invoices, mailing, bank trips, and going through paperwork comparing details. It is also possible to automate recurring invoices, saving the time used to create and send invoices.
Makes it Easy for Clients to Pay
Paying invoices takes time if a client has to keep confirming the payment details. However, an automated invoice can contain a pay now link, which facilitates quick payments for applications that include access to online payment options.
Helps Avoid Data Entry Errors and Reduces Risks
There is no need to move from one platform to another to check details, manually enter details, verify figures, etc. This ensures fewer errors, such as those generated when copying details like bank information to a check, or paying the wrong amount. Sorting out these errors takes time, hence delaying payments.
Cash Flow Forecast
The applications offer access to account insights in real time using cloud-based software and mobile apps, making it possible to forecast when clients are likely to pay and when bills are due. Access to live data also means there is no more dealing with complicated spreadsheets and paper ledgers. This way, a business can plan its actions to ensure positive cash flow. For instance, a business can delay paying vendors and plan when best to pay bills without running out of standby cash.
Avoid Late Payments
Late payments can result in fines that will cost the business unnecessary losses. However, with software that automatically sends invoice reminders, it is possible to make timely payments.
Centralized Cash Flow System
All activities involving cash transactions are located in one system, offering the ability to see cash inflows and outflows at a glance. As a result, a business can streamline its accounts and monitor cash flow; and since it includes real-time reporting, it’s easy to spot any red flags and solve problems that could adversely affect a business.
Leverage on Data Analytics
A centralized system will collect data and store it in one place. By deploying artificial intelligence technology that performs data analysis, a business can better forecast its cash flow. This also provides insight into how changes such as a new products or price adjustments affect cash flow.

Choosing a Cash Flow Tool

Cash flow automation enables a business to maintain a positive cash flow and have cash in its reserves to afford reinvesting in its operations, settling debts, and handling other operating costs. However, before investing in an automation tool, it’s recommended to analyze different tools to find the best fit for your business. Each tool is different and built to address various business problems.

Some features to look out for include integration with the existing accounting system, payments and invoicing, accepting a variety of payment methods, and security.

Besides getting the most suitable application, there are other considerations to establishing a healthy cash flow. Technology has its benefits, but it does not act as a cure for a poorly implemented system. For instance, if employees don’t know how to use new technology, its impact will be limited. Therefore, a business should establish a workflow process before implementing any new technology.

Rushing Baby Formula supplies, Helping Ukraine and Punishing Russia

4 min read

To amend the Child Nutrition Act of 1966 to establish waiver authority to address certain emergencies, disasters and supply chain disruptions, and for other purposes. (HR 7791) – In response to the recent nationwide shortage of infant formula, Congress passed a bill authorizing $28 million to fund emergency supplies and to address the potential for future shortages due to emergencies, disasters or supply chain disruptions. The bill was introduced by Rep. Jahana Hayes (D-CT) on May 17. It passed in the House on May 18 and unanimously in the Senate on May 19. It is currently awaiting signature by the president.

Ukraine Democracy Defense Lend-Lease Act of 2022 (S 3522) – This legislation was introduced on Jan. 19, by Rep. John Cornyn (T-TX). It passed in the Senate on April 6, the House on April 28, and was signed into law by President Biden on May 9. The bill waives certain requirements that constrain the president’s authority to lend or lease defense articles intended for Ukraine’s government or other Eastern European countries affected by Russia’s war. For example, prohibiting a loan or lease period of more than five years. Furthermore, the president must establish procedures to ensure quick delivery of defense articles loaned or leased to Ukraine. The provisions of this bill are scheduled to terminate at the end of FY 2023.

Additional Ukraine Supplemental Appropriations Act, 2022 (HR 7691) – Introduced by Rep. Rosa DeLauro on May 10, this bill authorizes $40.1 billion in emergency funding for U.S. agencies to aid Ukraine’s response to Russia’s invasion. The funding is available only through fiscal year 2022 (which ends Sept. 30). The appropriations are designed to provide defense equipment, migration and refugee assistance, support for nuclear power issues, emergency food assistance, economic assistance, and property seizures related to the invasion. U.S. agency recipients include the Department of Justice, the Department of Defense, the Nuclear Regulatory Commission, the Department of Health and Human Services, the Department of State, the U.S. Agency for International Development, the Department of Agriculture and the Treasury Department. The bill passed in the House and Senate on May 19 and awaits the president’s signature.

