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Employee Spotlight: Kaileigh Eddy

Kaileigh Eddy’s career with DBC began in September 2011. Since then, she has grown alongside the firm, built lasting relationships with clients, and taken on increasing leadership responsibilities. In January 2026, Kaileigh was promoted to Partner and now leads DBC’s South Haven office, where she works closely with small businesses and individuals throughout the …

Kaileigh Eddy’s career with DBC began in September 2011. Since then, she has grown alongside the firm, built lasting relationships with clients, and taken on increasing leadership responsibilities. In January 2026, Kaileigh was promoted to Partner and now leads DBC’s South Haven office, where she works closely with small businesses and individuals throughout the community.

Her role extends beyond traditional tax and accounting services. Kaileigh is also investment licensed and provides financial planning and projection services, with a particular concentration in Roth IRA conversion analysis. She enjoys helping clients understand how the decisions they make today may affect their financial position in the years ahead.

For Kaileigh, the most rewarding part of the work is often the moment when a complicated tax or financial issue begins to make sense for a client. She values the opportunity to explain the options, answer questions, and help people feel more confident about the path they are taking.

Kaileigh’s interest in accounting began in high school, when a teacher encouraged her to consider the profession. She later attended Western Michigan University and became involved with Beta Alpha Psi, the university’s accounting fraternity. As vice president, she focused on helping fellow students explore career opportunities beyond public accounting and connect with professionals across a variety of industries.

That interest in helping others see the possibilities available to them has carried into her career at DBC. Whether she is guiding a business owner through a tax question, helping an individual evaluate a Roth conversion, or supporting the team in South Haven, Kaileigh approaches her work with patience, care, and a practical understanding of what matters most to the people she serves.

South Haven is also the place Kaileigh and her family call home. She and her husband, Mark, have lived in the community for over 25 years. Together, Kaileigh and Mark have four children, Opal, Alexis, Elijah, and Cora, as well as their bonus son, Breal.

Rather than exchanging traditional gifts for birthdays and Christmas, the family often chooses to spend that time and money on experiences together. Camping and traveling have become some of their favorite ways to connect, explore new places, and create memories as a family.

When Kaileigh is not working, she enjoys hiking, biking, cross-country skiing, downhill skiing, and occasionally playing tourist in her own hometown. 

Despite her full schedule, Kaileigh still has one skill she hopes to master someday: relaxation.

Throughout her career with DBC, Kaileigh has built a reputation as a trusted advisor, thoughtful leader, and steady presence in the South Haven office. We are proud to celebrate her continued growth with the firm and the impact she will continue to make in her role as Partner.

How to Build a Stronger Balance Sheet During Profitable Years

A profitable year creates opportunity, but it does not automatically strengthen thebusiness.That depends on how the results are managed.For agricultural operations, strong years can either improve the overall financial position orsimply pass through with little long-term impact. The difference comes down to howintentionally those years are used. Why the Balance Sheet Matters More Than …

A profitable year creates opportunity, but it does not automatically strengthen the
business.

That depends on how the results are managed.

For agricultural operations, strong years can either improve the overall financial position or
simply pass through with little long-term impact. The difference comes down to how
intentionally those years are used.

Why the Balance Sheet Matters More Than It Gets Credit For

During a strong year, most of the focus goes to the income statement. Revenue is up,
margins improve, and the operation feels productive.

But the balance sheet is what carries that performance forward.

It reflects liquidity, debt levels, and how much flexibility the business has going into the
next cycle. Those factors often matter more than a single year of profitability, especially in
an industry where conditions can change quickly.

A strong balance sheet gives the operation room to adjust. A weak one limits options, even
after a profitable year.

Using Strong Years to Improve Position, Not Just Results

When margins improve, there is usually more flexibility in how cash is used.

Some of that will go toward taxes, operating costs, and reinvestment. Beyond that, there is
an opportunity to improve how the business is structured financially.

That might not feel urgent in a strong year, but it tends to have the most lasting impact.

Debt Reduction Should Be Measured, Not Reactive

Reducing debt is often one of the first considerations, and for good reason.

Lower leverage can improve financial ratios, reduce interest expense, and create more
room in future cash flow. It can also strengthen the business’s position with lenders.

At the same time, using too much cash to accelerate debt reduction can create a different
kind of pressure. Liquidity still needs to support the operation through the cycle.

The goal is not to eliminate debt as quickly as possible. It is to manage it in a way that
supports both stability and flexibility.

Cash Reserves Are What Carry You Between Cycles

Strong years can create a false sense of consistency.

In agriculture, that rarely holds. Weather, input costs, and commodity pricing can shift
quickly, and those changes tend to show up in cash flow before anything else.

Building reserves during profitable years helps offset that variability. It allows the operation
to absorb changes without immediately relying on short-term borrowing or making rushed
decisions.

