Matt Day-RBG Post

Meet Our Team – Matt Day

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Matt Day, our Client Advisory & Accounting Services Leader, brings a rich history of experience and dedication to the RBG team. Since joining the firm in November 2023, Matt has added immense value to the Client Advisory & Accounting Services department. In his role, Matt spearheads a team dedicated to serving a diverse array of clients, spanning industries such as non-profits, restaurants, and manufacturing.

A proud alumnus of the University of Mississippi, Matt holds a Bachelor of Business Administration in Business Management (2005) and recently earned his second BBA in Accounting (2021) from the University of Memphis.

Matt finds solace and joy in his family life. He & his wife, Nicole, are proud parents to their son, Miller, who will be turning two this April! Matt’s greatest pride lies in the gift of fatherhood, cherishing every moment with Miller as they navigate life’s adventures together.

When not immersed in financial strategies or familial bliss, Matt’s playful side emerges. Known for his uncanny impersonations of co-workers and a penchant for tree-climbing expeditions with Miller, Matt finds joy in the simple pleasures of life.

 

Fun Questions

1. What fictional place would you most like to visit?

Neverland/Get to fly and not age

2. What is a new skill that you would like to master?

A programming language; SQL, Python

3. What do you wish you knew more about?

Different languages and other cultures

4. What’s the farthest you’ve ever been from home?

Hawaii

5. What question would you most like to know the answer to?

Chicken or the egg

6. What is the most impressive thing you know how to do?

I’ve been told that my impersonations of co-workers are simply that, impressive

7. What was the best compliment you’ve ever received?

“WE love having your child in our class” – a teacher told me as my son was being separated from the rest of his peers for pushing

8. What accomplishment are you most proud of?

Even my wife would agree with me: Our son, Miller

9. What is your favorite smell?

New shoes/Leather

11. When was the last time you climbed a tree?

Last week- I tend to do that a lot more with an almost 2 year old

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Your February Financial To-do list

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January has come and gone. You may or may not have stuck to your resolutions, but the good news is that February is here. Now is the perfect time to hunker down and get your monetary ducks in a row. Here are a few things to put on your agenda to get your financial house in order.

Pay Off Holiday Debt

Yes, it was fun to go shopping for holiday gifts, but those interest rates are high – you’ll want to pay your balances off as quickly as possible. And here’s a tip: you can make more than one payment per billing period. In other words, instead of waiting for your next paycheck, pay some of the balance now and some later. This will reduce the interest you’d pay if you waited two more weeks to pay in full. This way, you can actually pay your credit card bills more frequently and pay less over time. While you’re at it, look for lower interest rates and transfer those balances. All it takes is a google search for “zero balance transfer credit card offers” and you’ll a find what you need in no time.

Start Working on Your Taxes

April will be here before you know it, so getting a jump on taxes is a smart idea. Also, filing early will give you more time to figure out how much you owe, if anything. If you want to take the guesswork out of preparing your taxes, you might consider hiring a tax professional. When you make your selection, ask for a price quote. Some tax preparers often want to see which forms you need before they work on your taxes, but you can still ask for a list of fees for various types of tax help to get a ballpark idea. Here’s a red flag: if someone says they’ll base your fees on a percentage of your refund, run away. This is a violation of IRS rules.

Get a Free Credit Report

All the big reporting companies – Equifax, Experian and TransUnion – offer a free report one time every 12 months. So why not find out? When you see the truth of your credit report, it can motivate you to change some habits, like paying earlier, more often and on time. No one likes late fees.

Save on a Gym Membership

In January, you probably got pummeled with lots of solicitations for a gym membership at low, low prices; but in February, the prices are even lower. If you don’t want to commit, you can sign up for a trial run. You can even negotiate a deal if you ask to speak to the manager. Finally, some gyms will offer you a deep discount if you agree to use the facilities during off-peak hours or on certain days. Flexibility is the key!

Buy Things on Deep Discount

With high prices and high interest rates, it makes sense to check out all the price cuts on Consumer Reports. On this site, you’ll find all the good stuff: cars, home and garden supplies, appliances, electronics and more.

These are just a few of the items you can put on your financial to-do list. All it takes is carving out some time and getting started. Once you get going, you’ll probably make more progress than you ever dreamed.

Sources

https://www.consumerreports.org/personal-finance/february-financial-to-do-list/
Page of newspaper with words municipal bonds. Trading concept.

Municipal Bond Outlook for 2024

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One of the positive aspects of sustained high interest rates is higher yields on bonds, particularly high-quality municipal bonds. It is possible that 2024 will present a different scenario, as the Federal Reserve begins a schedule of monetary easing by reducing interest rates over time. The potential for this strategy, combined with a slowdown in inflation and economic growth – and exacerbated by the potential volatility of a U.S. presidential election – offer a hazy but ultimately positive outlook for municipal bonds.

