How Private Credit Can Help Address Financing Challenges in the Hospitality Industry

How Private Credit Can Help Address Financing Challenges in the Hospitality Industry

With financing options for hospitality businesses becoming increasingly limited in recent years, private credit has emerged as a viable alternative to traditional borrowing options. This article will go over the fundamentals of private credit as well as the potential benefits this alternative lending option offers for restaurants and hotels.

What is private credit?

“Private credit” refers to debt financing provided by non-bank institutions, such as private debt funds, asset managers, and business development companies. The terms of these loans are directly and privately negotiated between the borrower and the lender. Private credit offers businesses an alternative to traditional bank loans for borrowing and has become a more popular option for hospitality businesses in recent years, as traditional bank loans have become more and more difficult to obtain.

Why is financing a challenge for the hospitality sector?

There was a time when traditional bank loans were the default option for restaurants or hotels seeking capital. However, due to increasingly strict lending conditions, bank loans have become far less attainable for many borrowers, especially within the hospitality sector. Since the Covid-19 pandemic in particular, banks and other traditional lenders have grown more hesitant to lend to hospitality businesses, whose sensitivity to global economic conditions and market volatility makes them potentially higher-risk borrowers. That’s where private credit lenders come in. Private lenders, recognizing a financing gap in the industry, have become an important source of funding for hotels and restaurants with limited access to traditional loans.

What are the benefits of private credit versus traditional loan options?

Private credit tends to offer greater flexibility, accessibility, and speed than bank loans and other traditional loan types. Not only are private credit loans more accessible to hospitality businesses due to their less stringent borrowing terms and requirements, but they also offer solutions tailored to borrowers’ needs. Because they are privately negotiated, private credit loans allow lenders greater freedom to customize repayment terms, collateral conditions, cash flow requirements, and other loan specifications, while bank loans and other traditional loan types are constrained by more stringent regulations. In addition, because of the less rigid approval process, private credit loans are often processed more quickly than traditional loans, granting borrowers access to critical capital sooner.

Is private credit the right choice for you?

Private credit offers many potential benefits for hospitality businesses. However, borrowers should be aware that private loans may come with higher interest rates and/or more complex covenants, put in place to protect the lender. To decide whether private credit is the best option for your business, it is recommended that you consult with a financial professional. RBT CPAs’ hospitality accounting experts can help you decide which financing options are best suited to your individual needs and circumstances. Our firm has proudly provided accounting, tax, audit, and advisory services to businesses and organizations throughout the Hudson Valley and beyond for over 55 years. Please don’t hesitate to reach out to us today to talk about business loan options and to find out how we can be Remarkably Better Together.

New Funding Available to Local Governments for Zero-Emission Mobility Transportation Solutions

New Funding Available to Local Governments for Zero-Emission Mobility Transportation Solutions

On July 31, Governor Hochul announced that over $21 million is now available for zero-emission mobility transportation solutions throughout the New York State. Local governments can submit proposals for demonstration projects aimed at developing and improving clean mobility options, with priority given to disadvantaged communities. The Climate Justice Working Group (CJWG) has established criteria for identifying disadvantaged communities, which can be found here, along with a list of 1,736 census tracts that meet these criteria. Proposals are due on September 25, 2025, by 3:00pm. Applications for funding can be accessed here.

What is the Clean Mobility Program?

Launched in June of 2024, New York’s “Clean Mobility Program” is one component of the state’s ongoing investment in clean energy and climate initiatives. The Clean Mobility Program provides funding for community-led demonstration projects that advance innovation in clean mobility. According to the New York State Energy Research and Development Authority (NYSERDA), which administers the program, “clean mobility” refers to transportation options and systems that help reduce environmental impact, while improving access and equity. Examples of clean mobility options are electric vehicles, e-bikes, e-scooters, on-demand electric vehicle ride-hailing, on-demand electric public transit services, and electric vehicle ridesharing. The program will competitively award funding to eligible entities—including local governments, transit operators, community-based organizations, and employers with more than 1,000 employees—for these projects.

