#annual financial accounts

[efjconsulting]

Navigating the Construction Industry Scheme with Ease

Understanding the complexities of managing tax obligations can be challenging. The Construction Industry Scheme (CIS) plays a crucial role in ensuring compliance and efficiency within the construction sector. By focusing on accurate documentation and timely submissions, businesses can avoid potential penalties and maintain smooth operations. For expert guidance and support, EFJ Consulting is here to help you navigate the intricacies of the CIS with confidence.

[1staccountants]

The Foundation of Financial Clarity: Corporate Financial Accounting, Annual Financial Statements, and General Ledger Management

In today’s dynamic business environment, maintaining accurate and transparent financial records is essential for sustainable growth and regulatory compliance. Key elements like corporate financial accounting, annual financial statements, and general ledger management serve as the building blocks for effective financial oversight. Let’s explore how these elements contribute to sound financial practices and the long-term success of businesses.

1. Corporate Financial Accounting: The Backbone of Financial Reporting

Corporate financial accounting is the structured process of tracking, recording, and summarizing a company’s financial transactions. This specialized field of accounting focuses on creating accurate records that reflect a company's financial health, supporting critical functions like budgeting, financial planning, and regulatory compliance.

In corporate financial accounting, every transaction—from expenses and revenues to assets and liabilities—is meticulously documented to form a detailed picture of the company’s financial activities. With accurate records in place, corporate financial accounting enables businesses to prepare reports, manage cash flow, assess profitability, and make informed strategic decisions.

2. Annual Financial Statements: A Year-End Snapshot of Financial Health

Annual financial statements are comprehensive reports that provide a year-end summary of a company’s financial standing. These statements typically include:

Balance Sheet: Shows assets, liabilities, and shareholders' equity, offering insight into the company’s financial position.

Income Statement: Details revenues and expenses, indicating the company’s profitability over the year.

Cash Flow Statement: Reflects the inflow and outflow of cash, revealing the company's liquidity and financial stability.

Annual financial statements are crucial for stakeholders, investors, and regulatory authorities. They provide transparency, supporting business credibility, and informing stakeholders about the company's performance and financial outlook.

Businesses rely on their corporate financial accounting processes to ensure that these statements accurately represent their financial activities. Properly prepared annual statements are also essential for meeting compliance requirements and providing a foundation for future financial strategies.

3. General Ledger Management: The Heart of Financial Data Organization

At the core of accurate financial reporting lies general ledger management. The general ledger is the centralized record of all financial transactions within a company, classified into key accounts like assets, liabilities, equity, revenue, and expenses. Effective general ledger management ensures that every transaction is categorized correctly and can be easily traced, making it foundational for clear and accurate financial reporting.

Managing the general ledger requires:

Organized Record-Keeping: Each transaction is recorded systematically in the general ledger, contributing to detailed financial insights.

Regular Reconciliation: Ensuring that account balances are accurate and consistent with supporting documentation, such as bank statements.

Error Reduction: General ledger management helps minimize discrepancies, supporting accurate reporting and compliance.

General ledger management enables businesses to maintain control over their financial data, facilitating detailed audits, enhancing financial transparency, and supporting error-free reporting.

Benefits of Integrated Corporate Financial Practices

By aligning corporate financial accounting, annual financial statements, and general ledger management, businesses gain several key advantages:

Enhanced Accuracy and Compliance: With a structured approach to financial accounting and general ledger management, businesses can ensure their annual statements are accurate and compliant with regulations.

Improved Decision-Making: With accurate financial data, businesses can assess their financial health more effectively, making strategic decisions with greater confidence.

Financial Transparency for Stakeholders: Annual financial statements provide shareholders and investors with a clear view of the company’s financial position, fostering trust.

Streamlined Audits: A well-maintained general ledger and accurate financial statements simplify the audit process, ensuring that financial records are easily accessible and verifiable.

Why Choose 1stAccountants for Corporate Financial Services

At 1stAccountants, we understand the importance of reliable financial management in achieving business success. Our corporate financial accounting services ensure your financial data is consistently accurate and insightful. We specialize in general ledger management to maintain organized, error-free financial records, supporting efficient audits and compliance. Our team also prepares comprehensive annual financial statements that offer a clear and compliant snapshot of your financial performance.

By partnering with 1stAccountants, you gain access to tailored financial services designed to meet the unique needs of your business, from day-to-day accounting to annual reporting, enabling you to make informed decisions with confidence.

[digitaxsales]

The Role of Management Accounts in Business Growth

https://digi-tax.co.uk

[buildtrustaus]

Navigate QBCC Reporting with Ease

Navigating the maze of QBCC reporting and annual requirements can feel daunting. That's where BuildTrust steps in, focusing precisely on these regulations' statutory trust account management segment. With the BIFOLA Bill 2024 reshaping responsibilities, trustees must maintain specific records distinct from everyday business documentation. We simplify this process, making compliance less about paperwork chaos and more about seamless operation. For more information, visit us at:  https://buildtrust.com.au/.

[tracychamberlainhigginbotham]

(via Wednesday Wisdom: The Real Bottom Line)

[reasonsforhope]

Article | Paywall Free

"The Food and Drug Administration approved new mRNA coronavirus vaccines Thursday [August 22, 2024], clearing the way for shots manufactured by Pfizer-BioNTech and Moderna to start hitting pharmacy shelves and doctor’s offices within a week.

Health officials encourage annual vaccination against the coronavirus, similar to yearly flu shots. Everyone 6 months and older should receive a new vaccine, the Centers for Disease Control and Prevention recommends.

The FDA has yet to approve an updated vaccine from Novavax, which uses a more conventional vaccine development method but has faced financial challenges.

Our scientific understanding of coronavirus vaccines has evolved since they debuted in late 2020. Here’s what to know about the new vaccines.

Why are there new vaccines?

The coronavirus keeps evolving to overcome our immune defenses, and the shield offered by vaccines weakens over time. That’s why federal health officials want people to get an annual updated coronavirus vaccine designed to target the latest variants. They approve them for release in late summer or early fall to coincide with flu shots that Americans are already used to getting.