For now, investors with a long-term outlook (up to 10 years) can take advantage of current high interest rates before they begin declining. A key recommendation is to focus on the credit quality of muni bond issuers, which is more likely to face adjustments due to lower reserves and unreliable revenue streams during an economic slowdown.

The following are some municipal bond market considerations for long-term investors:

  • While absolute rates are expected to decrease in 2024, muni bonds should continue to offer high yields and strong credit quality.
  • Speaking of credit quality, despite the larger universe of corporate bonds, there are more AAA- and AA-rated munis than corporate bonds. For example, there are only 13 unique issuers of AAA-rated bonds within the Bloomberg U.S. Corporate Bond Index. Of these 13, two comprise the majority of outstanding AAA corporate bonds. This means an investor is better able to diversify assets across a mix of high-quality muni bonds or a municipal bond fund.
  • Remember that munis are generally exempt from federal and state income taxes (when the investor lives in the issuing state) and might therefore provide a higher tax-equivalent yield when compared to yields of other long-term bonds.
  • In order for municipal bond income to be comparable to the after-tax yield of corporate bonds, the investor should be subject to a 45 percent or higher total cumulative tax rate. This is referred to as the “break-even” rate wherein municipal bonds will likely yield more after-tax income.
  • Longer-term, AAA-rated municipal bonds (up to 10 years) are expected to offer greater value compared to shorter-term munis.
  • Credit conditions are expected to continue their upward trend in 2024. As a general rule, municipal bonds are highly rated, but the average credit rating has increased even more since the pandemic. For example, the percentage of AAA- or AA-rated bonds in the Bloomberg U.S. Municipal Bond Index increased from 67 percent (pre-pandemic) to 71.4 percent as of November 2023.
  • Some of the most popular provisions of the 2017 Tax Cuts and Jobs Act are scheduled to expire in 2025. Demand for muni bonds might soar this year as taxpayers seek more tax-advantaged benefits given the potential loss of itemized deductions and a reduced standard deduction. Look for this sunsetting tax legislation to be a hot issue as this year’s election season gets up and running.

Given the higher yields available for the past 15 years, municipal bond returns are projected to be favorable in the near term. However, be wary of issuers that lack strong reserves and whose revenue streams are linked to economic activity.

Perhaps most importantly, investors should consider their objectives when investing in municipal bonds. If already in or nearing retirement, take into account your current tax bracket, the type of account you plan to invest in (taxable or tax-advantaged), credit quality, and time to maturity to effectively assess the value of municipal bond income in your portfolio.

Capacity Building written in a notepad with marker.

Optimizing Your Business’ Performance with Capacity Management

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When it comes to business operations and measuring performance, the optimal production scale a company can sustain is an important metric to measure. If a business’ capacity can’t be realized and sustained – or the bottlenecks can’t be identified and addressed in a timely manner – a business will likely stagnate and fail. Understanding more about capacity management can help businesses reduce the chances of dealing with sub-optimal performance.

Capacity Defined

A business’ capacity is defined as its highest level of production on a consistent basis. By measuring the capacity of a business, we can calculate its ongoing revenue projections. This type of evaluation also can help a company determine how to manage production snarls and identify ways to increase capacity reserves to help it manage abnormally high production demands. 

Capacity Utilization Rate Defined

This ratio is the percentage of a business’ production capacity that’s currently utilized. If an organization has a capacity utilization rate of 60 percent, the firm is currently operating at 60 percent of its theoretical capacity. When it comes to analyzing a business, this percentage can determine how much capacity may be available for spikes in demand.

This is calculated by taking the actual output and dividing it by theoretical output, with the result multiplied by 100, or as follows:

(actual output/theoretical output) x 100 = capacity utilization rate

Activity Capacity Overview

Activity capacity assesses the scale of production of a particular task over a given time frame (a quarter, six months or a 12-month fiscal year) while accounting for regular production factors. Common facets of production that affect output include worker rest periods, equipment upkeep, crew swaps, etc. This investigation allows a business to determine if it can accomplish projected production in the near term with existing equipment, or if the business needs to analyze bottlenecks before reassessing.

Budgeted Capacity

This method is used to approximate manufacturing quantity scheduled for subsequent time frames. Criteria that’s analyzed for the plan hinges on forecasted market demand, resource availability and production capabilities. It’s an imperative consideration that impacts sales forecasts, indirect operational budgets and the direct production budget.

Depending on the type of business, budgeted capacity can be represented in either hours or units. For example, a company would evaluate industry and economic demand trends, along with the time frame it’s trying to forecast and what resources the business has available for production. The follow steps are commonplace during this process:

Step 1: The business plans to produce 480,000 widgets for the projected time frame.

Step 2: The business looks at how many shifts will be run, how much each shift can produce, how many days the company will operate and the number of hours available for production for each shift. This will help the company determine production and resource availability for the projected time frame.  