Goals of the Program

The Clean Mobility Program is designed to increase residents’ access to zero-emission transportation options, thereby reducing the publics’ reliance on personal vehicles and minimizing public health impacts associated with air pollution. The program is aimed at overcoming recurring transportation challenges, particularly in disadvantaged communities, while also addressing pollution caused by traditional transportation methods. The primary objective of the program is to connect New York’s residents to essential services, jobs, and public transit systems through access to affordable and sustainable forms of transportation.

How much funding is available?

The Clean Mobility Program will provide $21.6 million for all projects across the state, with up to $3 million awarded per project.

Notes for Demonstration Project Proposals

  • Project proposals must include a completed planning document containing the following: community engagement, site identification and operations, project partner identification, technical feasibility assessment, and a policy and regulatory feasibility assessment.
  • One proposal will be awarded per applicant.
  • A cost share of at least 20 percent of the total project cost in non-NYSERDA funding is required.
  • Proposals are due on September 25, 2025, by 3:00pm.

We’ll Take Care of Your Accounting While You Focus on Community Projects

This program, if successful, will help to promote long-term solutions to ongoing transportation, public health, and climate issues within New York’s most vulnerable areas. While you consider possibilities for clean mobility innovation in your local community, remember you can rely on RBT CPAs to support all of your municipality’s accounting, tax, audit, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

529 Plans Now Cover Expenses for Postsecondary Credentialing Programs and More

529 Plans Now Cover Expenses for Postsecondary Credentialing Programs and More

As one of its many provisions, the new tax law known as the “OBBBA” has established new parameters for 529 education savings plans. 529 plans can now be used to pay for additional qualified educational expenses—including trade school, workforce training programs, and other postsecondary credentialing costs. This expansion of 529 plans may benefit people pursuing educational routes outside of traditional college programs, such as those entering the skilled trades. This article provides an overview of 529 savings plans and their now-expanded uses.

What is a 529 plan?

A 529 plan is a tax-advantaged savings account that can be used to pay for qualifying educational expenses. The money in 529 accounts grows tax-deferred, and withdrawals for qualifying educational expenses are typically tax-free (depending on your state’s rules). U.S. residents of any income level are able to open a 529 account for a designated beneficiary—including a relative, friend, or the account holder themself. 529 plans were initially created as a way for people to save for college tuition. In 2018, “qualified expenses” covered under 529 plans expanded to include tuition for K-12 education as well. With the passage of the One Big Beautiful Bill (OBBBA) in July of 2025, 529 plan coverage has expanded even further to include additional educational expenses.

What do 529 plans cover now?

  • 529 plans continue to cover expenses related to enrollment or attendance at an eligible postsecondary school. Qualified postsecondary expenses include:
    • Tuition and fees
    • Required books, supplies, and equipment
    • Special needs services
    • Room and board for students enrolled at least half-time
    • Computers and computer equipment, software, internet access, and related services
    • Fees, books, supplies, and equipment required for participation in an apprenticeship program registered and certified with the Secretary of Labor
    • No more than $10,000 paid as principal or interest on qualified student loans of the designated beneficiary or the beneficiary’s sibling
  • Previously, 529 plan coverage for K-12 expenses was limited to tuition, with a maximum annual allowance of $10,000. 529 plans have now expanded to cover additional expenses related to enrollment or attendance at an eligible elementary or secondary public, private, or religious school. In addition, the annual limit for K-12 expenses has been increased from $10,000 to $20,000 per year. Qualified K-12 expenses now include:
    • Tuition
    • Curriculum and curricular materials
    • Books or other instructional materials
    • Online educational materials
    • Tuition for tutoring or educational classes outside of the home (i.e., at a tutoring facility)
    • Fees for a nationally standardized achievement test, advanced placement exam, or any exam related to college or university admission
    • Fees for dual enrollment in a higher education institution
    • Educational therapies for students with disabilities
    • 529 plans now also cover certain expenses related to enrollment or attendance at a recognized postsecondary credential program, including:
    • Tuition and fees
    • Books
    • Supplies
    • Equipment
    • Fees for required testing
    • Fees for continuing education

What do these changes mean for unions?

