Accounting • Advisory • Bookkeeping • Tax

This is NOT an academic text with abstract, theoretical concepts. It’s written as a narrative with clear, practical examples of how a small manufacturer was able to change the way it viewed it’s operation that allowed it to better understand all the activities that drove costs.

A few questions:

• How do you currently price a new product or potential job to ensure it covers not only your direct costs but all the activities required to deliver that product/job?

• Do you understand your operation well enough to include all significant activities that trigger costs that you may not have thought about including in your overhead?

• How do you know if your bids to potential customers reflect an accurate representation of your operation? If your bids do not, you may underbid (cutting into your profitability) or overbid and risk losing the contract.

I’m not a paid shill and have no affiliation with Doug, his publisher and receive no benefit from this post, monetarily or in any other way.

Doug has been doing this for almost four decades, and I believe in giving credit where credit is due. The principles and insight in this book (and Doug’s other publications) have helped me become a better resource by providing practical solutions to my Clients.

By the way, blunt force cost cutting does not work. You cannot fix something until you know what’s busted. So, 25% across the board cuts only create organizational chaos and failure.

This is not a quick fix with a solution condensed in a sound bite. The good news, is that with real insight and a more accurate understanding of your business, you’ll make much better decisions.

You can also read my short article that describes the relationship between profitability and servicing difficult customers HERE.

In addition, if you’re looking for more in-depth material related to cost and profitability for more complex organizations, I encourage you to link to this site – Profitability Analytics Center of Excellence.

• You can employ an Accountant – expensive;
• You can outsource your record-keeping tasks to a Bookkeeper;
• OR, you can hire a full-service Accountant, Business and Tax Professional

A couple of quick points. Bookkeeping is NOT Accounting. Bookkeeper’s that are fluent and knowledgeable with the workflow and processes of your favorite online accounting platform can not guarantee that your records or financial statements will reflect accepted Accounting principles. You can’t be an “amazing Bookkeeper” without the knowledge and forethought of Accounting Principles and ultimately, Tax Law. It’s like a Brain Surgeon trying to convince a patient that he’s a world-class surgeon with an average understanding of anatomy! And, it does you, the Business Owner a real dis-service if your financial statements or records are riddled with errors or problems, especially, just before tax filing.

It’s also been my experience that Business Owners want a primary point of contact for all their Accounting, record-keeping and Tax-related service needs. Independent, outsourced Accountant’s and Tax Professionals need the type of breadth and understanding of many issues they are likely to encounter in order to be effective and relevant to their Clients.

Bookkeeping and Tax Preparation are basic service offerings. Complicated and difficult engagements involving Tax Planning, Representation before the IRS, Profitability Analysis, Business Valuations, and Cost Segregation are areas of my focus.

Contact us Here to learn how we can address your complex or difficult Accounting, Business or Tax-related issues.