by Felicien | Oct 23, 2018 | Education
Today’s business owners carry many burdens, but tax time can cause a headache like no other. Filing taxes is often a cause of stress for small business owners and those just starting their empires, and with an ever-changing set of rules and regulations to follow, it can be difficult to understand it all. It’s important, though, to pay close attention to changes in tax codes. One change, implemented just this year, is already presenting big benefits for business throughout the U.S.
H.R.1.’s Section 179 was signed into law in January of 2018, marking a change to the previous tax laws followed by business owners throughout the U.S. The IRS 179 Deduction was enacted to help small businesses lessen their taxable income, thereby reducing their tax burden. At its core, the tax code now allows business owners to take a deduction equal to the full purchase price of a qualifying piece of equipment. Not only does this encourage small businesses to invest in new equipment, but to also invest in themselves. Numerous small businesses are already reaping the benefits.
What Does Section 179 Do For Businesses?
Due to its signing, Section 179 will see an increase in deductions from $500,000 to $1 million, while equipment purchases will be subject to an increase of up to $2.5 million. Small businesses ought to take advantage of these new changes by investing in their growth, and one of the best ways to achieve this is through technology.
With these new regulations, businesses are now able to file a deduction equal to the total purchase price of a piece of equipment. Qualifying equipment may include laptops, routers and phone systems, among others. In order to take advantage of these new tax benefits, you’ll need to buy, lease or finance and use your equipment by 12/31/2018.
What Type of Equipment Qualifies?
A wide range of tech items qualify for the deduction, and qualifying equipment doesn’t need to be owned, either. Business owners can still take advantage of deductions even for items that are financed or leased. This includes both hardware and software. One stipulation is that the equipment must hold a service contract for business in order to qualify and that equipment must have been in service between January 1 and December 31 of 2018. If the equipment was purchased under a Capital lease, dollar buyout or cash sale, it still qualifies.
Items eligible for deduction include those that help promote and maintain productivity. To take full advantage of these deductions, businesses ought to invest in equipment with the potential to improve efficiency and security measures. Routers and firewalls, for instance, should be replaced every few years to stay in tune with the most current security standards. Other equipment like scanners and switches, both of which are constantly improved, should be upgraded every few years to maximize productivity. With items like these, newer often means faster, and in a bid for productivity, newer and faster can’t be beaten.
Laptops and ultrabooks are covered by the new tax code, and businesses would do well to frequently upgrade to models that boast longer battery life and other features that can aid in productivity and efficiency. Workstations and additional monitors are also eligible for deductions. To take advantage of this, organizations may want to consider providing a 2nd monitor for employees to further enhance productivity.
This also applies to backup equipment and appliances built for disaster recovery. If your business doesn’t yet have a reliable system in place to keep your business afloat in the event of an emergency, it’s something you should definitely consider.
Other items like storage can also be deducted. Storage Area Networks and Redundant Array of Independent Disks are just two examples of storage systems that are deductible for businesses.
Is There A Bonus Depreciation?
In regard to business tax codes, bonus depreciation can be unpredictable. In 2018, bonus depreciation is being offered at a full 100 %. While the Section 179 Deduction applies to both new and used equipment, the same has not always been the case with Bonus Depreciation. Up until just recently, Bonus Depreciation only covered new equipment. Now, it also applies to used equipment, which has proven useful to large businesses that may surpass the Spending Cap under Section 179, which is currently set at $2,500,000.
Tax codes for businesses can be complicated, but the goal of Section 179 is a simple one: encourage businesses to spend more in order to do more. Businesses large and small would be wise to make the most of these tax benefits and leverage them to plan for the future. A certified accountant can walk you through these changes and help you make educated decisions when investing in equipment for your business.
by Felicien | Oct 23, 2018 | Education
The phrase, “Technology…you either love it or hate it” is a concept that no longer works in the modern world. In fact, it really is not even relevant. Technology has worked its way into nearly every business. The legal sector is no different. Of course, legal professionals may have held out longer than others.
