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The COVID-19 pandemic has changed the way we do many things. It’s changed the way we go out for dinner, the way we travel, the way we do business and the way we work, to name just a few. While some would like to go back to “normal”, or the way things used to be, there seems to be a consensus that in many ways we aren’t going back. Some of these changes are here to stay.

As trusted advisors to businesses across many industries, Gilmore Jasion Mahler (GJM) is seeing some of these changes within client businesses. Those looking to hire for internal accounting positions, for example, say there are simply no candidates out there. And some are turning to a different solution: GJM Outsourced Accounting.

Outsourced Accounting (OA): What is it?

Outsourced Accounting isn’t a new concept. For those who aren’t familiar with the service offering, its exactly what it sounds like: handing over the entire accounting function within your business to outside experts. New software platforms and other technology pushed the idea more into the mainstream. The pandemic, remote work, and hiring issues have further contributed to what’s emerging as a significant shift in the way businesses view the accounting function.    

“There’s no question, many business owners are taking a closer look at outsourced accounting,” says Judy Anderson, CPA, who leads GJM’s Outsourced Accounting team. “These services solve a major problem, removing the need to fill that internal role, but more importantly, outsourced accounting at GJM brings experts to your team, and checks and balances.”

Clients say the service brings peace of mind, knowing that capable CPAs and other GJM professionals are on the job. Technology offers real time numbers 24 hours a day, 7 days a week to business owners and managers. They get to choose how involved or uninvolved they are in the accounting function.

 “It’s the best of all worlds”

Retina specialist Dr. George Rosenthal has transitioned his medical practice to GJM Outsourced Accounting and says it allows him to do what he does best: care for his patients.

“One of the great things about this,” says Dr. Rosenthal, “It’s not just an accounting service. It’s a business administration service. I want to spend my time being a doctor and its nice on so many levels to have somebody who’s a business expert help... It’s the best of all worlds.”

Equally important: knowing that GJM professionals are part of your team. They could spot a trend in your numbers or see an opportunity for tax savings that you missed. Should you need other specialists, they’re at the ready to be pulled in as your business needs change.

“I can’t overstate enough the importance of having trusted experts as part of the extended team who can be pulled in as needed,” says GJM Partner Matt Cavanagh, who is also part of the firm’s Outsourced Accounting team. “Things come up, such as tax strategy, a merger or acquisition, the need for a valuation, or cyber risk assessment. Our team can also see from a high-level view something that you might miss.”  

The GJM Outsourced Accounting team has seen businesses in many industries pursue the service offering, including health and medical practices, nonprofits, law firms, real estate businesses and other professional services firms.

What to Expect

If your business is considering looking into outsourced accounting services, be sure you understand the offering and most importantly, what you need. Here are some of the services/capabilities you should expect from a provider:

State of the art technology/software platform featuring:

• Real-time numbers  
• 24/7 dashboard access
• Safe and secure financial information
• Easy, secure document sharing
• Automation
• Integration with other service providers
• Monthly payment format with no large financial investment

Accounting experts:

• Team of specialists, including a partner
• Professionals who become an extension of your team
• Direct access to your account team leader
• Access to other specialists, advisors and consultants as needed

Here’s another important piece when considering the team of professionals: make sure you have a good relationship. You should enjoy working with the team, and view them as an extension of your staff, which, after all, they are.

Dr. Rosenthal says of his lead GJM service provider Alyssa: “She’s unbelievable. I’ll email her something at six in the morning. I’ll get a response in 10 minutes. She’s amazing. And she’s good.” He jokes with Alyssa that she needs to get better sleep, but you can hear it in his voice that he’s sleeping better with Alyssa on his team.

In the end it’s simple: you need to trust that you’re in good hands, and you need to enjoy the working relationship. If that’s the case, you’re well on your way to saying, “problem solved.”

If you’d like to learn more about GJM Outsourced Accounting, here’s a short video featuring GJM’s Judy Anderson with a high-level explanation of the service. To reach out to our team directly, email outsourcedaccounting@gjmltd.com.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

We’re so pleased to welcome Shelby Lashaway to the GJM family as a consulting and assurance administrative team member. Shelby joined us in early November. We hope you enjoy getting to know her a bit better in this fun Q&A.   

Describe your role at GJM: Assist the consulting and assurance team, besides my role, I always have the goal to bring positivity and spread it like glitter! 

