Categories
Medicare

Healthcare Accounting Services & Nonprofit Healthcare Organizations

Healthcare Accounting Services & Nonprofit Healthcare Organizations

Miami Accounting Service  Gustavo A Viera CPA specializing in Healthcare Accounting Services describes the federal income tax treatment of healthcare organizations that are exempt from tax under §501(a) of the Internal Revenue Code.

Healthcare Accounting Services VieraCPA notes that since many nonprofit healthcare organizations qualify for exemption under §501(c)(3) and how a healthcare organization may qualify as a charity, emphasizing the evolution of the current requirement that the organization be organized and operated for the promotion of health. Miami Accounting Service VieraCPA specializing in Healthcare Accounting Services describes the types of healthcare organizations that may qualify under §501(c)(3) and tells how they may achieve public charity status, either as a per se public organization, a publicly supported organization, or a supporting organization.

Healthcare Accounting Services VieraCPA site presents an overview of the federal income tax laws applicable to nonprofit healthcare organizations, such as hospitals, managed care organizations, and integrated delivery systems. In recent years the healthcare industry has experienced unprecedented change  and growth. Miami Accounting Service VieraCPA specializing in Healthcare Accounting Services notes that hospitals have added ancillary operations to their systems and joint venture arrangements between hospitals and physicians are common. The IRS has ruled on a number of whole-hospital joint ventures and they have been reviewed by the courts as well. More guidance from the IRS for joint venture arrangements, and in particular ancillary joint ventures, is expected to continue as joint ventures become more prevalent.

Healthcare Accounting Services VieraCPA states the importance of these contemporary joint ventures and analyzes the related federal income tax issues. Financing these ventures and the income derived from these operations all must be analyzed for federal income tax purposes. Many of these arrangements and transactions have created a new set of issues for healthcare administrators, Miami Accounting Service specializing in Healthcare Accounting Services and the IRS to resolve, and in some cases present issues of first impression; not only with respect to whether the particular arrangement or transaction may produce unrelated business taxable income, but more importantly, whether the activity may adversely affect the organization’s ongoing tax-exempt status.

In a nutshell, Healthcare Accounting Services VieraCPA notes the requirements for tax-exempt recognition, and what is required to maintain it; physician-hospital relationships; managed healthcare organizations; tax-exempt financing; unrelated business income tax issues; taxable subsidiaries; employment tax issues; IRS audits of hospitals; fundraising activities; and reporting rules.

Miami Accounting Service VieraCPA specializing in Healthcare Accounting Services addresses the IRS has been stressing for some time the importance of a conflicts of interest policy. In the wake of the Enron scandal, and influenced by the Sarbanes-Oxley Act, the governing bodies of healthcare organizations, both for-profit and non-profit, have had to re-examine their corporate responsibilities. Many of these principles are discussed in this Portfolio generally.

Healthcare Accounting Services VieraCPA also details the federal anti-kickback and anti-referral statutes, with which healthcare organizations must comply to maintain their tax-exempt status. It discusses this important body of nontax law which has significant tax implications for all healthcare organizations participating in the Medicare and Medicaid programs.

Finally, Miami Accounting Service VieraCPA specializing in Healthcare Accounting Services notes a number of other issues that have become significant in the healthcare field in recent years. These include transactions with hospital staff physicians; deferred compensation and profit-sharing arrangements with physicians and staff; healthcare partnerships and joint ventures; the status of managed care organizations, including health maintenance organizations; integrated delivery systems and the purchase of physician practices; the unrelated business income tax; the creation and use of for-profit subsidiaries; tax-exempt financing; employment tax issues; IRS healthcare audits; tax and reporting requirements related to fund-raising; and general compliance, filing, and disclosure issues.  Medicare and Medicaid fraud and abuse are addressed. Although not involving federal income tax issues, compliance with the anti-fraud statutes and anti-referral statutes is integrally related to continuing tax-exempt status. Moreover, there are many instances where the IRS rules are at odds with federal fraud and abuse laws. For example, many of incentives permitted by the IRS in the case of physician recruitment would implicate either the federal Anti-Kickback Statute or the anti-referral law, commonly referred to as the “Stark Laws.” Gainsharing arrangements are another example where the IRS provided a favorable ruling only to be found by the Office of Inspector General of the Department of Human Services to violate the federal fraud and abuse laws. This friction is discussed as well as other instances involving transactions with tax-exempt healthcare organizations that may be affected by both federal income tax consequences and the federal fraud and abuse laws.

The Worksheets contain selected IRS publications and determination letters related to current tax issues in the healthcare area. They also include the relevant Medicare and Medicaid statutes.

