ReportWire

Tag: accounting

  • 6 Best Practices for Managing a Fast-Growing Business’s Finances

    [ad_1]

    Scaling a high-growth business is nothing short of a rollercoaster. It can also be the time when your financial foundations are at their most vulnerable. What worked when you were a 20-person startup often collapses under the weight of 200 employees, multiple geographies, and fast-changing customer demands. Cash flow visibility fades, hiring becomes reactive, and investment decisions can drift away from actual business outcomes.

    Finance leaders play a critical role at this inflection point. Their job isn’t just to report numbers but to also bring structure, insight, and accountability to every function. They can connect the dots between how the business earns, spends, and grows, tightening controls without slowing momentum.

    At Abacum, we’ve seen many fast-growing companies transform their financial management in a matter of months by sticking to a structured, focused approach. The following six best practices are drawn from those experiences.

    Optimize financial resilience

    Start by getting a crystal-clear view of your cash flow. Reconcile bank statements down to the cent, categorize transactions into key buckets, and focus on cash in versus cash out. Line up Monthly Recurring Revenue (MRR), cash owed, and cash collected for every customer.

    Next, build a conservative three-month projection and runway model. Keep a running list of strategic levers, like investments, cost cuts, or financing options, so you’re always ready to act on opportunity or risk at short notice.

    Uncover growth opportunities

    Growth depends on a deep, holistic understanding of your go-to-market strategy. By segmenting revenue and costs across geographies and channels, you can identify the most effective paths and double down on what’s working.

    Then dig into the “why” behind the numbers – i.e. talk to teams, identify where leads fall off at each stage, and use that insight to refine your strategy. This combination of quantitative and qualitative analysis is where sustainable growth comes from.

    Keep revenue strong and predictable

    Customer success is the backbone of financial stability. Start by mapping the entire customer journey; from onboarding to renewal and expansion, to uncover bottlenecks such as slow implementations or weak handoffs.

    Introduce a simple customer health score that allows everyone to see the status of each account and take action before problems escalate. From product to sales to support, ensure leadership understands how success depends on coordination across teams.

    Align investment with outcomes

    Product and engineering aren’t black boxes. They’re deeply tied to financial outcomes, customer satisfaction, and market position.

    Finance teams should connect product usage, pricing, and the roadmap directly to revenue and cost metrics. Regularly reviewing product performance, roadmap execution, and tech efficiency, ensuring investment decisions are grounded in real results, not mere assumptions.

    Turn talent data into strategic insights

    Your talent data is a powerful strategic tool. Start by linking headcount and baseline performance metrics across functions for early guidance on where to hire and when. Then set clear milestones for recruitment and make performance reviews a consistent discipline.

    Align employee incentives with company performance to create a culture that drives both accountability and growth.

    Complete a 60-day revamp

    To make real progress, break your transformation into focused 14-day sprints. We recommend three phases to start with: Foundational (Days 1-14), Analysis & Improvements (Days 15-30), and Ramp Up Day-to-Day (Days 31-45). Each phase delivers more tangible wins.

    Keep zooming in on details and out for the big picture until this rhythm becomes second nature. Above all, stay focused. Getting distracted midway through this process is the number one mistake leaders make for a reason – it breaks momentum before the real impact begins to show.

    [ad_2]

    Julio Martínez

    Source link

  • 6 In-Demand Skills That Lead to Higher Salaries

    [ad_1]

    It’s a seller’s market for skills that mesh with an increasingly AI driven environment, and a handful of them are at the top of hiring managers’ lists. While the broader job market has stalled since summer, small business hiring remains steady, and AI is having an impact on entry-level hiring for Gen-Z workers. But of course that also means that if you’ve got skills in working with and programming AI systems then you’re in demand. 

    A recent report from recruitment services outfit Robert Half provides estimated starting salaries for key roles across different professional fields, and the big take-away from the data is that 84 percent of the hiring managers surveyed said they’d offer higher salaries for job candidates who have the most sought-after skills.

    The top of the list of skills hiring managers identified as being in-demand, and subject to higher salaries includes:

    • AI, machine learning and data science
    • Public accounting tax and auditing
    • Content strategy, digital project management and marketing analytics
    • Customer support and healthcare administration
    • Legal contract management
    • Compensation and benefits

    It’s no surprise to see AI and supporting subjects like machine learning and data science here. Designing, coding, deploying, and using AI are all specialized skills, needed in specific workplace sectors. They’re so much in demand at some big tech companies that a bizarre billion dollar-scale “war” arose this summer as companies vied for the top talent and even poached key staff from each other. The same tussle for talented workers in this area is clearly filtering down to smaller tech-focused firms, and likely also to non-technology companies who want to deploy AI tools across their organizations in search of the efficiencies and productivity hikes AI evangelists promise.

    Some other specialized skills on the Robert Half list may be surprising, largely because many experts suggest AI is already capable of all but replacing humans working in customer support roles, and certain analytical and financial jobs are also expected to become AI-first work sooner rather than later. It’s possible that the list is a sampling, of sorts of a skills gap evolving between the subjects that students are studying in college and the demands of the real-life economy. 

    Nevertheless, the gap is a problem for hiring managers, as Dawn Fay, the operational president of Robert Half wrote in a press release about the news. “Specialized skills are the currency of today’s job market, Fay noted, adding that to tempt top talent that have the most highly sought-after skills employers will have to step up and provide “competitive pay along with meaningful benefits and perks or risk losing top candidates if their offers don’t measure up.” 

    The report also dug into the kind of perks hiring managers should be offer these skilled job candidates, with 50 percent saying they expect to actually add new benefits to help attract the right talent. Perhaps unsurprisingly, 53 percent of workers said financial incentives were the top perk that would induce them to switch employers, 51 percent said the same for work-life balance perks (flexible or hybrid working schedules, for example) while 42 percent said the same for retirement planning and 39 percent for health and wellness offerings. This tallies with several recent reports that suggest meaningful perks like paid overtime or food catering in the office are top asks for workers nowadays. 

    What can you take away from this report for your company?

    If you’re looking to hire talented workers with skills on the Robert Half list, your HR team may it more difficult than in the past, as there appears to be a scarcity of these skills in the job marketplace. To attract the top talent you may also have to offer higher salaries than you may have planned when deciding to fill a position — talented job candidates with skills like AI or auditing know their worth, and they may be offered higher pay by rival companies vying to hire them.

    Refreshing your benefits and perks offerings is also likely a good idea. Savvy managers may think of tailoring company perks to appeal to the desires of Gen-Z, the generation currently entering the workforce and bringing with them a very different set of expectations—including a focus on mental health, wellness and work-life balance. 

    [ad_2]

    Kit Eaton

    Source link

  • This Is a Rare Chance to Save More Than 70% on QuickBooks Desktop Pro Plus 2024 | Entrepreneur

    [ad_1]

    Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

    Wearing about a dozen hats at once is part of the job for business owners. From sales to payroll to paying vendors, there’s always another number that needs crunching. That’s why many small businesses, freelancers, and accountants swear by QuickBooks® Desktop Pro Plus—and now you can get the 2024 edition with a lifetime license for just $199.97 (MSRP $699), through October 5.

    This isn’t just bookkeeping software. QuickBooks Pro Plus 2024 is an all-in-one financial management hub designed to keep your business organized and efficient. You can handle invoices, expenses, sales orders, purchase orders, and payroll tracking from one dashboard. Need deeper insights? Generate professional reports, analyze job costing, or manage inventory without juggling spreadsheets.

    Business leaders know that every saved dollar counts. With this lifetime deal, you’re not stuck with subscription fees eating into your bottom line. Pay once, own it forever, and focus on growth instead of recurring costs.

    Some standout features include:

    • Enhanced reporting tools to make smarter decisions.
    • Bank feed imports for easier reconciliations.
    • Fixed asset management to track value and depreciation.
    • Time tracking for accurate payroll and project costing.
    • Customer and vendor management to keep relationships running smoothly.

    Setup is simple, updates are included, and it integrates seamlessly with Excel or older QuickBooks versions, making migration a painless process. And because it’s officially downloaded from Intuit, you get the latest build with multilingual support and long-term reliability.

    For business owners, freelancers, and finance teams, this is more than a discount—it’s peace of mind. Lifetime QuickBooks means you can focus on scaling your company, not renewing software.

    Pick up a lifetime QuickBooks Pro Plus 2024 license for one user for just $199.97 through October 5.

    Intuit® QuickBooks® Desktop Pro Plus 2024 (1 User) for Windows: Lifetime License

    See Deal

    StackSocial prices subject to change.

    Wearing about a dozen hats at once is part of the job for business owners. From sales to payroll to paying vendors, there’s always another number that needs crunching. That’s why many small businesses, freelancers, and accountants swear by QuickBooks® Desktop Pro Plus—and now you can get the 2024 edition with a lifetime license for just $199.97 (MSRP $699), through October 5.

    This isn’t just bookkeeping software. QuickBooks Pro Plus 2024 is an all-in-one financial management hub designed to keep your business organized and efficient. You can handle invoices, expenses, sales orders, purchase orders, and payroll tracking from one dashboard. Need deeper insights? Generate professional reports, analyze job costing, or manage inventory without juggling spreadsheets.

    Business leaders know that every saved dollar counts. With this lifetime deal, you’re not stuck with subscription fees eating into your bottom line. Pay once, own it forever, and focus on growth instead of recurring costs.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

    [ad_2]

    Entrepreneur Store

    Source link

  • Report: State education officials failed to investigate child abuse claims

    [ad_1]

    BOSTON — A “breakdown” in communication between two state agencies during the COVID-19 pandemic delayed the release of information about allegations of child abuse and neglect by licensed educators and others, putting students at risk, according to a new state audit.

    The review by state Auditor Diana DiZoglio’s office, released last Tuesday, faulted the state Department of Elementary and Secondary Education for a “failure” to ensure it received up-to-date information from the Department of Children and Families on whether alleged child abuse or neglect against licensed educators warranted investigation or disciplinary actions.


