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INCREASE REVENUE AND COLLECTIONS IN A SLOW ECONOMY

INCREASE REVENUE AND COLLECTIONS IN A SLOW ECONOMY. David Dougherty C.P.A. 386-668-3328. Overview. Revenue and Expense Strategy Partnerships Solutions. Introduction. Rising gas prices, loss of jobs, increasing food prices Worst economic time in over 30 years

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INCREASE REVENUE AND COLLECTIONS IN A SLOW ECONOMY

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  1. INCREASE REVENUE ANDCOLLECTIONS IN ASLOW ECONOMY David Dougherty C.P.A. 386-668-3328

  2. Overview • Revenue and Expense Strategy • Partnerships • Solutions

  3. Introduction • Rising gas prices, loss of jobs, increasing food prices • Worst economic time in over 30 years • You can do something about it • This is a simple guide to help you focus on your circumstances now so you can make changes in your income and expenses to weather out this economic storm. • Where’s the money

  4. Increase Revenue • Ideas to consider • Increase Collection and Enforcement on delinquent accounts will not be as productive as in good economic times. It may even be counter productive if you put the companies out of business. You still need to do it! • A better more creative approach is working with the companies on payment plans and settlements. • Collection on something is better than nothing at all. This may cause you to alter your policies. • Amnesty is a consideration and is in effect with DOR

  5. AMNESTY • True amnesty means the past is forgiven. Partial amnesty (DOR) means forgiveness of penalty and interest. • True amnesty for on-line travel companies and travel clubs would increase county revenue by at least 10% in all counties 30% to 40% in higher traffic counties. • Set your own policy or wait until the court cases are over. • Court cases have been in process for at least 8 years.

  6. More ideas to consider… • Spend more time on public relations. This will help in locating companies that have not been filing. • The industry needs to fill more rooms. More room means more tax dollars. Not just TDT tax dollars, but more restaurant business, more retail business, more sales tax dollars for your county. • Partner your real estate companies, hotels, chamber of commerce, travel clubs, golf clubs, etc. to complement each other to fill the rooms.

  7. Reduce Expenses • Many counties and businesses focus on reduction of expenses in hard times. Cutting your sales force is not a good idea. Sales force includes audit and collection • Without sales and collection of sales then there is no revenue and no business • Cutting public relations is also a bad idea. If companies do not know who you are and what you do then how can they know to pay you • Focus on areas where you can reduce or eliminate expenses that are not related to sales and PR

  8. Ways to reduce expenses • Compare spending. Look at last year’s monthly expenses compared to this year’s monthly expenses. Do not cut expenses that are producing sales (i.e. seminars) • Do desk top audits rather than field audits • Limit the scope of your audits • More industry networking • Shop prices. Spend more time shopping for better prices for goods and services. Do not cut price for quality of products and services • Pay for employee performance, set reasonable benchmarks • Pay for contractor performance • Have your employees make suggestions

  9. Partnerships • Timeshares are now operating like travel clubs just to fill units • Timeshares , hotels, single family homes are having trouble getting bank financing to market rentals • Commercial real estate firms can help operate distress properties and/or properties near bankruptcy • On-line travel companies can fill rooms. • Wholesale travel clubs can fill rooms • Marketing firms networking with industry, chamber of commerce, TDC, and the counties can fill rooms

  10. Solutions • It’s a Partnership • Remember that we are in hard economic times. Everyone has to give a little to succeed. • A small investment with a decent chance for a good return for time and investment. We share the costs and the rewards. • Easy to Start • Each County can host a partnership seminar that brings together the counties list of hotels, timeshares, property managers, bankers, commercial real estate, chamber of commerce, travel agents, marketing firms, etc. • Agenda is sharing information to fill empty units

  11. Ideas To Fill Units • Use travel clubs, hotels.coms, etc. to sell your units. • Pay your employees, business associates, etc. for sale referrals. • Exchange your units for other services, barter IT’S STILL TAXABLE. • Work out arrangements to charge area businesses for advertising your property. • Share employee services with other businesses rather than layoffs. • Outsource services to avoid employment taxes and benefits.

  12. More Ideas to Fill Units • BP Oil Damages. This has affected every business in Florida. The damage is much deeper than the last couple of years income versus projected future income loss. Not just hotels, include all businesses. • The BP Oil Damage has caused Real Property Damage. How are you going to deal with cut in assessed values? • Where do we go from here? Your ideas, how can the county fill rooms, how can local businesses fill rooms, how can the local golf course fill rooms. • When do we meet again? Call me if you need help.

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