Healthcare Accounting Services VieraCPA allows you to benefit from:

Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area

  • Invaluable practice documents including tables, charts and lists
  • Plain-English guidance from world-class experts
  • Real-world and in-depth analysis that lets you explore various options
  • Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more
  • Alternative approaches to both common and unique tax scenarios

 

Categories
Accounting

Accounting Miami – Financial Reporting Best Practices

Accounting Miami – Financial Reporting Best Practices

Accounting Miami Firms realize there is always the need for business people to understand and apply the principles of accounting according to requirements for Financial Reporting best practices. Miami accounting service agree there is never enough guidance when it comes to billing and taxes. There are certain sensitive guidelines which are recommended in order to ensure best practices.

Accounting services in Miami understand that in order to have efficient revenue negotiation there is the need to produce reliable and accurate Financial Reporting. This is because users of these reports must be satisfied to be able to trust the Miami accounting firms preparing the reports.

Follow the Standard Formats for Financial Reporting

Business and Miami accounting firms must have set out accounting principles based on which Financial Reporting must be prepared. These principles and format standards are very crucial because they increase comparability within the various departments in the firm and other Miami accounting service as well. Accounting services in Miami often rely on software which is designed to ensure that the reports are produced automatically. These software applications have been produced based on standard accounting principles. Therefore there is increased accuracy and dependability on the Financial Reporting generated.

Characteristics of a Good Quality Financial Reporting

 A useful and accurate Financial Reporting statement must comprise the following characteristics:

  •  Understandable and Clear: It must not be complicated and must have a clear presentation. The users of the financial statement must be able to spot the necessary information at a glance. There must be transparency because when Financial Reporting are difficult to understand banks may raise a red flag.
  • Significant Information: The information must be valuable and relevant to the financial or business institution. It is a best practice to make sure the report is prepared within a time period. This increases the accuracy of the report.
  • Trustworthy Information: The management of a firm is responsible for the information in the Financial Reporting to be reliable. The transactions must be consistent with what the financial report displays. Being faithful is the key! It must be neutral and free of bias.
  • Comparable: The Financial Reporting must be comparable to enable performance review over a specified period of time. The comparison is usually between companies and competitors.

Accounting services in Miami when preparing financial statements include information about assets, liabilities and taxes over the financial year. This is why there are a set of documents which play an important role in providing information for a financial statements. These documents include the following:

  • Balance Sheet
  • Income Statement
  • Statement of retained earnings
  • Statement of change in cash balance
  • Notes to the financial statement

Miami accounting firms must keep these documents must be up to date at all times as they can be used for references at any time of the financial year. This is why they must be accurate and authentic. The information available in these accounting documents is very helpful in best practices for risk management and compliance in banks and business institutions as well. There are other reasons why a good Financial Reporting is important, for example when it comes to revenue negotiation and recognition.

Therefore, all Miami accounting service must have a standard for Financial Reporting as a best practice to ensure success.

Categories
Accounting

5 Things Every Business Owner Should Know About Financial Forecasts

5 Things Every Business Owner Should Know About Financial Forecasts

If you think it’s hard to do Financial Forecasts – and lots of people do – what I as a Miami Accountant can tell you is that it’s a whole easier to forecast than it is to run a business without any Financial Forecasts.

So, with that in mind, here are five things that every Business Owner and there should know about financial forecasts.

 1.    Financial Forecasts are for business, not truth, or beauty.

Miami Accountants will tell you the business value of financial forecasts is about making good decisions. The forecast helps you anticipate business trends, allocate your spending right, and manage the flow of money.

The best forecast is one that helped you run the business by setting useful expectations and guiding the way to cash in the bank, business growth, and profitability (in that order) according to Miami Accountant VieraCPA.

What’s most important isn’t what you’d think: it’s not as much about guessing the future correctly as it is about setting up the connections between sales levels, costs, expenses, and cash flow. Financial Forecasts won’t be right – we’re humans, guessing the future, so they never are – but if it identifies the key drivers so you can watch plan vs. actual and fine-tune your budgets, then it’s vital to business health.

Accountant test the value of aFinancial Forecasts, tracking the plan vs. actual results is obviously vital. But look deeper than the top line. Did the Financial Forecasts give you a way to identify where assumptions change? For example, did you see how prices ended up lower or higher than what you thought? Or conversions on the web? Did the forecast give you a way to drill down into the management assumptions?

 2.    Financial Forecasts don’t take an MBA, CPA, or PhD.

As an Accounting Firm I’ve been preparing Financial Forecasts for 25 or so years I’ve been doing business, 98 percent of the good forecasts I’ve seen were based on smart people, who know their business, making educated guesses.  The sophisticated mathematical models don’t beat knowing the business and making reasonable estimates. That’s especially true for businesses that have past history so they can use that as a starting point.

The most common problem in this area is the amazingly common assumption that if you don’t have the right Miami Accounting Service you can’t forecast. So what, you have to be a meteorologist to guess the weather? You can also look at the sky, the season of the year, and past patterns – with or without the degree. It’s not econometric modeling or thesis-level research. It’s a collection of interrelated educated guesses.