Why did you choose the accounting industry? I wanted to experience something new, and truthfully, data is relaxing to me. When I interviewed with GJM I knew I would be doing something new and in turn there would be a learning curve. I had the ability to stay in a field I was more accustomed to, but as soon as I met the team here, I knew this was the place for me. I have never met a more welcoming group and instantly felt home!  

What do you like best about accounting? The data and diversity of it all.  

Are you from the Toledo area originally? If not, where are you from? I grew up just outside of Toledo, in Swanton.  

What do you like about living in Northwest Ohio? I really love to be outdoors, and we have some really great Metroparks. There are also way less creatures in NW Ohio that could eat me while on a hike compared to other areas.   

Where did you go to school? High School: Swanton. College: Ross College 

Anything you’d like to share about past work/school history? I’ve transitioned from healthcare, aviation, tech, to now accounting. I’ve really enjoyed gaining new skills and meeting new people through these different industries.  

Do you have any pets, hobbies, family you’d like to mention? I do! I’m a fur and feather mom, I have two Chihuahua mixes, three chickens, and a chinchilla.  

How do you like to spend your free time? I absolutely love to cook, I’m definitely a foodie. If the weather is nice, I love to be outside and by the water any chance I can.  

Favorite book? Favorite movie? Favorite book: More so favorite author, I love anything by Heather Graham. My favorite movie is Jurassic Park.  

Welcome to the team, and to the GJM family, Shelby!

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

• A second round of $1,200 stimulus checks for individuals
• Liability protection for businesses from COVID-19 related lawsuits
• Capping federal unemployment benefits at 70% of wages
• Extension of the Paycheck Protection Program allowing certain businesses to get a second PPP loan
• Over $100 billion for schools
• $25 billion for COVID testing

The package is in response to a stimulus package proposed by the US House of Representatives in May (The HEROES Act). Negotiations now begin to reach a final compromise before the Senate summer recess begins August 7.  

Help for Businesses

As of now, there are several options for businesses to get help, including the recently launched Main Street Lending Program, now available and accepting applications. Which businesses and organizations can apply for this program? And what’s the status of the other existing loan programs? What else should you be doing to protect your business in these unprecedented times?

GJM’s Bob Bobek, CPA offers this easy reference status report on loan programs out there and an important checklist for businesses.

COVID-19 Business Loan Programs Status Report

Paycheck Protection Program:  

The Paycheck Protection Program (PPP) was established through the CARES Act and is run through the Small Business Administration (SBA). PPP loans are forgivable for those borrowers who prove they meet requirements for forgiveness. The loan program is intended to help businesses keep workers on the job during the pandemic. Loans must be $10,000,000 or less. Those businesses with loans under $2 million will be deemed to have met the economic uncertainty requirements for the loan. Some other details on the PPP:

• Money must fund payroll and specific nonpayroll costs (like rent, utilities)
• Loans received before June 5: maximum 2-year maturity
• Loans received after June 5: maximum 5-year maturity
• Loans are issued through approved lenders
• Interest rate: 1%
• File forgiveness application with your bank
• Application deadline extended to August 8, 2020

Paycheck Protection Program status: Second round of funding is now available, and applications are being accepted. As of July 24, 2020 the SBA reports there are over $130 billion dollars left in funding for the PPP. You can access the PPP loan application here.

Main Street Lending Program  

The Main Street Lending Program was established as part of the CARES Act, offering $75 billion to those businesses and organizations that meet requirements. Designed for: small/medium-sized businesses in good shape prior to the pandemic that didn’t qualify for the PPP or need more help in addition to their PPP loans. Other information:

• Standard loan, not forgivable
• Accessible to nonprofits
• Loans issued through approved lenders
• No more than 15-thousand employees or 2019 annual revenues no more than $5 billion
• Minimum loan $250,000
• Principal payments defer 2 years
• Interest payments defer 1 year
• Maturity of 5 years. 15% in years 3 and 4. Year 5: 70% balloon payment

Main Street Lending Program status: Now open for applications through September 30, 2020. Businesses must work with an eligible lender.

Economic Injury Disaster Loans (EIDL)  

Economic Injury Disaster Loans (EIDL) are designed to help businesses and nonprofits in response to a disaster like a hurricane or flood. Administered by the SBA, they provide liquidity in a time of need and have been made available as a result of the COVID-19 pandemic.    

Some details:

• Capped at $150,000 per company
• Very low interest rate: 3.75% for businesses, 2.75% for nonprofits
• Not forgivable
• You get 30 years to pay back the loan
• Can defer first payment for a year
• Can get both PPP and EIDL, just don’t use the money to pay the same expenses funded by your PPP loan

EIDL status: accepting applications. You can access the EIDL application here.