The addition of postsecondary credentialing expenses to the list of qualified expenses under 529 plans broadens the population that can benefit from these tax-advantaged accounts. The benefits of 529 plans are no longer limited to individuals pursuing conventional higher education routes; 529 funds can now be used to pay for workforce training, licensure programs, and professional development. Union members who participate in these kinds of credentialing programs may stand to benefit from this expansion. For additional guidance related to the new tax law—or for any other tax or accounting support—please don’t hesitate to reach out to RBT CPAs. Call us today and find out how we can be Remarkably Better Together.

Opportunity Zone Program Revamped Under the OBBBA: What Real Estate Developers and Investors Need to Know

Opportunity Zone Program Revamped Under the OBBBA: What Real Estate Developers and Investors Need to Know

The Qualified Opportunity Zone (QOZ) program, established in 2017 as part of the Tax Cuts and Jobs Act (TCJA), is a federal tax incentive designed to encourage investment in distressed areas of the United States. The designation of “Opportunity Zone” is given to low-income communities nominated by state governors and certified by the Treasury Department. The QOZ program was initially set to expire at the end of 2026. However, the One Big Beautiful Bill Act (OBBBA), passed on July 4, has permanently extended and modified the program.

How it works: taxpayers can choose to reinvest eligible capital gains into a Qualified Opportunity Fund (QOF), which then invests in Opportunity Zone properties. Eligible capital gains include those from the sale of stock and bonds, cryptocurrency, real estate, and private business interests, to name a few. These taxpayers can then claim a deferral for those capital gains on their federal income tax return. Further, a taxpayer could reduce those capital gains with a basis step-up if the qualifying investment is held for a certain duration of time. The signature benefit of the program, however, is the exclusion of tax on any new capital gains in the QOF, as long as the investment is held for at least 10 years. 

Let’s take a look at the key changes made to the Opportunity Zone program by the One Big Beautiful Bill Act.

  1. New QOZs designated every 10 years.

Under the OBBBA, new Qualified Opportunity Zones will be proposed by state governors every 10 years, beginning on July 1, 2026. These designations must be approved by the Treasury secretary. Current QOZ designations are set to sunset at the end of 2026.

  1. Updated eligibility criteria.

The OBBBA has created a new, narrower definition of a “low-income community.” Now, to qualify as a QOZ, census tracts must meet one of the following criteria for a low-income community: (1) the median family income does not exceed 70% of the state or metropolitan median family income (reduced from 80% under the TCJA) or (2) the poverty rate is at least 20% and median family income does not exceed 125% of the applicable median. The OBBBA also eliminates the ability of governors to designate contiguous tracts (that would otherwise be ineligible) as Opportunity Zones.

  1. New Deferral Timeline – 5 Years

Under the OBBBA, gains invested into a QOF after December 31, 2026 are deferred until 5 years after the initial investment, or earlier if the investment is sold before 5 years. The pre-OBBBA rules had established a set deferral date of December 31, 2026.

  1. Simplified basis step-up.

The OBBBA creates a single 10% basis step-up for investments made in Qualified Opportunity Funds after December 31, 2026, and held for at least five years (30% for rural QOZs). The law removes the previous 5% and 10% incremental step-ups at five and seven years. This basis step-up reduces the deferred capital gain recognized after year 5.

  1. New incentives for rural QOZs.

The OBBBA establishes a new fund for rural areas, known as the Qualified Rural Opportunity Fund (QROF), which provides a 30% basis step-up (compared to the standard 10%) for investments held for at least five years. The new law also reduces the substantial improvement requirement for rural Opportunity Zones from 100% to 50%, making it easier for investors to finance redevelopment projects in rural areas.

  1. New reporting requirements.

The OBBBA establishes new information reporting requirements for QOFs and QROFs, as well as updated penalties for failure to comply with these requirements.

  1. New end date to exclusion of capital gains.

The OBBBA establishes a new end date for the exclusion of new capital gains on a qualifying investment held at 10 years. Previously, investments held at least 10 years would be permanently excluded from capital gains on any of the appreciation of the QOF investment. Under the OBBBA, the same 10-year minimum stays in place, but after the 30th year, the basis will be stepped up and locked in at the fair-market-value as of that 30-year date.

