Author: Service2Client

Building Deeper Customer Connections: Leveraging Web3 for Loyalty, Community, and Engagement

4 min read

Web3 for Loyalty, Community, and EngagementCompetition in business today has become fierce. Each organization is constantly looking for innovative ways to form strong relationships with its customers. Loyalty programs have been used for a long time to build a devoted customer base. As technology advances, new technologies like Web3 are emerging, offering more opportunities to revolutionize loyalty programs, build vibrant communities, and deepen customer engagement.

Transforming loyalty programs through Web3

Loyalty programs help boost customer spending and drive long-term business success. Loyalty program members also generate more revenue than non-members. In the United States alone, the average consumer belonged to more than 15 programs in 2024. However, traditional loyalty programs have encountered problems that include customer disengagement and unclaimed rewards.

Web3-based loyalty programs address these problems by leveraging blockchain technology to create a more engaging, transparent, and valuable experience for customers. With the global Web3 market having a valuation of $4.62 billion by January 2025, there is enormous potential for businesses to innovate in this space. Web3 is the next iteration of the internet, which will help businesses create deeper customer connections through decentralized technologies like blockchain, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).

Why Web3 Loyalty Programs

  1. Enhanced personalization and security
    Web3 loyalty programs provide enhanced customer engagement through hyper-personalization. Businesses can utilize blockchain technology to analyze customer preferences, behaviors, and interactions to customize rewards. This makes every customer feel valued. Using this approach, it becomes easy to focus on those customers who drive the majority of engagement and revenue. The decentralized nature of blockchain also ensures that data remains encrypted, secure, and only accessible with explicit consent.
  2. True ownership of rewards
    In traditional programs, loyalty points exist only within a company’s database. However, Web3 platforms create unique tokens that a customer can own and control. When customers have this kind of authentic ownership, it changes how they perceive and engage with loyalty programs that allow greater flexibility in how they use their rewards.
  3. Interoperability and expanded value
    Traditional loyalty programs, in most cases, limit rewards to a single brand or ecosystem. On the other hand, Web3 loyalty tokens function as universal currencies. This enables global redemption networks — permissionless collaboration through smart contracts and cross-sector partnerships.
  4. NTF-based loyalty rewards
    Instead of receiving generic points, a customer is issued an NFT token. The uniqueness of NFTs adds a layer of desirability and collectability, making the loyalty program more engaging and valuable. The NFTs can be potentially traded or sold on secondary marketplaces, adding more value to customers who can turn their loyalty tokens into liquid assets.
  5. Community driven engagement
    Web3 loyalty programs offer a community-centered approach through shared goals, collective rewards, and member governance through DAOs. By encouraging peer interaction it creates a sense of belonging, shifting focus from individual transactions to collective engagement.
  6. Transparency and trust
    Blockchain infrastructure provides immutable transaction records and enhanced security. Real-time reward tracking is also possible through blockchain technology. This addresses consumer concerns about traditional programs’ security risks. It also builds trust and encourages more engagement.
  7. Reduced unused rewards
    Web3 programs can implement “tokenomics” to prevent the devaluation of rewards and encourage active participation.

Navigating the Web3 landscape

While there is immense potential to build deeper customer connections with Web3, there are some considerations to help businesses approach this landscape strategically.

  • Understand your customers
    Before adopting the Web3 loyalty programs, a business must understand its customers. It is important to find out if they are receptive to these technologies, as well as their digital habits and preferences.
  • Start small
    Beginning with a pilot project and gradually integrating Web3 elements allows for learning and proper adaptation.
  • Focus on value creation
    The key to success when adopting any new technology is providing genuine value to customers. The technology should enhance the customer experience.
  • Educate customers
    Educate customers about the new adoption and provide clear guidance on how to interact with the technology.
  • Stay informed
    The Web3 landscape is rapidly evolving; therefore, it is crucial to stay informed on the latest trends and best practices.

Conclusion

Web3 presents a unique opportunity for businesses to revolutionize loyalty programs through blockchain, NFTs, and decentralized engagement. The ability to prioritize personalization, security, and true ownership will help businesses develop deeper customer connections. Although Web3 might seem complex, the potential benefits for businesses that embrace this evolving technology are significant.