Reserves are not idle. They are what give the business time and options when conditions
change.

Capital Purchases Still Need to Make Sense

Capital spending tends to increase during profitable years, especially when tax planning is
part of the conversation.

That is not necessarily a problem, but the decision still needs to stand on its own.

Equipment and infrastructure should improve efficiency, support production, or address a
real operational need. If the primary driver is reducing taxable income, it is worth taking a
step back.

A purchase that does not fit the long-term needs of the operation can create more pressure
later, even if it provides a short-term tax benefit.

Working Capital Is Often Overlooked

A stronger balance sheet is not just about long-term assets and liabilities.

Working capital plays a central role in how the business functions day to day. Improving
liquidity during strong years can make a noticeable difference in how the operation handles
seasonal demands.

That may involve increasing current assets, reducing short-term obligations, or simply
being more intentional about how cash is managed throughout the cycle.

Ignoring this area often leads to the same situation many operations face, where
profitability improves but cash still feels tight.

The Impact Shows Up Over Time

Balance sheet strength is not built in a single year.

It comes from consistent decisions over multiple cycles. Profitable years provide a better
opportunity to make those decisions, but the benefit comes from how they carry forward.

Operations that use strong years to improve their position tend to have more flexibility
when conditions tighten. They are better positioned with lenders, more comfortable
managing cash flow, and more prepared to take advantage of opportunities when they
arise.

Where DBC Can Help

At DBC, these conversations usually happen after a strong year when the focus starts to
shift from performance to positioning.

The question is not just how the operation performed, but what that performance changed.
Did it improve liquidity, reduce risk, or create more flexibility going forward?

If the answer is unclear, it is worth taking the time to step back and walk through the
balance sheet in detail. That process often leads to more deliberate decisions and a
stronger position going into the next cycle.

This article provides general tax and accounting insights and is not intended as advice
specific to your organization or a substitute for personal consultation. We do not provide
legal advice. Because every organization’s circumstances are unique, we encourage you to
consult with your legal, tax, or accounting advisor regarding your specific situation.

Working Capital Management for Agricultural Operations: Why Profitability Does Not Always Mean Liquidity

A strong year on paper does not always translate into a comfortable cash position.This is one of the more common disconnects we see in agricultural operations. The incomestatement shows solid profitability, but there is still pressure around paying bills, managingoperating lines, or making timely input purchases.That gap usually comes down to working capital. Profit …

A strong year on paper does not always translate into a comfortable cash position.

This is one of the more common disconnects we see in agricultural operations. The income
statement shows solid profitability, but there is still pressure around paying bills, managing
operating lines, or making timely input purchases.

That gap usually comes down to working capital.

Profit Tells One Story, Cash Tells Another

Profitability measures performance over a period of time. Working capital reflects what the
operation has available to meet its short-term obligations.

In the agriculture sector, those two rarely move in sync.

Revenue is often realized at specific points in the production cycle, while expenses are
ongoing. Seed, fertilizer, fuel, labor, and land costs are typically paid well in advance of
harvest or sale. That timing alone can create a meaningful difference between reported
income and available cash.

Layer in other factors and the gap can widen:
• Inventory that has value but is not yet converted to cash
• Prepaid expenses that reduce near-term liquidity
• Receivables that are slower to collect than expected
• Scheduled debt payments that require cash regardless of timing
• Capital purchases that absorb cash or increase borrowing

None of these are unusual. In fact, they are part of running a successful operation. The
issue is how they stack up at the same time.

How Working Capital Pressure Builds

Working capital challenges rarely show up as a single event.

More often, these issues build gradually. After a strong production year, an operation may
be carrying higher inventory, while input costs continue to rise and expansion requires
more upfront spending. At the same time, revenue may not come in quickly enough to
offset those demands.

From the outside, the business still looks profitable. Internally, it can feel tight.

That is when reliance on operating lines increases, vendor balances stretch, or decisions
become more reactive than planned.

Where to Look First

When liquidity feels strained, the first step is not to focus on profit. It is to walk through how
cash is actually moving.

That typically means reviewing:

• The timing and collection of receivables
• Inventory levels and how quickly they turn
• The structure and timing of payables
• Debt obligations and repayment schedules
• The seasonality of large expenses

This is less about theory and more about how the operation functions day to day.

Aligning Working Capital with the Production Cycle

Every agricultural operation has a rhythm. Cash flows out at certain points and comes back
in at others.

Working capital should be managed with that cycle in mind.

That may involve adjusting the timing of input purchases, restructuring short-term debt, or
building additional liquidity ahead of heavier spending periods. It may also mean
recognizing that a profitable year will not automatically resolve cash flow challenges if the
underlying structure is not aligned.

Growth Changes the Equation

Growth often increases pressure on working capital.

Adding acres, expanding herds, or increasing production typically requires more cash
before additional revenue is realized. If working capital is not adjusted alongside that
growth, the business can become more constrained even as it becomes more profitable.