 3.    Financial Forecasts get old and rot faster than pumpkins.

Miami Accountant will tell you that Financial Forecasts aren’t supposed to last longer than a month or so. Well-managed companies run the forecast against plan vs. actual analysis after the close of each month, and there are always changes to be made. That forecast you did last summer? If you haven’t touched it since then, it means you’re not using forecasting to help you manage the business.

 4.    Financial Forecasts are really about lines, not dots.

I first saw the “lines not dots” phrase from Mark Suster, on his bothsidesofthetable.com blog. A line is change over time, tracked, so you can see the significance. For example, your sales next month mean virtually nothing until you compare them to last month and the same month last year, and to your plan and budget. Your forecast sets the base lines so you can track all those surprises, and make adjustments to correct things as assumptions change. Having the equivalent of two months’ worth of sales in your accounts receivable balance doesn’t mean anything until you figure out whether that’s more or less than it used to be, and why the change occurred.

 5.    Financial Forecasts are for planning, not accounting.

It’s a natural confusion. Miami Accounting Firms forecasts are normally set up to look almost exactly like accounting statements, so it seems the same. But the difference between planning and accounting is a complete different dimension: accounting starts today and goes backward in time in ever increasing detail, while planning starts today and goes forward in time in ever increasing summary and aggregation.

The good news is that it’s easier to do when you understand it’s a collection of educated guesses and simplifying assumptions. For example, you don’t have to guess what assets you’ll need in 2014 to guess that you’re going to spend some estimated amount of money to buy them all. And you don’t have to know what all those assets will be to guess how much money you’ll be able to take, two years from now, in depreciation.

The key is simplifying assumptions. A Financial Forecasts has only a few of the most important items, not all the detail in every line. It aggregates and summarizes.

Categories
Business Trends

Miami Accounting Service Flat Fee Business Model

Miami Accounting Service Flat Fee Business Model

Miami Accounting Service VieraCPA want you to think about a recent purchase. It could be as simple as a pair of jeans or as exciting as a car. Did you care what effort went into making the item…

How much labor went into growing the cotton or making the steel? How elaborate were the distribution channels, or how much mental energy went into the marketing campaigns? No, of course not! What you cared about was how much value you placed on owning the item compared to the price it took to acquire it and Miami Accounting Service Flat Fee Business Model uses the same approach to it’s services. If the value (in your mind) equaled or exceeded the price, then you were happy to make the purchase!

Miami Accounting Service

Miami Accounting Service VieraCPA points out that what you have just experienced is an illustration of the difference between effort based pricing and value based pricing. The hours, energy, and other expenses of production didn’t drive your acceptance of a “fair” price. Miami Accounting Service VieraCPA and the client are the judges of the fairness of the price and your willingness to pay it was governed by your perception of the product’s value. Given the choice, clients will respond to pricing of Miami Accounting Service in just the same way.

Goals: Increase Revenue and improve profitability

Miami Accounting Service VieraCPA is first and foremost a business. And, like any business, it must grow and prosper in order to service clients, provide a career for employees, and a financial reward for the owners. Properly managing the Miami Accounting Service means continually seeking ways to increase revenues and improve profitability. Pricing strategies must be designed to support these goals. One critical question firms must address is: which pricing strategy best supports growth and profitability? Is it a traditional effort based pricing structure which computes rates times hours? Or, is a better strategy based upon the client’s perception of value and willingness to pay a set price for it? In order to avoid competing on price for commoditized services in the face of a wider array of competitors, more and more firms are evaluating value pricing as a model for the future.

It’s not the goal of this article to justify the reasons for adopting a value pricing strategy or even to outline the specific steps to get started. That requires a more in-depth treatment of the topic than a brief article can provide. If you wish to explore the reasons and methods, please review

Keys to Success in Value Pricing and How to Manage Them

Virtually every Miami Accounting Service uses some form of time and billing software to track time and expenses. Traditionally, this has been used for billing purposes. The problem is, these kinds of “back-office” systems are typically disconnected from “front-office” engagement delivery and client management systems. This unnatural divide makes it hard to see the current margin on in-process engagements– work must be completed and “in the books” before final margin is known. While hindsight may be okay for hourly billing, value pricing requires more visibility & better control over work-in-process.

As you move to value pricing, this typically means a practice-management approach that connects front-office engagement delivery with back-office financial control. Key capabilities to look for include integration among multiple modules, which allow data sharing and all-around visibility for reporting. Capabilities like staff scheduling and job tracking for workflow control will make your management tasks easier. Some of the ways in which you can use your Practice Management solution to assist you in value pricing are outlined next.