The underlying vaccine technology and manufacturing process are the same, but components change to account for how the virus morphs. The new vaccines target the KP.2 variant because most recent covid cases are caused by that strain or closely related ones...

Do the vaccines prevent infection?

You probably know by now that vaccinated people can still get covid. But the shots do offer some protection against infection, just not the kind of protection you get from highly effective vaccines for other diseases such as measles.

The 2023-2024 vaccine provided 54 percent increased protection against symptomatic covid infections, according to a CDC study of people who tested for the coronavirus at pharmacies during the first four months after that year’s shot was released...

A nasal vaccine could be better at stopping infections outright by increasing immunity where they take hold, and one is being studied in a trial sponsored by the National Institutes of Health.

If you really want to dodge covid, don’t rely on the vaccine alone and take other precautions such as masking or avoiding crowds...

Do the vaccines help prevent transmission?

You may remember from early coverage of coronavirus vaccines that it was unclear whether shots would reduce transmission. Now, scientists say the answer is yes — even if you’re actively shedding virus.

That’s because the vaccine creates antibodies that reduce the amount of virus entering your cells, limiting how much the virus can replicate and make you even sicker. When vaccination prevents symptoms such as coughing and sneezing, people expel fewer respiratory droplets carrying the virus. When it reduces the viral load in an infected person, people become less contagious.

That’s why Peter Hotez, a physician and co-director of the Texas Children’s Hospital Center for Vaccine Development, said he feels more comfortable in a crowded medical conference, where attendees are probably up to date on their vaccines, than in a crowded airport.

“By having so many vaccinated people, it’s decreasing the number of days you are shedding virus if you get a breakthrough infection, and it decreases the amount of virus you are shedding,” Hotez said.

Do vaccines prevent long covid?

While the threat of acute serious respiratory covid disease has faded, developing the lingering symptoms of “long covid” remains a concern for people who have had even mild cases. The CDC says vaccination is the “best available tool” to reduce the risk of long covid in children and adults. The exact mechanism is unclear, but experts theorize that vaccines help by reducing the severity of illness, which is a major risk factor for long covid.

When is the best time to get a new coronavirus vaccine?

It depends on your circumstances, including risk factors for severe disease, when you were last infected or vaccinated, and plans for the months ahead. It’s best to talk these issues through with a doctor.

If you are at high risk and have not recently been vaccinated or infected, you may want to get a shot as soon as possible while cases remain high. The summer wave has shown signs of peaking, but cases can still be elevated and take weeks to return to low levels. It’s hard to predict when a winter wave will begin....

Where do I find vaccines?

CVS said its expects to start administering them within days, and Walgreens said that it would start scheduling appointments to receive shots after Sept. 6 and that customers can walk in before then.

Availability at doctor’s offices might take longer. Finding shots for infants and toddlers could be more difficult because many pharmacies do not administer them and not every pediatrician’s office will stock them given low demand and limited storage space.

This year’s updated coronavirus vaccines are supposed to have a longer shelf life, which eases the financial pressures of stocking them.

The CDC plans to relaunch its vaccine locator when the new vaccines are widely available, and similar services are offered by Moderna and Pfizer."

-via The Washington Post, August 22, 2024

[nightpool]

If you are an auditor, and you call up the chief financial officer of the company you are auditing and ask “hey when is a convenient time for me to come to your office to review the books,” and he replies “no, no office, parking lot,” and you say “okay I’ll drive to your office and you’ll come down—” and he says “oh no, not our parking lot, a different parking lot,” and you meet him in a parking lot 40 miles from his office, and he hands you printouts of the financial statements and drives away, how should you begin your audit? Which of the financial statements is most likely to contain red flags or discrepancies to be addressed? I feel like the answer is “the parking lot”? If I were auditing those financial statements, most of my questions would not be about technical accounting matters but “why are we meeting in a parking lot again?”

Here is a story about the CFO of the Detroit Riverfront Conservancy, William Smith, who was arrested last week for allegedly stealing $40 million from the nonprofit:

"Mr. Smith’s grip on the nonprofit’s finances was so tight that even the nonprofit’s accountant, charged with tracking spending, could not log into one of the group’s bank accounts. Only Mr. Smith had the password. He gave her the bank statements on paper and met her only four times a year, in the parking lot of a Honey Baked Ham store 40 miles from the office. […]

"Brian Mittendorf, a professor who studies nonprofit accounting at Ohio State University, said that the conservancy’s official documents show that it took steps to safeguard its finances — including oversight from its board of directors and annual audits.

"‘All these things sound as if it’s an organization with a pretty robust review in place. On the other hand, only one person can access the money, and provides paper copies in a Honey Baked Ham parking lot?’ Mr. Mittendorf said. ‘Those sound like the opposite of a robust governance mechanism.’"

As it happens, Smith allegedly altered the bank statements by “[removing] the payments to himself and [replacing] them with fake payments to other vendors.” I still don’t fully understand the parking lot, though? Like you can meet the accountant in your office to hand over the doctored paper financial statements; just unplug your computer first. I just feel like meeting in the parking lot sends a pretty strong message of “I AM DOING CRIME” that you might want to avoid, if you are doing crime.

[johnbrand]

Recycling

I watched as the next employee entered the chamber. He appeared a bit confused, probably having expected a conference room rather than the dark space with mirrored walls. By the look of it, he had no idea that any one of the panes were one-sided, hesitantly fidgeting with his tie as he announced his presence with a timid “Hello?”

I leaned into the microphone, “Good afternoon.” The nervous boy’s eyes dashed around the room, trying to identify the person speaking to him. His physical characteristics and mannerisms resembled a mouse, small and skittish.

“Am I supposed to be here?” he eventually replied, choosing the speaker above my viewpoint as his receptor.

“Yes, this is the meeting to discuss your annual review.” I replied. “You're in the right place, Mr. Donson. Would you like for me to refer to you by your given name?”

The boy shuffled anxiously, “Drayton is fine.”

Habitually, I continued. “I’m sure you're wondering why your annual review this year is different from those in the past. Don’t worry Drayton, you are still one of our top performers, and your review reflects your incredible performance.”

Feeling a delicate surge of confidence, Drayton let a smile sneak up onto his lips. Being clean shaven and still holding some baby fat, it frankly was quite endearing. Cute even.