The contemporary law office barely resembles traditional practices. In fact, technology continues to handle larger amounts of legal work at a greater frequency. This frees attorneys to work on more personal aspects of the job. Unless they are technically-savvy, most lawyers delegate these tasks to support staff. Generally, however, it is only the largest law firms that hire an onsite IT team.
This is why many offices prefer to outsource their IT services.
How Are Resources Utilized When Law Firms Do Not Outsource?
When a firm hires an IT-specific employee, this is a major commitment. This individual becomes a member of the support staff and is paid regardless of whether his or her services are required. Otherwise, if one of the partners chooses to take on the task, it is at his/her financial detriment. He/she would be using the time that would otherwise be directed at serving clients, etc.
Additionally, as new technology is required, the firm would need to personally handle it. The on-staff tech (or benevolent partner) would need to take time, and possibly classes, to learn everything about it. This all results in a bit of a mismanagement of resources, which is especially true when there are other options.
Would the Law Office Incur Additional Fees or Experience Downtime?
When a firm outsources their IT services, the provider takes all the responsibility. They spend the money. They invest in the education, software licenses, training, and certifications. This enables them to troubleshoot and resolve problems with the firm’s computers, Internet, servers, and software issues rather than the firm’s.
Generally, outside IT service providers are made up of a team of experts rather than one overworked technician. This allows them to have a variety of individuals who offer a range of experience and skills. They also have access to more advanced technology and tools. Since it is their primary focus, they have to keep up with all of the latest innovations. Otherwise, they lose their edge.
Since there are many people with different perspectives, team members are able to consult with and advise each other. With so much at their disposal, it makes it much easier to identify and resolve the core problems more quickly. This means that there is little if any, downtime or interruptions for the firm.
Does Outsourcing IT Service Provide Business Continuity?
By outsourcing their IT services, a law firm will receive support 24-hours a day, 7-days a week, and 365-days a year, whether they need it or not. This level of support is not possible from even the most diligent in-house employee. An outside source would also have additional resources available that an inside tech would not have.
Since the work to troubleshoot an issue is outsourced, the rest of the office can go about business as usual. Nothing else changes. In fact, business continuity is one of the primary reasons to outsource. It ensures the law office is able to continue as if nothing is amiss. This makes it a particularly responsible option.
What Are the Top IT Outsourcing Options?
When choosing an outside IT firm for a law office, it is important to take due diligence. There are many options, and they are not all equal. Fortunately, there is a resource that has already ranked the top choices. The Everest Group researches each. This makes a time-consuming personal analysis almost unnecessary.
The Everest Group is a management consulting and research firm that advises businesses around the world. Every year since 2008, the Everest Group has evaluated outsourced IT service providers according to 26 characteristics. These include the technologies they use and the geographies they cover, among others.
The top 10 for the year 2018 include the following IT firms:
Accenture
TCS
Cognizant
Wipro
IBM
HCL
Infosys
CapGemini
DXC Technologies, which is a merger of CSC and HPE
NTT Data
Although these are the top 10 in this reporting year, there are many reputable providers. The Everest Group keeps tabs on the up-and-comers who may unseat the 10 as well. Checking previous winners provides a more comprehensive picture of who has performed reliably.
In Conclusion
For some law firms, there is peace of mind having their own in-house technician or IT team. Most offices, however, would benefit from outsourcing their IT services. Ultimately, it conserves money, time, and other resources. Rather than researching the various options, a busy attorney would do better to peruse the years of lists compiled by the Everest Group. With several reliable performers on them, there is no reason not to.
by Felicien | Oct 22, 2018 | Education
Standard Operating Procedures (SOPs) are necessary for every industry. The written procedures keep a company on track. The importance of having them is to guarantee the organization remains compliant with all federally mandated regulations, legislation, and ever-changing laws. But too often many businesses will continue to struggle with getting the correct and appropriate SOP created, distributed and understood by their employees.