Step 3: The business will look at what it’s able to produce based on its full capacity:

    Potential per shift = 100 widgets per hour x 8 hours a shift x 1 shift = 800 widgets

    Potential per day = 800 widgets per shift x 3 shifts per day = 2,400 widgets

    Annual production = 2,400 widgets per day x 275 working days per year = 660,000 widgets

Conclusion

The budgeted production of 480,000 widgets annually is approximately 73 percent of the business’ total production capacity. This leaves the business with ample room to respond to new clients and/or increased demand from existing clients for unexpected orders.

While each business is unique, taking steps to analyze and make more educated projections is one way to increase a company’s efficiency.

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RBG Admits James Hunter Stock, III, JD, CPA and Jeree Wheat, CPA as Partners

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MEMPHIS, TN —Reynolds, Bone, & Griesbeck, PLC (RBG) admits James “Hunter” Stock, III, JD, CPA and
Jeree Wheat, CPA into the firm partnership effective January 1st, 2024.


Hunter will serve as a Tax Partner in RBG’s Private Client Group, leading the firm’s estate and gift tax
practice. Hunter’s extensive knowledge, strategic insight, and dedication to client success have been
instrumental in shaping RBG’s tax services. When asked what drives his success, Hunter says, “I’m
motivated by knowing that I can help people and make a positive difference in my clients’ lives by serving
them well. I am also motivated by my family – a wonderful wife and three awesome children.”

As Tax Partner, he will continue to drive innovation and excellence in serving our clients’ complex tax
needs. “I enjoy working with clients to plan for their future while navigating an ever-changing tax
landscape, and then seeing their goals being achieved,” Hunter said.


Jeree will serve as an Assurance Partner primarily practicing in the firm’s Private & Non-profit Group,
continuing to be a technical resource and assurance efficiency leader. When asked what she loves most
about her job, Jeree says, “It’s the people I work with…not just the numbers. Not only do I get to interact
with our staff every day and watch them grow, but we all get to work with a phenomenal group of clients
as well.”

As Assurance Partner, mentoring and developing RBG employees to ensure attention to client needs and
quality service will remain a top priority for Jeree.

“We are proud to have them as partners and are excited about the positive impact they will have on our
clients, our team and the success of the firm,” said Carl “Skeet” J. Haag, CPA, Managing Partner of RBG.
“Their outstanding client service, exceptional dedication, expertise and leadership, exemplify RBG’s WHY
statement to challenge and inspire our people and clients to achieve their goals while creating lasting
legacies.”


RBG is a premier CPA and advisory firm delivering custom tax, accounting, auditing and consulting services to a wide variety of clients. They are building on their 100-year legacy by investing in the next generation of professionals and are passionate about helping their client partners reach their goals. For more information, please visit www.rbgcpa.com

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2023 Internship Spotlight

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Internships are an excellent opportunity to expand your network and make valuable connections. As an intern, you’ll collaborate directly with professionals in your desired industry, allowing you to establish relationships with potential future colleagues while working on various projects.

Furthermore, internships can serve as a direct pathway to securing a permanent position. RBG strongly values bright and talented individuals, and they actively invest in and recruit interns for full-time roles, offering a clear path for career advancement up to Partner level. By dedicating yourself and putting in the effort, you increase your chances of receiving a job offer during your internship, providing a solid foundation for a successful career start.

We have had a wonderful group of interns this year. When asked about what they have learned from their RBG Internship Experience, here is what they had to say:

“Accountability and Responsibility”

— Ryne Kreitz 
    Senior, The University of Arkansas

“I learned how to conduct an audit for Nonprofit Organizations, Banks, and Employee Benefit Plans. Also, I learned how to prepare tax returns for Partnerships, S Corporations, C Corporations, Trust and Estates, and high net worth Individuals. Lastly, I learned there are a special group of people here at RBG, the culture is second to none.”

— Deterrious Hill
     Master’s Program, University of Memphis

“I have learned how to file many types of tax returns including 1040’s, 1041S’, 1065’s, 1120’s, 1120S’, and 5500’s. It has been a great work experience as well as a great personal experience.”

— Christian Russell
    Senior, Arkansas State University

“Everyone is so nice and always eager to help! I am never afraid to ask questions.”

— Alexis Lariviere
    Senior, Mississippi State University

“So far at RBG, I have gained experience working in the audit and tax departments. While in audit, I have worked on and learned about employee benefit plans, in particular 401(k) plans. Also, I have worked on and learned about compliance while working on-site at a bank. So far in tax, I have learned to prepare 1040, 1041, and 1065 tax returns.  Further, I have learned to be accountable for tracking my time and obtained first-hand experience working in an office environment.”

— Sam Franklin
    Junior, Indiana University

“I have learned how to operate different software used for accounting purposes. In addition to this, I have become very familiar with doing bank reconciliations, pulling Trial Balance reports, and creating other financial statements.”

— Martina Jones
    Grad School, Rhodes College