    This page requires Javascript.

    Javascript is required for you to be able to read premium content. Please enable it in your browser settings.

    kAmx? |2C49 a_a_[ sru DE@AA65 D6?5:?8 C6BF:C65 >@?E9=J d`p 2?5 d`q C6A@CED 56E2:=:?8 2==6865 23FD6 @C ?68=64E E@ st$t 27E6C E96?v@G] r92C=:6 q2<6C 564=2C65 2 DE2E6 @7 6>6C86?4J @G6C E96 DAC625 @7 E96 4@C@?2G:CFD[ 244@C5:?8 E@ E96 2F5:E]k^Am

    kAmqFE st$t 5:5?’E 7@==@H FA H:E9 E96 @E96C DE2E6 286?4J E@ C6BF6DE E96 C6A@CED F?E:= pAC:= a_ab — >@C6 E92? c_ >@?E9D =2E6C[ 2F5:E@CD D2:5]k^Am

    kAm“st$t 72:=65 E@ 7F=7:== :ED @3=:82E:@? E@ :?G6DE:82E6 DFAA@CE65 2==682E:@?D @7 23FD6 @C ?68=64E :?G@=G:?8 =:46?D65 65F42E@CD @C 2AA=:42?ED[” E96 C6A@CE DE2E65]k^Am

    kAm“pD 2 C6DF=E[ A@E6?E:2==J D6C:@FD 2?5 DF3DE2?E:2E65 7:?5:?8D @7 49:=5 23FD6 @C ?68=64E[ A@DD:3=J :?G@=G:?8 =:46?D65 65F42E@CD[ C6>2:? F?6I2>:?65 2?5 F?255C6DD65]”k^Am

    kAm%96 C6A@CE’D 2FE9@CD 72F=E65 st$t 7@C =24<:?8 2 “C6=:23=6 AC@46DD” 7@C EC24<:?8[ C646:G:?8[ 2?5 7@==@H:?8 FA @? C6A@CED @7 DFAA@CE65 49:=5 23FD6 2?5 ?68=64E 7C@> E96 DE2E6 s6A2CE>6?E @7 r9:=5C6? 2?5 u2>:=:6D 5FC:?8 E96 2F5:E A6C:@5]k^Am

    kAm%96J 4:E65 2 “3C62<5@H?” 😕 4@>>F?:42E:@? 36EH66? E96 EH@ 286?4:6D 😕 u63CF2CJ a_a_ 2D E96 r~’xs`h A2?56>:4 8@E F?56CH2J]k^Am

    kAm“x?DE625 @7 FD:?8 2 46?EC2=:K65 A=2E7@C>[ st$t F?@77:4:2==J C6=:65 @? C646:G:?8 6>2:=D 2?5 25 9@4 7:=6 EC2?D76CD 7C@> sru 2D A2CE @7 :ED C6A@CE:?8 AC@46DD 5FC:?8 E96 2F5:E A6C:@5[” 2F5:E@CD HC@E6 😕 E96 C6A@CE] “%9:D >62?D E92E E96C6 H2D ?@ @77:4:2= C64@?4:=:2E:@? AC@46DD 😕 A=246 E@ G6C:7J E92E st$t C646:G65[ C6G:6H65[ @C 24E65 FA@? E96 :?7@C>2E:@? sru D6?E]”k^Am

    kAm“%9:D =24< @7 2 5@4F>6?E65 EC24<:?8 AC@46DD 4@?EC:3FE65 E@ E96 82AD 😕 4@>>F?:42E:@? 2?5 @G6CD:89E @FE=:?65 😕 E9:D 7:?5:?8[” E96 2F5:E@CD 25565]k^Am

    kAmx? 2 C6DA@?D6 E@ E96 C6A@CE’D 7:?5:?8D[ st$t D2:5 :E 92D “DH:7E=J F?56CE2<6?” E96 2F5:E@C’D C64@>>6?52E:@?D 2?5 “DEC6?8E96?65 :?E6C?2= DJDE6>D E@ D66 E92E 2== C6A@CED H6C6 2?5 4@?E:?F6 E@ 36 C6G:6H65 😕 2 E:>6=J >2??6C]”k^Am

    kAm“st$t E2<6D :ED C@=6 @7 AC@>@E:?8 D276 2?5 DFAA@CE:G6 D49@@=D D6C:@FD=J[ 😕 4@==23@C2E:@? H:E9 sru[ D49@@= 5:DEC:4ED[ =2H 6?7@C46>6?E 2?5 @E96C DE2<69@=56CD[” E96 286?4J D2:5]k^Am

    kAm%96 DE2E6 286?4J 925 366? C646:G:?8 C68F=2C 4@A:6D @7 d`p 2?5 d`q C6A@CED 7C@> sru 3FE E92E 8C@F?5 E@ 2 92=E 2>:5 E96 AF3=:4 962=E9 6>6C86?4J[ H96? >@DE DE2E6 286?4:6D 3682? H@C<:?8 C6>@E6=J E@ AC6G6?E DAC625 @7 E96 r~’xs`h 5:D62D6]k^Am

    kAm%9@D6 C6A@CED C6DF>65 😕 pAC:= a_ab — c` >@?E9D =2E6C — st$t D2:5 😕 :ED C6DA@?D6[ ?@E:?8 E92E sru 92D D:?46 AC@G:565 7:?5:?8D @7 23FD6 @C ?68=64E @7 DEF56?ED 7@C E96 A6C:@5 7C@> u63] a_a_ E@ pAC:= a_ab]k^Am

    kAm|@DE @7 E96D6 C6A@CED 5:5 ?@E :?G@=G6 =:46?D65 65F42E@CD[ E96 286?4J D2:5]k^Am

    kAmx? @E96C 7:?5:?8D[ DE2E6 2F5:E@CD 4C:E:4:K65 st$t 7@C G:@=2E:?8 7656C2= C68F=2E:@?D 3J 72:=:?8 E@ :?G6DE:82E6 2?5 C6D@=G6 2== DA64:2= 65F42E:@? 4@>A=2:?ED 282:?DE D49@@= 5:DEC:4ED H:E9:? E96 C6BF:C65 e_52J E:>6 7C2>6[ 2?5 7@C 72:=:?8 E@ 6?DFC6 D49@@=D 2C6 “4C62E:?8 D276 2?5 DFAA@CE:G6 6?G:C@?>6?ED” 7@C {vq%” DEF56?ED]k^Am

    kAm“tG6CJ 49:=5 56D6CG6D 2 DEC@?8 DE2CE 2?5 2 72:C 492?46 2E DF446DD[” s:+@8=:@ D2:5 😕 2 DE2E6>6?E] “t249 52J E96D6 492==6?86D 8@ F?255C6DD65 😀 2?@E96C 52J 2 DEF56?E >2J >:DD @FE @? E96 DFAA@CE E96J ?665 E@ 36 23=6 E@ C6249 E96:C 9:896DE A@E6?E:2=]”k^Am

    kAm“st$t 92D 2=C625J 368F? E@ 255C6DD D@>6 @7 E96 :DDF6D H6 C2:D65 E@ E96> E9C@F89@FE E9:D 2F5:E C6A@CE 2?5 E92E H@C< >FDE 4@?E:?F6 E@ 6?DFC6 2== 49:=5C6?[ C682C5=6DD @7 E96:C 72>:=J 324<8C@F?5[ 32?< 32=2?46 @C K:A 4@56[ 2C6 7F==J DFAA@CE65 2?5 AC@E64E65[” D96 25565]k^Am

    kAmx? 2 D6A2C2E6 DE2E6>6?E[ st$t DA@<6DH@>2? y24<:6 #6:D D2:5 E96 s6A2CE>6?E @7 t=6>6?E2CJ 2?5 $64@?52CJ t5F42E:@? 😀 “4@>>:EE65 E@ >2<:?8 D49@@=D D276 2?5 H6=4@>:?8 DA246D 7@C 2== DEF56?ED]”k^Am

    kAm“%96 s6A2CE>6?E 92D 255C6DD65 E96 7:?5:?8D 😕 E96 2F5:E@C’D C6A@CE 2?5 H:== 4@?E:?F6 E@ =@@< 7@C H2JD E@ :>AC@G6[” #6:D D2:5]k^Am

    kAmk6>mr9C:DE:2? |] (256 4@G6CD E96 |2DD249FD6EED $E2E69@FD6 7@C }@CE9 @7 q@DE@? |65:2 vC@FAUCDBF@jD ?6HDA2A6CD 2?5 H63D:E6D] t>2:= 9:> 2E k2 9C67lQ>2:=E@i4H256o4?9:?6HD]4@>Qm4H256o4?9:?6HD]4@>k^2m]k^6>mk^Am

    [ad_2]

    By Christian M. Wade | Statehouse Reporter

    Source link

  • How a Software Engineer’s Business Impacts Education | Entrepreneur

    [ad_1]

    As Brandon Bailey, founder and CEO of TutorD, built his career in software engineering, he came face-to-face with the “lack of diversity and inclusion” in tech — and he wanted to do something about it.

    Image Credit: Courtesy of TutorD. Brandon Bailey.

    Bailey worked at a consultancy in Chicago at the time, and as co-lead for one of the firm’s employee resource groups, he partnered with a couple of community-based organizations. One partnership was with a middle school in Bronzeville.

    The school was located about 15 minutes from Bailey’s home, but the students “had a totally different lived experience,” the founder recalls. Many of the kids had never been on an escalator or inside a skyscraper despite living just minutes from downtown.

    Related: Technology Opens the Door for Entrepreneurs to Achieve the Triple Bottom Line

    The program helped the students have those experiences and access internships and other opportunities. “That gave me this drive and passion for the educational experience and helping facilitate it,” Bailey says. “It changed my life. I know it changed [their lives].”