“As you are already aware, our company has been having some financial issues recently. And as a high-ranking official in our accounting department, I am sure that you are more than knowledgeable on the details of this subject.”

Drayton’s youthful glee faltered for a moment.

“Unfortunately, we do not have the funds available to keep you on board and give you a raise,” I started. “The company would like to offer you a deal: in exchange for accepting a substandard review and a 19% decrease in pay, we will offer you external benefits.”

Shock emerged from Drayton’s face, “What benefits would be worth a fifth of my paycheck?”

“Unfortunately I am liable to disclose that information,” I robotically replied. “You can either accept or tender a resignation.” 

Drayton took a moment to decide, just like all the other employees typically did. But eventually, they all convinced themselves that losing employment at the company was the worse of the two options.

“I’ll accept.”

“Stand by.” I followed procedure, locking the exits and airways into the chamber. Once that was done, I began flipping the switches. Steam mechanisms, followed by audio machines, followed by visual projectors. I did not even pay attention to the squabbling accountant, panicking as his chamber was bombarded with smoke, abrasive phonics, and commands that flashed against the walls and reflected into every corner of the room. 

Thanks to the padding in my control room, I absorbed none of it. I simply ignored Drayton’s screams and opened my laptop, getting back to my own duties as the process did its work. With all the vapors, I typically could not witness any of the changes that happened anyway–which also meant I could never attest to possible allegations if our company did ever come under some sort of legal fire in the future. But sometimes I did spot little things, flashes of commands that were being ingrained into the employee. MASCULINE, TRADITIONAL, ATTENTIVE. The small letters would pulse by an instant, although they were meaningless to me within my enclosed accommodations.

Eventually, my timer went off, and I closed out of the procedure. I exited the program and flipped the switches back over, shutting off all stimulatory mechanisms. It took a moment for the smoke to clear, presenting me with a new version of the employee. More muscular, more masculine, and more virile.

“How are you feeling, Mr. Donovan?”

"It’s Donson, boss." The man stood tall, stoic. His voice now held much more depth and presence.

"It’s Donovan, Drake Donovan,” I affirmed. “That's what's in our system."

I watched the man process this, the command’s installation literally visible behind his now less-intelligent eyes. 

“I see you were able to find part of your new uniform already.” I was referring to the briefs and sweatshorts that were covering the lower half of Drake’s much larger body. The remnants of the former business casual outfit were scattered across his large feet. “The closet behind you will contain the rest of your attire. Company fitness uniforms and approved footwear that will better fit your size and new position.”

“New position?” Drake inquired, his question curious rather than interrogative.

“The company has decided to reassign you as a security liaison, seeing as that will be a better fit for your paygrade.” I typed away at my reviewal report, adding in details of Drake’s benefits package. Increase in height, dramatic increase in musculature, increase in hair, increase in virility…

To save money, the company liked to recycle its employees. We would bring in fresh graduates to run our corporate operations, and then once they hit their pay ceiling, recycled them into more manual, less intellectually-driven roles. Naturally, no one ever filed any complaints about this procedure as no one realized it existed. And even if they did, they would no longer have the brains capable to file such a complaint.

“Sounds good, boss,” Drake replied, even though I had already known what his answer was going to be. With his dominating size and brutish stature, Drake had been remodeled into the standard male form that we needed for our team. And with this mind simplified to only focusing on traditional objectives (upholding masculinity, working out, fulfilling his role), Drake was now bound to solely focus on the company’s objectives. Thanks to the recycling process, our company would keep the profits high and the employee turnover low. And now, Drake would remain entertained without the extra money by merely following orders and enjoying the simpler things in life, like flexing his muscles.

[appleblueberry-pie]

I NEED MORE YANDERE e42 MILES!!!!

This is a list of things he's done without your knowledge.

"Sneaked" two thousand dollars into your savings account. Best part about this is you actually never did find out that he did this. You just thought you were finally becoming financially responsible.

Fixed your TV remote 2 times.

Bought you more boxes of ramen.

Learned to make your favorite dessert.

Drove your ex's car off of a cliff

Drove your ex's girlfriend's car off of a cliff

Got on your teacher's good side for you.

Started doing calisthenics

Became pescatarian

Stopped drinking energy drinks and instead became a tea-drinker

Donated to 5 animal shelters and volunteered to help feed the homeless(one of the short programs he joined at school)

Broke 3 ribs and repaired

Got stabbed and repaired

Illegally traded with dominating gangs in Brooklyn

Illegally helped transport medicine inside of hospitals due to dominating gangs in Brooklyn

Tried on shoes he wanted to get for you to see if they'd be comfortable, understanding that people would think he's flaming for doing so.

Tried on earrings he wanted to get for you, thinking if it looked good on him, it would definitely look good on you, understanding that people would think he's flaming for doing so.

Same thing with perfume.

Got scared of you when you interrogated him for smelling like the new perfume he just bought you.

Whispers compliments to you when you sleep on his shoulder while y'all take the train.

Screamed like a lil girl when he picked up a potted plant from a flower shop, hoping to get you a succulent, and a slug dropped from the crevice of the pottery, plopped onto his hand, heavy, cold, and slimy.

Listens to all Ariana Grande albums

Annually kidnaps all boys who he knew premeditated asking you to prom, knowing your his, and drops them off by a random lake in the dead of night. Tied up, taped mouth, lightly drugged, and confused.

Attempted to give up being tender-headed so his mama could do his hair in that cool ass pattern he knew you wouldn't be able to stop admiring. It didn't work, but the result definitely made you happy.

Bombed 2 drug major illegal drug factories. Probably one of the main reasons why the crime underworld hates him.

Sketched over 40 different ways the wedding ring he plans to give you will look.

Finished 2 big notebooks that are just full of rants and drawings of you. He's halfway through his 3rd one.

Has a pinterest board just like yours that is full of clothing and room aesthetics that you like. Plans to make most of them a reality for you.

Kicks his feet at ur messages.

[efjconsulting]

How Can Formation and Company Secretarial Services Benefit Your Business?