This is where planning becomes important. Growth decisions should consider not just
expected returns, but also how they will be funded in the short term.

Why This Matters

Working capital is not a single line on the balance sheet. It directly drives the success of
day-to-day operations.

When liquidity is in a good position, there is more flexibility in how decisions are made.
Timing purchases, managing debt, and responding to changes becomes more
manageable. When liquidity is tight, even routine decisions can start to feel constrained,
and the margin for error narrows.

That is why profitable years can still feel challenging. The business may be performing well,
but if cash is not moving in a way that supports the operation, it creates unnecessary
pressure.

At DBC, we often see this when the numbers and the day-to-day reality do not quite line up.
Profitability is there, but cash still feels tight. In most cases, that points back to how
working capital is structured and managed.

If that is happening in your operation, it is worth taking a closer look now. Walking through
where cash is tied up, how it is moving, and how it aligns with your production cycle can
surface practical adjustments. Addressing it early tends to make the rest of the year easier
to manage and can put your agriculture business in a more stable position going forward.


This article provides general tax and accounting insights and is not intended as advice
specific to your organization or a substitute for personal consultation. We do not provide
legal advice. Because every organization’s circumstances are unique, we encourage you to
consult with your legal, tax, or accounting advisor regarding your specific situation.

Document Retention Policies: What Not-for-Profits Need to Keep and Why

Every not-for-profit organization generates an enormous amount of documentation, from financial records and grant agreements to meeting minutes and donor acknowledgments. While maintaining these records is an important part of day-to-day operations, knowing what to keep, how long to keep it, and when it can be safely disposed of is equally important. A well-designed …

Every not-for-profit organization generates an enormous amount of documentation, from financial records and grant agreements to meeting minutes and donor acknowledgments. While maintaining these records is an important part of day-to-day operations, knowing what to keep, how long to keep it, and when it can be safely disposed of is equally important.

A well-designed document retention policy helps organizations stay organized, support regulatory compliance, respond to audits or funding requests, and reduce legal risk. It also provides consistency by ensuring records are managed according to established guidelines rather than individual judgment.

Why a Document Retention Policy Matters

Document retention is about more than storing paperwork. It helps protect your organization by ensuring important information is available when it is needed while preventing unnecessary accumulation of outdated records.

An effective policy can help your organization:

  • Demonstrate compliance with IRS and regulatory requirements
  • Support grant reporting and donor restrictions
  • Prepare for audits and financial reviews
  • Respond efficiently to legal or regulatory inquiries
  • Reduce storage costs and administrative burden
  • Protect confidential and sensitive information

Without a formal policy, organizations often keep records indefinitely or discard documents too soon, both of which can create unnecessary challenges.

Records Every Not-for-Profit Should Maintain

While every organization’s needs are different, certain records should be retained as part of good governance and financial management.

Organizational and Governance Records

These documents establish the legal foundation of your organization and should generally be retained permanently.

Examples include:

  • Articles of Incorporation
  • Bylaws and amendments
  • IRS determination letter
  • Board and committee meeting minutes
  • Board resolutions
  • Conflict-of-interest disclosures
  • Significant organizational policies

These records document important decisions and demonstrate sound governance practices.

Financial Records

Financial documentation supports reporting, audits, and regulatory compliance.

Organizations should maintain records such as:

  • General ledger reports
  • Bank statements and reconciliations
  • Financial statements
  • Annual budgets
  • Audit reports
  • Accounts payable and receivable records
  • Supporting documentation for major transactions

Most financial records should generally be retained for at least seven years, although certain documents may warrant longer retention depending on funding requirements or state regulations.

Tax Records

Federal and state tax filings should also be carefully maintained.

Common examples include:

  • IRS Form 990 filings
  • Payroll tax returns
  • Sales and use tax filings
  • Supporting tax documentation

Many organizations choose to retain filed tax returns permanently while maintaining supporting documentation according to applicable retention requirements.

Donor and Grant Documentation

Funding records provide evidence of donor intent and grant compliance.

Important records include:

  • Grant agreements
  • Grant reports
  • Donor acknowledgments
  • Contribution records
  • Restricted fund documentation

Grant agreements may contain their own record retention requirements, making it important to review each award carefully.

Employee Records

Personnel records should be maintained in accordance with employment laws and organizational policies.

Examples include:

  • Employment applications
  • Personnel files
  • Payroll records
  • Benefits documentation
  • Performance evaluations
  • Timekeeping records

Retention periods vary depending on the type of record and applicable employment regulations.

Create a Consistent Retention Schedule

A document retention schedule helps ensure everyone follows the same process. Your policy should identify:

  • The types of records maintained by the organization
  • How long each record should be retained
  • Where records are stored
  • Who is responsible for maintaining them
  • How records should be securely destroyed once retention periods have expired

As organizations increasingly rely on digital files, retention policies should also address electronic records, email, cloud storage, and backup procedures.