    But Bailey wanted to figure out how to reach even more people. He landed a job at an edtech startup in Los Angeles, California, and began to think about how he could bring together education, engineering and entrepreneurship.

    When considering the platform or tool that could accomplish that, Bailey noted one significant obstacle: There was an issue of connectivity for students who didn’t have access to computers in their homes. However, most students did have cellphones, so Bailey decided to meet the students where they were and build for those.

    Related: How DEI and Sustainability Can Grow Your Triple Bottom Line

    “We wanted to lead with providing value to the community first and gaining trust and buy-in.”

    Bailey officially founded TutorD, an edtech platform for teachers and tutors to enable distance learning, and TutorD Scholars, a nonprofit that teaches “urban youth in-demand 22nd century skills,” in 2019.

    “We wanted to lead with providing value to the community first and gaining trust and buy-in into what we were doing,” Bailey says. “So that’s why we led with the nonprofit TutorD Scholars first, while building out the software platform.”

    Teaching made it easier to figure out the specific tools students would need on the platform and how to tailor lessons to their unique learning styles.

    Related: This Black Founder Stayed True to His Triple ‘Win’ Strategy to Build a $1 Billion Business

     ”We’re teaching [the students] in different ways,” Bailey says, “so using visual, auditory, reading and kinesthetic. [It’s] a very intentional approach.”

    Entrepreneur sat down with Bailey to learn more about how he’s grown TutorD into a successful business — and the role that Intuit’s IDEAS accelerator program has played.

    Intuit’s IDEAS accelerator program provides founders access to capital and the company’s AI-powered platform, service and experts, plus business coaching from the National Urban League and executive coaching from Zella Life to support their business and professional growth.

    Related: Over Half of Small Businesses Are Struggling to Grow, Intuit Survey Shows — But These 5 Solutions Can Help

    Learning the accounting fundamentals was a game changer

    Through the IDEAS program, Bailey got valuable exposure to the basic accounting fundamentals, like cash flow and profit and loss statements, that make or break a business.

    “That wasn’t something I had a lot of support with growing up, looking back at it,” Bailey says. “In our household, [and] it is common across Black and brown households, we didn’t have that training around finances.”

    Receiving that technical training helped Bailey and the TutorD team develop a clearer sense of where the business was headed and how its costs and sales projections would shape that trajectory, the founder notes.

    Related: Why Accounting Skills Are Indispensable for Entrepreneurs

    Streamlining the business’s messaging was also key

    TutorD used Intuit’s MailChimp, an email and marketing automation platform for growing businesses, to streamline its communications.

    Not only did the platform make it easier for people to get in touch with TutorD, but it also helped cultivate a sense of presence — making the business seem bigger than it was, Bailey says.

     ”We’re a team of five right now, and we’re dealing with other companies that are 200, 500 people strong,” Bailey explains. “And they have $20 million backed by different investors. [MailChimp] helped us appear bigger than we are to compete in the market and with other edtech companies.”

    Related: How to Streamline Your Company’s Internal Messaging and Communication

    Leaning on mentors helped during tough times

    The business coach that Bailey connected with through Zella Life also became an integral part of TutorD’s journey.

    Having a support system in place was invaluable as Bailey juggled the challenges of growing a business with major life events, he says.

    “My father passed away, and my baby came, and I had an injury, all in a three-month span,” Bailey says. “My coach had also lost his mother around that time, so we [had a] really deep connection, and he was able to help.”

    Related: How to Evolve From Manager to Mentor and Create a Lasting Impact in Your Organization

    Bailey says that the IDEAS program put TutorD in the position to scale — and gave him and his team the confidence to talk to people about their journey.

    Advice for young entrepreneurs

    Bailey encourages other young, aspiring entrepreneurs to never stop learning, seek out opportunities where there’s a need and ability to create value, connect with other founders who can serve as mentors, and leverage the community to help lay the foundation for business success.

    He’s also excited to see people embracing the “triple bottom line,” which tracks a business’s financial, social and environmental performance — and suggests anyone considering the leap to founder do the same.

    “ People are waking up to [the fact that] it’s not just about making money and some infinitely growing, making-money approach to entrepreneurship and capitalism in general, but really looking at it with a triple bottom line approach, generating sustainable profit or revenue for yourself, your family, business and shareholders, but also making an impact in the community,” Bailey says.

    Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.

    [ad_2]

    Amanda Breen

    Source link

  • How to Leverage Fintech for Efficient Cash Management | Entrepreneur

    How to Leverage Fintech for Efficient Cash Management | Entrepreneur

    [ad_1]

    Opinions expressed by Entrepreneur contributors are their own.

    With limited resources and tough competition, efficient cash management can make or break your business. One major challenge is unpredictable cash flow, which often results from irregular sales cycles or delayed client payments. A 2023 QuickBooks survey revealed that 61% of small business owners find cash flow to be their biggest hurdle. This inconsistency can make it tough to plan and ensure there’s enough capital to cover essential expenses.

    Startups often rely on manual processes for things like invoicing, expense tracking, and financial reporting. These old-school methods can lead to errors, inefficiencies and a lack of real-time financial visibility. With tight budgets and limited expertise, managing cash flow becomes even more challenging. Tasks like reconciling multiple bank accounts and forecasting future cash flow can be overwhelming without the right tools. That’s why startups need a smarter approach to cash management, and fintech solutions are here to help.

    Related: How to Properly Manage the Cash Flow of Your Startup

    1. Fintech brings financial transparency

    There are tools that offer real-time payments and notifications, keeping you instantly informed about the status of your transactions. This means you can spot and address any issues right away, helping you stay on top of your finances and avoid any unexpected surprises.

    On top of real-time tracking, these tools can also forecast your future cash flow. They use past data and current trends to predict what your cash flow will look like down the road. This helps you plan better and avoid running into cash shortages. By knowing what to expect, you can make smarter decisions and ensure you have enough funds to cover future expenses, making your financial management smoother and more predictable.

    2. Perfect your numbers

    Fintech tools make keeping your financial records accurate by automating data entry, so you don’t have to do it all manually. For instance, payment software can automatically link with your accounting software and update your records for you. This reduces the chance of mistakes and keeps everything accurate without all the manual work.

    This means they can catch issues before they become big problems, helping you keep your records in check and avoiding costly mistakes.

    Related: Busywork Sucks — How Automation Can Eliminate Boring Tasks for Entrepreneurs

    3. Cut costs and streamline operations

    Fintech tools can help you save time and money by automating everyday financial tasks. They take care of invoicing, expense management and payroll automatically. This means you and your team spend less time on admin tasks and more on important work that helps your startup grow and even thrive.

    Digital payment solutions usually come with lower transaction fees than traditional banking methods. These services have cheaper processing costs as compared to the slow payment options, which helps you keep your budget in check. This way, you can manage your finances more efficiently and save on unnecessary expenses.

    4. Stay agile and make quick decisions

    Fintech solutions make transactions super-fast, so you can jump on financial opportunities or tackle needs instantly. With features like instant payments and real-time bank updates, you can make quick decisions that keep you winning and ready to respond to changes.

    Fintech tools provide detailed financial reports and analytics that help users make smart choices quickly. For startups, where timing is everything, having easy access to clear financial information lets users stay flexible and adapt on the fly. This agility helps users drive growth and challenges more smoothly.

    Related: Slow Payment Options Are Costing Your Business — Here’s the Alternatives of the Future

    Getting started with fintech

    So, how can you get fintech solutions working seamlessly in your startup? Here’s a simple strategy from my experience. Start with the basics — focus on core tools that address your immediate needs, like cash flow forecasting or automated invoicing and billing. Once you’re comfortable with these, you can gradually introduce more advanced tools, such as expense management systems or detailed financial analytics. Make sure the tools you choose integrate smoothly with your current systems to avoid disruptions and keep things running efficiently.

    Investing in training is also important. Around 70% of organizations provide training for their staff to effectively use new technologies. Proper training helps your team maximize the benefits of your fintech tools. Your team must know how to use the software and troubleshoot common issues. Many fintech providers offer training resources and ongoing support to help with this. Regular check-ins with your provider will update you on new features and best practices.

    Lastly, keep a close eye on how your fintech tools are performing. Regularly review their effectiveness to ensure they meet your needs and spot any inefficiencies. Be ready to adapt as your business grows or as new fintech solutions become available. Flexibility is essential for maintaining efficient cash flow management strategies and ensuring your startup stays on top of its financial game.

    [ad_2]

    Nick Chandi

    Source link

  • The Cannabis Market: Not a ‘Get Rich Quick’ Scheme, But a Serious Business Industry Requiring Expertise – Cannabis Business Executive – Cannabis and Marijuana industry news

    The Cannabis Market: Not a ‘Get Rich Quick’ Scheme, But a Serious Business Industry Requiring Expertise – Cannabis Business Executive – Cannabis and Marijuana industry news

    [ad_1]





    The Cannabis Market: Not a ‘Get Rich Quick’ Scheme, But a Serious Business Industry Requiring Expertise – Cannabis Business Executive – Cannabis and Marijuana industry news




























    skip to Main Content

    [ad_2]

    Derek Ross

    Source link

  • Safety net hospital fund shortfall widening

    Safety net hospital fund shortfall widening

    [ad_1]

    BOSTON — Lawmakers are seeking more support for the state’s safety net hospitals amid rising concerns about the fiscal health of a fund that helps cover medical costs for large numbers of uninsured and low-income patients.

    Hospitals and health insurers pay into the so-called safety net fund – a pool of money that helps fund care for hundreds of thousands of low-income residents who are uninsured or underinsured – with the state chipping in additional funding. But if the fund runs low, hospitals are on the hook for the shortfall.

    The fund is projected to have a shortfall of more than $220 million in the upcoming fiscal year, hospitals say, rising to the highest level in nearly two decades.

    Without additional funding, financially challenged hospitals will be forced to cover the deficit, leaving less money to provide medical care for low-income and uninsured patients, they say.

