1 / 20

Financial Management for Architecture Firms

Financial Management for Architecture Firms. Henry South, CPA, CVA Managing Director Atkinson & Co., Ltd. Fraud and Embezzlement “Is This Really Necessary?”. “Cash is King”, but it could be the Joker Checking accounts (separation of duties): Who signs – 1 or 2 people and at what $ level

herne
Download Presentation

Financial Management for Architecture Firms

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Management for Architecture Firms Henry South, CPA, CVA Managing Director Atkinson & Co., Ltd

  2. Fraud and Embezzlement“Is This Really Necessary?” • “Cash is King”, but it could be the Joker • Checking accounts (separation of duties): • Who signs – 1 or 2 people and at what $ level • Who opens the statements and reconciles the account • Who deposits the checks • Who answers billing questions • Sudden changes in financial needs or “inheritances” • Management override • Stories • Remember – “Where there is a will there is a way”

  3. Working CapitalCash Flow or Cash Flush • 2nd Mortgages, credit cards and “hocking the kids” • Payables – everyone wants to be paid “NOW” • Vendors • Employees • Managing receivables: • Credit policies • Collection policies • Banking relationships are critical: • Working capital loans – Financing receivables and adjusting for work ebb and flow • Equipment financing • Buying, buying-in or buying-out strategies • Growth

  4. Now That I Have Some Money How Do I Get It Out of This Thing? • Distribution of Income • Sole Proprietorship (single member LLC) • Partnership • “C” Corporation • “S” Corporation

  5. Other Than Salary, What Else Can I Do With Expenses?

  6. “Pigs Go To Dinner, Hogs Go To Slaughter” • General – Has to have a business purpose • Retirement plans • Cafeteria plans • Education reimbursement • Per Employee • Related travel • Autos: Cheap vs. Expensive • Personal use, including commute • Business use – “gotta” have logs

  7. “Success”How Do You Define It?

  8. Life Cycle of Businesses

  9. Path For 80% Of All Business Growth Time

  10. Permanent Small Business • Owner Dependent • Focused on Survival • Business Skills Limited • No Continuity Growth Time

  11. Phase I Business • Founders Technical • Informal Management • Reactive Planning • Still Focused on Survival Growth Time

  12. Phase II Business • Leader • Specialization • Impersonal • Growth • Little Or No Equity Growth Time

  13. Phase III Business • Management Team • Refined Systems • Planning • Profitable • Process Systems Strong Growth Time

  14. Business Niche Leadership Management Client Service Accounting Work Process Systems Employee Balanced Controls in place Quality, Growth, Expenses Performance Information Communication of the Vision Qualities of a Mature, Financially Stable, Professionally Managed Firm

  15. Innovation and Execution“Sweat Equity” • Continuous Improvement = Continuous Education • Invest in yourself, your partners and your employees • Marketing vs. Selling

  16. One Last Note,To Manage Your Business Better…..Graph IT

  17. Sales - Actual Dollars 2007

  18. Sales - Actual Dollars 2007

  19. Questions

More Related