Know When to Suspend Record Destruction

One important element of any retention policy is a legal hold procedure.

If your organization becomes involved in litigation, an investigation, or receives notice of a regulatory inquiry, normal document destruction should immediately stop for any records related to the matter. Destroying records after a legal hold has been issued can create significant legal and compliance issues.

Staff should understand when these situations arise and who has the authority to implement a legal hold.

Review Your Policy Regularly

A document retention policy should not be treated as a one-time project. As regulations change and organizations adopt new technology, retention practices should be reviewed periodically to ensure they remain appropriate.

Regular reviews also provide an opportunity to train staff, evaluate electronic storage practices, and confirm that records are being maintained consistently across the organization.

How DBC Can Help

Managing document retention can feel overwhelming, particularly for organizations balancing limited resources with growing compliance responsibilities. DBC works with not-for-profit organizations to strengthen internal policies, improve governance practices, and support financial and operational compliance.

Whether you are developing your first document retention policy or updating an existing one, our team can help you establish practical procedures that protect your organization, support transparency, and position you for long-term success.

This article provides general tax and accounting insights and is not intended as advice specific to your organization or a substitute for personal consultation. We do not provide legal advice. Because every organization’s circumstances are unique, we encourage you to consult with your legal, tax, or accounting advisor regarding your specific situation.

Capital Improvements vs. Repairs: What’s Deductible in Remodeling?

Construction businesses often face questions from clients about what can be deducted during a remodeling project, but these rules are just as important for contractors themselves. Whether you own property, maintain equipment, or renovate your facilities, understanding the difference between a repair and a capital improvement directly affects tax planning and project budgeting.The challenge …

Construction businesses often face questions from clients about what can be deducted during a remodeling project, but these rules are just as important for contractors themselves. Whether you own property, maintain equipment, or renovate your facilities, understanding the difference between a repair and a capital improvement directly affects tax planning and project budgeting.

The challenge is that the line between the two is not always obvious. What seems like a simple fix may qualify as an improvement, and what appears to be an upgrade may actually be considered a repair. Knowing how the IRS distinguishes these categories helps contractors make informed decisions, support clients accurately, and manage their own tax obligations with confidence.

What Counts as a Repair

Repairs are costs incurred to keep property or equipment in normal working condition. These activities do not add significant value, extend the useful life, or adapt the item to a new use. Repairs are generally deductible in the year they occur, which gives contractors and property owners an immediate tax benefit.

Examples of repairs include:

  • Fixing a leak
  • Replacing broken parts on equipment
  • Repairing a damaged wall
  • Patching roof sections without replacing the entire structure

These tasks restore functionality but do not meaningfully change the asset.

What Counts as a Capital Improvement

Capital improvements involve work that extends the life of a property, increases its value, or adapts it for a new purpose. These costs must be capitalized and depreciated over time rather than deducted immediately.

Common examples of capital improvements include:

  • Adding square footage
  • Replacing an entire roof
  • Installing new HVAC systems
  • Significant structural upgrades
  • Renovating to accommodate new operations or technology

Capital improvements contribute to long-term value, which is why the tax benefit is spread out through depreciation.

Understanding the Key Differences

While repairs maintain an asset, improvements transform it. Contractors should consider three main questions when evaluating a remodeling expense:

  1. Does the work add value?
    Improvements typically increase market value or long-term performance.
  2. Does it extend the useful life?
    If the work allows a building or equipment to function significantly longer, it is likely an improvement.
  3. Does it adapt the property to a new use?
    Converting space, upgrading systems for different operations, or modernizing infrastructure usually qualifies as an improvement.

If the answer to any of these questions is yes, the work may need to be capitalized.

When a Project Includes Both Repairs and Improvements

Many remodeling projects include a mix of both. For example, a renovation may involve structural upgrades (improvements) alongside smaller fixes to existing components (repairs). Contractors should separate these costs carefully to ensure accurate financial reporting.

Clear recordkeeping is essential, especially when working with clients who rely on this information for their own tax filings.

Safe Harbor Rules Contractors Should Know

The IRS offers certain safe harbor provisions that allow immediate deduction of some expenses, even if the work resembles an improvement. These rules can benefit small businesses but must be applied correctly.

For instance, the de minimis safe harbor allows businesses to deduct small-dollar purchases below a specific threshold if they maintain an appropriate accounting policy. Contractors who buy tools, supplies, or small equipment components may benefit from this rule.

Understanding when a safe harbor applies can lead to more strategic tax planning.