Formation and company secretarial services, such as those offered by EFJ Consulting in the United Kingdom, play a crucial role in business success. These services streamline the establishment of companies, ensuring compliance with legal requirements and efficient corporation tax returns. By handling administrative tasks like filing annual returns, maintaining statutory records, and managing director appointments, we enable businesses to focus on growth and operational excellence.Our expertise ensures adherence to regulatory standards, mitigates risks, and enhances governance. Utilizing Formation and Company Secretarial services not only ensures legal compliance but also optimizes business operations for sustained profitability in the competitive market landscape.

[komsomolka]

In July, the Iraqi Central Bank halted all foreign transactions in Chinese Yuan, succumbing to intense pressure from the US Federal Reserve to do so. The shutdown followed a brief period during which Baghdad had allowed merchants to trade in Yuan, an initiative intended to mitigate excessive US restrictions on Iraq’s access to US dollars. While this Yuan-based trade excluded Iraq’s oil exports, which remained in US dollars, Washington viewed it as a threat to its financial dominance over the Persian Gulf state. [...]

Since the signing of Executive Order 13303 (EO13303) by President George W Bush on 22 May 2003, all revenues from Iraq’s oil sales have been funneled directly into an account at the Federal Reserve Bank of New York. EO13303, titled “Protection of the Development Fund for Iraq and Other Property in Which Iraq Has an Interest,” has been renewed annually by every US president, including Joe Biden in 2024. This executive order essentially places control over Iraq’s oil revenues under the discretion of the US President, leaving Baghdad with limited control over its resources and earnings. [...]

Whenever Washington feels that Iraq is not compliant with US regional goals, these fund transfers can be delayed or reduced. In January 2020, for instance, after the Iraqi Parliament voted to expel US troops following the assassination of Iranian Quds Force General Qasem Soleimani and Iraqi Popular Mobilization Units (PMU) Deputy Commander Abu Mahdi al-Muhandis, the Trump administration threatened to freeze Iraq’s access to its oil revenues. [...] The country’s inability to control its own funds has prevented long-term reconstruction and development, forcing it to rely on international loans. [...]

Iraq ceased to be under occupation, at least formally, when it signed the “Strategic Cooperation Framework” agreement with the US in 2008, which says that American forces are present in Iraq only at the request of the Iraqi government.

Attempts by the UN to restore Iraq’s control over its finances have largely failed. In 2010, UNSC Resolution 1956 demanded the closure of the DFI by no later than 30 June 2011 and the transfer of all proceeds to the Iraqi government. Despite these clear legal directives, the DFI account remains under US control at the Federal Reserve Bank of New York in defiance of the UN Security Council resolution. Worse yet, enduring US dominance over Iraq’s financial resources has deeply exacerbated the corruption and dysfunction plaguing the country. [...]

Today, both the US Administration of Joe Biden and the Iraqi government led by Mohammad Shia al-Sudani – which has not taken steps to free Iraq’s sovereign funds – can be considered in violation of United Nations Resolution 1956 issued in 2010.

[chilledstrawberrysoda]

Do you think that Neil gets to write off his "charitable donations" to the moriyama's on his taxes or would that be too big of a risk because I feel like he would almost certainly get audited if he claimed on his taxes that he was donating EIGHTY PERCENT of his total income? But if he really is making what we assume of a professional athlete that puts him in one of the highest tax brackets at like 37% annually, so are the moriyama's taking 80% of his gross income or 80% of his income after taxes and agent fees (because those will be part of his expenses).

I'm genuinely very curious about the logistics of this deal like the moriyama's had to send him something explaining once he was signed right? Did they give him an accountant so he wouldn't fuck it up or raise any red flags? I want a fic about the technical aspects of paying the mafia for your safety.

I know Neil would 100% be capable of doing his own taxes but I really think he would find it overwhelming and stressful to file his taxes and not raise any red flags that would bring the moriyama's onto the IRS radar and possibly jeopardize his safety.

Also if Neil is paying enough to the moriyama's to put him at a 17% deficit is Andrew just paying for Neil's whole life??? Would it look less suspicious to be donating such large amounts if they got married "for tax benefits"? Has anyone written a fic about this? Would it be boring to just have a whole fic that's like a meeting with Neil and the moriyama's financial division going over what would be enough for Neil to love on and how he could best go about filing taxes?

[mostlysignssomeportents]

The long, bloody lineage of private equity's looting

Tomorrow (June 3) at 1:30PM, I’m in Edinburgh for the Cymera Festival on a panel with Nina Allen and Ian McDonald.

Monday (June 5) at 7:15PM, I’m in London at the British Library with my novel Red Team Blues, hosted by Baroness Martha Lane Fox.

Fans of the Sopranos will remember the “bust out” as a mob tactic in which a business is taken over, loaded up with debt, and driven into the ground, wrecking the lives of the business’s workers, customers and suppliers. When the mafia does this, we call it a bust out; when Wall Street does it, we call it “private equity.”

It used to be that we rarely heard about private equity, but then, as national chains and iconic companies started to vanish, this mysterious financial arrangement popped up with increasing frequency. When a finance bro’s presentation on why Olive Garden needed to be re-orged when viral, there was a lot off snickering about the decline of a tacky business whose value prop was unlimited carbs. But the bro was working for Starboard Value, a hedge fund that specialized in buhying out and killing off companies, pocketing billions while destroying profitable businesses.

https://www.salon.com/2014/09/17/the_real_olive_garden_scandal_why_greedy_hedge_funders_suddenly_care_so_much_about_breadsticks/

Starboard Value’s game was straightforward: buy a business, load it with debt, sell off its physical plant — the buildings it did business out of — pay itself, and then have the business lease back the buildings, bleeding out money until it collapsed. They pulled it with Red Lobster,and the point of the viral Olive Garden dis track was to soften up the company for its own bust out.