Preventing a Government Shut Down, Rolling Back Regulations and Clarifying Cryptocurrency Protocols

3 min read

Preventing a Government Shut Down, Rolling Back Regulations and Clarifying Cryptocurrency ProtocolsFull-Year Continuing Appropriations and Extensions Act, 2025 (HR 1968) – In the nick of time before the midnight deadline that would have otherwise shut down the Federal government, Congress passed a budget bill to fund the rest of the fiscal year that ends Sept. 30. This bill increases funding for the military by $6 billion while reducing non-defense spending by $13 million. The federal funding bill also reduced the amount of funding for the District of Columbia (Washington D.C.) by $1.1 billion, which is paid for by local taxes. This final continuing resolution bill was passed in the House on March 11, in the Senate on March 14, and signed by the president on March 15.

District of Columbia Local Funds Act, 2025 (S 1077) – Just four hours after passing the CR budget bill, Senators passed this new bill to restore Washington funding back to 2024 levels. The reduction of more than $1 billion in funding threatens to impact police, fire, and other services in the city where much of Congress resides. The bill was introduced by Susan Collins (R-ME) and passed on March 14. It is currently under consideration in the House.

Bureau of Ocean Energy Management rule relating to “Protection of Marine Archaeological Resources” (SJ Res 11) – This resolution rolls back a rule imposed during the last administration by the Bureau of Ocean Energy Management. The revoked rule previously required oil and gas companies to identify and submit a report of potential archaeological resources on the Outer Continental Shelf seafloor that could be affected by development. The joint resolution was introduced by Sen. John Kennedy on Feb. 4. It passed in the Senate on Feb. 26 and in the House on March 6. The bill was signed by the president on March 14.

Protect Small Businesses from Excessive Paperwork Act of 2025 (HR 736) – Introduced by Rep. Zach Nunn (R-IA) on Jan. 24, this legislation passed in the House on Feb. 10 and is currently under consideration in the Senate. The purpose of the bill is to extend the filing deadline to the end of the year for businesses to report beneficial ownership information (BOI). This would give the Department of Treasury time to reconsider rules implemented during the Biden administration in order to make sure small businesses are not burdened by excessive and complex regulations. 

GENIUS Act of 2025 (S 919) – This bipartisan bill was introduced by Sen. Bill Hagerty (R-TN) on March 10. It would establish licensing and regulatory requirements for stablecoins, which are cryptocurrency tokens used in the crypto economy and traditional financial markets. Among its provisions, the bill would enable states to regulate stablecoin issuers with a market capitalization of under $10 billion, while larger issuers would be regulated at the federal level. This bipartisan legislation is currently in the early stages of committee reporting.

 

Protecting Critical Supply Chains, Recycling Programs and Victims of Digital Forgeries

3 min read

s 257, hr 825, s 351, s283, s 146, s281, s246Promoting Resilient Supply Chains Act of 2025 (S 257) – Introduced by Sen. Maria Cantwell (D-WA) on Jan. 2, this bill is designed to promote resilient critical supply chains by identifying, preparing for, and responding to supply chain shocks to critical industries. The ultimate goal of the legislation is to encourage the growth and competitiveness of production and manufacturing in the United States using emerging technologies. The bipartisan legislation is currently under consideration in the Senate.

To prohibit individuals convicted of defrauding the Government from receiving any assistance from the Small Business Administration, and for other purposes (HR 825) – This bipartisan legislation would prohibit a small business with a high-level associate convicted of any crime related to financial misconduct involving a covered loan or grant from receiving any financial assistance from the SBA. It was introduced by Rep. Roger Williams (R-TX) on Jan. 28 and is currently under consideration in the House.

STEWARD Act of 2025 (S 351) – This bill was introduced by Sen. Shelley Moore Capito (R-WV) on Jan. 30. It would establish a pilot grant program to improve recycling accessibility and require the Environmental Protection Agency to collect and report on recycling and composting programs in the United States. The bipartisan bill is currently under consideration in the Senate.