Why Accurate Classification Matters

Misclassifying repairs and improvements can lead to incorrect tax filings and potential audit issues. Classifying a repair as an improvement may reduce deductions unnecessarily, while treating an improvement as a repair may lead to compliance concerns. Accurate classification helps contractors:

  • Manage tax liability more effectively
  • Build more accurate project budgets
  • Provide reliable guidance to clients
  • Maintain strong financial reporting

This clarity supports both day-to-day decisions and long-term planning.

Building Confidence in Remodeling Decisions

Clear guidelines around repairs and capital improvements help contractors approach remodeling projects with confidence. By understanding how each category affects tax deductions and long-term value, contractors can better structure bids, advise clients, and plan their own investments.

At DBC, we help construction companies navigate the financial side of remodeling by clarifying tax treatment, strengthening recordkeeping, and supporting long-term planning. If you would like guidance on improving your classification process or reviewing your current approach, our team is ready to help.

This article provides general tax and accounting insights and is not intended as advice specific to your organization or a substitute for personal consultation. We do not provide legal advice. Because every organization’s circumstances are unique, we encourage you to consult with your legal, tax, or accounting advisor regarding your specific situation.

What Hospitality Owners Should Expect From a Modern Accounting Partner

For many hospitality business owners, the relationship with their accountant begins with tax preparation and compliance. While those services remain important, today’s hospitality businesses often need more than annual tax filings and basic financial reporting. A modern accounting partner should provide insights and guidance that help owners make informed business decisions throughout the year. …

For many hospitality business owners, the relationship with their accountant begins with tax preparation and compliance.

While those services remain important, today’s hospitality businesses often need more than annual tax filings and basic financial reporting.

A modern accounting partner should provide insights and guidance that help owners make informed business decisions throughout the year.

Accurate Financial Reporting Is the Foundation

Reliable financial information remains the starting point for effective decision-making.

Hospitality owners should expect support with:

  • Financial statement preparation
  • Account reconciliations
  • Payroll reporting
  • Tax compliance
  • Financial record accuracy

Without accurate financial data, it becomes difficult to evaluate performance or plan for the future.

Industry Knowledge Matters

Hospitality businesses face unique financial challenges.

Restaurants, hotels, breweries, event venues, and entertainment businesses often manage:

  • Seasonal revenue fluctuations
  • Labor-intensive operations
  • Multiple revenue streams
  • Inventory concerns
  • Capital improvement projects

An accounting partner who understands the hospitality industry can provide guidance that reflects these operational realities.

Financial Reporting Should Answer Business Questions

Business owners need more than reports. They need information that helps them understand what the numbers mean.

A modern accounting partner should help answer questions such as:

  • Which services are generating the strongest margins?
  • Are labor costs increasing faster than revenue?
  • Is pricing keeping pace with rising expenses?
  • Can the business support expansion plans?
  • How will upcoming decisions impact taxes?

These conversations help transform financial information into practical business insights.

Proactive Tax Planning Should Happen Year-Round

Tax planning is often most effective when it occurs throughout the year rather than only at year-end.

Owners should expect discussions about:

  • Estimated tax obligations
  • Equipment purchases
  • Entity structure considerations
  • Available tax-saving opportunities
  • Long-term planning strategies

A proactive approach can help reduce surprises and support better decision-making.

Guidance During Growth and Change

Hospitality businesses frequently encounter significant transitions.

Examples include:

  • Opening new locations
  • Renovating facilities
  • Expanding service offerings
  • Purchasing equipment
  • Bringing on partners
  • Preparing for ownership transitions

An accounting partner should provide financial guidance that helps owners evaluate opportunities and understand potential risks.

Technology and Efficiency Matter

Modern accounting services should help simplify financial processes.

This may include support with:

  • Cloud-based accounting systems
  • Financial dashboards
  • Payroll technology
  • Digital document management
  • Streamlined reporting processes

The goal is not simply adopting new technology. The goal is improving efficiency and access to meaningful financial information.

Communication Should Be Ongoing

Hospitality businesses change throughout the year, and financial discussions should not be limited to tax season.

Owners should feel comfortable reaching out with questions and discussing new opportunities or concerns as they arise.

Regular communication often leads to better planning and more informed decisions.

Looking Ahead

A modern accounting partner should do more than prepare tax returns and financial statements.

They should help hospitality business owners understand their financial performance, plan for future opportunities, and navigate challenges with confidence.

At DBC, we work closely with hospitality businesses to provide accounting, tax, and advisory services tailored to their goals. By combining accurate financial reporting with proactive guidance, we help owners gain a stronger understanding of their business and make informed decisions for the future.

This article provides general tax and accounting insights and is not intended as advice specific to your organization or a substitute for personal consultation. We do not provide legal advice. Because every organization’s circumstances are unique, we encourage you to consult with your legal, tax, or accounting advisor regarding your specific situation.