Communications. In order to be successful in value pricing your Miami Accounting Service, you must have frequent and meaningful communications with your client. The client will tell you what he or she needs, but you must be listening and monitoring all the communications which go on between your firm, your staff, and the client’s business staff. A good Client Relationship Management (CRM) program is a must to monitor these contacts. Some firms will invest in a stand-alone product such as Microsoft CRM, while others will opt for one integrated into the Practice Management system. Either way, you will need a method of tracking all the emails, phone calls, and other conversations that any member of your firm has with any member of the client’s business. Mining those conversations may well reveal a need that you are well positioned to address.

Accurate Estimating. One of the frequently voiced objections to a value pricing strategy is the fear of underestimating the cost of the work, and thus reducing the profit from the job. Here again your Practice Management system should provide the answer. Assuming you have done some similar job in the past, either for this client or another, the ability to analyze data from across the firm and draw meaningful reports will give you the information you need to set the appropriate price.

Disciplined Costing. One of the robust topics of discussion regarding value pricing is whether or not to keep timesheets. Some thought leaders and firms advocate doing away with them, since you have established the billing price through negotiation. Others argue for keeping them and recording time for cost accounting purposes. For those who opt to keep track of time on the job, your Practice Management software is designed to do just that.

Effective Control. Once the job is underway you will need a means of tracking progress, ensuring that the right resources are committed to the job, and that milestones are being met. Remember that it is important to use Change Orders to adjust the agreed upon price if additional work is added to the scope. Accounting Services in Miami use a variety of workflow tracking and resource allocation programs to accomplish these tasks, but you may find them available in your Practice Management software. Seamless integration between these workflow monitoring tasks, time entry for cost accounting, and staff availability will ease the burden of keeping your work on schedule, on time and on budget.

Efficient Invoicing. A properly written Value Pricing Agreement (your engagement letter for a value priced engagement) will specify the terms for payment. If the service is ongoing it’s common to use monthly or quarterly billing, or progress billing if the engagement is of shorter duration but still complex. Any good time and billing system will handle these tasks, but a far better solution is one that is fully integrated with your general ledger accounting. A system which will seamlessly issue invoices, post them to client records, accept payments using paperless electronic banking, and update your financials all while tracking the effort expended for cost accounting purposes will reduce your back office work and improve your profitability!

Obstacles to Overcome

There will inevitably be obstacles to overcome in shifting to a value pricing strategy. Some of them are real while others mostly perceived. Some may come from your clients, but many more will be voiced by reluctant factions within your own firm. Some will claim that you’ll be unable to price the job accurately, while others will highlight the risk of “scope creep” – more work added while the job is in progress. Or, they like the level of control they believe they get from closely managing hours billed. We have already examined many of these obstacles and how a fully integrated Practice Management solution can help overcome them.

A final challenge will likely be simple reluctance to change. Clients will often be the first to get on board because they see the value in knowing the costs and benefits of your service. It is a function of leadership to ensure that partners, managers, and staff within the firm buy in and support the value pricing strategy. Good leaders don’t let foot-draggers keep the firm from making progress.

Next Steps

Hopefully by now you have decided that at least some applications of value pricing might be good for your Accounting Services Miami firm and may be wondering if you are properly positioned to give it a try. What steps should you take now to get started?

A good starting place would be to review your management support software. Consider, for example:

  • Do you have the ability to accurately plan a value priced engagement?
  • Do you have full visibility into past client contacts, staff availability, and data analytics which will help you accurately forecast the cost of an engagement?
  • Do you have sufficient workflow control measures which will allow you to track progress and identify early if you are behind schedule or over budget.
  • Do you have seamless integration between invoicing, collection, and financial reporting?
  • Do you have the ability to produce clear and concise management reports that will aid in partner level decision making?

None of these items by themselves will ensure a successful entry into value pricing, but trying to do it without them will make the project much harder than it needs to be.

Getting started on value pricing probably sounds like a big step, and it is. But, if you want to raise revenues, improve profitability, and avoid the trap of competing on price consider another of the industry-leading firms who have joined the value pricing movement.

Categories
Business Trends

CPA Firm in Miami Takes the Stress out of Next Tax Season

CPA Firm in Miami Takes the Stress out of Next Tax Season

For CPA Firm in Miami, “crunch time” comes around every year, from February to April and then again from June to September.

As deadlines loom, CPA Firm in Miami stress spikes. The work week becomes the work month or, in fact, months. More than any other single factor, long hours and the resulting burnout often drive people out of CPA Firm in Miami. Are eight-day weeks inevitable at certain times of the year?  Is there a better way?

Yes is the answer to both questions. So long as the U.S. tax code remains some 72,536 pages long, not to mention the spiraling complexity of foreign tax codes that CPA Firm in Miami must confront, 60-, 70-, and even 80- hour work weeks are not likely to end.