Illegal Red Snapper and Tuna Enforcement Act (S 283) – This bill was introduced by Sen. Ted Cruz (R-TX) on Jan. 28 and is under consideration of the Senate. It would require the development of a standard methodology to identify the country of origin of seafood transported for sale in the United States to support enforcement against illegal, unreported and unregulated fishing.

TAKE IT DOWN Act (S 146) – Also introduced by Sen. Ted Cruz (R-TX), the purpose of this bill (also known as the Tools to Address Known Exploitation by Immobilizing Technological Deepfakes on Websites and Networks Act) is to remove visual depictions of intimate acts from the Internet. Currently, machine learning, artificial intelligence and other computer-generated technologies are being used to create digital forgeries of identifiable people, including minors, without their consent. This bipartisan legislation was introduced on Jan. 16, passed in the Senate on Feb. 13, and currently lies with the House.

TICKET Act (S 281) – This bipartisan bill would require sellers of event tickets to disclose all relevant information about ticket prices and related fees to consumers at the point of sale in order to prohibit speculative and predatory ticketing. The legislation was introduced by Sen. Eric Schmitt (R-MO) on Jan. 28 and is under consideration in the Senate.

Interstate Transport Act of 2025 (S 246) – This bill was introduced on Jan. 24 by Sen. Ted Budd (R-NC). It is designed to protect the right of citizens from any state to transport knives to other states without bumping up against state and local prohibitions. Such an act would not be subject to arrest for the possession or transport of a knife without probable cause that the person intends to commit an offense punishable by imprisonment of a year or more. The bipartisan legislation is currently under consideration in the Senate.

6 Tax Filing Tips & Important Info for 2025

4 min read

6 Tax Filing Tips & Important Info for 2025As Benjamin Franklin said, there’s only two certainties in life: death and taxes. With the former, you don’t have much control over; however, the latter can be affected. That’s why we’re here to give you some tips and info about filing in our changing landscape.

Remember Key Deadlines

Whether it’s scheduling an alarm on your phone or penning it old school-style on a notepad, it’s critical to keep track of when your taxes are due. Of course, you’ll want to start early. When you do this, you have enough time to gather your info and forms, and make sure you don’t make any mistakes. That said, here are some important dates you’ll want to keep in mind.

  • April 15, 2025: Unless you request an extension, this is the most important deadline for personal income taxes. It’s also the deadline to pay any taxes you owe so you can avoid late payment penalties and interest. If you make quarterly payments, this is also your deadline. Also, there is an exception for South Carolina residents due to Hurricane Helene; their deadline is extended to May 1, 2025.
  • June 17, 2025: If you’re a U.S. citizen living abroad, including military personnel stationed outside the country, this is your deadline. Even though you automatically receive an extra two months without filing an extension, interest still applies to any unpaid tax after April 15.
  • September 15, 2025: If you’re self-employed and earn significant non-wage income, this is the third quarter estimated tax payment deadline for the 2025 tax year. 
  • October 15, 2025: This is your deadline if you filed for an extension in April. If you don’t make this date, you could pay extra fees and penalties.

Child Tax Credits Have Changed

The maximum Additional Child Tax Credit (ACTC) amount has increased to $1,700 for each qualifying child. And good news if you live in Puerto Rico: You’ll no longer be required to have three or more qualifying children to claim ACTC. Now you just need one or more.

Standard Deductions Have Increased

For 2024, here’s a snapshot:

  • Single or married filing separately – $14,600
  • Head of household – $21,900
  • Married filing jointly or qualifying surviving spouse – $29,200

For more information about the changes to 2024 taxes, go here to review.

Take Care of Name Changes Pronto

This is for those who have had a name change as a result of marriage or divorce. This also applies if you have people who work for you who have had these changes. Whether it’s you or your employees, contact the Social Security Administration as soon as possible. If names and numbers don’t align, the processing of taxes and refunds will be delayed.

Make Sure ITINS Are Current

That’s Individual Taxpayer Identification Numbers. People who have these generally don’t have a Social Security number. If this pertains to you or any of your employees, check the expiration dates; if necessary, renew them as soon as possible.

Create an IRS Online Account

When you create this account, you get secure access to your tax information, including payment history, all your tax records and other important tax data. When everything is digital, you can streamline your prep time, and it can help you identify overlooked deductions or credits.