Financial Habits That Help Hospitality Businesses Stay Resilient

Hospitality businesses operate in an environment that can change quickly.Seasonal fluctuations, changing consumer preferences, labor challenges, and rising costs all have the potential to impact profitability. While many of these factors are outside an owner’s control, strong financial habits can help businesses remain stable and adaptable.Resilience is not built during difficult times. It is …

Hospitality businesses operate in an environment that can change quickly.

Seasonal fluctuations, changing consumer preferences, labor challenges, and rising costs all have the potential to impact profitability. While many of these factors are outside an owner’s control, strong financial habits can help businesses remain stable and adaptable.

Resilience is not built during difficult times. It is built through consistent financial management long before challenges arise.

Know Your Numbers Beyond Revenue

Revenue is an important indicator of business activity, but it only tells part of the story.

Hospitality owners should regularly monitor key performance indicators such as:

  • Gross profit margins
  • Labor costs as a percentage of revenue
  • Food and beverage costs
  • Occupancy rates
  • Average guest spend
  • Cash reserves

Understanding how these metrics trend over time can help identify opportunities and potential concerns before they become larger issues.

Review Financial Statements Regularly

Many business owners focus on financial statements during tax season or when applying for financing.

More frequent reviews can provide valuable insights throughout the year.

Regularly reviewing financial statements helps owners:

  • Monitor profitability
  • Identify unusual expenses
  • Evaluate operating trends
  • Make informed business decisions

Consistent review also helps ensure that financial information remains accurate and useful.

Maintain Healthy Cash Reserves

Unexpected expenses are part of running a hospitality business.

Equipment failures, emergency repairs, economic slowdowns, and seasonal fluctuations can all create financial pressure.

Maintaining adequate cash reserves can help businesses navigate these situations without disrupting operations or relying heavily on debt.

The appropriate reserve amount varies by business, but having a financial cushion can provide flexibility when challenges arise.

Plan for Major Expenses

Every hospitality business will eventually face significant expenses that go beyond day-to-day operations.

These costs may be related to facility improvements, equipment upgrades, technology investments, expansion initiatives, or other long-term business needs.

Planning for larger expenditures in advance can help business owners avoid financial strain, maintain healthy cash flow, and make investment decisions from a position of strength rather than urgency.

Regular forecasting and budgeting can also help ensure that major purchases align with the business’s overall financial goals.

Monitor Labor Costs Closely

Labor is often one of the largest expenses for hospitality businesses.

Regularly evaluating staffing levels, scheduling practices, and overtime costs can help maintain profitability while continuing to provide excellent guest experiences.

Even small improvements in labor efficiency can have a meaningful impact on financial performance.

Think Beyond the Current Season

Hospitality businesses often experience periods of strong demand followed by slower seasons.

Financial planning should account for both.

Forecasting revenue, expenses, and cash needs throughout the year can help owners make proactive decisions rather than reactive ones.

Looking ahead also creates opportunities to identify potential growth investments and tax-planning strategies.

Build Relationships With Trusted Advisors

Successful hospitality businesses rarely operate in isolation.

Working with experienced advisors can help owners evaluate opportunities, manage risks, and make informed financial decisions.

Whether discussing expansion plans, financing needs, tax considerations, or operational challenges, having access to professional guidance can support long-term success.

Looking Ahead

No business can eliminate uncertainty entirely. However, strong financial habits can help hospitality businesses remain resilient during both strong and challenging economic conditions.

Regular financial reviews, thoughtful planning, healthy cash reserves, and ongoing monitoring of key metrics can help owners make confident decisions and position their businesses for long-term success.

At DBC, we work with hospitality businesses to provide accounting, tax, and advisory services that support informed decision-making and sustainable growth. Our goal is to help owners better understand their financial position so they can focus on serving guests and managing their operations.

This article provides general tax and accounting insights and is not intended as advice specific to your organization or a substitute for personal consultation. We do not provide legal advice. Because every organization’s circumstances are unique, we encourage you to consult with your legal, tax, or accounting advisor regarding your specific situation.

Employee Spotlight: Jaycie Hilaski

This month, we’re excited to spotlight Jaycie Hilaski, who joined DBC as a Manager in January 2026. Since joining the firm, Jaycie has brought a thoughtful, client-focused approach to her work and has quickly become a valued member of the team. One of Jaycie’s favorite aspects of her role is working with not-for-profit organizations. …

This month, we’re excited to spotlight Jaycie Hilaski, who joined DBC as a Manager in January 2026. Since joining the firm, Jaycie has brought a thoughtful, client-focused approach to her work and has quickly become a valued member of the team.

One of Jaycie’s favorite aspects of her role is working with not-for-profit organizations. She enjoys helping clients navigate tax, assurance, and compliance requirements so they can stay focused on serving their communities. The variety of work and the opportunity to build meaningful client relationships make this area especially special to her.