The bust out tactic wasn’t limited to mocking middlebrow family restaurants. For years, the crooks who ran these ops did a brisk trade in blaming the internet. Why did Sears tank? Everyone knows that the 19th century business was an antique, incapable of mounting a challenge in the age of e-commerce. That was a great smokescreen for an old-fashioned bust out that saw corporate looters make off with hundreds of millions, leaving behind empty storefronts and emptier pension accounts for the workers who built the wealth the looters stole:

https://prospect.org/economy/vulture-capitalism-killed-sears/

Same goes for Toys R Us: it wasn’t Amazon that killed the iconic toy retailer — it was the PE bosses who extracted $200m from the chain, then walked away, hands in pockets and whistling, while the businesses collapsed and the workers got zero severance:

https://www.washingtonpost.com/news/business/wp/2018/06/01/how-can-they-walk-away-with-millions-and-leave-workers-with-zero-toys-r-us-workers-say-they-deserve-severance/

It’s a good racket — for the racketeers. Private equity has grown from a finance sideshow to Wall Street’s apex predator, and it’s devouring the real economy through a string of audactious bust outs, each more consequential and depraved than the last.

As PE shows that it can turn profitable businesses gigantic windfalls, sticking the rest of us with the job of sorting out the smoking craters they leave behind, more and more investors are piling in. Today, the PE sector loves a rollup, which is when they buy several related businesses and merge them into one firm. The nominal business-case for a rollup is that the new, bigger firm is more “efficient.” In reality, a rollup’s strength is in eliminating competition. When all the pet groomers, or funeral homes, or urgent care clinics for ten miles share the same owner, they can raise prices, lower wages, and fuck over suppliers.

They can also borrow. A quirk of the credit markets is that a standalone small business is valued at about 3–5x its annual revenues. But if that business is part of a large firm, it is valued at 10–20x annual turnover. That means that when a private equity company rolls up a comedy club, ad agency or water bottler (all businesses presently experiencing PE rollup), with $1m in annual revenues, it shows up on the PE company’s balance sheet as an asset worth $10–20m. That’s $10–20m worth of collateral the PE fund can stake for loans that let it buy and roll up more small businesses.

2.9 million Boomer-owned businesses, employing 32m people, are expected to sell in the next couple years as their owners retire. Most of these businesses will sell to PE firms, who can afford to pay more for them as a prelude to a bust out than anyone intending to operate them as a productive business could ever pay:

https://pluralistic.net/2022/12/16/schumpeterian-terrorism/#deliberately-broken

PE’s most ghastly impact is felt in the health care sector. Whole towns’ worth of emergency rooms, family practices, labs and other health firms have been scooped up by PE, which has spent more than $1t since 2012 on health acquisitions:

https://pluralistic.net/2022/11/17/the-doctor-will-fleece-you-now/#pe-in-full-effect

Once a health care company is owned by PE, it is significantly more likely to commit medicare fraud. It also cuts wages and staffing for doctors and nurses. PE-owned facilities do more unnecessary and often dangerous procedures. Appointments get shorter. The companies get embroiled in kickback scandals. PE-backed dentists hack away at children’s mouths, filling them full of root-canals.

https://pluralistic.net/2022/11/17/the-doctor-will-fleece-you-now/#pe-in-full-effect

The Healthcare Private Equity Association boasts that its members are poised to spend more than $3t to create “the future of healthcare.”

https://hcpea.org/#!event-list

As bad as PE is for healthcare, it’s worse for long-term care. PE-owned nursing homes are charnel houses, and there’s a particularly nasty PE scam where elderly patients are tricked into signing up for palliative care, which is never delivered (and isn’t needed, because the patients aren’t dying!). These fake “hospices” get huge payouts from medicare — and the patient is made permanently ineligible for future medicare, because they are recorded being in their final decline:

https://pluralistic.net/2023/04/26/death-panels/#what-the-heck-is-going-on-with-CMS

Every part of the health care sector is being busted out by PE. Another ugly PE trick, the “club deal,” is devouring the medical supply business. Club deals were huge in the 2000s, destroying rent-controlled housing, energy companies, Mervyn’s department stores, Harrah’s, and Old Country Joe. Now it’s doing the same to medical supplies:

https://pluralistic.net/2021/05/14/billionaire-class-solidarity/#club-deals

Private equity is behind the mass rollup of single-family homes across America. Wall Street landlords are the worst landlords in America, who load up your rent with junk fees, leave your home in a state of dangerous disrepair, and evict you at the drop of a hat:

https://pluralistic.net/2021/08/16/die-miete-ist-zu-hoch/#assets-v-human-rights

As these houses decay through neglect, private equity makes a bundle from tenants and even more borrowing against the houses. In a few short years, much of America’s desperately undersupplied housing stock will be beyond repair. It’s a bust out.

You know all those exploding trains filled with dangerous chemicals that poison entire towns? Private equity bust outs:

https://pluralistic.net/2022/02/04/up-your-nose/#rail-barons

Where did PE come from? How can these people look themselves in the mirror? Why do we let them get away with it? How do we stop them?

Today in The American Prospect, Maureen Tkacik reviews two new books that try to answer all four of these questions, but really only manage to answer the first three:

https://prospect.org/culture/books/2023-06-02-days-of-plunder-morgenson-rosner-ballou-review/

The first of these books is These Are the Plunderers: How Private Equity Runs — and Wrecks — America by Gretchen Morgenson and Joshua Rosner:

https://www.simonandschuster.com/books/These-Are-the-Plunderers/Gretchen-Morgenson/9781982191283

The second is Plunder: Private Equity’s Plan to Pillage America, by Brendan Ballou:

https://www.hachettebookgroup.com/titles/brendan-ballou/plunder/9781541702103/

Both books describe the bust out from the inside. For example, PetSmart — looted for $30 billion by RaymondSvider and his PE fund BC Partners — is a slaughterhouse for animals. The company systematically neglects animals — failing to pay workers to come in and feed them, say, or refusing to provide backup power to run during power outages, letting animals freeze or roast to death. Though PetSmart has its own vet clinics, the company doesn’t want to pay its vets to nurse the animals it damages, so it denies them care. But the company is also too cheap to euthanize those animals, so it lets them starve to death. PetSmart is also too cheap to cremate the animals, so its traumatized staff are ordered to smuggle the dead, rotting animals into random dumpsters.