Filling out your taxes the right way takes time. However, the smartest tactic to ensure your taxes are prepared correctly is to consult a professional tax advisor. No matter how you end up tackling your taxes, it makes good sense to start early and learn as much as you can about IRS tax changes. This way, you’ll have less chance of encountering any hiccups along the way.

Sources

Tax Tips for IRS Filing in 2025 (TY 2024) – The Boom Post

Tax season 2025: All the deadlines taxpayers should know – CBS News

Tax Time Guide 2025: Essentials needed for filing a 2024 tax return | Internal Revenue Service

What’s New in Identity Theft?

5 min read

What's New in Identity Theft?Identity theft is when someone steals your personal information and then uses it to commit fraud. They may access your Social Security or Medicare number, employee ID, utility, credit card or bank account numbers. Once the scammer has this information, he can conduct all kinds of crimes, such as withdraw assets from your accounts, open and close accounts in your name, take out loans or new lines of credit in your name, and even impersonate you if they get arrested – leaving you with a criminal record you may not even know about.

How Do Scammers Steal Your Identity?

Whereas scammers used to rummage through trash cans; today they can hack into your emails, social media, and personal accounts. That’s because we conduct so many of our transactions online now, they don’t even need to be physically present to take something from you.

Today, your data – contact information (e.g., phone number, email, address) and account numbers (e.g., financial, Social Security, employment ID) are all commodities that are bought and sold by both legitimate and illicit entities. Even the most harmless retail outlets solicit information, like your email and phone number in exchange for a 15 percent discount or free shipping. They can use this information for their own purposes and/or sell compiled lists to whoever will pay for it. The more you freely put your information out there, the higher your risk of identity theft or other forms of fraud.

Warning Signs

Paid Actors: Scammers may contact you directly via phone, email or text about a security breach or an offer you can’t refuse. They are professionals – they do this all day, every day, and know how to sound convincing. They may even trick you into giving out personal details (e.g., what’s your husband’s name? Are your parents still alive? How old is your daughter?) without you even realizing it.

Check Your Trust Instinct: Most people have an innate instinct to believe in the good of others, particularly those entrusted with our assets. That’s why when your bank calls, you become immediately concerned and receptive to their efforts to protect you. However, do not trust automatically and always verify.

Move Your Money: Let’s say someone from your bank calls and says they detected an unusually large transaction from your account. They may suggest you call your bank directly to stop the transaction and give you the local number to call. When you call, you may simply reach another scammer. They will often recommend you transfer your assets to a new account and close the old one to prevent fraudulent transactions by having a new account number – which the scammer will also have. If you are asked to move your funds to another account, this is a red flag.

SIM Swapping: If your phone stops working for no apparent reason, it’s possible your SIM card (or e-SIM) has been stolen. This is the memory chip found in phones, tablets, and smartwatches that stores your contact information, text messages, and passwords. It is incredibly valuable to scammers because it can enable them to log into your financial accounts. Even if you use two-factor authentication, he can intercept the code sent to your phone to verify your identity. He can then drain your assets, make unauthorized purchases on your debit and credit cards, and even lock you out of your own social media accounts by changing your passwords. Remember, immediately contact your carrier if your phone stops working. This may indicate that your phone number has been reassigned to another SIM.

How To Stop Today’s Scammers

The quicker you detect the problem, the faster you can shut it down and the less damage can be done to your personal and financial circumstances. Consider these tips:

  • Put a freeze on your credit report with each of the three (3) credit reporting agencies – Equifax, Experian and TransUnion. You can unfreeze them any time you apply for new credit.
  • Request fraud alerts from any of the three credit bureaus.
  • Check your three (3) credit reports and your credit score every year for any changes or unfamiliar accounts.
  • Never invest based on the advice of someone you’ve only encountered online.
  • Add a trusted contact to your financial accounts, whom your financial firm may contact if you appear to be making unusual transactions.
  • Passwords are the bane of modern-day technology. One way to minimize how many you have to keep changing is to add multifactor authentication – a two-step process that requires you to enter a unique code sent via email or text message each time you log in to an online account.
  • Monitor your account activity. If you still get statements by mail, be sure to read them every month. If you do all your transactions online, review them at least once a month to ensure there are no unexplained charges.