Outside of the office, Jaycie enjoys spending time with her husband, Brett, and their two young children. Their son, who recently turned three, keeps the family busy with his energy, curiosity, and nonstop conversation, while their daughter, who will soon celebrate her first birthday, loves watching and learning from her big brother. Jaycie says that seeing their personalities develop and their sibling relationship grow has been one of the most rewarding parts of parenthood.

In the summertime, Jaycie and her family spend much of their free time at their seasonal campsite. Whether they’re taking golf cart rides to the campground store, visiting the park, grilling dinner at the campsite, or enjoying an afternoon on the boat, it’s a place where they can relax, spend quality time together, and make lasting family memories.

We’re grateful to have Jaycie on the DBC team and appreciate the knowledge, dedication, and positive attitude she brings to both her clients and colleagues. We look forward to seeing all she accomplishes in the years ahead!

Rising Land Values Are Creating New Challenges for Farm Estate Planning

Strong farmland values have been a positive development for many agricultural operations, but they are also creating new challenges for farm families planning for the future.As land values continue to reach record levels in many areas, producers face a difficult question: How can assets be distributed fairly among heirs without creating an unsustainable financial …

Strong farmland values have been a positive development for many agricultural operations, but they are also creating new challenges for farm families planning for the future.

As land values continue to reach record levels in many areas, producers face a difficult question: How can assets be distributed fairly among heirs without creating an unsustainable financial burden for the next generation of farmers?

While every family’s situation is different, focusing solely on current market value may not always lead to the best outcome for the long-term success of the farm.

Below are several important considerations when evaluating farmland as part of an estate and transition plan.

Fair Does Not Always Mean Equal

Many farm families want to treat all heirs fairly. However, fairness and equality are not always the same thing.

When farmland represents the majority of a family’s wealth, dividing assets equally can create significant challenges for the heir who intends to continue farming.

If a farming heir is required to purchase land from siblings at full market value, the resulting debt load can dramatically affect profitability, cash flow, and the future viability of the operation.

Estate planning discussions should consider not only today’s asset values, but also whether future generations can realistically support the financial obligations created by those decisions.

Consider the Long-Term Future of the Farm

One of the most important questions in any transition discussion is whether the family wants to keep the farm together.

If preserving the operation is a priority, then the focus should extend beyond simply determining what the land is worth today. Families should also consider what ownership structure will allow the operation to remain successful after the transition occurs.

In some situations, shared ownership among siblings may work well. In others, it may create operational challenges or differing expectations that become difficult to manage over time.

Evaluating these possibilities early can help families avoid future conflicts and create a smoother transition process.

Affordability Matters

Current land values may not reflect what a farming operation can realistically support.

When estate plans require a farming heir to buy out siblings at full market value, annual debt payments can quickly become substantial. Even highly successful operations may struggle to absorb large buyout obligations while continuing to invest in equipment, inputs, labor, and growth opportunities.

A transition plan should consider the operation’s projected cash flow, profitability, and long-term sustainability. The goal is not simply transferring ownership. The goal is ensuring the farm remains financially healthy after the transfer occurs.

Other Assets May Help Balance the Plan

Many farm families use a combination of assets to create a more balanced estate plan.

Life insurance, retirement accounts, investment assets, and other nonfarm property can sometimes help offset differences in farmland distribution. This approach may reduce the financial burden placed on the farming heir while still providing meaningful value to nonfarming heirs.

Every family situation is unique, but exploring multiple options often creates greater flexibility and better outcomes for all parties involved.

Communication Is Critical

Conversations about estate planning are not always easy, but delaying them often creates more challenges later.

Open discussions about family goals, financial realities, and expectations can help reduce misunderstandings and create a stronger foundation for future decision-making. When family members understand both the emotional and financial considerations involved, they are often better positioned to work toward solutions that support both family relationships and business continuity.

Planning Beyond Today’s Land Values

Record land prices can make estate planning decisions more complicated, but they should not dictate the entire conversation.

The most successful transition plans balance current asset values with long-term business sustainability, family objectives, and the future needs of the next generation. By focusing on affordability and operational success rather than simply maximizing asset values, families can often create plans that better support both the farm and the people involved.

At DBC, we work closely with agricultural families to navigate farm succession planning, ownership transitions, estate considerations, and long-term financial strategies. Thoughtful planning today can help preserve both family relationships and the future success of the operation for generations to come.

To read the original article by Myron Friesen, please visit https://www.agriculture.com/don-t-let-record-land-prices-derail-your-farm-estate-plan-11940991

This article provides general tax and accounting insights and is not intended as advice specific to your organization or a substitute for personal consultation. We do not provide legal advice. Because every organization’s circumstances are unique, we encourage you to consult with your legal, tax, or accounting advisor regarding your specific situation.