All this happened while PetSmart’s sales increased by 60%, matched by growth in the company’s gross margins. All that money went to the bust out.

https://www.forbes.com/sites/antoinegara/2021/09/27/the-30-billion-kitty-meet-the-investor-who-made-a-fortune-on-pet-food/

Tkacik says these books show that we’re finally getting wise to PE. Back in the Clinton years, the PE critique painted the perps as sharp operators who reduced quality and jacked up prices. Today, books like these paint these “investors” as the monsters they are — crooks whose bust ups are crimes, not clever finance hacks.

Take the Carlyle Group, which pioneered nursing home rollups. As Carlyle slashed wages, its workers suffered — but its elderly patients suffered more. Thousands of Carlyle “customers” died of “dehydration, gangrenous bedsores, and preventable falls” in the pre-covid years.

https://www.washingtonpost.com/business/economy/opioid-overdoses-bedsores-and-broken-bones-what-happened-when-a-private-equity-firm-sought-profits-in-caring-for-societys-most-vulnerable/2018/11/25/09089a4a-ed14-11e8-baac-2a674e91502b_story.html

KKR, another PE monster, bought a second-hand chain of homes for mentally disabled adults from another PE company, then squeezed it for the last drops of blood left in the corpse. KKR cut wages to $8/hour and increased shifts to 36 hours, then threatened to have workers who went home early arrested and charged with “patient abandonment.” Many of these homes were often left with no staff at all, with patients left to starve and stew in their own waste.

PE loves to pick on people who can’t fight back: kids, sick people, disabled people, old people. No surprise, then, that PE loves prisons — the ultimate captive audience. HIG Capital is a $55b fund that owns TKC Holdings, who got the contract to feed the prisoners at 400 institutions. They got the contract after the prisons fired Aramark, owned by PE giant Warburg Pincus, whose food was so inedible that it provoked riots. TKC got a million bucks extra to take over the food at Michigan’s Kinross Correctional Facility, then, incredibly, made the food worse. A chef who refused to serve 100 bags of rotten potatoes (“the most disgusting thing I’ve seen in my life”) was fired:

https://www.wzzm13.com/article/news/local/michigan/prison-food-worker-i-was-fired-for-refusing-to-serve-rotten-potatoes/69-467297770

TKC doesn’t just operate prison kitchens — it operates prison commissaries, where it gouges prisoners on junk food to replace the inedible slop it serves in the cafeteria. The prisoners buy this food with money they make working in the prison workshops, for $0.10–0.25/hour. Those workshops are also run by TKC.

Tkacic traces private equity back to the “corporate raiders” of the 1950s and 1960s, who “stealthily borrowed money to buy up enough shares in a small or midsized company to control its biggest bloc of votes, then force a stock swap and install himself as CEO.”

The most famous of these raiders was Eli Black, who took over United Fruit with this gambit — a company that had a long association with the CIA, who had obligingly toppled democratically elected governments and installed dictators friendly to United’s interests (this is where the term “banana republic” comes from).

Eli Black’s son is Leon Black, a notorious PE predator. Leon Black got his start working for the junk-bonds kingpin Michael Milken, optimizing Milken’s operation, which was the most terrifying bust out machine of its day, buying, debt-loading and wrecking a string of beloved American businesses. Milken bought 2,000 companies and put 200 of them through bankruptcy, leaving the survivors in a brittle, weakened state.

It got so bad that the Business Roundtable complained about the practice to Congress, calling Milken, Black, et al, “a small group is systematically extracting the equity from corporations and replacing it with debt, and incidentally accumulating major wealth.”

Black stabbed Milken in the back and tanked his business, then set out on his own. Among the businesses he destroyed was Samsonite, “a bankrupt-but-healthy company he subjected to 12 humiliating years of repeated fee extractions, debt-funded dividend payments, brutal plant closings, and hideous schemes to induce employees to buy its worthless stock.”

The money to buy Samsonite — and many other businesses — came through a shadowy deal between Black and John Garamendi, then a California insurance commissioner, now a California congressman. Garamendi helped Black buy a $6b portfolio of junk bonds from an insurance company in a wildly shady deal. Garamendi wrote down the bonds by $3.9b, stealing money ���from innocent people who needed the money to pay for loved ones’ funerals, irreparable injuries, etc.”

Black ended up getting all kinds of favors from powerful politicians — including former Connecticut governor John Rowland and Donald Trump. He also wired $188m to Jeffrey Epstein for reasons that remain opaque.

Black’s shady deals are a marked contrast with the exalted political circles he travels in. Despite private equity’s obviously shady conduct, it is the preferred partner for cities and states, who buy everything from ambulance services to infrastructure from PE-owned companies, with disastrous results. Federal agencies turn a blind eye to their ripoffs, or even abet them. 38 state houses passed legislation immunizing nursing homes from liability during the start of the covid crisis.

PE barons are shameless about presenting themselves as upstanding cits, unfairly maligned. When Obama made an empty promise to tax billionaires in 2010, Blackstone founder SteveS chwarzman declared, “It’s a war. It’s like when Hitler invaded Poland in 1939.”

Since we’re on the subject of Hitler, this is a good spot to bring up Monowitz, a private-sector satellite of Auschwitz operated by IG Farben as a slave labor camp to make rubber and other materiel it supplied at a substantial markup to the wermacht. I’d never heard of Monowitz, but Tkacik’s description of the camp is chilling, even in comparison to Auschwitz itself.

Farben used slave laborers from Auschwitz to work at its rubber plant, but was frustrated by the logistics of moving those slaves down the 4.5m stretch of road to the facility. So the company bought 25,000 slaves — preferring children, who were cheaper — and installed them in a co-located death-camp called Monowitz:

https://www.commentary.org/articles/r-tannenbaum/the-devils-chemists-by-josiah-e-dubois-jr/

Monowitz was — incredibly — worse than Auschwitz. It was so bad, the SS guards who worked at it complained to Berlin about the conditions. The SS demanded more hospitals for the workers who dropped from beatings and overwork — Farben refused, citing the cost. The factory never produced a steady supply of rubber, but thanks to its gouging and the brutal treatment of its slaves, the camp was still profitable and returned large dividends to Farben’s investors.

Apologists for slavery sometimes claim that slavers are at least incentivized to maintain the health of their captive workforce. This was definitely not true of Farben. Monowitz slaves died on average after three months in the camp. And Farben’s subsidiary, Degesch, made the special Zyklon B formulation used in Auschwitz’s gas chambers.

