Year End Planning

Successful businesses, small and large, plan for profit. One of the primary tools used for profit planning is the preparation of an annual budget. The problem with preparing budgets is predicting the unknown.

One way to solve for the "unknowns" in your budget is to get guaranteed pricing from your vendors and service providers. This may not be possible with most of your vendors and service providers, but one place to start is with your CPA.

In progressive forward thinking CPA firms where an emphasis is put on providing total quality service and on the value of the services to the customer, the billable hour is not used. Rather, Fixed Price Agreements (FPA) are used.

As a customer, you do not buy hours from your CPA. Thus, your CPA should not sell time.

Instead, you and your CPA should sit down and decide together what services you value, and how much you should pay for these services. During the meeting, you should also discuss payment terms and any relevant mutual commitments. Then an FPA is prepared that states what you agreed to in the meeting.

With the creation of an FPA between you and your CPA, you have one less budget item to worry about.

THINGS WERE HEATING UP IN DENVER

November 5 – 8, 2006, temperatures at the Cherry Creek Holiday Inn Select in Denver ran from the high 60s to the mid 70s. A far cry from the snowstorm that had dropped over two feet of snow in Denver and the surrounding areas just ten days earlier.

Things were heating up inside the hotel as well, where the Principa Alliance Practice 2020 Annual North American Conference and Accountants’ Boot Camp took place.

CPAs and Chartered Accountants from across North America gathered for three pretty intense and stimulating days. At this program, they explored some incredibly powerful business development technologies. And I was there.
There is no other program like this in the world.
The entire program is devoted to the application of this simple business philosophy:

“We are rewarded only to the extent by which we add value to those we’re privileged to serve.”

I learned so much—really powerful business-building philosophies that give businesses a competitive edge. I’m still stunned that so few businesses take the necessary steps to access to these ideas. Some of the topics included:

• Analyzing financial information
• Developing alternative financial presentations
• Developing business dashboards
• Outsourced financial management teams
• Emerging technologies
• Using virtual environments
• Leadership training
• Applying the Delta4 Consulting System
• Working with an association with a global network of CPAs and CAs dedicated to playing an increasingly important role as an advisor to small and medium size businesses to guide them through the process of making strategic business decision

Everything really started heating up as we headed for the kitchen. On Tuesday night we participated in a Culinary Team Building Exercise. By working in small groups, we had they opportunity to see how our recipe became integrated into a complete dining experience, thereby understanding how a single contribution is imperative to the whole. Best of all, when the meal preparations were complete we were able to relax and enjoy a great meal with our fellow Principa Alliance members.

The last burst of heat came on the final day, when we learned about implementing the 212° philosophy within our practices and with our customers.

AT 211 DEGREES,
WATER IS HOT.

AT 212 DEGREES, IT BOILS.

AND WITH BOILING WATER,
COMES STEAM.

AND STEAM CAN POWER A LOCOMOTIVE