    An amendment to the Senate’s version of the $57.9 billion state budget filed by Sen. Barry Finegold, D-Andover, would require commercial health insurance companies to cover 50% of any revenue shortfalls in the safety net fund.

    “We need to do something to help our local hospitals,” Finegold said. “This is part of a long-term problem with funding for hospitals that serve the state’s most vulnerable residents. We need to fix it.”

    Many earmarks

    Finegold’s proposal is one of more than 1,000 amendments to the Senate’s budget, many of them local earmarks seeking to divert more state money to local governments, schools, cash-strapped community groups and nonprofits. Only a handful will likely make it into the Senate’s final spending package.

    The plan faces pushback from the Massachusetts Association of Health Plans, which represents commercial insurers who would be impacted by the proposed changes to the hospital safety net program.

    Lora Pellegrini, the group’s president and CEO, said requiring insurers to cover the fund’s shortfalls would jeopardize negotiations between the state Department of Health and Human Services and the U.S. Centers for Medicare and Medicaid Services that seek to reduce assessments paid by medical insurance carriers.

    “This really came out of nowhere, and would be counterproductive to those efforts,” she said. “We have a committee process for a reason and that’s where these kinds of special interest issues should be vetted, not in the budget.”

    But the move is backed by the Massachusetts Health and Hospital Association, which says requiring insurers to cover the shortfall would help alleviate an “unmanageable financial burden” on the health care system “by broadening funding support for the program.”

    “The Health Safety Net is a vital component of Massachusetts’ healthcare infrastructure and its ability to cover the costs of care for low-income and uninsured patients,” Daniel McHale, MHP’s vice president for Healthcare Finance & Policy, said in a statement.

    “At this increasingly fragile time for the entire health care system, it is imperative that we take the steps needed to stabilize the safety net for the people and providers who rely on it each day.”

    Local hospitals affected

    The state’s safety net hospitals and community health centers – which include Lawrence Hospital, Salem Hospital, Holy Family Hospital in Methuen and Anna Jaques Hospital in Newburyport – serve a disproportionate percentage of low-income patients.

    Many are heavily dependent on Medicaid reimbursements, which are typically less than commercial insurance payouts.

    Nearly 30% of Lawrence General’s gross revenue is for care provided to Medicaid, or MassHealth, patients. The state average is 18%.

    Many community hospitals are collecting from low-paying government insurance programs, and getting below-average reimbursements from commercial insurers, advocates say.

    Lawmakers also swept money from the hospital safety net fund to help cover the costs of new Medicare savings programs that pay some or all of eligible senior citizen’s premiums and other health care costs, including prescriptions.

    Hospitals are also seeing increased demand from uninsured patients as hundreds of thousands of Medicaid recipients see their state-sponsored health care coverage dropped following the end of federal pandemic-related programs, which is driving up costs. Claims processing problems are another factor adding to hospital costs, they say.

    Those and other factors have widened the fund’s shortfall from $68 million in fiscal 2022 to more than $210 million in the previous fiscal year, according to the hospital association. Combined, the shortfall could reach $600 million for the three fiscal years, the association said.

    Biggest expense

    The House, which approved its $58.2 billion version of the state budget two weeks ago, proposed $17.3 million in state funding for the hospital safety net fund. The Senate, which begins debate on its version of the budget next week, has proposed a similar amount.

    In the current budget, the state allocated $91.4 million for the safety net fund.

    But the House budget didn’t include an amendment requiring insurers to help hospitals pay the shortfall. That means even if the Senate approves Finegold’s amendment, it would still need to be negotiated as part of the final budget before landing on Gov. Maura Healey’s desk for consideration.

    Health care coverage, in the meantime, is one of the state’s biggest expenses. Medicaid costs have doubled in the past decade and now account for nearly 40% of state spending.

    MassHealth serves more than 2 million people – roughly one-third of the state’s population – despite federal Medicaid redeterminations that have reduced its rolls over the past year.

    [ad_2]

    By Christian M. Wade | Statehouse Reporter

    Source link

  • Gloucester woman awarded scholarship by MassCPAs

    Gloucester woman awarded scholarship by MassCPAs

    [ad_1]

    BOSTON — Kori DiMaio of Gloucester was awarded the Kathleen Peabody CPA Memorial Scholarship on Tuesday by the Massachusetts Society of Certified Public Accountants.

    DiMaio, a student at UMass Amherst, was one of 51 students selected to receive a scholarship through the MassCPAs Educational Foundation’s 2024 Scholarship Program. The students were honored at MassCPAs’ annual, member-wide networking event, Connect 2024, on Wednesday.

    “The dedication and talent of these scholarship recipients is truly inspiring,” said Zach Donah, CAE, president and CEO of MassCPAs. “Their commitment to the accounting profession fills us with confidence about the future of the industry in Massachusetts. We’re honored to support their academic journeys and play a role in their success. We extend our sincere gratitude to this year’s donors and volunteers for helping students achieve their dreams through our scholarship program.”

    MassCPAs is the state professional association of certified public accountants, representing over 11,500 members in public accounting practice, industry and business, government and education.

    [ad_2]

    Source link

  • Bankrupt Steward to sell hospitals

    Bankrupt Steward to sell hospitals

    [ad_1]

    BOSTON — Bankrupt Steward Health Care System said it plans to sell all its hospitals — including eight in Massachusetts — to help pay off $9 billion in outstanding liabilities.

    The privately owned health care group is preparing to put its 31 U.S. hospitals up for sale as early as next month and hopes to finalize transactions by the end of the summer, the company’s attorneys said at a Tuesday hearing in a U.S. Bankruptcy Court in Texas.

    Steward, which filed for bankruptcy protection on Monday, plans to keep all of its hospitals open over the long term, attorney Ray Schrock told U.S. Bankruptcy Judge Chris Lopez, who is overseeing the company’s Chapter 11 proceedings.

    “Our goal remains that there are zero hospitals closed on our watch,” Schrock said. “There’s going to be a change in ownership in many hospitals, we recognize that. But we don’t want to see any of these communities fail to be served.”

    In court filings, Steward disclosed that it has $9 billion in liabilities, including $1.2 billion in loans, $6.6 billion in rent obligations, $1 billion owed to medical vendors and suppliers, and $290 million in unpaid employee wages and benefits.

    The company plans to hold auctions on June 28 for its hospitals outside of Florida, according to court filings. The deadline was negotiated as part of a $75 million bankruptcy loan, but Schrock said Steward may seek more time to sell its hospitals if necessary.

    “What we don’t want to do is have a fire sale of the assets,” Schrock told the judge, according to published reports. “There is a lot of value here.”

    Steward, the largest private for-profit hospital chain in the country, operates 31 hospitals across eight states — including Holy Family Hospital in Methuen and Haverhill — and employs more than 30,000 people, according to its website.

    The company also operated New England Sinai Hospital in Stoughton, which closed in April, leaving behind millions of dollars in unpaid rent and fees.

    Steward’s management has cited an increase in operating costs and insufficient federal government-program reimbursement among the factors leading to the Chapter 11 bankruptcy filing.

    Gov. Maura Healey has blamed “greed and mismanagement by Steward’s management, and says the bankruptcy process will increase transparency in the company’s hospital system.

    Healey has stressed that medical care will continue at the Steward hospitals throughout the bankruptcy proceedings and that patients won’t go without medical care.

    “Ultimately, this is a step toward our goal to getting Steward out of Massachusetts, and it allows us to do that to protect access to care, preserve jobs, and stabilize our health care system,” she told reporters at a Tuesday briefing on the company’s bankruptcy filing.

    The Healey administration has activated an “emergency operations plan” in response to Steward’s financial woes, including a command center to monitor the company’s hospitals in the state and manage the fallout of a bankruptcy filing.

    In a court fling ahead of Tuesday’s bankruptcy hearing in Texas, Attorney General Andrea Campbell argued that Steward “extracted value” from its Massachusetts hospitals to “pay substantial dividends to investors and expand their network in other states.”

    “These diversions have threatened to impact the debtors’ hospitals’ ability to provide health care within the commonwealth,” she wrote. “The debtors’ hospitals have been left without adequate resources to timely acquire and maintain needed equipment and infrastructure or even ensure an uninterrupted supply of emergency room drugs. Many are in disrepair.”

    Healey and members of the state’s congressional delegation, including Sen. Elizabeth Warren, have criticized the private equity firm Cerberus Capital Management’s role in Steward’s finances. Cerberus created Steward after buying St. Elizabeth’s and five other Catholic hospitals in Massachusetts in 2010, according to the company’s website.

    In a statement, the company’s CEO, Ralph de la Torre, said the bankruptcy proceeding will ensure that the company is “better positioned to responsibly transition ownership of its Massachusetts-based hospitals, keep all of its hospitals open to treat patients, and ensure the continued care and service of our patients and our communities.”

    Material from the Associated Press was used in this report.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    [ad_2]

    By Christian M. Wade | Statehouse Reporter

    Source link

  • Andover voters OK an extra $1.8M to save school jobs

    Andover voters OK an extra $1.8M to save school jobs

    [ad_1]

    ANDOVER — After almost three hours of debating town finances Monday night, voters approved an operating budget with an additional $1,875,000 to prevent cuts in school positions.

    The new operating budget totals $235.9 million with the amended increase allocated for the school budget. Voters at the annual Town Meeting increased the budget to save 34 positions the school district is looking at cutting to eliminate a $2.7 million shortfall. 

    More than 900 voters turned out at Andover High School for Town Meeting, which continues Tuesday. Andover needs to balance its budget before the new fiscal year begins July 1. 

    The proposed cuts of 34 school positions amount to about $2.5 million in annual salary. The previous operating budget was $234 million.

    During debate on the budget, which included three votes on amendments, school staff members, parents and other residents made cases for why the cuts should be prevented. Others, including community officials and some residents, stressed the importance of long-range financial planning.

    “The quality of education in Andover will be diminished,” said Mary Robb, a social studies teacher at Andover High School.

