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    « March 2009 | Main | May 2009 »

    April 2009

    April 29, 2009

    Forensic Accounting and Information Technology (IT) Controls

    Forensic Accounting Why does a company need good internal controls?  What are Information Technology Controls and why are they important?  Is it better to keep the fox out of the henhouse or to count the chickens after the fox has left?

    Forensic Accounting is about looking at past financial transactions.  If you want to look at your past transactions, but have poor IT controls, how will you know if the information is accurate? But why would your company need to analyze past transactions?  Insurance claims, Fraud, Business Valuations…are several reasons.  Therefore having proper IT controls (i.e. correct user privileges) can help you insure the integrity of the data and these controls can also help prevent fraud.

    The question is whether you want to be proactive (which is all about internal controls) or if you intend to be reactive (which is about forensic accounting). 

    One of our information technology specialists, Sam BowerCraft presented this week at the Computer Forensics Show in Washington, D.C. An interview with Sam at this training was just published online at this link.  Please click to learn more about the importance of proper management of your Information Technology process and controls and why the risks are great if not done correctly.

    Contact me for an Information Technology Control checklist.

    Posted at 04:37 PM in Fraud | | Comments (0) | TrackBack (0)

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    April 28, 2009

    Family Business – The Advisory Board (Part 2)

    Family Business Statistics tell us only 33% of family businesses transfer to the second generation and only 15% make it to third. Why is it so difficult for a family to pass on the business to the next generation?  What causes them to fail?  What steps can be taken in order to increase the likelihood of the business succession?  I am convinced one of the most important factors in the success of family businesses is the assistance of an advisory board. This is a follow up to my earlier post on Advisory Boards.  Click this link to read part 1.

    A team effort, using both reasoning and an intuitive approach, is most successful for problem solving and business development. The same notion of a variety of advisors in the form of an advisory board is what expands the business owner's understanding of their business opportunities as well as obstacles. This variety of advisors can be made up of peers and members of other family business owners who understand the sometimes complicated and unique problems a family business encounters. It is very important, therefore, what criteria is used to make these selections to the advisory board.

    Continue reading "Family Business – The Advisory Board (Part 2)" »

    Posted at 02:52 PM in Family Business | | Comments (0) | TrackBack (0)

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    April 26, 2009

    The World Is Flat: A Brief History of the Twenty-First Century

    The World is Flat Thirty years ago, if you had to choose between being born a genius in Mumbai or Shanghai and an average person in Poughkeepsie, you would have chosen Poughkeepsie because your chances of living a prosperous and fulfilled life were much greater in the United States.  ''Now,'' Bill Gates says, ''I would rather be a genius born in China than an average guy born in Poughkeepsie.''  This is an excellent illustration that author Thomas L. Friedman uses in his book, “The World Is Flat: A Brief History of the Twenty-First Century.''  This is another great book in my continuing series of book reviews.

    The world we live in is completely different from what it was 20 years ago and changes are now taking place at a faster rate than ever before. Distances have shrunk, accessibility has increased, new territories have been discovered and jobs have been broken down into processes that are digitally transferred and worked on by the person who is the most efficient, fastest and cheapest.

    Continue reading "The World Is Flat: A Brief History of the Twenty-First Century" »

    Posted at 04:20 PM in Book Reviews | | Comments (0) | TrackBack (0)

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    April 21, 2009

    Sacrificial Leadership – Pearl Harbor

    Pearl Harbor Today I had the honor of visiting Pearl Harbor and to see the USS Arizona Memorial.  In leadership we often talk about servant leadership and sacrificing for others.  When I stood on the sacred memorial, I gained an even greater appreciation for their sacrificial leadership, as 1,177 members of this vessel paid the ultimate price in serving this country.

    December 7th, 1941, a day that will live in infamy, our country officially entered World War II.  The surprise attack on Pearl Harbor had a profound impact on my grandparent’s generation, much the way September 11th has had a huge impact on our generation.

    Over a year ago I had the privilege of embarking on the USS George Washington.  While spending the weekend at sea with the sailors, I gained a far greater appreciation for the sacrifices these young men and women make to protect our freedoms.

    Those of us in the business world often talk in terms of “going to battle” and “defeating the enemy” but we really have no idea what these terms mean.  These young people that choose to serve in our armed forces are the ones putting leadership into action.  Again, a heartfelt thank you to all of those that have served this country by putting themselves in harms way!

    Posted at 07:36 PM in Leadership | | Comments (0) | TrackBack (0)

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    April 19, 2009

    Putting a Human Face on your Business

    Conceptual Age A 2004 study done by Yankelovich found that 80% of Americans believe business is too concerned about profit and not enough about responsibilities to customers, workers, and the environment.  One can only imagine in light of the recent Wall Street blowups, corporate bailouts… that 80% would look pretty good if the study were done today.  I believe this creates an unbelievable opportunity for a business to stand out and differentiate from the competition?

    In his best selling book, A Whole New Mind, Daniel Pink says we have been living in the information age, but are moving into the conceptual age.  He stresses for a business to be successful in this new age, we will need to put a human face on our business.  He suggests skills that will be needed include: creativity, empathy, intuition, and the ability to link seemingly unrelated objects and events into something new and different.