Ukraine Comprehensive Debt Payment Relief Act of 2022 (HR 7081) – This bill is designed to advocate debt assistance for Ukraine among domestic and international financial institutions. Specifically, the legislation calls for an immediate suspension of Ukraine’s debt service payments to respective institutions, offering concessional financial assistance to Ukraine, and providing economic support to both refugees from Ukraine and to the countries receiving them. The bill was introduced by Rep. Jesus Garcia (D-IL) on March 17. It passed in the House on May 11 and is under review in the Senate.

Russia and Belarus SDR Exchange Prohibition Act of 2022 (HR 6899) – The purpose of this legislation is to prevent financial assistance to Russia or Belarus. Specifically, it prohibits the U.S. Treasury Department from making transactions that involve the exchange of Special Drawing Rights held by the Russian Federation or Belarus. Special Drawing Rights (SDR) are reserve assets contributed by member countries and maintained by the International Monetary Fund (IMF). The act was introduced by Rep. French Hill (R-AK) on March 2. It passed in the House on May 11 and is in the Senate.

Isolate Russian Government Officials Act of 2022 (HR 6891) – Introduced by Rep. Ann Wagner (R-MO) on March 2, this bill is designed to exclude Russian government officials from certain international meetings, such as the Group of 20, the Basel Committee for Banking Standards, and the Bank for International Settlements. The bill’s mandate is scheduled to end either within five years, or 30 days after the president has reported (to Congress) the end of the Russian-Ukraine war. The act passed in the House on May 11; it currently resides in the Senate.

Asset Seizure for Ukraine Reconstruction Act (HR 6930) – This bill would authorize a task force to identify legal actions that can be used to confiscate the assets of foreign individuals affiliated with Russia’s political leadership. The work group also is directed to report (to Congress) its recommendations for more energy-related sanctions on Russia’s government, as well as any additional authority the president can use to seize assets. The act was introduced by Rep. Tom Malinowski (D-NJ) on March 3. It passed in the House on April 27 and is under consideration in the Senate.

New Required Minimum Distribution Rules for 2022

3 min read

Starting in 2020, new legislation increased the age to begin Required Minimum Distributions (RMDs) from 70½ to 72. More recently, the IRS updated the Uniform Life Table for alignment with longer life expectancies. Note that it takes years for actuaries to work up new data for this table, and the recent changes do not reflect the downturn in life expectancies resulting from the pandemic. These updates were established pre-pandemic and scheduled to take effect in 2022.

The good news is that retirees who prefer not to withdraw from their retirement portfolios now have a couple more years of growth opportunity before they are forced to take distributions.

Because retirement portfolios fluctuate based on market performance, and your life expectancy changes with each year you continue to live, your RMD amount also changes each year. To calculate your annual RMD, you need your retirement plan’s previous year-end account balance and the most updated Uniform Life Table. To determine the correct amount, divide the year-end value by the estimated remaining years of your lifetime, based on your age on Dec. 31. This is the formula: Account balance ÷ Life expectancy factor = RMD.

The new Uniform Life Table is updated with a longer average life expectancy than the prior table, so the divisors have increased. This means that the amount required to be withdrawn is now reduced from what would have been required under the previous table.

The following are some guidelines to keep in mind when calculating, withdrawing and managing your required minimum distributions.

Once you reach age 72, you have until March 31 of the following year to take your first RMD. After that, RMDs must be withdrawn before Dec. 31.
An annual RMD may be taken as a lump sum, on as-needed basis or as regularly scheduled payouts.
Consider that if you delay taking the distribution until the end of the year, your portfolio has more time to grow tax-deferred before you reduce the balance.
As long as you don’t own more than 5 percent of the company you work for, you may delay taking RMDs from the retirement plan sponsored by your current employer as long as you continue working and contributing to the account. RMDs are not compulsory from that account until you stop working.
If you have multiple IRAs, including SEP and SIMPLE IRAs, you can withdraw the combined RMD amount from just one account (or any combination thereof).
If you have multiple 403(b) accounts, you can withdraw the combined RMD amount from just one account (or any combination thereof).
However, if you have multiple 401(k) accounts, you must withdraw RMDs from each account starting at age 72.
Married couples may not combine their RMDs and withdraw them from one account.
RMDs from an inherited IRA also may not be aggregated unless they were inherited from the same decedent.
You do not have to take an RMD from a Roth IRA because the original contributions were already taxed.
In the year you first quality for an RMD, it may not be a good to wait until March 31 of the following year to take it because you’ll have to take your second RMD by Dec. 31 of that same year. Two RMDs in one year could yield a substantially higher tax bill.

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