    As town officials work to balance the new budget, it is unclear if the extra funding would have the desired effect of preventing all or even some of the cuts. Since the extra money was appropriated for schools, the School Committee will need to decide how it will be spent.

    Committee Chair Lauren Conoscenti said immediately after the meeting that the committee did not yet have a plan for the additional money. 

    To balance the budget, the town will need to either reduce expenses or hold a Special Town Meeting to appropriate more money, according to Town Manager Andrew Flanagan.

    During the meeting, many in the community advocated for free cash to be used to save the jobs. Officials pushed back against the idea, stating it is against state Department of Revenue guidelines to use free cash for ongoing expenses.

    Flanagan argued for sticking with the town’s budget and spoke against the solutions proposed by residents.

    “These ideas are contrary to the guiding principles that have provided the town with financial stability,” he said. “I respectfully ask that you consider the option of adhering to our plan.”

    Residents voted 488-451 against an amendment to increase the school operating budget by $2.7 million. But they also voted for the amendment to increase the school operating budget by $1.8 million.

    Operating budgets tend to make up the majority of the town’s overall budget.

    Votes on the operating budget are also often straightforward and residents’ ability to vote down the budget or amend it is rarely utilized. With hundreds of millions of dollars allocated to various departments, amending the budget can be a tricky task for residents.

    Before the amendment, the school budget totaled $103,335,959, an increase of $3,735,035 or 3.75% in the current budget.

    Personnel make up about 80% of the school budget, according to the district.

    The budget deficit is mainly the result of a contract won by the teachers union during a strike, as well as an increase in costs for services such as transportation, according to the school district. 

    Conoscenti reinforced that fact during the meeting.

    “During the strike, this point was repeatedly made,” she said. “The educators acknowledged that was something we were wrestling with.”

    School budget shortfalls are not unique to Andover this year, with North Andover facing a deficit of $3.1 million.

    Cutting positions is expected to affect class sizes, however, the School Committee has said it will stick to the district’s goals.

    Ever since the Andover Education Association was awarded the new contract, the union has said the cuts were proposed in retaliation for a largely successful strike. 

    School officials have said the cuts are also in line with reductions in enrollment that total about 11% over the past decade.

    School instructional assistant Holly Currier said staff are asked to do more.

    “Students’ needs have grown in complexity every year,” she said. “The level of need demands more staff.”

    Officials have also said larger-than-usual increases in school spending would be unwise. For each of the last few years, Andover has increased its school budget by roughly 3.75%. The norm promotes the long-term financial health of the town and stops departments from having to fight for their budgets at Town Meeting, according to officials.

    Town Meeting concluded on Monday night with only a handful of the 34 articles being taken up. The meeting resumes Tuesday at 7 p.m. at Andover High School when a proposal for a state-mandated zoning district will be addressed.  

    [ad_2]

    By Teddy Tauscher | ttauscher@eagletribune.com

    Source link

  • Teachers, others back suspended North Andover school superintendent

    Teachers, others back suspended North Andover school superintendent

    [ad_1]

    NORTH ANDOVER — About 80 teachers and school advocates turned out at the School Committee meeting Thursday night with signs supporting School Superintendent Gregg Gilligan after he was placed on paid administrative leave Tuesday.

    The teachers read statements and cheered each other on in the North Andover High School auditorium. The signs ranged from “We support Dr. Gilligan, Dr. Mealey, and the administrative team” to “S.O.S. Save Our Superintendent.”

    “He has been a very good superintendent for us,” said Juliette Darmon, president of the North Andover Teachers Association. “He works collaboratively with the association.”

    Gilligan was placed on paid administrative leave following an announcement at a Select Board meeting Monday that the school district is facing a projected deficit of $3,122,565, or about 6% of the district’s budget for fiscal 2024.

    In explaining the deficit to the board Monday night, Gilligan said the district faced “some major hits” this year. They included increases in special education and homeless student transportation costs, a lack of elementary and secondary school emergency relief funding, and the need for 38 long-term teaching substitutes as of Monday.

    On Tuesday, School Committee Chair Dave Brown suspended the superintendent.

    “In my judgment, this was in the best interest of the district,” Brown said at the committee meeting Thursday. “This is me taking on the responsibility I was elected to do.”

    The committee decided unanimously Thursday night to keep Gilligan on paid administrative leave to allow for an investigation of the deficit. No timeline was discussed.

    Prior to the meeting Thursday, Brown asked Assistant Superintendent Pam Lathrop, an educator since 1989, to serve as acting superintendent. The committee approved.

    “I never expected to be saying yes to this,” said Lathrop, who joined the district in July. “I wanted to be part of Dr. Gilligan’s administrative team … . In my short time that I’ve been here, I’ve seen incredible leaders do incredible work.”

    Lathrop said she and the rest of the administration, including Gilligan, take full responsibility for the “mistake” that occurred. She told a story about how when Gilligan hired her, he told her that at any moment she may need to step up and that he trusted her to do so.

    Two residents said during the public comment session Thursday that they voted “no confidence” in Gilligan, saying he was not transparent in financial matters for years and “not cut out to lead the district.”

    Some teachers and staff members criticized the move, calling the administrative leave “reactionary and unnecessary” since Gilligan was unable to answer any questions prior to being put on administrative leave.

    Gilligan has worked for North Andover Public Schools since 1998, serving as a teaching assistant, high school history teacher, principal of Thomson Elementary School and assistant superintendent. He accepted his current position in 2018 and his contract runs through 2026.

    Three principals spoke on behalf of the district’s administration at the meeting Thursday, highlighting Gilligan’s impact on the community. They said Gilligan’s work has been “ignored or overlooked.”

    “We believe this was a profound lapse of judgment,” said Joseph Clarke, principal of Franklin Elementary School, calling the move “calculated and cruel.”

    “A School Committee couldn’t find a superintendent more invested in our community than Dr. Gilligan,” he said.

    Darmon presented a letter, signed by the four former association presidents as well, to the committee on Thursday night to show the union’s support.

    “We hope he gets reinstated as soon as possible,” Darmon said. “We feel this was completely uncalled for.”

    Multiple teachers also spoke up during the public comment session prior to the superintendent discussion They called the $3 million deficit “not unique nor an anomaly.”

    “It is evident from the information that Dr. Gilligan and Dr. Mealey presented to the (Select Board) that even the most careful planning could not have compensated for the unprecedented overtures this year,” according to a statement from the association read by many teachers.

    “Rather than blaming our school leaders let’s take a look at where the responsibility might fall,” the statement said.

    Kathleen Tanis, the association’s vice president, said the deficit was “bound to happen.”

    “This is not a unique situation to North Andover. The fact is this is occurring in neighboring towns across the state of Massachusetts and the nation,” Tanis said. “Right now, we should be focused on keeping our administration in place to help steer us through these difficult times.”

    Follow Monica on Twitter at @MonicaSager3

    Follow Monica on Twitter at @MonicaSager3

    [ad_2]

    By Monica Sager | msager@eagletribune.com

    Source link

  • Manchester-by-the Sea Town Meeting backs senior center plan. lauinch service

    Manchester-by-the Sea Town Meeting backs senior center plan. lauinch service

    [ad_1]

    MANCHESTER-BY-THE-SEA — Considering 21 articles on the warrant was no easy task but annual Town Meeting wrapped it up in about three hours.

    Town Moderator Alan Wilson banged the gavel to convene the meeting Wednesday at Manchester Memorial Elementary School precisely at 6:30 p.m. and adjourned it at 9:12 p.m. Midway through, Wilson reported a quorum of 317 voters present.

    The meeting approved financing for a new senior center, the operation of a launch service in Manchester Harbor, and a number of capital projects, including $7,550,000 to make capital improvements to the town’s water and wastewater systems.

    It also approved a fiscal year 2025 budget amounting to $42,336,058, with $16,818,112 for the town operating and enterprise budgets for water and sewer, and debts; $19,060,435 for town’s share of Manchester Essex Regional School District’s operating budget and debt service; $243,385 for the North Shore Agricultural & Technical School; and $2,642,740 for capital items.

    Each of the above articles passed by substantial margins with voters using electronic vote tallying devices.

    Finance Committee Chairperson Sarah Mellish said the budgets received much careful consideration.

    “The Finance Committee feels this budget is prudent and addresses the needs of the town,” she said. “This is a lean budget that meets the town’s needs.”

    Article 6 authorizing the Select Board to raise or borrow $1 million to buy the Masons’ 26,045 square foot parcel at 10 Church St. needed a two-thirds majority and was approved by a sizable margin, prompting a rousing cheer. Many applauding were senior citizens.

    Select Board member Brian Sollosy moved the measure, which was seconded by Select Board member John Round.

    Responding to a question about whether the building is the right place for a town-operated facility, being at the edge of Manchester Harbor, Town Administrator Gregory Federspiel said the elevation of the Masons’ building protects it from storm surge.

    “This building is in pretty good shape,” Federspiel said. An appraisal a few years ago estimated the building’s value to be about $800,000.

    “We do feel the price is appropriate,” he said.

    The town will start running a launch service in Manchester Harbor after Town Meeting voted 309-34 to purchase to two launch boats and fund operating expenses for this fiscal year and next.

    Select Board member Catherine Bilotta said town officials, including Harbormaster Bion Pike, put together a prudent business plan for the launch service.

    “All of these costs are going to be reimbursed by user fees,” she said. “The entire endeavor is to be funded entirely by user fees.”

    Mellish said the effort should eventually be self-sustaining.

    “If you want to use a launch, contact the harbormaster and he’ll gladly take your money,” she said.

    The meeting also approved paying the town’s share of the Manchester Essex Regional School District’s $16,339,528 gross operating and maintenance budget for fiscal 2025, $2,720,907 to cover its long-term debt, and $660,000 for a feasibility study for Essex Elementary School.

    Superintendent Pamela Beaudoin said the Manchester Essex Regional School Committee will eventually narrow its focus to considering possible renovation or new construction for the school, 12 Story St. in Essex.