At the same time, steps can be taken to ease the pain of the inevitable backlogs in early spring and late summer. It is time to put more of our practical intelligence to work to find solutions to the malady of overwork and burnout.

Today, virtually every CPA Firm in Miami relies to some degree on temporary workers in peak season. However, paying more attention to how that hiring happens can make a big difference, and the process should focus as much on when to staff up as with whom. By the month prior to busy season, temporary support should be in-house, up-to-speed on processes and procedures, software, and all the other details of working for your CPA Firm in Miami. Leaving too little time for the learning curves of your contingent staff will only cost lost time later on.

In order to ensure that the right team is in place as financial statements begin to be released and the pace of work begins to accelerate, hiring for the year should begin, in fact, the year before. For permanent staff, that should be mid-April, as soon as the filing deadline has passed, and for temporary workers, the search should begin by mid-October.

It’s imperative to also know who to hire. Discovering in March that your CPA Firm in Miami is not equipped to complete an international return could be a recipe for disaster. Companies should know what they need upfront, or work with a staffing partner who can help ask the right questions to match skills to predictable demands, because a one-size-fits-all approach to hiring rarely works.

With a team in place, the next critical step is obtaining the coin of the tax accountancy realm —information. And the best way to avoid a backlog in the preparation process is to build in time to develop or obtain that data. If you are an CPA Firm in Miami, incentivize your clients with discounts to provide materials before a certain date. If you’re filing for your company, make it a priority to collaborate with your audit team early – assess what caused backlogs the previous year, and make sure the same issues don’t cause delays again and again.

Managing peak season successfully is also about what happens throughout the rest of the year. Smart leaders know the value of sustaining their best people by treating them well—all the time. Every employee who stays for one more crunch time is one less learning curve to draw. The chance to work from home a few days a week, for example, particularly in slow season, is flexibility that generates loyalty. Time off during slow seasons also boosts productivity when it counts most. A generous vacation policy—and truly encouraging employees to take their down time—will help ensure that batteries are fully charged. Off- peak season can also be a chance to plan team building off-sites, including volunteer work in the local community, which can generate good vibes that ripple all year long.

Planning for tax season is not an exact science. There is no rule book. Amid the unpredictability of the peak season, things will fly around the room, but the intensity of work and staff morale will depend, in sum, on three fundamentals:

• When to hire temporary staff is as important as whom to hire. Have the team in place well before the New Year.

• Who you hire does matter. Match skills to expected challenges.

• Information is indispensable. Take action early to ensure that your teams have what they need to get the work done.

CPA Firm in Miami, sooner or later there will be a lot of balls in the air. Whether a company fields them frantically—or with finesse—depends on embracing a higher level of planning.

 

Categories
Accounting

Miami Accountants 10 Strategies to Improve Client Accounting Services

But are they so conservative Miami Accountants are missing value added opportunities? It is my opinion that Miami Accountants need to be thinking differently about accounting services and the entire menu of accounting services they offer. Technology is rapidly changing client requirements and the way business is done. The following ten strategies are listed to makeMiami Accountants think and communicate with your partners, managers, staff and clients. By doing so, your Miami Accountants can develop strategies that address key firm dangers: lack of growth, lack of succession and lack of talent development. The list is not ranked by level of importance, but rather a list to help you think and develop beneficial strategies.

#1 – Independence or Advocacy

The rules of independence have long driven the Miami Accountants in the core services of tax and accounting, however, this is also a limiting factor when it comes to the breadth and depth of services Miami Accountants can offer its clients. We refer to these services as adjacent (new to the firm or expanding existing business) and transformational (new services and breakthroughs). Knowing where to play in the market and how to win are extremely important. Would your Miami Accountants be better off to choose advocacy and increase the number of services offered? What percent of your current revenues are from core services? What services do your existing clients need?

#2 – Menu and Service Levels

Develop a list of services that small business and not for profit organizations need. Yes, accounting services and tax compliance are included in this offering. But there are many accounting services that may be valued higher and are more important to the leadership of the company or organization. Some of the high-level services such as strategic planning, accountability, talent development, team building, technology, web strategy, cash flow projections, and budgeting are often overlooked due to the focus on L-1 services. The attached service level graphic demonstrates how to offer both core and higher value added services. Is your firm capable of offering these services? Do you ask for L-2 and L-3 business and referrals?

#3 – Service Delivery Team

In order to expand client accounting services, Miami Accountants should use the delivery team approach rather than the “rugged individual”approach. This provides better services to the client, allows for the utilization of unique abilities and assists in succession planning. Not all of these services require a CPA license, so it is possible for Miami Accountants to build broader skill based teams. Does your Miami Accountants use client service delivery teams? Have you utilized testing like the Kolbe Index to determine each team members’ unique abilities and team synergy?