Example of Timeline:

  1. Realize eligible capital gain (e.g. sell stock or real estate at a gain).
  2. Invest eligible capital gain in a QOF (can be a portion or all of total gain).
  3. Defer capital gain via reporting on that year’s tax return.
  4. Year 5 → receive a 10% basis step-up (reduce deferred capital gain by 10%).
  5. Year 5 tax return → recognize deferred capital gain.
  6. Years 10-29 → automatic basis step-up to fair market value. Option to exit QOF tax-free via a sale or exchange during this time.
  7. Year 30 → Basis step-up freezes at fair market value. Any gain accumulated after this date will be subject to capital gains tax.

Looking Forward

Now that the Opportunity Zone program has been enhanced and made permanent, real estate developers and investors can plan to use this incentive as a part of their long-term business strategy. Keep in mind that the new reporting requirements will demand increased attention to information tracking and compliance. For further guidance on navigating the new Qualified Opportunity Zone changes, please don’t hesitate to reach out to our real estate accounting professionals at RBT CPAs. Our team is here to support all of your accounting, tax, audit, and advisory needs. Give us a call today to learn more.

The Accrual Method Advantage: The Importance of Accrual Basis Books for Practice Management

The Accrual Method Advantage: The Importance of Accrual Basis Books for Practice Management

Many small businesses, including veterinary practices, utilize cash basis accounting for their financial records. Cash accounting provides the benefits of simplicity, a real-time view of the business’s cash flow, and greater control over recorded income for tax purposes. However, accrual basis accounting offers a more accurate representation of a practice’s financial health, enabling better financial decision-making and practice management. Let’s talk about the primary differences between cash and accrual accounting—and why you should maintain an accrual basis for your books, even if you use a cash basis method for tax returns.

Cash Accounting

Businesses using the cash method of accounting recognize financial transactions at the point when cash is received from customers or paid out to third parties, not when the transactions actually take place. Cash basis accounting makes it easier to track the flow of money in and out of a business’s accounts, as it provides a real-time picture of available capital. Because accounts receivable and payable do not need to be tracked when using cash accounting, this method often requires less administrative work and is simpler for businesses to manage. Additionally, this method allows businesses to defer tax payments on income that has been billed to customers but not yet collected. Typically, only small businesses are permitted to use the cash basis method of accounting. While this method of accounting is simpler, it offers a less accurate view of a business’s financial health than accrual accounting.

Accrual Accounting

Unlike cash accounting, accrual accounting recognizes revenue at the point when it is earned and expenses at the time they are incurred. Accrual basis accounting ensures that income is matched with the time period in which goods or services were actually provided, and that expenses are recognized for the time period in which goods or services are received. In this way, accrual accounting provides a more accurate picture of a business’s financial health. While this method requires that cash flow be tracked separately and may not always provide the most accurate short-term depiction of available funds, accrual accounting provides more comprehensive insights for long-term financial planning and practice management.

Benefits of Using Accrual Accounting for Your Books

  1. Provides a more accurate and comprehensive picture of your practice’s financial health and profitability.
  2. Leads to a more accurate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by matching revenues and expenses to the period in which they were earned and incurred.
  3. Helps you compare and benchmark your profitability against other practices.
  4. Guides decisions related to practice management, informing processes such as budgeting, forecasting, and cash flow management.

Learn More

RBT CPAs’ veterinary accounting experts can help you understand and implement an accrual accounting system in your practice, so you can achieve a clearer image of your practice’s financial situation and make more informed management decisions. And as always, our professionals are here to support all of your practice’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

Good News for Research and Development Under the OBBBA

Good News for Research and Development Under the OBBBA

The One Big Beautiful Bill Act, enacted in early July, imposes sweeping changes across the U.S. tax code. Our most recent article focused on the provisions of the One Big Beautiful Bill (OBBBA) most relevant to manufacturing companies. One of the most significant provisions for manufacturers is the updated treatment of research and development expenses. This article will discuss the recent changes to R&D expensing under the OBBBA and what these changes mean for manufacturing going forward.

How has the OBBBA changed R&D expensing?