    “We really lean heavily on community experts,” she said.

    Spending $481,670 of Community Preservation Fund money on restoration of the First Parish Church steeple and resurfacing of the Sweeney Park basketball court, among other things, was approved, but not before a motion was made to eliminate $200,000 to fund the Manchester Affordable Housing Trust. The motion was defeated 178-45.

    Here is a condensed version of the articles on the meeting’s warrant and votes:

    1 – Receive reports of the town’s boards and committees. APPROVED.

    2 – Fix the salaries of the town moderator and members of the Select Board at $0 per year. APPROVED.

    3 – Raise $243,385 as the town’s share of the budget for the Essex North Shore Agricultural and Technical School District. APPROVED.

    4 – Raise sums by taxation to pay town debts and charges — $42,336,058 — for the coming fiscal year, effective July 1. APPROVED.

    5 – Spend the following, all of which were APPROVED:

    — Road resurfacing — $550,000.

    — DPW facility siting, geotechnical analysis — $250,000.

    — Drainage and sidewalk improvements — $250,000.

    — Storm damage repair — $50,000. Not recommended.

    — General building upgrades — $50,000.

    — Backhoe replacement — $150,000.

    — IT and telephone upgrades at Town Hall — $30,000.

    — Planning and zoning studies — $20,000. Not recommended, in operating budget.

    — Library walkway repairs — $6,500.

    — Library building assessment — $43,500.

    — Fire engine replacement fund — $250,000. Not recommended.

    — Ambulance 2 replacement — $470,000.

    — Police tasers — $12,600.

    — Police administration vehicle replacement — $73,000.

    — Cardiac monitors and defibrillators — $54,000.

    — Fire Station repairs and upgrades — $30,000. Not recommended, in operating budget.

    — Dredging/engineering/permitting — $100,000.

    — No wake buoys — $9,500.

    — Plant upgrades/PFAS design — $2 million. $150,000 recommended.

    — Pipe replacement/improvements — $2 million. Not recommended.

    — Meter replacements (for “smart” meters) — $1.5 million. Not recommended.

    — Water truck replacement — $50,000.

    — Plant upgrades/Equipment replacement – $4.1 million. $550,000 recommended.

    6 – Raise or borrow $1 million and authorize the Select Board to use it to acquire, for a senior center and, or community center, all or a portion of the Masons’ 26,045 square foot parcel at 10 Church St. APPROVED.

    7 – Raise or transfer money to operate a town-sponsored launch service in Manchester Harbor including $9,500 for fiscal 2024 operating expenses, $125,000 for the purchase of two launch boats, and $41,000 for fiscal 2025 launch operating expenses. APPROVED.

    8 – Spend $7,550,000 — $4,100,000 on the town’s water system and $3,450,000 on the town’s wastewater system — for capital improvements. APPROVED, 290-33.

    9 – Spend Massachusetts Public Library Construction Program grant funds and re-appropriate $150,000 of the $200,000 previously appropriated for restroom renovations at Manchester-by-the-Sea Public Library. APPROVED, 200-19.

    10 – Create a Special Opioid Settlement Stabilization Fund and dedicate 100% of the opioid litigation settlement funds to the fund. APPROVED.

    11 – Raise or transfer money for the town’s assessment for the gross operating and maintenance budget of the Manchester Essex Regional School District. APPROVED.

    12 – Raise or transfer $660,000 for the town’s apportioned share of the Essex Elementary School feasibility study. APPROVED, 244-44 .

    13 – Raise or transfer $248,348 to fund the town’s share of the cost to refurbish the turf fields in town. APPROVED.

    14 – Hear and act on the report of the Community Preservation Committee on the fiscal 2025 Community Preservation budget and to appropriate $481,670 from the Community Preservation Fund money to meet the administrative and other expenses of the committee for fiscal 2025. APPROVED.

    Included in the $481,670 total amount is:

    – $200,000 for the Manchester Affordable Housing Trust Project funding.

    – $60,000 for restoration of the First Parish Church steeple.

    – $28,500 to resurface the Sweeney Park basketball court.

    – $25,000 for restoration of town cemeteries.

    – $24,400 for portico restoration at Hooper Trask House.

    – $20,000 for Power House Hill parking and access easement.

    15 – Authorize the Select Board to acquire an access and parking easement on property owned by the Manchester Housing Authority at Newport Park for access to Powder House Hill conservation lands.  APPROVED.

    16 – Raise or transfer $100,000 to supplement the fiscal 2024 Legal Expenses Account. APPROVED.

    17 – Raise or transfer $300,000 to be deposited into the town’s “Other Post Employment Benefits Trust Fund.” APPROVED.

    18 – Set fiscal 2025 imitations on expenditures by the town’s recreation programs at $400,000; and the town’s Board of Health Emergency Dispensing Sites and Clinics Programs at $50,000.  APPROVED.

    19 – Amend the Tobacco Products Regulations and Tobacco Use Regulations of the town’s General Bylaws as fines and enforcement are covered by other bylaws and state statutes/regulations.  APPROVED.

    20 – Amend Article X, Section 23 of the General Bylaw on non-accessory signs by adding the language: “The provisions of this section shall not apply to non-accessory signs located on town-owned property, subject to the approval by the Select Board, nor to non-accessory signs on town-owned property used for educational purposes, subject to approval by the Manchester Essex Regional School Committee.”  APPROVED.

    21 – Raise or transfer money to reduce the tax rate. NO ACTION TAKEN.

    Stephen Hagan can be reached at 978-675-2708 or at shagan@northofboston.com.

    [ad_2]

    By Stephen Hagan | Staff Writer

    Source link

  • Bay State ranked poorly on financial literacy

    Bay State ranked poorly on financial literacy

    [ad_1]

    METHUEN — Financial illiteracy is an unfortunate plague among Americans, with only 57% equipped to make informed financial decisions, according to MarketWatch.

    While April may be financial literacy month, Massachusetts has earned a C grade by MarketWatch, marking the importance of education-related bills like the one state Rep. Ryan Hamilton, D-Methuen, is proposing.

    “When it comes to anything on education in Massachusetts, a C is not good enough,” Hamilton said. “We have to work to get to that A.”

    Hamilton is fighting to require financial literacy education for all Massachusetts high school students.

    His bill, an act relative to student financial literacy, was reported favorably by the Joint Committee on Education on April 1. It has since been referred to the Senate Committee on Ways and Means.

    “There’s still a lot of bars that we need to clear,” Hamilton said. “There’s still a lot of work for us to accomplish.”

    The act would require all public high school students to complete a standalone financial literacy course prior to graduation.

    Students would study a variety of topics, like investments, managing debt and building good credit.

    The bill calls for a financial literacy trust fund, which would provide funding to underserved school districts. The act also directs the Department of Education and Secondary Education to create professional development training standards for educators.

    The act’s language, however, says school districts “may incorporate the financial literacy standards” into existing curriculum.

    Other topics students would learn in the course include earning and spending income, charitable giving, methods of payment, consumer protection, balancing ledgers and checkbooks, budgeting, the role of banks, long-term savings, credit, investments and emerging technology like crypto.

    Students would be required to take at least a half of a semester’s credit of coursework on the topic.

    Pennsylvania became the most recent state to guarantee a standalone half-credit course in financial literacy. The Keystone State became the 25th in the country.

    Other states that have passed regulations for some form of financial literacy course within the high school level include Wisconsin, Oregon, Louisiana, New Hampshire, Connecticut and West Virginia.

    “I think we have a good shot at becoming that 26th state,” Hamilton said. “I’m not the only one working on it. We’ve been really working together.”

    States that have passed financial literacy regulations, including West Virginia, Oregon, Minnesota, Indiana, Florida, and Nebraska, all have A grades from MarketWatch.

    “Financial literacy is crucial nationwide as it empowers individuals to achieve financial stability, avoid pitfalls that lead to hardship, and participate in economic activities like investing,” said David Straughan, personal finance writer with MarketWatch Guides.

    Massachusetts received a C because the state has some standards for financial literacy, but nothing is required or necessarily offered as a standalone course. Hamilton said the C is an improvement from an F grade a few years ago, but that he still would like to see the state get to an A.

    A recent MarketWatch Guides survey found that more than half of Generation Z were unfamiliar with CDs, high-yield money market accounts and Roth IRAs. The average American lost $1,506 in 2023 due to financial illiteracy in credit card interest and fees, overspending and fraud.

    “Implementing a stand-alone financial literacy course requirement in high schools is a proactive step that could significantly benefit students and their communities,” Straughan said.

    “While it may not be the end-all solution, equipping students with personal finance knowledge and skills could contribute to improved financial resilience and decision-making within families over time, as these abilities are passed down generationally.”

    Follow Monica on Twitter at @MonicaSager3

    [ad_2]

    By Monica Sager | msager@eagletribune.com

    Source link

  • Student loan providers make millions of billing errors

    Student loan providers make millions of billing errors

    [ad_1]

    Private companies overseeing the federal government’s college loan programs made “millions” of errors implementing new repayment plans, costing student borrowers time and money, according to a new congressional report.

    The report, released by Massachusetts Sens. Elizabeth Warren and Ed Markey, along with two other Democratic lawmakers, said the major loan servicers under contract with the U.S. Department of Education made more than 3.9 million “billing-related errors” once repayment of federal student loans resumed last fall.

    “The four student loan servicers that were under contract with ED at the end of the payment pause had ample time, clear contractual requirements, and sufficient funding from the federal government,” the report states. “Yet, they still made a series of mistakes that harmed millions of borrowers when payments restarted.”

    The report is based on data from the U.S. Education Department and federal audits that detailed delayed billing statements, “miscalculations” for borrowers converting to the new SAVE income-driven repayment plan, and payment miscalculations on borrowers’ income, family size or marital status.