    I am convinced that in order to be successful and thrive, now is the time to focus on the basics and it will require Transformational Leadership!  What are you doing to show your customer that you have empathy?  Remember your customer will not care how much you know, until they know how much you care.  What are you doing to make the experience of doing business with your organization something special?  Are you only focused on the analytical or left side of your brain?  What creative ways are you using to engage your customers? To engage your employees as they are on the front lines of customer service?  How are you using the emotional right side of your brain?

    Posted at 02:43 PM in Management | | Comments (0) | TrackBack (0)

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    April 15, 2009

    Happy Tax Day from Harrisburg, Lancaster, and Central PA

    Tax Day 1 Today, of course, is tax day – April 15th.  All over this country people are putting the finishing touches on their tax forms and writing checks (or hoping for refunds).  Our team here at McKonly & Asbury looks forward to serving our clients during this “busy season,” but we do enjoy April 16th a little more than other days.

    A few interesting facts that I read this morning about tax day:

    1. 57% plan to file their taxes electronically this year.
    2. 7% plan to file an extension.
    3. 49% say filling out their income tax forms is worse than going to the dentist.

    I wish everyone “Happy Returns.”  Tax Day 2

    Posted at 12:51 PM in My Thoughts | | Comments (1) | TrackBack (0)

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    April 14, 2009

    Phil Clemens – CEO of Clemens Family Corporation (i.e. Hatfield Quality Meats)

    Servant Leader After hearing Phil Clemens speak at The S. Dale High Center for Family Business at Elizabethtown College, the Delaware Valley Family Business Center, Lancaster Bible College, and Evangelical Theological Seminary, I have learned a lot about him and have come to realize how, in his work, family, and contributions to the community, he exemplifies characteristics of a Servant Leader and he absolutely lives and leads his life as a Servant Leader.

    Phil Clemens is the Chairman/CEO of the Clemens Family Corporation. The Clemens Family Corporation is an American holding company that owns Hatfield Quality Meats, Country View Family Farms, Clemens Development, CFC Logistics, PV Transport, Creta Farms, Wild Bill’s Foods, and Nick’s Sausage Company. It is privately held by members of the Clemens family and it controls the East Coast's largest pork production company. The Clemens Family Corporation is known for its high ethical standards, fair business practices, and generosity toward its community.

    Continue reading "Phil Clemens – CEO of Clemens Family Corporation (i.e. Hatfield Quality Meats)" »

    Posted at 09:03 AM in Servant Leaders | | Comments (0) | TrackBack (0)

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    April 11, 2009

    Stimulus Bill - A Hidden Negative Impact on Small Business

    Stimulus When Congress approved the Obama administration's economic stimulus package in February, a little-known provision aimed at easing the pain of healthcare costs for laid-off workers triggered a financial hardship for business owners. This provision would extend COBRA health coverage for people who suffered an involuntary loss of employment between September 1, 2008 and December 31, 2009.

    The provision also specifies that, instead of the 102% premium that individuals used to pay for COBRA coverage, individuals will now pay only 35% of the premium and the employer subsidizes the other 65%, which they then can claim as a credit against payroll taxes. The Department of Treasury is required to reimburse the employer if claims for subsidies exceed payroll tax obligation. The 2% in administrative costs are not covered.

    The coverage subsidy means business owners can probably count on cash-flow problems. The business owner will need to have the cash to make the payment first, and then there is a lag time of a few months with payroll tax credits.

    At a company with 20 people on COBRA at $1,000 per person, the employer would be laying out $650 each, which would be $13,000 per month.  If that company is struggling, $13,000 a month could be significant.

    This is certainly a change that is unfriendly to small business.

    Posted at 11:12 AM in Economy/Stimulus | | Comments (0) | TrackBack (0)

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    April 09, 2009

    Transformational Leadership

    Transformational Leadership "Fortunes are not made in boom times…that is merely the collection period. Fortunes are made in depressions or lean times when the wise man overhauls his mind, his methods, his resources, and gets in training for the race to come." - George Wood Bacon

    One of my most popular posts to date is The Profit Equation, where I stressed that profit comes from Risk.  It also is impacted by leadership – transformational leadership.  Organizations that take advantage of these lean times will prosper on the other side.  But most organizations are paralyzed by fear of failure and in order to break from the pack require transformational leadership.

    Continue reading "Transformational Leadership" »

    Posted at 05:38 PM in Leadership | | Comments (0) | TrackBack (0)

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    April 08, 2009

    Federal Stimulus – Opportunities

    Federal Stimulus What if your competitor was in the process of preparing a grant application in order to receive federal stimulus funds and you had no knowledge of those funds also being available to your organization?  Could a competing contractor be working with the Navy to start constructing troop housing, and your company did not know that $280 million was designated for such types of projects? 

    One of the things that amazes me is how little is understood about the federal stimulus law.  Sure, many accountants are sharing what is happening in regards to the tax law changes and the planning opportunities.  Our firm, McKonly & Asbury, has a nice write up at this link. But I think the real value is trying to help navigate what opportunities exist within various segments.  For instance, many contractors are not aware that within the stimulus bill $280 million was designated for Navy projects related to troop housing, child development centers… How can your business take advantage of this opportunity?  What about transportation funding?

    The Wall Street Journal had a great article yesterday about technology companies helping clients tap into the stimulus funds.  Could this opportunity be available to one of my technology clients?

    I am on a quest to find ways for my clients to benefit.  I would be interested in learning what opportunities you are seeing or hearing about.

    Posted at 04:56 PM in Economy/Stimulus | | Comments (1) | TrackBack (0)

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