Work Less, Succeed More By Outsourcing the Financial Part of Your Veterinary Business

Work Less, Succeed More By Outsourcing the Financial Part of Your Veterinary Business

Did you happen to notice People Magazine’s recent article entitled: “New Studies Find Veterinarian Shortage Could Leave 75 Million Pets without Medical Care in 2030”? (Bender, Kelli. March 2, 2022.) There’s something ironic about People Magazine profiling the vet shortage; still, it shows just how dire the situation is and why the veterinarian industry needs to change.

The article reports that 2,700 people enter the veterinary field each year and about 2,000 retire. With pet healthcare spending predicted to increase 33% between 2019 and 2029, there will be an estimated shortage of 15,000 vets by 2030. The American Animal Hospital Association (AAHA) reports that number may even be higher, potentially coming in at 18,000 by 2031. What can a veterinary practice do?

I’m a CPA. No one would ever expect me to be able to perform a medical exam or procedure on my 17-year-old Maltipoo (named Angel). So, why are veterinarians expected to take on the dual role of managing a business and practicing medicine? There is another option.

About 25 years ago, I was hired by an animal hospital to do its taxes. Little did I know that engagement would put me on a path to build my career providing bookkeeping, accounting, and advisory services to numerous veterinarian practices in the Hudson Valley and, later, in other locations along the East Coast and across the U.S.

None of the doctors I would come to work with had taken business and/or finance classes while earning their medical degree. Eventually, this put them at a disadvantage. They immediately recognized that by engaging me, they were freed up to do what they were passionate about – taking care of small animals or, in certain cases, equines.

At the same time, I found an industry and clients who really appreciate the value I deliver, which evolved from bookkeeping, account payables and receivables, tax payments, payroll, and budgeting to include financial analysis, forecasting, and strategic business planning. In essence, I became a part-time Chief Financial Officer for many of my veterinary clients. It was a natural fit that benefited everyone. Fast forward to today…

I’m a partner in an accounting firm and most of my clients are veterinarian hospitals and practices. I love their passion for what they do and how much they value what my team and I bring to the table. More than just number crunchers, in the majority of cases, we have become part of our veterinarian clients’ strategic management and planning teams.

We know the right questions to ask and when to ask them. Do you know your numbers? Are you profitable monthly? What is your patient volume going to look like in a recessionary period? Are you getting monthly financial statements and understanding what they mean? Do you know how your business is trending to last year and benchmarking against competitors in the area? Do you need to increase rates to reflect the price of prescriptions and payroll? Given the economic environment, can pet owners afford wellness visits? Are your margins shrinking? Who is monitoring all of this? Where do you want your business to be in five years and how will you get there? Are you thinking about selling? What is your business valuation and how does it impact what you decide to do next?

We also help practice managers and doctors understand how different courses of action will impact business so they can make informed decisions. This type of support is even more meaningful given today’s economic uncertainties; supply chain challenges; changing tax, accounting, and legal requirements; cybersecurity issues; and more.

Plus having knowledge of both the veterinary industry and accounting, tax, and advisory services positions my team and I to bring solutions for a variety of challenges. For example, do you know how the Secure 2.0 Act will allow your employees to pay off student loans while you put matching funds aside for their retirement? Have you explored how the Inflation Reduction Act can help you reduce certain monthly expenses and your carbon footprint?

So, enough about me. What about you? How can RBT CPAs help lighten your workload, respond to current challenges, and set the stage for greater success in the future? We would love to have a chance to speak with you and show how we can deliver value, while freeing you up to do what you do best: take care of animals and their people. Give us a call today.

Beware! Cybercrime Is on the Rise

Beware! Cybercrime Is on the Rise

An increase in the number of cyberattacks against U.S. Housing Authorities – and public sector entities overall – reinforces the need for the highest levels of vigilance and security given the sensitive information their systems contain about residents, employees, suppliers, and more.

According to BlackFog.com, which issues monthly reports on publicly disclosed ransomware attacks (and is adding undisclosed attacks this year), “So far, the first two months of 2023 are showing more reported attacks than in prior years.” The site estimates the percentage of attacks unreported has increased by 543%. In 88% of attacks, data is taken. The average ransom payment in the U.S. as of the third quarter of 2022 reached more than $408,000.

In recent months and years, the frequency of attacks on public housing authorities has increased dramatically.

As reported by the HAI Group – a member-owned insurance carrier founded by and dedicated to public and affordable housing communities – in September of 2021, a housing authority was the target of a cyberattack. A file containing passwords was stored on its main server and enabled cyber criminals to access and lock its main server, resulting in the authority paying a ransom. (To learn the full story, the impact of the attack, and what the housing authority did following the attack, view this 15-minute YouTube video made by the HAI Group in conjunction with the housing authority: The Anatomy of a Cyberattack.)

Techcrunch.com reported that in early 2023, another housing authority confirmed that it was investigating a cyber incident that occurred last November. It came to light in January, when LockBit ransomware gang claimed responsibility for stealing 15 terabytes of data – including personal information about housing assistance applicants, payroll, and accounting. Sample files were uploaded to the dark web with a threat to publish all of the information in late January. It is purported that the agency did not meet the cybercriminals’ ransom demands.