    The loan servicing companies – EdFinancial Services, Higher Education Loan Authority of the State of Missouri, Maximus Education and Nelnet Diversified Solutions – responded to the allegations in a series of letters to the lawmakers that detail how they were challenged once loan repayments resumed.

    In a January letter, MOHELA said it has struggled to adjust to “evolving” loan servicing requirements from the U.S. Department of Education’s office of Federal Student Aid when millions of borrowers resumed repayments after a multiyear pause. A lack of federal funding compounded the efforts, the company said.

    “FSA has allocated only limited funding for servicing during the unprecedented event and throughout the ‘on-ramp’ period, funding which pales in comparison to the enormity of work associated with assisting millions of borrowers in a condensed time frame,” the company wrote.

    Nelnet blamed the federal government, in part, for the bungled resumption of student loan repayments and said it could “have avoided foreseeable borrower impacts and created a better customer experience.”

    “Unfortunately, borrowers were instead met with confusing and conflicting announcements of program changes, were told no payments were required, that interest would not accrue, indefinitely, and were promised their loans would be discharged,” Jeffrey Noordhoek, NelNet’s CEO, wrote to Warren.

    It’s not clear if the congressional report will lead to sanctions against the loan servicers. Last year, the Education Department released guidelines outlining steps it could take to punish servicers who fail to fulfill their contractual obligations, including withholding pay and transferring borrowers to other loan servicers.

    But the lawmakers said in the report that more should be done to help borrowers impacted by the errors, and called on the Biden administration to provide debt relief for those who were overbilled on loan repayments.

    “To remedy servicers’ historic failures and protect borrowers from future harms, there must be a path for debt relief for borrowers harmed by their servicers,” they wrote.

    Federal student loan servicing companies have been under intense scrutiny from Congress, which has held oversight hearings grilling education officials on efforts to reduce student debt. More than 43 million borrowers in the United States are carrying an estimated $1.6 trillion in student loan debt, according to federal data.

    Overall, the lawmakers said loan servicing companies have a “decades-long pattern of failures” and said the COVID-19 pandemic exacerbated a lack of accountability in the system that “allowed abuses to go unchecked and caused harm for borrowers crushed by student loan debt.”

    “These failures have resulted in borrowers being unable to properly manage their loans and take advantage of long standing student debt relief programs,” they wrote.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    [ad_2]

    By Christian M. Wade | Statehouse Reporter

    Source link

  • City’s CFO remembered as ‘seasoned and savvy municipal CFO’

    City’s CFO remembered as ‘seasoned and savvy municipal CFO’

    [ad_1]

    John P. Dunn, the city’s chief financial officer for the past decade, died Monday, March 4, at age 71.

    Dunn served with three Gloucester mayors while also having overseen municipal finances in Beverly as The Garden’s City’s finance director for 18 years.

    Former Mayor Carolyn Kirk tapped Dunn to the job formerly held by Jeff Towne when he accepted a position in Natick, according a Jan. 3, 2014 article in the Times.

    At the time of his hiring, Kirk said Dunn came highly recommended by outgoing Beverly Mayor Bill Scanlon with now Beverly Mayor Mike Cahill bringing in his own team during the transition, freeing up Dunn to take the job in Gloucester.

    “He was by far and away the best candidate,” Kirk said at the time.

    On Thursday, Kirk said “John was a seasoned and savvy municipal CFO under three mayors here in Gloucester. Every day he carried out his role as steward of the public trust to the highest standards and with a calm demeanor.

    “We’ve been lucky to have his talents devoted to the citizens of Gloucester over the past 10 years and my sincere condolences are extended to his family and his colleagues at City Hall.”

    Dunn served the longest with former Mayor Sefatia Romeo Theken, who was mayor for seven years from 2015 until 2021. She called Dunn “a great friend” and that he “would be sadly missed.”

    “He was a great CFO,” Theken said, saying Dunn “worked closely with my administration with Jim Destino, the CAO, and Kenny Costa, the auditor.

    “Those three were powerhouses who started to move Gloucester forward. They worked great together to make sure that our departments and the schools always had funding that was needed for the city to survive.”

    Dunn worked well with and respected others, Theken said.

    “He had a dry sense of humor, but it was great,” she said.

    He worked steadily through the COVID-19 pandemic with Thekan’s staff “and I came in during COVID to make sure that no one was left alone in City Hall.”

    Mayor Greg Verga said of Dunn, “First of all, he was just a great guy. He was really funny in just his own way. He was one of those guys who looked serious, a numbers guy, but he was a funny guy.”

    Verga said when he came in as mayor, Dunn was helpful in boiling down the budget for him: “Budget 101 for me.” Even though Verga served on the City Council for six years, it was just a whole different story, he said, going through the budget line-by-line.

    “And he was a magician, you know,” Verga said, when it came to Dunn being able to arrange the financing for city projects.

    “He just knew how to set up all the dominoes so they just stayed perfectly,” he said.

    Dunn’s death is a big loss for the city as one of the key people he worked with, “but I think it’s a bigger loss because of him as a person,” Verga said.

    Chief Administrative Officer Jill Cahill, who served with Dunn in city government for seven years as the former director of community development and in her present role, said: “He taught me so much. John taught me a lot about municipal government, about municipal finance. He was a mentor and he was always there for everybody. His answer was always: ‘Don’t worry about it, we’ll get it done. I’ll find the money.”

    As to the city’s finances, as Dunn also served as the city’s treasurer and collector, Cahill said they are in good hands with the assistant treasurer and a consultant who the city has hired who is a seasoned CFO.

    Dunn was a native of New Providence, New Jersey, and the husband of Pat McCullough Dunn for 45 years. He lived in New Jersey until he came to Massachusetts to attend Tufts University, according to his obituary for the Campbell-Porter Funeral Home in Ipswich.

    Dunn and his wife settled in Beverly, where he worked for 18 years as the chief financial officer. He was proud of his efforts to modernize and improve Beverly schools and other capital projects there, his obituary reads.

    “Terrific guy,” said Scanlon, Beverly’s longest-serving mayor. “Extremely capable. Honest as you can be. Low-key. Well-liked, just a great guy.”

    Scanlon plans to give a eulogy at Dunn’s funeral next week, on March 13.

    He said Dunn, who had been a bank executive, first began working in Beverly in the treasurer’s office before becoming Beverly’s finance director in the mid 1990s.

    Scanlon, who was mayor in Beverly from 1994 to 2001 and then again from 2004 to 2013, said when he lost a bid for reelection during his first go as mayor, Dunn went to work in Melrose, and when Scanlon was reelected, Dunn came back. When Scanlon decided to retire in 2013, Scanlon spoke to Kirk about Dunn.

    “I told him he would be available and she hired him in a minute,” Scanlon said.

    In addition to his wife, Dunn is survived by his daughter, Abby Carmean and her husband Chris of Greenwood, Delaware, and son Andrew and his partner, Justine of Nashua, New Hampshire and grandsons Owen, Riley and Quinn, who his obituary indicates Dunn cherished as they called him, ‘Papa John.’

    A funeral service will be held at the Campbell Funeral Home, 525 Cabot St., Beverly, on Wednesday, March 13, at 1 p.m. Relatives and friends are invited to attend. Visiting hours at the funeral home will be Tuesday, March 12, from 4-7 p.m. Contributions may be made in Dunn’s memory to the American Red Cross at www.redcross.org. Information, directions, condolences at www.campbellfuneral.com.

    Ethan Forman may be contacted at 978-675-2714, or at eforman@gloucestertimes.com.

    [ad_2]

    By Ethan Forman | Staff Writer

    Source link

  • MassHealth rolls continue to drop, but decline slowing

    MassHealth rolls continue to drop, but decline slowing

    [ad_1]

    BOSTON — Tens of thousands of Medicaid recipients lost their state-funded health care coverage last month amid an ongoing review of eligibility following the end of pandemic-related federal protections. Health officials, however, say the purge of insured is slowing.

    About 57,000 MassHealth members lost coverage in January as part of the so-called redetermination process, according to state data published Monday.

    That was offset by 21,000 new enrollees and 23,000 people who rejoined the taxpayer-funded health insurance program after previously losing coverage, according to the agency. That’s still a net decrease of 13,000 or more members.

    “After some very steep declines in November and December that were related to the open enrollment period, things have quieted down considerably,” Assistant Secretary for MassHealth Mike Levine told reporters during a livestreamed update. “So the caseload is relatively flat through the first month of the year.”

    In December, by comparison, at least 129,000 people were removed from MassHealth’s rolls, the data shows. Those losses were offset by 16,000 new enrollees and 12,000 people who rejoined the program after losing coverage, according to the agency. That’s a net loss of about 100,000 people for the month.

    “I do expect our caseload to continue declining,” he said. “There are still people whose eligibility we’ve been protecting and we need to renew, many of whom may lose coverage. But we expected a steadier decline through the remainder of the redetermination process.”

    As of January, nearly 600,000 people have left MassHealth’s rolls. The agency began reviewing eligibility in April. But the reductions were offset by new enrollees and those who rejoined the program after losing coverage for a net decline of 279,000 members.

    State health officials said data shows that prior to the COVID-19 pandemic, MassHealth was averaging a loss of about 52,000 members each month.

    Under the COVID-19 public health emergency, the federal government required state Medicaid agencies to provide “continuous” health care coverage, even if an individual’s income eligibility changed.

    As a result, enrollment in MassHealth – the state’s Medicaid program – swelled by more than 31% since 2000, to an estimated 2.3 million recipients.

    But the federal emergency declaration expired last May and state health officials have been reviewing eligibility for enrollees to determine if they are still eligible for state-subsidized coverage.

    The review process could see up to 400,000 people dropped from the program, according to the state’s estimates.

    Gov. Maura Healey has acknowledged the challenge of reviewing millions of MassHealth recipients, and helping those who get dropped to find new coverage. State budget officials expect the shrinking MassHealth rolls will provide up to $1.9 billion this fiscal year that could be redirected for other purposes.