And finally, if you ever have an encounter with a scammer, share your experience with your friends, colleagues, and family members. This is particularly helpful for older folks, who are less familiar with how technology is used these days. We tend to live in a bubble and assume our assets and our identity are safe since no one we know has ever been victimized. But in fact, some people keep quiet because they are embarrassed. Don’t be. Share your story with friends; spread the word so others are more aware and more vigilant. Fraud and identity theft can happen to anyone.

Understanding the Differences Between FCFF and NOPAT

3 min read

What is NOPATWhen it comes to financial analysis, there are two metrics that internal stakeholders and external users, such as investors and analysts, can use to assist with analyzing a business’s operations.

Free cash flow to the firm (FCFF) is used as part of a discount cash flow (DCF) calculation that aids in determining a company’s intrinsic value, helping investors make better informed decisions. This metric provides insight into how much cash flow is available to all funding claimants of the business (be it convertible bond investors, debt holders, and preferred and common stockholders). This is compared to free cash flow to equity (FCFE), which is how much cash flow a business can use if it has zero debt.

While there are many ways to arrive at FCFF, the following is one way to calculate it:

Step 1

Start with Net Operating Profit (NOPAT), which is determined by Earnings Before Interest and Taxes x (1 – Tax Rate)

Step 2

Add Depreciation and Amortization expenses to NOPAT

Step 3

Remove Capital Expenditures

Step 4

Remove Modifications in Net Working Capital

Further Considerations of FCFF Versus FCFE

FCFF assumes there are no payments for interest; nor have any changes in debt been factored in the company’s financial statements. FCFE factors in interest payments and any applicable changes in debt the company may have taken or paid off during the particular accounting time frame. FCFE provides analysts with the ability to determine how efficient a company is and how well (or not) it is at producing cash for equity holders.

Defining NOPAT

NOPAT is a way to see what the company’s operations produce, assuming it has no debt and, accordingly, no outstanding interest expense obligations. It gives analysts and investors an opportunity to look at potential investments with a standardized metric because companies can be seen as having debt and not having debt. It provides easier ability to see if companies can obtain and/or manage debt levels, along with other financial metrics used by investors and analysts.

Along with the already established formula to calculate NOPAT, there’s an alternate formula:

(Net Income + Tax + Interest Expense + Any Non-Operating Gains/Losses] x (1 – Tax Rate)

Operating Earnings = the company’s profits pre interest and taxes (or what the company would earn if it had zero debt, and therefore zero interest expense).

Putting NOPAT in Context

Other important considerations for NOPAT are that it excludes changes in accounts receivable, inventory, accounts payable, and inventory. Additionally, it excludes capital expenditures but accounts for amortization and depreciation.

How NOPAT Assists Analysts and Investors

Businesses can use this data to see how this metric drills down on the business’s core functions. It’s a way to determine how profitable or not a business’ core functions are over shorter and longer time frames. It helps businesses determine how efficient a company is against its competitors since it removes debt and tax comparisons.

Analysis is easier for both businesses looking for acquisitions and for investors. NOPAT helps investors determine which companies are most efficient within their sector based on their main functions. It helps remove the “noise” of debt levels and tax situations.

Looking at these two metrics at face value can seem daunting, but after breaking them down and understanding the differences, it’s easier to see how they aid in financial analysis.

As Tax Season Opens, We Must Stay Alert to Rising Scam Threats

3 min read

IRS Scam Threats, IRS IRS Scams As tax filing season begins, scammers are ramping up efforts to steal taxpayers’ personal information through increasingly sophisticated schemes. Below, we discuss the latest scam, what to look out for in general, and what to do if you suspect something malicious.

New Scam of the Season

The U.S. Treasury Inspector General for Tax Administration (TIGTA) recently issued an alert about a prevalent scam involving Economic Impact Payments.