For the last several years, following the passage of the Tax Cuts and Jobs Act (TCJA) of 2017, companies have been required to amortize—or gradually write off—domestic research and development expenses over a five-year period (15 years for foreign R&D activities). However, the OBBBA restores the immediate expensing of research costs that existed before the passage of the TCJA. This restoration of pre-TCJA policy represents a win for manufacturing companies, who can once again fully deduct domestic research and development costs in the year paid. In addition, all companies (regardless of size) that made domestic R&D expenditures between 2022 and 2024 may elect to accelerate the remaining deductions for those expenditures over one or two years. Note that the new rules apply only to R&D activities occurring within the United States. R&D activities taking place outside of the United States are still required to be capitalized and amortized over a 15-year period.

What is the benefit for manufacturers?

Manufacturers are now able to fully deduct the cost of domestic R&D activities in the year paid, which reduces taxable income, improves cash flow, and frees up capital. Manufacturers can use the additional capital to invest in product development, new technologies, and other forms of innovation.

What are the additional benefits for small manufacturers?

Small businesses averaging $31 million or less in annual gross receipts may elect to apply the change retroactively for tax years beginning after December 31, 2021. This means that eligible small manufacturers can amend their 2022-2024 tax returns to claim refunds for R&D costs incurred during those years. Small businesses making this election must do so by July 4, 2026 (one year following the passage of the OBBBA).

What’s next?

The changes to R&D expensing under the OBBBA open up new tax-saving opportunities for manufacturers. However, several factors need to be taken into consideration, such as elections for acceleration and/or retroactive application of the law, as well as other factors such as the interplay between R&D expensing and federal R&D tax credits. We encourage you to meet with one of our manufacturing accounting professionals, who can answer your OBBBA-related questions and help you update your tax strategy in light of the recent tax law changes. Let us help you make the most of new tax-saving opportunities. Give RBT CPAs a call today, and find out how we can be Remarkably Better Together.

4 OBBBA Changes Benefitting Construction Companies

4 OBBBA Changes Benefitting Construction Companies

Our last article provided a high-level overview of several provisions of the One Big Beautiful Big that are likely to impact the construction industry. In this article, we’ll focus on four of the most noteworthy elements of the new tax law as it pertains to construction companies: the “no tax on overtime” provision, 100% bonus depreciation, expansion of the Section 179 deduction, and immediate expensing for domestic research and development costs.

  1. “No Tax on Overtime”

The OBBBA creates a temporary deduction of up to $12,500 ($25,000 for joint returns) for individuals who receive qualified overtime compensation (as defined by the Fair Labor Standards Act), available for tax years 2025 through 2028. The deduction applies only to the premium portion of overtime pay (the amount paid in excess of the taxpayer’s regular rate of pay) and begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). Note that the deduction applies only to federally required overtime under FLSA (Section 7), not to enhanced state overtime rules or those negotiated under collective bargaining agreements.

Impact on Construction Companies:  The new deduction may incentivize construction employees to work more overtime hours. Employers will need to track and separately report qualified overtime compensation on employee W-2s.

  1. 100% Bonus Depreciation Restored

The OBBBA permanently restores 100% bonus depreciation for qualified property placed in service as of January 19, 2025, reversing the planned phase-down of this federal tax deduction.

Impact on Construction Companies: The restoration of 100% bonus depreciation means that construction companies purchasing qualifying equipment or machinery can now fully deduct these purchases in the year they are placed into service. This reduces taxable income and frees up capital for other purposes.

  1. Section 179 Expansion

Similar to 100% bonus depreciation, the Section 179 deduction enables businesses to deduct the full cost of qualifying equipment in the year it is placed into service. The OBBBA increases the Section 179 expensing limit to $2.5 million, reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

Impact on Construction Companies: The increased limit for the Section 179 deduction allows construction companies to deduct a greater portion of their qualifying purchases immediately.

  1. Immediate R&D Deductions Restored

U.S. research and development expenditures, previously required to be amortized over five years, can now be deducted in the year paid. Small businesses averaging $31 million or less in annual gross receipts for the prior three tax periods may elect to apply the change retroactively for tax years beginning after December 31, 2021. All businesses that made domestic R&D expenditures between 2022 and 2024 may elect to accelerate the remaining deductions for those expenditures over one or two years. Unlike domestic expenditures, foreign R&D costs continue to require a 15‑year amortization under Section 174.