Your Checklist:

So, you have a high-level view of the loan programs out there to help businesses respond to COVID-19. What now? GJM Partner Bob Bobek has counseled many of his clients and other businesses through COVID response to secure a loan that will work for their business and help them to get through this difficult time with more liquidity. If your business has decided to pass on applying for a loan, he cautions that could be a big mistake.  

“These loan programs have been designed with one goal in mind: to infuse cash into American businesses,” he says. “The government has made available billions and billions of dollars for these programs. It won’t be reallocated. When it’s gone, it’s gone.”

Here’s Bob’s checklist for businesses not sure how to proceed:

1. Talk to your banker. He or she can assist you in deciding which loan program is the right fit for your business. Bob says most banks are willing to defer loan payments to help you keep more liquidity.
2. Talk to your landlord. Most landlords are open to deferring payments or restructuring your lease.
3. Talk to your insurance agent. If your sales volume is down or equipment is idle you may be eligible for a reduction in your insurance cost.
4. Look at the Paycheck Protection Program. If your business decided not to pursue a PPP loan, Bob says you need to look at this again.
5. Defer FICA taxes. The CARES Act allows businesses to delay payment of the FICA Match portion of your payroll taxes through December 31, 2020, with half due by December 31, 2021 and the rest due December 31, 2022.
6. Review other government loan programs such as the EIDL and Main Street Lending Program. While they are loans, they have favorable payment terms. They will help give you that extra liquidity in case you get hit hard by the downturn and find your business in a position where its more difficult to secure a loan.
7. Talk to your accountant. In addition to the loan programs outlined here, your business could qualify for tax credits as part of the CARES Act.

Bobek says be sure you look into all options that can help you get through this worldwide public health emergency, including any new opportunities that may result from the HEALS Act. You want to be sure that the business you worked so hard to build can survive and even thrive through the pandemic and into the future.

Bob Bobek, CPA has presented frequently on the Paycheck Protection Program and other loan programs designed to help businesses during the pandemic. He’s helped many business owners determine which loan program is right for their business and assisted with loan and forgiveness applications.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

Gilmore Jasion Mahler, LTD (GJM) is pleased to announce the addition of a new partner, several staff promotions, and some additional new team members in recent weeks.

Ryan Leininger, CPA, CVA recently joined the firm as a consulting and assurance partner. Ryan is a graduate of Defiance College, where he received his undergraduate degree. He obtained his master’s in accountancy from Bowling Green State University and brings to his leadership role over 16 years of experience in public accounting. His areas of specialization include construction & real estate and manufacturing & distribution. Ryan is also a Certified Valuation Analyst (CVA).

Other staff promotions, effective January 1, 2022 include:

Heidi Ferguson, CPA promoted to tax senior manager, Alex Spieker, CPA promoted to assurance senior manager, Ben Lochbihler, CPA promoted to senior manager, Dana Lumbrezer, CPA promoted to assurance manager, Kim Rodriguez, CPA promoted to tax manager, Tim Merkel promoted to IT manager and Travis Reamsnyder, CPA promoted to tax supervisor.

New team members in recent weeks include Charlie Kettinger, assurance senior associate, Shelby Lashaway, administrative associate, Lindsey Stoots, administrative associate, and several tax team members including:

Matthew Alic, CPA, tax manager

Shobhana Govindarajan, senior associate

Arlena McDaniel, EA, senior associate

Dana Frost, senior associate

Robin Maas, associate   

“To those just joining the firm: Welcome to the GJM team. I’m also very pleased to see so many of our valued team members grow in their roles within the firm,” says GJM Managing Partner Kevin Gilmore.    

There are currently several opportunities at GJM for those just beginning their careers, and for more experienced professionals in tax, assurance, and risk advisory. Learn more at GJMLTD.com/careers.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business & transaction advisory, healthcare management advisory, outsourced accounting, and risk advisory. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution, nonprofit, private equity and utilities.

There’s a magic number when it comes to your welfare benefit plans. That number is 100. While there are a few exceptions, most businesses that reach 100 employees covered by their plans must file a form with the government to show that the plans meet all regulations and remain in compliance with government requirements. If they fail to file that form, known as a Form 5500, businesses can face some significant penalties.