Federal Energy Grant Uncertainty Creates Challenges for Michigan Agricultural Businesses

Federal grant and incentive programs often play an important role in helping agricultural operations invest in efficiency improvements, renewable energy projects, and long-term sustainability initiatives. When producers commit to these projects, they typically do so based on the expectation that approved funding will be available as promised.Recent discussions surrounding the Rural Energy for America …

Federal grant and incentive programs often play an important role in helping agricultural operations invest in efficiency improvements, renewable energy projects, and long-term sustainability initiatives. When producers commit to these projects, they typically do so based on the expectation that approved funding will be available as promised.

Recent discussions surrounding the Rural Energy for America Program (REAP) highlight how changes to federal funding programs can create financial uncertainty for farms and rural businesses that have already made significant investments.

As agricultural businesses continue evaluating capital improvement opportunities, this situation serves as a reminder of the importance of planning for both opportunity and risk when government programs are involved.

Understanding the Rural Energy for America Program

The Rural Energy for America Program, commonly known as REAP, provides grants and loan funding to farmers and rural businesses pursuing energy efficiency improvements and renewable energy projects.

The program has helped support investments such as:

  • Solar energy systems
  • Energy-efficient equipment upgrades
  • Building improvements
  • Renewable energy infrastructure
  • Other projects designed to reduce long-term operating costs

In many cases, approved grants can cover a significant portion of project costs, making major investments more financially feasible for producers.

Because of this support, many agricultural businesses move forward with projects after receiving confirmation that funding has been obligated by the federal government.

When Funding Expectations Change

Recent testimony before the Michigan Senate Energy and Environment Committee highlighted concerns from businesses and producers who moved forward with renewable energy projects based on previously approved REAP funding.

Several project participants reported completing projects, securing financing, and paying contractors with the expectation that grant reimbursements would follow. However, changes to federal funding administration have left some businesses uncertain about whether they will ultimately receive the funds they anticipated.

For producers, situations like this can create difficult financial challenges. Projects are often completed using borrowed funds or internal capital while reimbursement is pending. If expected funding is delayed or unavailable, cash flow projections and debt repayment plans can quickly change.

The Importance of Financial Flexibility

Agricultural operations regularly navigate changing commodity prices, weather conditions, input costs, and interest rates. Funding uncertainty adds another layer of complexity.

When evaluating major capital investments, producers may benefit from considering:

  • Alternative financing scenarios
  • Cash reserve requirements
  • Debt service capacity
  • Project payback timelines
  • Contingency planning if incentives change

Government grants and incentives can create valuable opportunities, but long-term project viability should ideally be evaluated under multiple financial scenarios.

Operations that build flexibility into their planning process are often better positioned to adapt when circumstances change.

Renewable Energy Investments Continue to Grow

Despite uncertainty surrounding individual programs, interest in renewable energy projects remains strong across agriculture.

Many producers continue to explore solar energy systems and energy-efficiency upgrades as a way to reduce operating expenses, improve sustainability, and strengthen long-term profitability.

For some operations, energy projects can provide predictable cost savings over time and reduce exposure to rising utility expenses. Others view these investments as part of broader succession, sustainability, or operational efficiency goals.

As technology continues to improve and energy costs evolve, renewable energy projects will likely remain an area of interest for many agricultural businesses.

Evaluating Risk Alongside Opportunity

Every major investment carries some degree of uncertainty. The recent REAP funding concerns illustrate why it is important to evaluate both the potential benefits and risks associated with any project.

Before moving forward with significant capital expenditures, producers should consider:

  • How dependent the project is on outside funding
  • The impact of delayed reimbursement
  • Financing alternatives
  • Long-term return on investment
  • Effects on working capital and cash flow

Careful planning can help operations make informed decisions while reducing the financial impact of unexpected changes.

Looking Ahead

The situation surrounding REAP funding continues to develop, and many producers and rural businesses are waiting for additional guidance regarding approved projects.

While the outcome remains uncertain, the broader lesson is clear. Agricultural businesses should continue evaluating opportunities for efficiency and growth while maintaining a disciplined approach to risk management and financial planning.

Strong decision-making often requires balancing optimism about future opportunities with preparation for changing circumstances.

At DBC, we help agricultural producers evaluate capital investments, assess financing strategies, and understand the long-term financial implications of major business decisions. Thoughtful planning can help position your operation for success regardless of changes in the economic or regulatory environment.

To read the original article by Kyle Davidson, please visit https://www.agriculture.com/partners-michigan-senate-panel-mulls-financial-catch-22-for-farms-pledged-federal-clean-energy-funding-11992855

This article provides general tax and accounting insights and is not intended as advice specific to your organization or a substitute for personal consultation. We do not provide legal advice. Because every organization’s circumstances are unique, we encourage you to consult with your legal, tax, or accounting advisor regarding your specific situation.

About us

De Boer, Baumann & Company provides professional accounting, tax, and business advisory services to individuals and businesses in West Michigan and the surrounding areas. With expertise in a variety of industries, DBC specializes in comprehensive and innovative solutions to help clients achieve their financial goals.