In this scheme, taxpayers receive texts claiming they’re eligible for a $1,400 Economic Impact Payment, requesting personal information and bank details for deposit. While the IRS is indeed processing some legitimate Recovery Rebate Credit payments from 2021 tax returns, they will never request personal information via text or social media. These legitimate payments will be automatically distributed by late January 2025, either through direct deposit or paper check, with official notification letters sent separately.

Detecting Scam in General

The cybersecurity firm Guardio reports a 77 percent increase in IRS-related spam messages, highlighting how scammers exploit taxpayers’ fears of making mistakes on their returns. Common manipulation tactics include urgent messages claiming:

  • Tax return errors requiring immediate action to avoid penalties
  • Unexpected tax refund eligibility requiring verification
  • Account flags demanding immediate information verification to prevent legal action

These fraudulent messages typically contain malicious links designed to steal sensitive information like Social Security numbers, banking details, and payment credentials. They often masquerade as official IRS forms or legitimate tax advisory companies.

Key Warning Signs of Tax Scams:

  • Requests for sensitive personal or financial information
  • Links to suspicious websites (legitimate government sites end in .gov)
  • Misspellings, grammatical errors, or inconsistent formatting
  • Fuzzy or distorted official logos
  • Initial contact via email, phone, text, or social media instead of postal mail

What to Do if You Receive a Suspicious Message

If you receive a suspicious message, don’t engage with it. Never click links or provide personal information to unknown sources. Report potential fraud by forwarding the message to phishing@irs.gov or filing a report with TIGTA. If you’re uncertain about correspondence claiming to be from the IRS, verify it by calling 800-829-1040 or visiting IRS.gov. Your online IRS account will display any official notices mailed to you.

If you’ve accidentally engaged with a scam:

  1. Immediately close any suspicious website tabs
  2. Change passwords for potentially compromised accounts
  3. Contact your bank or credit card provider to monitor for fraudulent activity
  4. Report the incident to the IRS and file an identity theft report with the Federal Trade Commission
  5. Consider notifying local law enforcement

When searching for tax-related information online, only use official sources like IRS.gov or the official IRS app. Be wary of sponsored ads and search results that might lead to fraudulent websites. Consider bookmarking official sites for quick, secure access.

Conclusion

Remember, the IRS will never initiate contact through email, text, or social media. When in doubt, assume it’s a scam and verify through official channels. Keeping your personal information secure requires constant vigilance, especially during tax season when scammers are most active.

 

Copyright and AI-Generated Images and Videos:

4 min read

Copyright and AI-Generated Images and Videos

What Businesses Need to Know to Stay Legal

Artificial intelligence (AI) tools are reshaping content creation. It is now easier for businesses to produce images and videos for use on websites, social media, and other digital outlets. All this is possible without the traditional hurdles of expensive photoshoots, special design skills, or complex video production. However, as exciting as it is, business owners must pose and confront the question of whether these AI-generated images and videos are legally safe for commercial use from a copyright perspective.

Understanding AI-Generated Content and Copyright

AI-generated content is created by training algorithms with massive datasets of existing images, videos, and text. The AI models then analyze patterns from the training data to generate new content. However, issues arise concerning the ownership of the generated content. Without clear legal guidelines, the ownership of AI-generated images and videos remains a gray area that leaves businesses and individuals vulnerable to potential disputes.

Most jurisdictions, including the United States and the EU, deny copyright protection to work purely generated by AI as it lacks human authorship. The U.S. Copyright Office stated that only content with human creative input can be eligible for protection. In its January 2025 report, the U.S. Copyright Office also states that copyrightability must be assessed on a case-by-case basis.

Laws differ globally. For instance, while the U.S. copyright office has rejected applications for AI-generated content, the U.K. allows copyright when a significant human intellectual effort guides the output.

Copyright laws do agree that a business risks infringement claims if AI-generated content resembles existing copyrighted material. So far, there has been a surge in the number of copyright lawsuits because of generative AI. A good example is Getty Images sued Stability AI, alleging its Stable Diffusion model copied millions of Getty’s photos without permission.

Generally, despite the efforts made to develop copyright laws for AI output, unlike content created by humans, there still lacks a clear legal framework for ownership and usage rights. For one, laws and legal frameworks struggle to keep up with the speed at which AI technology advances. This means that currently, no definitive, globally recognized legal standards firmly establish the copyright status of AI creations. For a business, although using AI visuals is not inherently legal or forbidden, it is best to be cautious and take due diligence.