#4 – Champions/Leaders

Each team needs a champion in order to insure success. The characteristics of a champion are; they have a purpose greater than themselves, team builder, access to resources, politically connected, proven track record and passion. By knowing peoples’ unique abilities it is much easier to identify champions. In too many Miami Accountants, client accounting services have been assigned to people without these characteristics and they have been left without resources to meet the challenges. Who are the champions in your firm? Do you have champions who are passionate about client accounting services?

#5 – Unique Processes

Every firm has or should have unique processes. These processes should be documented in order to maintain consistency and train others. By naming the process, you own the process and can differentiate. Start by listing the processes your firm currently utilizes in client accounting services. Define the processes you need to meet client requirements. Think like a lean startup company in order to reduce the risks associated with leadership, staffing, platform, service, pricing, capabilities, technology, opportunities, complexity and regulations. What unique processes do you currently have? What unique processes do you need to develop? Who will be responsible for the development of those processes and by what date?

#6 – Platform & Business Model

Trying to utilize old platforms and the effort based economy tactics (hours times dollars) will not work. Firms need a platform that fosters collaboration among the client, members of the client accounting services team and other advisors (internal and external). Cloud-based solutions meet this requirement and are rapidly being deployed by the leading firms. Transferring of files, reconciliations and data entry are tasks that can be eliminated with the new cloud-based platforms. Value is determined by the client, not by the hours invested in the project! What will it cost the client to provide these services internally? What value will the client receive from utilizing the firm’s platform and processes? Do we utilize a value creation agreement that protects the client and the firm? Does the value creation agreement allow for change orders? Is the value creation agreement reviewed and discussed with the client at least annually?

#7 – Entrepreneurship and Management

Firms need both entrepreneurship and management to be successful. With both entrepreneurship and management firms reduce risk and waste, increase innovation and learning, and provide clients with a new kind of accounting services. Management is often viewed as serious, dull and bland while entrepreneurship is cool, innovative and exciting. Success requires both. Who are the entrepreneurs in your firm? Who are the managers? Can they work together? Who else will be on the team?

#8 – Pricing

Pricing is extremely important and requires thought, upfront communication with the client and sales skills. Frankly, many Miami Accountants are not good at pricing and should only be focused on the delivery processes. People with value creation skills should be responsible for pricing and placed in conversations with clients prior to the delivery of services that carefully define scope and terms of the engagement. Change orders should also be part of the pricing strategy. Spending the time to define scope and ask clients questions related to their dangers, opportunities and strengths will provide increased opportunities and improve margins. Packaging multiple services together results in happy clients and increased margins. Who is responsible for pricing in your firm? Do you use value creation agreements? What percent of your revenues would you like to come from value creation agreements within 1 year, 2 years and 3 years? Who is going to be your pricing leader? Who are the top 10 clients in your firm to discuss value creation agreements with?

#9 – Trusted Business Advisor

Miami Accountants have earned the reputation as most trusted business advisor but most do not take the role seriously enough and provide clients with as many services as their client’s desire. CPAs too often focus on Level 1 services, while clients value Level 2 and Level 3 services (See diagram above). Why aren’t you offering clients Level 2 and Level 3 services? If you are, why aren’t you offering those services to more clients? Who are your top 10 prospects?

#10 – Resources to Insure Success

As stated in the introduction, most firms are risk adverse, yet with the following resources the rewards are high and the risk is extremely low. In fact the risk is probably much lower under the client accounting services model that many existing models of only providing tax and accounting and auditing services. The required resources are:

  • Champions
  • Platform
  • Existing client base
  • Unique ability team

Leadership and a shared vision are keys to successful firms. Do you have a collaborative platform? Do you utilize unique ability teams? Do you have a client base that can utilize Level 2 and Level 3 services?

Change is constant. Results are determined by experiences that drive beliefs, beliefs that drive actions, and actions that drive results. The fastest way to improve results is through goal setting and accountability. To improve results you must focus on the belief systems of your partners and staff. This requires leadership, vision and a written plan. Even more important is the business model and platform firms utilize. New technology and innovative solutions are changing the way clients do business? Is your firm changing and are you prepared to continue as The Trusted Business Advisor?

 

Categories
Accounting

How to choose a Miami Accounting Service

How to choose a Miami Accounting Service

Many Miami Accounting Service have now gone so far as to dip their toes into the shallow end of cloud computing, and many more are thinking about testing the waters. Other Miami Accounting Service have jumped into the cloud with both feet. But whether you’re wading in or fully immersed, properly vetting your Miami Accountant is essential.

Recent studies have found that even though many Miami Accounting Service are concerned about the security of their data in the cloud, a minority of Miami Accounting Service perform a comprehensive review of their cloud service providers before sealing the deal. Those who do lack the skill set necessary to truly understand the impact of information provided to them. This makes it hard to separate the “wheat from the chaff” in the various cloud offerings.