What is an SOP?
Standard Operating Procedures are clearly defined instructions. Their purpose is to, execute consistency of the performance, of a specific function. A detailed written and enacted SOP are used to fulfill compliance requirements, mitigate safety and health risk, and directly work consistently and efficiently across an entire organization. This guide provides you with ten easy steps to review when implementing your organization’s SOP.
Step 1 – SOP purpose is clearly understood and explained
Are you wondering why an SOP is required? In your organization, you want problems solved before they arise. So, what issues need addressing and what does it need to accomplish. Here are some examples:
Reducing costs
Increasing quality
Ensuring safety
Reducing risk
Protecting the environment
Providing a training source
Step 2 – Consider your audience diversity
Before your Standard Operating Procedure gets written, you’ll want to look at your intended audience. Does this audience have prior knowledge of the subject matter? Will they have the necessary language skills to understand? Also, what is the size and shape of your audience? Remember, some parts of the SOP will make sense to one group, but not another.
Step 3 – Format and layout must be useful
There are no right or wrong ways when designing or presenting your SOP, but here are some easy reminders to consider:
If you have a pre-existing format that is working well, then there is no need to change it, but do consider slight enhancements. Sometimes a new visual does grab the readers attention.
Does your process have multiple routes? That’s okay. Consider using a flowchart layout. Many individuals learn better with visual content.
How long is the process? Short or very long? Then use hierarchical steps. To provide clarity, give a list of main steps with sub-steps underneath that helps.
Is the routine simple which only requires just a few steps? Then using a simple list may be the most beneficial way.
Step 4 – Suitable authors must be used
To write an SOP; you need to have the necessary knowledge. While you may have been assigned to create, and even own this SOP, always bear in mind, you need to have the required expertise to write it. Guarantee that experts in the relevant areas get brought into the authorizing process. Using SharePoint tools to expedite that collaboration is crucial to success during this phase.
Step 5 – Supply appropriate content and structure
There will always be specific needs for unique situations. But, these examples below are necessary details that must get included in your SOP:
What is the scope of an SOP
What is the SOP procedure
Are there any Health and Safety Considerations
Are there any equipment needs
Glossary of terms and Hints and Tips
Step 6 – Use a writing style the reader can easily read and understand
All content in your document must remain clear and easy to read. Not doing so will make it hard for your reader understand any references, making comprehension difficult.
Avoid personal pronouns, such as He, Him, She, Her, Them, and You.
Establish steps that explicitly help with ease of reference and maintenance in the future.
Avoid walls of text. Insert diagrams, flowcharts, and bullet points.
Step 7 – Mandatory SOP testing
Your personnel must get SOP tested, especially by the people who will use it, and guarantee comments are taken on board and updated within the SOP as needed and required.
Step 8 – Make it known to your entire staff where to find the SOP
Organizations that have implemented a Standard Operating Procedure, typically have a known location where to find the material. But do not assume everyone in your organization knows where to look. It might be at a SharePoint site either department or organization level, but make sure everyone knows where to look.
Step 9 – Check that the SOP was distributed and read
While a repository is required, placing your SOP on SharePoint to be read does not go far enough. Immediately after your SOP gets updated or put in place, an email should be crafted and sent to all the relevant user groups to read the document. Then a response back from all recipients they have read and understood the material. You could use a SharePoint based tool to manage this whole process for you.
Step 10 – Guarantee staff fully understands
After each staff member has read the SOP, next comes sitting with them to make sure they clearly understand and expected of them. There is a need to guarantee your team has a clear understanding of what is meant by the Standard Operating Procedure. Testing your staff after reading the material, gives you an idea of what they do or do not comprehend, and how you can address any concerns.