Gilmore Jasion Mahler’s Molly Wolf specializes in employee benefit plan administration, advising many healthcare practices and other businesses, and acting as a third-party administrator (TPA) for their plans.

“As employees come and go, it’s not uncommon for a business to go over those 100 individuals covered by their welfare benefit plans and not even know it,” she says. “Some insurance providers will watch that closely for a business, but others may not, and that can be a costly mistake.”

Do you know the exact number of employees you have? Is it possible you’ve gone over that 100 mark in terms of members of your business benefit plans? Could you owe a penalty and not know it? Wolf says there’s one thing you can do right now to get a good idea of where you sit: Look at how many are on your company’s long-term disability (LTD) plan. It’s a good place to start, she says, because for most plans that provide LTD coverage, it automatically applies to all employees. It’s also important to know when checking how many plan participants you have that those covered may include not only active employees receiving benefits, but terminated employees, retired employees, deceased employees, and even eligible employees who are not yet enrolled in the plan. 

Wolf says most businesses that need to file a Form 5500 have likely received their 5500 Schedule A or will soon receive it. That’s because the 5500 is due the last day of the 7^th month after their plan year ends. If you have a calendar-year plan, as may businesses do, your Form 5500 will be due on July 31, 2022. You’ll need the months ahead to gather your information and file before the deadline.

The 5500

The Form 5500 is filed by private and public businesses every year with, not only the IRS, but also the U.S. Department of Labor (DOL). The purpose of the form is to demonstrate that your plan is operating as it should be and meets all government requirements as outlined by the Employment Retirement Income Security Act (ERISA). It’s also important to note that the Form 5500 covers not only retirement and savings plans like 401(k)s, pension plans and profit-sharing plans, but it is also required for health and welfare benefit plans with over 100 employees, including medical, vision, dental and more.

Here is a listing of the most common ERISA welfare benefit plans that must file a Form 5500:

• Accidental Death & Dismemberment (AD&D)
• Business Travel Accident
• Cancer Insurance (if voluntary)
• Death benefits (other than life insurance)
• Dental Benefits
• Disability benefits
• Employee Assistance Programs (EAPs)
• Group Term Life insurance
• Health insurance
• Health Reimbursement Accounts or Arrangements (HRAs)
• Health Flexible Spending Accounts (FSAs)
• Legal (prepaid) Assistance Plans
• Long Term Care Plans
• Medical Savings Accounts (MSAs)
• Prescription Drugs
• Severance Benefits
• Vision

5500 Penalties and Pitfalls

If you miss the deadline to file your Form 5500, you’re looking at the potential of two penalties: one from the IRS and one from the DOL. The IRS penalty is $250 a day up to a maximum of $150,000. DOL penalties went up for 2022 due to inflation and can be as much as $2,400 a day with no maximum.

If you know you’ve missed the deadline to file, Molly Wolf says your best option is something called the Delinquent Filer Voluntary Compliance Program (DFVCP). She says it is an inexpensive option, generally the best way to resolve late filing, and could significantly reduce what you owe in late fees & penalties per plan.

All Form 5500s must be filed electronically through the EFAST2 program. Be sure all the information you provide is accurate. You could also face a fine or penalty for mistakes on the form. Some common errors include incorrect information on the number of benefit plan participants, failing to include terminated plans as part of the submission, mistakes with employee identification numbers (EINs) or plan numbers, just to name a few.

Another potentially costly pitfall: confusion over whether your welfare benefits are offered through separate plans or collectively offered through a “wrap” document. If your plans are all separate, that means you need to file a 5500 for each individual plan as opposed to a single 5500 for a “wrap” document. Wolf says she has seen it happen where a business doesn’t know they need to file a Form 5500 for each individual plan. She says she’s seen it go the other way as well, where a business is filing multiple 5500s and it turns out they had a “wrap” document all along, and only needed to file one form.  

Typically, an operations manager or human resources leader would be responsible for filing a Form 5500 for a business, though many businesses rely on an outside provider known as a third-party administrator (TPA). In those cases, that third-party will prepare the filing based on the data provided or collected from the client and the plan’s providers.

If you’re concerned about being able to accurately file your Form 5500 and want to consult with an expert who specializes in employee benefit plans, Gilmore Jasion Mahler’s Molly Wolf is a good place to start. To begin the conversation, email info@gjmltd.com with “Employee Benefit Plan Services Inquiry” as the subject line of your email.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business & transaction advisory, healthcare management & advisory, outsourced accounting, and risk advisory. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution, nonprofit, private equity and utilities.