“Despite some of the concerns, Miami Accounting Service acknowledge that only 29 percent of the companies in the study said they engage in a heavy or comprehensive review of the Miami Accounting Service security practices,”

Our chief concern right now is that we see a lot of new Miami Accounting Service who are coming into the scene with almost lax attitudes toward how they construct and deliver services.

Miami Accounting Service Gustavo A Viera CPA explains that these service providers tend to fall into two camps: Miami Bookkeeping Services at the SMB end of the spectrum that market themselves as providers of end-to-end solutions but are actually resellers, or Miami Accounting Service that are aware of the standards established by CPA’s long before the term CPA was coined.

Viera says organizations considering a Miami Accounting Service should look for three things:

Trust. “They’ve got to trust them,” he says. “That comes through an affinity. You have to like the Miami Accounting Service and the principles and the people you’re going to be working with. It’s a very intimate relationship. There’s got to be a mutual respect and trust to work together.”

Technical expertise and understanding. The Miami Accounting Service have to be proficient with both its technology and understand your business. “They have to have an understanding of what you’re looking to do and match that up with their technical expertise,” Viera says. “If you’re a CFO of a bank and you need to outsource some strategic element of your accounting, your MSP needs to understand both banks and whatever it is that you’re going to outsource.”

A third-party compliance audit. Miami Accounting Service need to be able to show that they can live up to the promises they’re making. “This is a world where you go through more scrutiny and ongoing regulation to cut hair than you do to manage a corporation’s sensitive data and that of your end users,” Viera says. While he doesn’t believe more government oversight would be helpful in the Miami Accounting Service space, he does believe organizations should verify their providers’ capabilities with an audit.

So what should you expect in an audit? The Florida Institute of Certified Public Accountants offers Uniform Standards for Miami Accountants. It looks for a Miami Accounting Service to comply with quality control objectives before issuing the accreditation.

Categories
Business Trends

Business Accountants Keeping In Front Of Clients and Prospects

Business Accountants Keeping In Front Of Clients

Gustavo A. Viera CPA, a Business Accountants and partner in a Miami Accounting Service says that hosting interesting events is the main way he keeps out in front of clients and prospects.

There’s nothing better than getting out of the office to, say, play a game of tennis with a client who has a passion for that, or to spend time meeting their friends and family at a culinary institute or baseball game. Our clients know we are looking out for their best interests on the financial front but what sets us apart is knowing how much we really care about them as people, not just a client account.

Viera, who’s been a Small Business Accountants, said they had a great response to a “ladies only” event they held at a local art facility. We called it ‘Wine and Design’. Everyone was given a canvas on an easel and, after a short painting lesson, invited to paint their own masterpiece. They each took home their painting and some great memories.”

You can be sure that when they hang that painting in their home or vacation cottage that visitors will ask about it and the client or guest they brought will remember the event and that their Business Accountants hosted.

BUSINESS ACCOUNTANTS THREE PRIMARY FUNNELS

There are really only three primary marketing methods that work for Business Accountants:

— Event Marketing

— Client and COI Referrals

— Public Relations

Filling each of the three funnels is a sure way to ensure you have enough qualified client inquiries come down the spout and, ultimately, become right-fit clients.

This week, we’ll talk about Event Marketing. In future weeks, we’ll talk about referrals and public relations.

THE FIRST FUNNEL TO FILL: EVENTS

Events can be a great way to help enhance relationships with current clients, position yourself in front of qualified prospects, and build important mutually beneficial relationships with Centers of Influence (COIs). In fact, I think it’s the most important funnel for you to fill. Filling your Events Funnel will inevitably lead to a spillover into your Referral Funnel and Public Relations Funnel. But, while it is true that nothing will ever replace the warmth of a handshake or the ability to build rapport in person, yesterday’s event marketing strategies may not work today.

There are three primary types of marketing events that work for Business Accountants:

— Affinity event

— Client appreciation event

— Public forum

At the end of this article, you will be invited to envision three different events and to pencil in the initial framework for a successful event. Take notes as you read from here on down – something I say may spark an idea for you and you’ll want to capture your insights as they occur to you.

BUSINESS ACCOUNTANTS THINK BEYOND THE NORM

Times have changed and people are tired of the same old thing. They want information from an authoritative source, presented in a fun and dynamic way – on their terms (e.g., live in person, live in a virtual setting or recorded and available 24/7 online).

Today’s consumers are not the “Pollyanna” type.  They’re more skeptical and better informed than ever before.  They don’t want to be told what to do.  They want a chance to interact and shape the discussion, to check you out ahead of time and to challenge the status quo.