Did you find this article informative? If you liked this one, check out our other content we think you’ll find interesting.
by Felicien | Oct 22, 2018 | Education
Although many long for the simplicity of yesterday, advancements in technology are quickly taking over every industry. This includes the legal field. Technology provides an ability to streamline resources and improve efficiency. Of course, people are required to manage it.
No one argues against the benefits of having good support staff members. They are essential to the continuity of the work cycle. They ensure that the lawyers and legal staff are able to focus on what they do best. For example, when IT needs to be optimized or updated, the rest of the office should be able to function normally.
Whether it is by hiring a team or a single technician, handling IT in-house can use more resources than necessary. Plus, as technology continues to advance, it will require additional resources to keep up. That is why it is often better to outsource.
Here are five of the primary reasons your law office should consider outsourcing its IT services.
How Will Outsourcing Improve Availability?
By outsourcing to a full-service IT provider, the office’s network will continue to run smoothly. This means that attorneys always have access to their critical data. For example, it is necessary to be able to find and retrieve records and case files when preparing for court. If the network crashes, those documents would be unavailable.
It also ensures that existing clients have easy access to their counselors. If clients are unable to reach their attorney, they are likely to hire another. If potential clients cannot find a specific law firm’s website, there are plenty of others from which to choose. It is a highly competitive market.
Outsourcing eliminates this as an issue or at least reduces the likelihood.
Will It Help the Firm Maintain Compliance?
In an age of identity theft and cybercrime, it is even more important to take every precaution to ensure the safety of a client’s data. In the legal industry, it is also the law. Unfortunately, compliance is a complicated process.
Someone seeking legal advice assumes that his or her information will be kept safe. They believe that the lawyer they choose will do whatever necessary to protect it. Outsourcing IT provides the best security for your clients’ sensitive data.
Will It Reduce Expenses for the Firm?
There are several ways in which outsourcing IT operations saves money and makes the practice more profitable. A team of full-time IT employees is costly. They have limited expertise and the firm might be financially responsible for paying for certification. Otherwise, they could fall behind and be unable to work with more advanced technology, as it is developed.
By outsourcing, the office has access to a full team of specialized experts who are qualified to work on the most recent tech. The firm is not responsible for their training and they are available 24/7/365. It is less expensive than hiring full-time technicians.
What Quality of Service Is Available?
Since remaining at the top of their game is vital to their edge, an IT firm is nearly guaranteed to be skilled in all of the contemporary tools and tricks. Plus, since it is comprised of a team of experts, problems can be identified and resolved quickly. If one technician does not have the answer, he/she can easily consult with others.
With an outsourced IT team, law firms receive the following benefits that an in-house technician would not be able to provide:
Business continuation
Customized technology
Predictable expenses
Reduced overhead
Superior security
Team of specialists
World-class IT service
Law firms that hire an in-house IT employee are likely to get someone with a moderate amount of experience and general problem-solving skills. They may try to hire a “dream team” of IT experts but that would be time-consuming and expensive. Plus, who would know more about hiring IT experts—an IT firm or a legal one? By outsourcing to a provider that specializes in the legal industry, the benefits multiply.
How Will Outsourcing Provide a Competitive Advantage?
New technology is an ever-evolving beast. While a talented IT employee working in a law office might try to keep up, it would be nearly impossible. This is especially true since legal technology is a niche that is innovating in previously unpredicted ways.
Additionally, new security threats are developing almost as quickly as technology itself. With so many things happening at once, it’s easier for a managed IT services team to adapt. With a “divide and conquer” approach, they are less likely to miss something.
Having an outside company of IT experts provides law firms a competitive edge. By using the most up-to-date technology, lawyers are able to devote their energies to more important things.