Impact on Construction Companies: The restoration of immediate R&D deductions will allow construction companies to immediately deduct expenses related to domestic research and development, such as experimenting with new building techniques, technologies, design processes, and more.

Conclusion

These four provisions of the One Big Beautiful Bill Act offer tax benefits for construction business owners as well as their employees. To discuss how you can best take advantage of the OBBBA’s tax-saving opportunities, please don’t hesitate to reach out to our construction accounting experts at RBT CPAs. We’re here to answer all of your OBBBA-related questions and—as always—to support your accounting, tax, audit, and advisory needs. Call us today to discover how we can be Remarkably Better Together.

No Tax on Tips and Overtime under the OBBBA: What Breweries and Distilleries Should Know

No Tax on Tips and Overtime under the OBBBA: What Breweries and Distilleries Should Know

In our last article, we highlighted several provisions of the One Big Beautiful Bill Act (OBBBA) relevant to breweries and distilleries, including permanent 100% bonus depreciation, the increased Section 179 deduction, and immediate R&D deductions, to name a few. If you are an employer at a brewery or distillery, you should be aware of two additional provisions of the new tax law—the new “no tax on tips” and “no tax on overtime” rules. These provisions are likely applicable to your employees, and you’ll need to be aware of your reporting obligations. Here is some key information for both employees and employers regarding the new tip and overtime tax laws under the OBBBA.

“No Tax on Tips”

For Employees:

The OBBBA creates a temporary deduction of up to $25,000 per year for qualified tips received by individuals in occupations where tipping is regular and customary, available for tax years 2025 through 2028. The deduction begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). The deduction is limited to tips voluntarily paid by customers (not mandatory service charges), including tips shared through pooling arrangements.

For Employers:

Employers must separately report qualified tips for tipped employees. W-2s and 1099s will need to specify the qualifying occupation of the tip recipient. The Treasury Department is expected to issue a list of qualifying occupations (by October 2025) and provide further IRS guidance for tracking designated cash tips.

“No Tax on Overtime”

For Employees:

The OBBBA creates a temporary deduction of up to $12,500 ($25,000 for joint returns) for individuals who receive qualified overtime compensation (as defined by the Fair Labor Standards Act), available for tax years 2025 through 2028. The deduction applies only to overtime pay premiums (the amount paid in excess of the taxpayer’s regular rate of pay) and begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers). Note that the deduction applies only to federally required overtime under FLSA (Section 7), not to enhanced state overtime rules or those negotiated under collective bargaining agreements.

For Employers:

Employers will need to track and separately report qualified overtime compensation on employee W-2s, which will require updating reporting systems.

Takeaways for Breweries and Distilleries

The new tax rules for tips and overtime under the One Big Beautiful Bill Act may provide significant benefits for employees of breweries and distilleries. Brewery and distillery employers and managers will need to update reporting and payroll systems to reflect the requirements of the new laws. Further IRS guidance on these provisions is expected by the end of the year. Meanwhile, please don’t hesitate to reach out to our experts at RBT CPAs with any questions about the recent tax law changes. As always, our team is here to support all of your business’s accounting, tax, audit, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

The Issue of Employee Retention in Housing Authorities: Costs, Challenges, and Solutions

The Issue of Employee Retention in Housing Authorities: Costs, Challenges, and Solutions

High turnover rates have long been an area of concern for public housing authorities. High rates of staff turnover not only hurt PHAs financially but also reduce the quality and efficacy of programs. Low retention rates can be attributed to a variety of factors, including low wages, lack of resources, and limited upward mobility, among other reported causes. So, what can PHAs do to combat high rates of turnover? This article will discuss the costs of low retention, the reasons PHA employees are leaving, and the strategies PHAs can employ to counteract these issues.

Costs of High Turnover for PHAs

Below are some of the costs of high turnover for housing authorities:

  • Increased time and money spent hiring and training new employees.
  • Loss of institutional knowledge.
  • Increased strain on remaining staff.
  • Reduction in the quality of services.

