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Author Archives for Service2Client

  • Understanding Contribution Margin After Marketing

    Posted Date October 1, 2025 Posted Time 12:00 am Published in

    Contribution margin after marketing (CMAM) measures how much money is generated per unit retailed after factoring in a company’s variable costs, along with marketing costs. It’s analogous with contribution margin, however, a business must factor in marketing costs the company experiences when publicizing a good to likely consumers with details on the business’ wares. This metric determines how well net sales can satisfy expense obligations and what percentage of net sales may remain to satisfy fixed expenses. Comparing Variable Versus Fixed Costs Variable costs, as the name implies, are expenses that rise and fall according to output quantities. Fixed costs,... View Article

  • How to Reduce the Burden of IRA Required Minimum Distributions

    Posted Date September 1, 2025 Posted Time 12:00 am Published in

    Required minimum distributions (RMDs) from traditional IRAs and 401(k)s often become a significant tax burden during retirement. As the percentage of your IRA that must be distributed increases each year, many retirees face higher adjusted gross income and increased exposure to stealth taxes. However, with strategic planning, you can transform RMDs from burdens into opportunities. Timing Your First RMD The RMD starting age has changed recently: age 72 for those born before 1951, age 73 for those born 1951-1959, and age 75 for those born in 1960 or later. Your first RMD must be taken by April 1 of the... View Article

  • Beyond the Hype: A Strategic Blueprint for AI Investment in 2025 and Beyond

    Posted Date September 1, 2025 Posted Time 12:00 am Published in

    Artificial intelligence (AI) is one of the most talked-about technologies today. It has taken a shift from the broad general-purpose tools to specialized innovations that promise real impact. AI is dominating headlines with investor pitches. There has also been a surge in startups promising AI-powered solutions. However, some businesses have already adopted and invested millions into AI projects with little return. As AI advances, business owners and investors need to stop chasing the latest headlines and consider how to best integrate AI to create lasting value. Understanding the AI Investment Landscape in 2025 Since the AI breakout, it has advanced... View Article

  • How to Evaluate Accounts Receivables

    Posted Date September 1, 2025 Posted Time 12:00 am Published in

    According to the Federal Reserve Bank of St. Louis, collection agencies saw $16.28 billion in revenue in 2019. While revenues have declined somewhat in recent years, unpaid invoices are still big business. Accounts receivable aging reports can help companies identify and mitigate unpaid invoices and potentially lower a business’ need to send unpaid invoices to collection agencies. An accounts receivable aging report analyzes how well a company manages its accounts receivables (AR) and identifies the level of any abnormalities. It looks at receivables based on their age; specifically, the time the invoice has been unpaid and outstanding. Then, once receivables... View Article

  • Cashless Charitable Contributions

    Posted Date September 1, 2025 Posted Time 12:00 am Published in

    Not everyone can make large charitable contributions. But there are ways to be charitable without spending your discretionary income while at the same time lowering your tax bill. Even those who can make large donations benefit from the tax advantages of a cashless donation. The following are ideas for cashless contributions to causes you are passionate about. Tax Rules The main thing to remember is that charities are not required to pay taxes on donations (cashless or otherwise). This can make your donation more valuable to them than it would be to you. Note, too, that if your itemized deductions... View Article

  • Understanding Depreciation Recapture

    Posted Date August 1, 2025 Posted Time 12:00 am Published in

    When it comes to businesses and asset depreciation, there are many types available, such as straight-line, units of production, double declining balance, and sum of years digits. While these aren’t the only ones, they are available via the IRS code and help businesses reduce their taxable income. However, under certain circumstances, businesses have to be mindful when selling assets for a gain that could cause a tax liability through depreciation recapture. Understanding Depreciation Depreciation is defined as the reduction in the value of an asset through wear and tear. It can be a rental property or production equipment. Investors can... View Article

  • How Businesses Can Build Disinformation Resilience

    Posted Date August 1, 2025 Posted Time 12:00 am Published in

    The digital landscape has rapidly advanced, fueled by generative AI and other transformative technologies. Although this has come with great opportunities, it has also introduced new strategic threats. Among these is disinformation. The World Economic Forum classifies misinformation and disinformation as a top global threat alongside conflict and environment in its 2025 global risks report. With generative AI becoming more sophisticated, threat actors (like deepfakes, voice cloning, viral hoaxes and AI-driven scams) are increasing in frequency and precision. Therefore, business leaders need to act fast to build disinformation resilience. Why Disinformation Matters for Business Disinformation is the intentional spread of... View Article

  • Restricted Stock Units: 5 Essential Tax and Financial Planning Strategies

    Posted Date August 1, 2025 Posted Time 12:00 am Published in

    Receiving restricted stock units (RSUs) may seem straightforward, but the tax and financial planning complexities can catch many employees off guard. Understanding these key strategies might help you avoid costly mistakes and optimize your financial outcomes. 1. Manage Tax Withholding at Vesting The most common pitfall with RSUs is inadequate tax withholding when shares vest. Companies typically withhold taxes at a flat 22 percent rate for federal taxes (37 percent for amounts over $1 million annually), but this often falls short of your actual tax obligation. Financial planners identify this as the biggest issue they see with RSU clients. Many... View Article

  • Young Adults: Why Buy Life Insurance?

    Posted Date August 1, 2025 Posted Time 12:00 am Published in

    Young adults may not see much reason to purchase life insurance, especially if they have no dependents and/or a partner who makes plenty of money. However, there are several reasons why folks in this situation would want to consider various forms of life insurance. To Pay Off Debt Let’s say your parents cosigned for your student loans, car loan or other debts. Should you pass away, your cosigner will be liable to pay off the debt. However, if you name that person the beneficiary of your life policy, he or she can use the benefit to pay off the debt.... View Article

  • Job Shopping: What’s New in Company Benefits

    Posted Date July 1, 2025 Posted Time 12:00 am Published in

    If you are in the market for a new job or are interested in extracting more value from your current one, consider some of the newer trends in company benefits. The following is a primer on what might be available to help supplement your income with your current employer or benefits to look for when considering a position with a new company. The standard employee benefit package usually includes insurance (healthcare, dental, disability, life), retirement plans, and paid time off. In addition, federally mandated employee benefits include unemployment insurance, workers’ compensation, and family and medical leave, plus employers are required... View Article

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