Tkacik’s point is that the Nazis killed for ideology and were unimaginably cruel. Farben killed for money — and they were even worse. The banality of evil gets even more banal when it’s done in service to maximizing shareholder value.

As Farben historian Joseph Borkin wrote, the company “reduced slave labor to a consumable raw material, a human ore from which the mineral of life was systematically extracted”:

https://www.scribd.com/document/517797736/The-Crime-and-Punishment-of-I-G-Farben

Farben’s connection to the Nazis was a the subject of Germany’s Master Plan: The Story of Industrial Offensive, a 1943 bestseller by Borkin, who was also an antitrust lawyer. It described how Farben had manipulated global commodities markets in order to create shortages that “guaranteed Hitler’s early victories.”

Master Plan became a rallying point in the movement to shatter corporate power. But large US firms like Dow Chemical and Standard Oil waged war on the book, demanding that it be retracted. Borkin was forced into resignation and obscurity in 1945.

Meanwhile, in Nuremberg, 24 Farben executives were tried for their war crimes, and they cited their obligations to their shareholders in their defense. All but five were acquitted on this basis.

Seen in that light, the plunderers of today’s PE firms are part of a long and dishonorable tradition, one that puts profit ahead of every other priority or consideration. It’s a defense that wowed the judges at Nuremberg, so should we be surprised that it still plays in 2023?

Tkacik is frustrated that neither of these books have much to offer by way of solutions, but she understands why that would be. After all, if we can’t even close the carried interest tax loophole, how can we hope to do anything meaningful?

“Carried interest” comes up in every election cycle. Most of us assume it has something to do with “interest payments,” but that’s not true. The carried interest loophole relates to the “interest” that 16th-century sea captains had in their cargo. It’s a 600-year-old tax loophole that private equity bosses use to pay little or no tax on their billions. The fact that it’s still on the books tells you everything you need to know about whether our political class wants to do anything about PE’s plundering.

Notwithstanding Tkacik’s (entirely justified) skepticism of the weaksauce remedies proposed in these books, there is some hope of meaningful action. Private equity’s rollups are only possible because they skate under the $101m threshold for merger scrutiny. However, there is good — but unenforced — law that allows antitrust enforcers to block these mergers. This is the “incipiency standard” — Sec 7 of the Clayton Act — the idea that a relatively small merger might not be big enough to trigger enforcement action on its own, but regulators can still act to block it if it creates an incipient monopoly.

https://pluralistic.net/2022/12/16/schumpeterian-terrorism/#deliberately-broken

The US has a new crop of aggressive — fearless — top antitrust enforcers and they’ve been systematically reviving these old laws to go after monopolies.

That’s long overdue. Markets are machines for eroding our moral values: “In comparison to non-market decisions, moral standards are significantly lower if people participate in markets.”

https://web.archive.org/web/20130607154129/https://www.uni-bonn.de/Press-releases/markets-erode-moral-values

The crimes that monsters commit in the name of ideology pale in comparison to the crimes the wealthy commit for money.

Catch me on tour with Red Team Blues in Edinburgh, London, and Berlin!

If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/06/02/plunderers/#farbenizers

[Image ID: An overgrown graveyard, rendered in silver nitrate monochrome. A green-tinted businessman  with a moneybag in place of a head looms up from behind a gravestone. The right side of the image is spattered in blood.]

[batboyblog]

Things Biden and the Democrats did, this week #22

June 7-14 2024

Vice-President Harris announced that the Consumer Financial Protection Bureau is moving to remove medical debt for people's credit score. This move will improve the credit rating of 15 million Americans. Millions of Americans struggling with debt from medical expenses can't get approved for a loan for a car, to start a small business or buy a home. The new rule will improve credit scores by an average of 20 points and lead to 22,000 additional mortgages being approved every year. This comes on top of efforts by the Biden Administration to buy up and forgive medical debt. Through money in the American Rescue Plan $7 billion dollars of medical debt will be forgiven by the end of 2026. To date state and local governments have used ARP funds to buy up and forgive the debt of 3 million Americans and counting.

The EPA, Department of Agriculture, and FDA announced a joint "National Strategy for Reducing Food Loss and Waste and Recycling Organics". The Strategy aimed to cut food waste by 50% by 2030. Currently 24% of municipal solid waste in landfills is food waste, and food waste accounts for 58% of methane emissions from landfills roughly the green house gas emissions of 60 coal-fired power plants every year. This connects to $200 million the EPA already has invested in recycling, the largest investment in recycling by the federal government in 30 years. The average American family loses $1,500 ever year in spoiled food, and the strategy through better labeling, packaging, and education hopes to save people money and reduce hunger as well as the environmental impact.

President Biden signed with Ukrainian President Zelenskyy a ten-year US-Ukraine Security Agreement. The Agreement is aimed at helping Ukraine win the war against Russia, as well as help Ukraine meet the standards it will have to be ready for EU and NATO memberships. President Biden also spearheaded efforts at the G7 meeting to secure $50 billion for Ukraine from the 7 top economic nations.

HHS announced $500 million for the development of new non-injection vaccines against Covid. The money is part of Project NextGen a $5 billion program to accelerate and streamline new Covid vaccines and treatments. The investment announced this week will support a clinical trial of 10,000 people testing a vaccine in pill form. It's also supporting two vaccines administered as nasal sprays that are in earlier stages of development. The government hopes that break throughs in non-needle based vaccines for Covid might be applied to other vaccinations thus making vaccines more widely available and more easily administered.

Secretary of State Antony Blinken announced $404 million in additional humanitarian assistance for Palestinians in Gaza, the West Bank and the region. This brings the total invested by the Biden administration in the Palestinians to $1.8 billion since taking office, over $600 million since the war started in October 2023. The money will focus on safe drinking water, health care, protection, education, shelter, and psychosocial support.

The Department of the Interior announced $142 million for drought resilience and boosting water supplies. The funding will provide about 40,000 acre-feet of annual recycled water, enough to support more than 160,000 people a year. It's funding water recycling programs in California, Hawaii, Kansas, Nevada and Texas. It's also supporting 4 water desalination projects in Southern California. Desalination is proving to be an important tool used by countries with limited freshwater.