Causes of Low Retention in PHAs

The following are some of the most commonly reported reasons that PHA employees leave their jobs:

Strategies PHAs Can Implement to Counter These Issues

Below are some actionable steps PHAs can take to reduce staff turnover:

  1. Offer competitive benefit packages for health and retirement.
  2. Invest in training and career development.
  3. Implement a formal system for onboarding new employees, including mentorship programs, frequent check-ins, relevant training materials, and sufficient time during the work day to complete training.
  4. Leverage technology such as updated software and automation to reduce administrative burden.
  5. Identify what tools team members specifically need to accomplish their jobs successfully.
  6. Implement performance feedback measures.
  7. Share open positions internally with team members through a variety of channels (i.e. the PHA’s website, staff meetings, email, text, printable notices, etc.)
  8. Schedule regular career conversations with team members.
  9. Increase communication with team members, employing varied communication methods such as all-staff meetings, video messages, department meetings, one-on-one meetings with supervisors, newsletters, suggestion boxes, and employee surveys.
  10. Respond to employees’ questions and concerns in a timely manner.
  11. Create succession plans.
  12. Regularly review policies and procedures, updating as needed.
  13. Allow hybrid or remote work arrangements where possible.
  14. Implement employee wellness programs.

Conclusion

Though high turnover rates remain a significant challenge for PHAs, there are steps that housing authorities can take to improve employee satisfaction and retention. While you consider how to improve your PHAs’ retention strategies, you can trust RBT CPAs to take care of your accounting, tax, audit, and advisory needs. Contact us today to learn how we can be Remarkably Better Together.

Financial Toolkit for School District Leaders: Practical Tips and Resources

Financial Toolkit for School District Leaders: Practical Tips and Resources

Managing a school district comes with a range of financial responsibilities—and having the right knowledge and tools at your disposal makes all the difference. To help local municipal and school district leaders stay on top of budgeting, cash flow, and long-term planning, the Office of the New York State Comptroller (OSC) created the “Financial Toolkit for Local Officials.” Below, we’ve highlighted some of the points you may find most useful.

Spotting Signs of Financial Stress

The first step in protecting your district’s financial health is knowing how to identify early warning signs of fiscal stress. The OSC toolkit suggests:

Together, these strategies can help you stay ahead of potential issues before they grow into more serious financial challenges.

Budgeting with Confidence

Budgeting is central to the financial management of any organization. The OSC guide, Understanding the Budget Process, walks local officials through the essentials of preparing, adopting, and monitoring a budget. Here are some of the key steps of the budgeting process covered by the guide:

  1. Estimating Expenditures: Expenditure estimates should include categories such as employee salaries and benefits, debt service, energy costs, transportation, maintenance, administration, “charter school basic tuition” payments, and payments to employees for compensated absences or employee separation. Estimates are reviewed by the budget officer (typically the superintendent in a school district).
  2. Projecting Revenue: Revenue forecasts typically rely on 3–5 years of historical data and should include sources such as real property taxes, non-property taxes, state and federal aid, and any other sources of revenue.
  3. Estimating Fund Balance: Since fund balance can be used to help fund the budget, it’s important to estimate it carefully—even if projecting months in advance can be tricky.
  4. Determining Real Property Taxes: Finally, school districts need to determine the amount of real property taxes needed to balance the budget. The formula for calculating the tax levy can be found in the OSC guide.

If your district is already facing a budget deficit, the toolkit also outlines options such as modifying the current budget, using reserve funds, drawing on surplus fund balance, or issuing short-term debt.

Staying on Top of Cash Flow

Cash flow management involves policies and procedures that help to control the movement of cash in and out of the school district. The OSC’s recommendations for effective cash flow management include:

  • Actively monitoring cash flow.
  • Accelerating the collection and deposit of receipts.
  • Timing disbursements strategically.
  • Maximizing interest earnings.
  • Following state laws for depositing and investing public funds.

Additional Resources

School district leaders can refer to the OSC Financial Toolkit for additional information and resources including publications, fact sheets, and webinars.

And remember—you don’t have to navigate these financial challenges alone. At RBT CPAs, we partner with school districts and municipalities across New York to provide accounting, audit, tax, and advisory services that keep communities running smoothly. Reach out to learn how we can be Remarkably Better Together.