The Internet has changed the playing field. Most people can get answers to financial and business accounting questions with a few clicks of their mouse. They can get insights and advice from colleagues, peers and other professionals through interactive social media sites such as LinkedIn, Eon, Twitter, Facebook and more.  With the advent of Web 2.0, people have instant access to professionally produced, dynamic multimedia presentations on websites, blogs, Scribd, SlideShare, Vipe, Vimeo and YouTube.

TOUCHING THE EMOTIONS

The days of inviting people to watch a simple lecture on the basics of business accounting are long gone.  Today’s clients want to be a part of the experience, and attention spans are not what they once were.

In fact, my speaking coach continues to drum beat this message for even traditional presentations that are content-rich: “People want information. But they also want to be entertained. Just like a band creates ‘sets’ of music that bring the audience up and down, happy and sad, reflective and engaged, so too do you want to craft your presentations. Make them a mix of fun and serious, direct delivery, interactivity, bouncy and staid, and you will ‘have them with you’ – and liking you – throughout the entire presentation.

We live in an age of rapid-burst transmission and instant information. However, people still value the personal touch; if you create something unique and compelling, people will not only take notice and participate themselves. they’ll tell others about you and your unique, compelling approach.

ANSWERING THE ESSENTIAL QUESTIONS

So, how do you make your events original and distinctive, but still keep them manageable, scalable and repeatable? It’s always good to start with some basic questions:

Why, Who, What, Where, When and How.

In my next installment, we’ll drill down into these essential questions and you’ll be invited to envision three perfect events to keep your name top of mind with right-fit prospects and current clients.

Categories
Accounting

Does your Miami Accountant understand your financial situation?

Does your Miami Accountant understand your financial situation?

I recommended that Miami Accountant conduct a 30-minute financial checkup annually for all clients. A Miami Accountant by simply sitting down with clients and reviewing financial statements, you can build a bridge from the past to the future. This session is not time consuming, and it is highly productive. At a minimum, it will deepen the relationships you have with clients. It may also generate additional fees for the practice — clients will learn that you are more than Miami Accountant, tax preparer Miami/compliance professional.

Basic things that Miami Accountant should do:

1. Explain the financial statements in plain and easy-to-understand language. The worst thing to do is turn these sessions into one-way communication where clients are lectured and may not understand the issues being discussed. Numbers from a balance sheet or income statement don’t mean anything to the average and highly intelligent business client. Break things down and make sense of the financial numbers for clients. This point is vital.

2. The Miami Accountant should develop some understanding of margin management. Most businesspeople don’t understand the importance of margins. In many businesses, either the gross margin or the net margin drives the business most. (Gross margin is sales less cost of sales divided by sales. Net margin is net profit divided by sales). Many good business people think that the key to success is increasing sales volume. They don’t have an appreciation for how volume affects both cash and profit. Many times, increases in sales may decrease profits or cash or both.

3. Point out some very simple areas the business person can work on. In my experience, the vast majority of businesses are driven by three or four key pieces of data. If these are managed well, the business does well. If they are not managed well, the business does not do well. It is important to try to identify these before the session.

The sessions should be informal and brief. If the session goes well, you will be viewed as a true strategic partner by your client — as a friend and ally. If it does not go well, then at least the client will know you care. In all likelihood, your clients will be surprised and impressed that you took the time to help them. In my experience, you will also generate additional fees from these sessions since almost all of these types of sessions will lead to further questions, challenges, and work.

Categories
Accounting

Miami Accounting Pros Feeling More Secure In Their Jobs

Miami Accounting Pros Feeling More Secure In Their Jobs

A new survey of Miami Accounting Service shows that they feel more secure in their jobs compared with a survey earlier this year, and that they rate job security higher than other professional fields.

VieraCPA a Miami Accounting Service “Finance and Accounting” Employee Confidence Index showed that 74 percent are confident they won’t lose their jobs in the next year. This compares to 73 percent who said the same thing in the first quarter of 2012. Additionally, 59 percent stated they didn’t have an intention of changing jobs in the next year.

Miami Accounting professionals were also asked about their confidence in their current employer’s prospects, with 60 percent believing in the longevity of their Miami Accounting Firms or businesses. About 15 percent expressed low confidence in their employers. This is the first time since March that we have seen the financial services sector add jobs and we believe the outlook is bright for our industry.

This job creation and demand mirrors what we are seeing with our customers. More companies are starting to feel secure and able to make additional hires. We continue to see demand for Miami Accounting jobs, as well as an uptick in hiring for financial analysts.

While this sounds like good news for Miami Accountants and financial professionals, the struggling overall job market and economy were reflected in other views. More than 40 percent of the respondents said they were uncertain if they’d be able to quickly find a comparable job if they were let go.

Likewise, 38 percent of those surveyed see the economy as weakening, an increase of 17 percent over the survey from earlier this year, while 31 percent stated it was staying the same and an identical 31 percent saw the economy strengthening.