According to TheRecord.Media, in January of this year, yet another housing agency began notifying over 212,000 people that private information about them and possibly their children was leaked in an attack that started last September. The data leaked included Social Security Numbers, names, addresses and birthdays. In addition, the agency was unable to send checks to 8,000 Section 8 federal housing choice voucher program landlords (resorting to manual distribution). Victims have received 12 months of identity protection services, including theft recovery and a $1 million reimbursement policy.

What can your housing authority do to protect its systems and data from ransomware attacks? As reported on HAI.com, “There’s cybersecurity help available, and it comes at no cost to public housing organizations. The Multi-State Information Sharing & Analysis Center (MS-ISAC)–operated by the Center for Internet Security and recommended by the U.S. Department of Homeland Security—provides various free cybersecurity services to U.S. state, local, tribal, and territorial government entities, including public housing organizations.”

More is coming as new laws take effect and evolve; government leaders advocate for new and stronger regulations; the White House issues a new National Cybersecurity Strategy; CISA launches new tools like the Ransomware Vulnerability Warning Pilot; and more.

No doubt, cybersecurity demands an all-hands-on-board approach for housing authorities. To free you up to focus on this and your housing authority’s many other responsibilities, RBT CPAs is here to partner with you on accounting, tax, audit, and advisory services. We’re a leading accounting firm in the Hudson Valley and have been supporting government agencies for over 50 years. To learn more, give us a call.

Please Note: RBT CPAs is an accounting firm – not a technology or security agency. This article is meant to provide an update on the state of cybersecurity for housing authorities, but is in no way intended to provide advice or direction. Please consult the appropriate authorities for cybersecurity planning, direction, and assistance.

Are Alcohol-Related Law Changes on the Horizon in New York?

Are Alcohol-Related Law Changes on the Horizon in New York?

New York Governor Hochul released her 2023 State of the State briefing book in January, outlining the work and plans required to achieve the New York dream. Almost at the end of the document – pages 260 and 261 to be exact – there’s a section on rewriting New York’s Alcohol and Beverage Control (ABC) Law.

To summarize this section of the Governor’s brief, the 90-year-old law has grown organically since prohibition ended resulting in many inconsistencies that make it hard to understand, much less comply with regulations. Concurrently, the governor “will advance a policy-neutral rewrite of the existing ABC Law, in order to improve legibility and understanding of the existing law, and to foster a clearer conversation in the future about any proposed reforms.”

Spectrum News 1 reported, “How those laws change could have a wide-ranging effect on both businesses from restaurants to distributors as well as consumers themselves.” The news channel also noted that the governor is open to change, as seen by her backing of a pandemic-era order allowing patrons to take alcohol to go.

Her momentum carried through to 2022 year-end when, according to ABC50-Now.com, the Governor “signed legislation to update the Alcoholic Beverage Control Law and authorize the New York State Liquor Authority to grant eligible catering facilities a license to serve liquor at weddings, banquets or other functions held at off-site locations.”

As part of her briefing book discussion on New York’s ABC Law, the Governor noted that the New York Commission to Study Reform of the ABC Law is continuing its work. News10 explained the Commission was enacted as part of the 2023 New York State budget to modernize the state’s liquor laws. The 21-person Commission, led by Chairman of the State Liquor Authority Vincent Bradley, will recommend changes and any motion receiving a majority vote will be reviewed for possible legislative action.

By May 1 of this year, the Commission’s report is due and will address “impact of the alcohol industry on the state; development in the law and SLA resources to speed license application processing; and business reform and modernization proposals.”

The NY Liquor Authority website notes, “To garner comment on the items that will be discussed, the State Liquor Authority has created a dedicated email address. Industry stakeholders, community groups, and other interested parties are encouraged to share their comments with the Commission here: abclaw.comments@sla.ny.gov.”

Concurrent with the Governor’s actions, the NYS Senate and Assembly, introduced an amendment on January 31 to “amend the tax law, in relation to the amount of credit for
cider, wine, and liquor under the alcoholic beverage production credit” and “provide parity with beer credit based on the taxes for cider, wine, and liquor.” According to TrackBill.com, a new proposed credit ranges from $.14 to $6.44 per gallon, depending on type of liquor and alcohol content.

You can find more information on New York State taxes, exemptions and credits for the producing, blending, distilling, rectifying and bottling of beer, cider, wine and liquor on NY’s Department of Taxation and Finance website.

We’ll keep you updated as we learn more about proposed alcohol law changes in New York State and at the Federal level (i.e., changes to the Craft Beverage Modernization Act provisions of the Tax Cuts and Jobs Act of 2017 transferred “responsibility for administering refunds, reducing tax rates, and tax credits on imported alcohol from U.S. Customs and Border Protection to the U.S. Department of the Treasury effective January 1, 2023”.)

As you consider possible implications on your business, you can depend on RBT CPAs to help lighten your workload. We’re one of the largest CPA firms serving the Hudson Valley and beyond for over 50 years. We believe we succeed when we help you succeed. To find out more about our accounting, tax, audit, and advisory services, give us a call.

Please Note: RBT CPAs is a CPA firm – not law. We are providing the information above for informational purposes only; please do not construe it as legal advice. As always, if you need legal advice, please contact your local legal counsel.