Best Practices Every Business Owner Must Keep in Mind

  1. Read the terms of service (TOS)
    Every AI image and video generator has its own unique terms of service. Therefore, it is crucial to examine these terms carefully. Specifically, look for clauses that address issues such as commercial usage, ownership, indemnification, and TOS change policies.
  2. Understand model releases
    This especially applies where the AI-generated images may include recognizable human faces. In the same way that there are rights of publicity and privacy in traditional photography of human models, consider if this also applies to AI-generated faces.
  3. Documentation
    It is crucial to keep a record of each generated AI visual asset. Keep information such as AI platform used, prompts used, date of creation, TOS at the time of creation, and modifications made to the generated visual.
  4. Consider using well-established platforms.
    Although there is no AI platform that offers a 100 percent guarantee of copyright safety, it is safer to lean toward well-established and respected AI generators. Also, platforms trained using licensed or public domain data should be considered.
  5. Adopt the “human-in-the-loop” approach.
    This involves edits such as text overlays, color adjustments, or storyboarding. AI-generated content can be used as a starting point or for inspiration, but it is modified and refined by human designers. This results in a blend of AI assistant and human creative input to potentially mitigate copyright concerns.
  6. Seek expert legal counsel.
    When dealing with content that is central to a business identity, such as branding or major marketing campaigns, it is critical to seek guidance from an attorney specializing in intellectual property law.
  7. Stay informed
    Copyright law in the age of AI is not static; it is actively evolving. It is important, therefore, to commit to staying informed about legal developments, court rulings, and evolving practices. Business content strategies and practices also should be adjusted as the legal landscape changes.

Embrace the Future of Visuals Responsibly and Legally

The transformative power of AI to generate stunning visuals is promising to revolutionize business marketing and communication. However, business owners must approach this technology with a balanced perspective. That is, embracing its potential while avoiding copyright infringement, ensuring ethical content creation, and effectively safeguarding intellectual property assets.

Defining Net Revenue Retention (NRR)

3 min read

What is Net Revenue Retention (NRR)The subscription economy, according to Forbes, is expected to reach $1.5 trillion in revenue for businesses. With the potential likely realized this year, it’s vital to understand how it is tracked – and more importantly, how it’s able to be tracked on a separate basis.

Also known as net dollar retention (NDR), this metric calculates the proportion of recurring revenue kept from present clients, including upsells and churn, during a defined time frame. Net revenue retention (NRR) evaluates a business’s potential to keep and increase sales from their present clients.

It looks at how well a company leverages existing customer relationships to increase sales through add-ons, complimentary services, etc. It focuses on the long-term growth of recurring revenue from these relationships. It’s calculated as follows:

NRR = (Starting MRR + Expansion MRR – Churn MRR) ÷ Starting MRR

Based on the following assumptions:

Starting monthly recurring revenue: $200,000

Expansion monthly recurring revenue: $40,000

Churn monthly recurring revenue: $20,000

NRR = ($200,000 + $40,000 – $20,000) / $200,000 = 1.10 or 110%

Based on this result, the company is increasing its revenue from existing customers faster than it’s failing to keep revenue from customer churn, an important metric showing growth.

The following factors impact the formula:

Starting MRR is also referred to as the baseline recurring revenue.

Expansion MRR refers to the added sales from newly added clients, upselling, upgrades, and additions to existing customers’ services.

Churn MRR is the sales missed by customers who stopped or lowered their level and type of services with the company.

Defining a Healthy Revenue Retention Rate

Companies that have a score of more than 100 percent show they’re bringing in more revenue from the existing customer base versus what the company is losing from customer churn. If, however, it’s less than 100 percent, customer satisfaction might be lacking, and customers may either be lost or simply not interested in additional services. Since acquiring new customers is more expensive than keeping current ones, it can lead to reflection on how to improve retention rates.

Journal Entry for Recurring Revenue

Assuming there’s a 12-month contract signed for monthly services, the journal entry would be as follows for a $1,000/monthly payment for a total of $12,000.