President Biden took the lead at the G7 on the Partnership for Global Infrastructure and Investment. The PGI is a global program to connect the developing world to investment in its infrastructure from the G7 nations. So far the US has invested $40 billion into the program with a goal of $200 billion by 2027. The G7 overall plans on $600 billion by 2027. There has been heavy investment in the Lobito Corridor, an economic zone that runs from Angola, through the Democratic Republic of Congo, to Zambia, the PGI has helped connect the 3 nations by rail allowing land locked Zambia and largely landlocked DRC access Angolan ports. The PGI also is investing in a $900 million solar farm in Angola. The PGI got a $5 billion dollar investment from Microsoft aimed at expanding digital access in Kenya, Indonesia, and Malaysia. The PGI's bold vision is to connect Africa and the Indian Ocean region economically through rail and transportation link as well as boost greener economic growth in the developing world and bring developing nations on-line.

[probablyasocialecologist]

There are two main ways of comparing military budgets: as a percentage of GDP or as a percentage of the total national budget. Israel stood high on both: in 2022, Israel’s military budget amounted to 4.51 percent of its economy — the highest percentage among OECD countries. That same year, Israel's military budget stood at 12.2 percent of its total annual budget. And that is not the whole story. Economist Yossi Zeira points out that the above GDP figure is partial, as it does not take into account the loss of GDP caused by the fact that a large number of young men are outside the civilian labour force, a fact that translates into a 5.7-percent loss of GDP per year. Once the defence budget is determined, not much is left for other, non-military civilian budgets. In 2023, while the average civilian public expenditure in OECD countries stood at 42.2 percent of GDP (not including interest and military expenditure), in Israel it stood at 32.9 percent — a quarter less. With all those resources, Israel finds it hard to finance the full costs of maintaining its “imperial” military status without foreign assistance. Today, foreign financial and non-financial military aid comes mainly from the US. In the past, it had more varied sources: in 1956, such aid came from France and Great Britain and from 1967 on, from the US. According to the US Council on Foreign Relations, US aid accounts for some 15 percent of Israel’s defence budget. At the time of this writing, the US has signed a memorandum of understanding assuring Israel nearly 4 billion dollars per year through 2028. As for the actual fighting in the present war with Hamas, the US provided Israel with tank and artillery ammunition, bombs, rockets, and small arms, and was considering further supplies, including 50 F-15 fighter aircraft. Enough to keep the fighting going.

[...]

From the very beginning of the present war, Israel’s prime minister and almost all IDF generals have frequently warned that the war will be long. The Bank of Israel seems to agree, as it recently published a figure of 250 billion shekels for the total cost of the present war with Hamas — if the war lasts until 2028. That means a permanent very large military budget, continuous large aid packages from the US, and growing pressures on the budgets for social services, demands for which increase as a result of the ongoing war and seemingly unending dislocations.

18 September 2024

[alithographica]

Re: Redbubble & Alternatives

Redbubble is doing some nonsense and I've deleted my account. I barely bothered with it anyway, was mostly there for people who've asked for specific images as posters.

Anyway in doing that I sacrificed the $4.35 that was still sitting in my earnings. They only let you cash out at $20, so rather than drum up sales and therefore make Redbubble more money, I'm gonna do what I feel is $4.35 in anti-publicity for them. 🥳

tl;dr there are new fees that hurt artist income at all sales levels. Redbubble is either looking to cut costs and raise profits for funsies, or is in serious financial trouble.

About the new fees:

Redbubble offers their services to artists by allowing artists to control their profit margin above a certain baseline manufacturing fee. This was pretty cool! There's now an additional fee that will be charged starting May 1, 2023. It is not an upfront fee that requires you to pay out of pocket, but it does directly cut your profit margin. How badly? Well...

By Redbubble's own example, if in one month you sell $300 in products that you had set at a 25% margin, you'd previously earn $75. Under the new structure, that earnings level means you pay a $28 fee, so you will now be paid $47. That $28 represents a 37% cut off what you were supposed to earn.

There's a full fee table in that link, but other highlights include a $1 fee if you earned $2 (aka 50%!) and big sellers who'd expect to take home $400 will now receive $320 (an $80 fee, 20%).

It also puts you in a weird spot that earning $1 more in a month may bump you to the next tier, causing you to actually take home less money. Make $1 more, end up losing $11. Make it make sense. 🤨

About the new tiers:

Each shop is evaluated and labeled Standard, Premium, or Pro. Premium and Pro shops are not subject to the new fees, but there's no clarity on how to move from one tier to another. Redbubble says it's under your control but it's clearly not. Many artists are reporting that they have accounts with next to no sales that have been labeled Pro, and accounts with thousands of annual sales that are labeled Standard.

Action items:

Look, I'm not gonna tell other artists that they have to close their shops, or tell buyers not to buy from Redbubble if your favorite artists have chosen to stay. What you do with the above info is up to you.

What I will say is that many artists are leaving because the new pay structure sucks. I encourage people who buy from Redbubble to expand their support to other sites.

Attrition is arguably their goal here—they know people will leave over this, and that'll probably lower their costs and lower competition for the remaining accounts. But goodwill is lost easily and they're playing a dangerous game on betting how many stay vs. leave. I'm out.

Feel free to leave your feedback on Redbubble's feedback form here, but it feels slightly like yelling into the void.

Alternatives:

tbh I don't have a good read on things. If you do know of any recommended (or unrecommended) print-on-demand sites, speak up!

I will say that as of now (April 2023), based on my research:

🟢 INPRNT sounds like a winner if your game is art prints and stickers. Does not have any wearable products like t-shirts.

🟡 Etsy + Printify/Printful might be viable? Etsy always had higher profit margins than POD marketplaces, but it's a bit more work and they also do weird things occasionally. Also has a listing fee so if you're the type to upload a ton of designs, pricey.

🔴 Teepublic is owned by Redbubble. Doesn't have the tier/new fee structure as of now but might be imminent. Have also heard their customer service sucks.

🔴 Society6 is going to charge artists shipping costs, and there's going to be a (mandatory?) subscription service launched in the fall, so that's not a winner anymore either.