    Nationwide, roughly 15 million people could be dropped from Medicaid as the federal government’s continuous coverage requirement is phased out.

    MassHealth is funded by the state and federal governments and serves about 2.1 million low-income recipients. That’s roughly one in three people in the state.

    Health care coverage is one of the state’s biggest expenses. Medicaid costs have doubled in the past decade and now account for nearly 40% of spending.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    [ad_2]

    By Christian M. Wade | Statehouse Reporter

    Source link

  • Auditor DiZoglio, Merrimack Valley mayors highlight MeVa services

    Auditor DiZoglio, Merrimack Valley mayors highlight MeVa services

    [ad_1]

    HAVERHILL — Audits are typically a painful inconvenience to those being audited. Recently, however, several Merrimack Valley mayors joined with State Auditor Diana DiZoglio, D-Methuen, to highlight the positives that went along with a routine audit of Merrimack Valley Regional Transit Authority (MVRTA).

    DiZoglio’s office audits state-funded entities and county offices. It does not audit non-profits and other private entities.

    “While audits can be daunting, DiZoglio and her office understood from the start how important Regional Transit Authorities – RTAs – are to the communities we serve,” said Noah Berger, administrator and CEO of MeVa.

    “They worked with us as a partner with the goal of serving our passengers. We are thankful to the Auditor’s team for their review of our operations and are pleased to report that we have implemented all of their recommendations, which has made our service even better.”

    MeVa, also recognized as MVRTA, is the public transit serving 16 Merrimack Valley communities.

    To bring attention to the partnership, the mayors of Amesbury, Haverhill, Lawrence, and Newburyport – four of the 16 communities served by MeVa – hopped on a bus along with DiZoglio and recorded a social media video that brings attention to the successful audit and accessibility of services provided by MeVa.

    Methuen Mayor Neil Perry recorded his video at a different time and it was merged into the video of DiZoglio and the four other mayors.

    “Organizations like MeVa are a great example of how community partners can implement recommendations from our audit findings to increase access and opportunity for all across the region,” DiZoglio said.

    “They demonstrate that, by working together, we can accomplish more to improve the way state systems and resources perform and hold organizations accountable across state government in order to make government work better for everyone.”

    “Many people rely on MeVa for personal and professional travel,” said Amesbury Mayor Kassandra Gove, who also serves as chair of the MeVa Advisory Board. “I’m more than happy to have a little fun on social media, especially if it helps us spread the word about this amazing resource.”

    The 16 communities served by MeVa include Amesbury, Andover, Boxford, Georgetown, Groveland, Haverhill, Lawrence, Merrimac, Methuen, Newbury, Newburyport, North Andover, North Reading, Rowley, Salisbury, and West Newbury.

    “People are always surprised when I say I use MeVa to travel to my weekly dialysis appointments,” said Methuen Mayor Neil Perry. “I think those same people are just as surprised to learn that the Merrimack Valley has the gold standard of public transportation services. I hope this video helps raise awareness of the services available, and the ease of accessing them.”

    “Very happy and satisfied to have been invited to this project which brings us first-class information to our community,” said Lawrence Mayor Brian DePeña. “I must say that I had a lot of fun. Let’s keep up the good work!”

    “Over the last couple of years, MeVa has implemented changes to improve services, making it free and more accessible,” Haverhill Mayor Melinda Barrett said.

    “Haverhill is proud to host MeVa’s administrative offices, but even more so to have them as a strong partner to the city in getting residents and our workforce where they need to go across the Merrimack Valley.”

    “MeVa has been a tremendous partner to Newburyport and I look forward to continuing to find creative ways to engage our residents with all that MeVa offers,” Newburyport Mayor Sean Reardon said.

    To see the video, visit the Office of State Auditor’s pages on Facebook, Instagram, LinkedIn, or X (formerly Twitter), or on YouTube by searching for “Auditor Diana DiZoglio and Mayors go for a ride on MeVa Transit!”

    For more information on the audit of MeVa, as well as other state entities, visit mass.gov/lists/all-audit-reports.

    [ad_2]

    By Mike LaBella | mlabella@eagletribune.com

    Source link

  • File Your State and Federal Returns for $25 With H&R Block | Entrepreneur

    File Your State and Federal Returns for $25 With H&R Block | Entrepreneur

    [ad_1]

    Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

    There are only two months left until your favorite time of year: Tax season. While that’s a tad early, it’s also true that IRS data shows an overall 15% increase in average refunds so far (according to CNBC Select). If that actually makes you eager to file this year, then you might also be interested in this deal on H&R Block’s Deluxe software.

    It can help you file both your state and federal returns with assistance on more than 350 credits and deductions to maximize the amount you get back — plus loads of other perks. For a limited time, you can get H&R Block Deluxe for only $24.97, normally $49.99.

    H&R Block Deluxe: All-around worry-free filing.

    H&R Block Deluxe is designed to be easy to use, whether it’s your first time filing without an accountant or you’re a seasoned filer. The software will walk you through the state and federal programs step-by-step so you can feel confidence in its accuracy, and those who used TurboTax or Quicken in previous years can easily import old returns and data.

    You’ll also get access to an abundance of resources like 13,000 searchable articles, FAQs, and tips on tax preparation. Uniquely, H&R Block will also represent you in-person in the rare case of an audit at no additional cost.

    Unlike web-based programs, H&R Deluxe is actually a downloadable app for your PC or Mac, so you can save your work and complete it later. This could also be handy to reference when you’re filing next year’s return.

    Use H&R Block Deluxe to file your taxes and maximize your refund, now only $24.97 (reg. $49.99) on sale until February 11 at 11:59 p.m. PT. No coupon is needed.

    StackSocial prices subject to change.

    [ad_2]

    Entrepreneur Store

    Source link

  • Mark Zuckerberg could pay millions to the IRS on Meta dividends. He still might be getting ‘a major break’.

    Mark Zuckerberg could pay millions to the IRS on Meta dividends. He still might be getting ‘a major break’.

    [ad_1]

    Mark Zuckerberg delighted Meta shareholders and Wall Street this week with news of the social media giant’s first-ever dividend.

    The IRS may also be happy, now that it’s staring at millions in taxes on the Meta stock dividends bound for Zuckerberg’s portfolio.

    Zuckerberg, the CEO of Meta Platforms Inc.
    META,
    +20.32%
    ,
    is poised to make $700 million in dividends yearly. He owns nearly 350 million shares, according to FactSet, and the company will start paying a quarterly dividend of 50 cents a share.

    That would yield nearly $167 million in federal taxes yearly, after a qualified-dividend tax of 20% and another 3.8% tax on the investment returns of rich households, two accounting experts said.

    California income taxes of 13.3% on the dividends could cost Zuckerberg another $93.1 million, said Andrew Belnap, an accounting professor at the University of Texas at Austin’s McCombs School of Business.

    All in, that’s a combined $259.7 million in federal and state taxes annually on the Meta dividends, Belnap estimated.

    For context, U.S. taxpayers reported over $285 billion in qualified-dividend income to the IRS though mid-November 2023, according to agency statistics. Nearly 30 million tax returns reported qualified dividends through that time.

    Meta said it plans a quarterly cash dividend going forward, with the first such payment in March.

    Meta shares soared 20.5% on Friday, ending with a record-high close of $474.99. The Dow Jones Industrial Average
    DJIA,
    S&P 500
    SPX
    and Nasdaq Composite
    COMP
    all closed higher Friday.

    ‘Zuck is getting a major break’

    Meta announced the dividend payment in its earnings results Thursday, on the same week that Americans began filing their income taxes.

    A look at Zuckerberg’s dividends and their tax implications offer a peek at the debate about the varying ways wages and wealth are taxed.

    “Zuck is getting a major break,” said Andrew Schmidt, an accounting professor at North Carolina State University’s Poole School of Management who also crunched the numbers for MarketWatch.

    Approximately $167 million “seems like a high tax bill,” he said. But if Zuckerberg received the $700 million as a straight salary, Schmidt estimated he’d be looking at a roughly $259 million tax bill on the wages after they were taxed at the top marginal rate of 37%.

    Federal income tax brackets run from 10% to 37%.

    Meanwhile, the IRS taxes qualified dividends and capital gains at 0%, 15% and 20%, depending on income and household status. The net investment income tax adds another 3.8% for individuals making at least $200,000 or married couples worth $250,000.

    For federal and state taxes on the Meta dividends, Zuckerberg would face a combined rate of 37.1%, Belnap noted. “His tax rate on this is actually fairly high,” he said.

    The gap in tax rates on income derived from wages and investments “has been a big criticism with U.S. tax policy,” Schmidt said, especially as lawmakers look for ways to come up with more tax revenue.

    Regular retail investors enjoy the same preferential rates on capital gains and dividends as the top 1% of taxpayers, Schmidt added. The issue is that those dividends and stock profits are a smaller part of their income while salaries, taxed at higher rates, are a bigger proportion.

    Belnap noted that California’s state tax rules don’t provide special treatment to dividends.

    Read also: Where Trump, Biden and Haley stand on capital gains, the child tax credit and other key tax questions

    Zuckerberg received a $1 base salary in 2022, a figure that hasn’t changed in several years. He is now worth $142 billion, according to the Bloomberg Billionaires Index, making him the fifth-richest person in the world.

    Meta did not immediately respond to a request for comment.

    Taxes on the Meta dividends will not be something Zuckerberg, or any Meta shareholders big or small, need to deal with until next year’s tax season, Belnap and Schmidt observed.

    But as taxpayers amass their 1099-DIV forms on dividend income, IRS figures show that it’s mostly upper-echelon taxpayers reaping the rewards on the preferential rates for qualified dividends.

    Households worth at least $1 million accounted for 40% of the approximate $285.3 billion in qualified dividends reported through mid-November, according to agency figures.

    For less affluent investors, “it’s usually a nice supplement, but I’d say very few people are living off dividends,” Belnap said.

    [ad_2]

    Source link