  Debit Credit
Cash $12,000  
Unearned Recurring Subscription Income $12,000  

Once the $1,000 subscription income has been earned, the following journal entry would be entered.

  Debit Credit
Unearned Recurring Subscription Income $1,000  
Earned Recurring Subscription Income   $1,000

While each industry and business are different, using this metric can help companies determine if there’s a customer retention problem; then they can start the investigation on how to increase retention for the future.

Sources

https://www.forbes.com/councils/forbesfinancecouncil/2023/10/27/the-truth-about-recurring-revenue/

Rules of the Roth

4 min read

Rules of Roth IRAWith a Roth IRA, the owner can make limited contributions each year. In 2025, the limit is $7,000; $8,000 if age 50 or older. Only people who earn less than $150,000 (single filers) or under $236,000 (married filing jointly) can make a full Roth IRA contribution. While contributions do not qualify for a tax deduction, earnings are not taxable once the account has been open for five years. Contributions, which were previously taxed as income, can be withdrawn at any time.

Once you open and contribute to a Roth IRA, the five-year countdown begins before you can take any earnings out tax-free. However, the holding period is actually measured from Jan. 1 of the year you made the first contribution.

For example, if you opened your Roth IRA on Dec. 31, 2024, the holding period backs up to Jan. 1, 2024. Therefore, your holding period is technically only four years instead of five to avoid paying taxes on earnings.

However, it gets even better because you are allowed to make a Roth contribution for the prior tax year up until tax day in April. That means if you open a Roth in April 2025 and designate your contribution for 2024, your holding period is shortened by another four months.

This is why it’s important to open a Roth as soon as possible, even if you cannot contribute a lot of money in the near future. It makes a great strategy for a high school or college student with job earnings to at least open a Roth for future use. While there is no upfront tax deduction, you may withdraw contributions penalty and tax-free at any time – which makes it ideal as both a liquid emergency account as well as long-term savings.

As for withdrawing earnings, the rules are trickier. As far as the IRS is concerned, contributions are withdrawn first and then earnings. Note that when earnings are withdrawn before age 59½, the amount is subject to both taxes and a 10 percent penalty, but there are exceptions that waive the penalty. For example, if your account is less than five years old, you can still withdraw earnings (penalty-free but still subject to taxes) for the following purposes:

  • To help pay for a first-time home purchase (up to $10,000)
  • To pay for college
  • To pay certain emergency expenses
  • To pay for expenses in connection with a federally qualified disaster
  • To pay expenses related to a birth or adoption
  • To pay for unreimbursed medical expenses or health insurance if unemployed
  • If you become disabled or are a survivor of domestic abuse

If your account is older than five years, you can avoid both taxes and the penalty if the funds are used to help pay for a first-time home purchase (up to $10,000) or if you become disabled.

After age 59½, there are no taxes and no penalties for any money withdrawn from a Roth IRA for any reason.

Multiple Roths

The same five-year holding period applies to all the Roths you own, with the clock starting at the first contribution to your first Roth. This means that if five years after the date you open your first Roth, you open a new Roth and contribute a bunch of income, you won’t have to wait another five years to tap those earnings tax-free. This perk does not apply to a Roth 401(k) account, which maintains a separate five-year holding period.

Conversion Benefits

When you convert a traditional IRA or 401(k) to a Roth (assuming your plan allows in-service withdrawals or in-plan conversions), you must pay income taxes in the year the money is converted. However, there are some very good reasons to convert:

  • Tax-Free Income – By converting assets when you’re still working, you can pay the taxes owed with current income, but from that point on, the Roth IRA will grow tax-free. This is particularly helpful in diversifying your tax liability during retirement if you have other income sources (e.g., pension, brokerage account, Social Security).
  • Eliminate RMDs – If you continue working into your 70s, you may continue contributing to your Roth IRA, and assets converted from a 401(k) or traditional IRA are no longer subject to required minimum distributions. This way, your full account balance has the opportunity to continue growing for later retirement and/or for your heirs.

Be aware that converting a taxable retirement account to a Roth IRA begins its own five-year timetable, so convert long before you need to begin withdrawals.