In Conclusion
There’s no doubt that advances in technology bring numerous benefits to clients, as well as the firm. They allow counselors to work efficiently and be more accessible than ever before. Outsourcing IT allows lawyers to have all of these tools at their disposal without requiring they become an expert in each. With the benefit of a professional IT firm on call, they can focus on what is most important in their practice: the clients.
by Felicien | Oct 19, 2018 | Education
The Health Insurance Portability and Accountability Act (HIPAA) is a Federal statute, and associated regulations, that, among other things, control what healthcare providers and other “covered entities” do with “protected health information” (PHI). The HIPAA regulations are fairly straightforward, but there are a lot of them. There is a good summary here, with links to the relevant portions of the Code of Federal Regulations (CFR). This article covers only the basics.
Who Does HIPAA Apply To?
“Covered entities” are health care providers, health plans, and health information clearinghouses. The latter are usually aggregators of health information from hospitals, doctors, and the like. “Protected health information” is any information that relates to an individual’s past or present health status, treatment, and payments for any treatment an individual receives. Past, present, and future healthcare records are covered.
Data falls under HIPAA protection for 50 years after the death of the patient. The form in which the information exists does not matter – it can be written, oral, or electronic. If the information is in electronic form, additional requirements for protecting it applies.
Why Should I Worry About All This?
People are concerned about following HIPPA guidelines and they should be. It’s important to protect the personal and healthcare information of all patients. In addition, the Office of Civil Rights (OCR) within the Department of Health and Human Services (HHS) can impose large fines and other penalties for HIPAA violations. Hospitals and health systems have been fined in the millions of dollars for HIPAA violations. And HIPAA violations, if they make it into the news media, always create bad publicity.
What Can I Do To Remain Compliant?
Training of staff on HIPAA rules and practices is by far the most important step. The second is making sure that PHI stored in electronic form is protected. That involves things like:
Using encryption when data is stored or transmitted
Making sure that staff have only the access needed to do their jobs
Making sure that access to systems is, at a minimum, protected by strong passwords
Protecting records with the latest technology such as swipe cards or biometric identifiers
What Do I Have To Do To Conform To HIPAA?
You need to:
Formulate your privacy practices
Notify patients of privacy practices
Obtain consent or authorization when required
Make sure that your arrangements with business partners meet HIPAA requirements
Make sure you distinguish your normal health care operations, where consent is not required, from disclosures, where consent or authorization is required
Make sure you follow the HIPAA “security rule,” which covers PHI in electronic form
It goes without saying that your legal department needs to be involved in all of this. The Notice of Privacy form should inform patients and staff of what your practices and guidelines are. A notice should be given in written form to patients when they are first encountered.
“Arrangements with business partners” concerns companies that may have access to PHI in the course of providing services to a health care provider. These include companies that provide storage of documents, destruction of documents, or electronic handling of documents. You are required to make sure that they understand the HIPAA requirements and conform to them. You can think of it as the HIPAA requirements “flowing downhill” from you to your business associates.
What’s The Difference Between Consent And Authorization?
In many cases, no consent is required. This includes disclosure of PHI for treatment, payment, and health care operations. A covered entity may, but is not required to, seek consent from a patient for these purposes, but it is common to do so.
On the other hand, an authorization is required for any use of PHI other than the ones listed above. An authorization is more formal than a consent, must be written, and must contain several elements, which are covered here.
Authorization is required when the disclosure is for any purpose other than treatment, payment, or health care operations. This includes disclosure to a third party, such as a life insurance company, an employer, or a provider not affiliated with your healthcare organization.
Please note that electronic transmission of PHI is covered by the authorization requirement as well. If authorization to send the information on paper is needed, authorization to send it electronically is needed as well.
What Are The Takeaways?
HIPAA compliance is not optional.
Penalties for violating it can be very costly.
HIPAA applies to PHI in any form – paper or electronic.
Obtaining consent is generally a good idea; authorizations are required.
Depending on the services your business partners provide to you, they may be required to conform to HIPAA as well.
It is always better to err on the side of caution when dealing with HIPAA.
If you still have questions, be sure to visit the HIPAA website. Today, there are many organizations that can help you learn about and comply with HIPAA guidelines. For instance, many managed IT services providers have tools to help with compliance.
