Smart Time Tracking can be a CPA Firm’s Strategic Weapon

By Debra Andrews

For many CPA firms, tracking time is a way of life.  There are two major time buckets – billable and non-billable.  Billable time is client work and there are usually specific client codes and sub-codes for active client projects.  There is always a great deal of attention placed on tracking billable time and rightly so – that is what pays the bills!

From Marketing Junkyard…

From my experience as a client services professional, in-house professional services marketer and now marketing consultant to professional services firms, non-billable marketing time codes area lot like junk yards.  Marketing, business development, non-chargeable client work such as travel and even administrative tasks are dumped in the non-billable marketing pile.  Some may argue that this time is non-revenue producing, and why should coding matter?  Trash is trash, after all.

…To Marketing Treasure

Well, some firm’s trash can be another’s treasure – savvy CPA firms can transform their non-billable marketing junkyards into plush fields blooming with valuable business intelligence. As an example, instead of having one code for all marketing time, try dividing the time up into sub-codes by your firm’s target markets.  This structure would enable the COO, CMO and/or Managing Partner to see your firm’s time investment in a particular sector and compare it against the return such as new clients and increased revenue.

I’ve worked with many clients to restructure their marketing time tracking systems.  We often discover that there is a measurable opportunity cost involved with investing too much professional time marketing to one segment at the expense of another that produces a higher ROI.

For hard-core time trackers looking to gain even further knowledge from their non-billable marketing time, I recommend additional sub-coding as follows:

• Marketing Admin: This sub-code might include time spent in internal marketing meetings and discussions.
• Marketing Business Development: This sub-code would represent networking activities, face-to-face meetings with referrals sources and prospective clients.
• Marketing Activities: This sub-code might include writing articles or blogs, speaking, and posting on social media platforms such as LinkedIn.

What management will glean through analyzing non-billable marketing time sub-codes like the ones noted above is how much time is spent “behind the desk” versus “shaking hands.”  Successful CPA firm marketing programs typically strike a balance between the two.  Ultimately, people do business with people they know, like and trust and so nothing replaces “face time.”  If most of a firm’s professional marketing time is spent on “Marketing Admin”or “Marketing Activities” at the expense of “Marketing /Business Development,” it may experience high brand awareness but maintain a relatively empty sales funnel.

There is a fine balance between smart time tracking and creating an unnecessary headache for busy billable professionals.  But for CPA firms that truly invest time and hard dollars into proactive marketing, creating some level of specificity in coding non-billable marketing time just makes good business sense.  The information gained could truly transform your time into treasure.

By Debra Andrews, Managing Director of Marketri LLC

http://www.marketri.com/

Contact: Debra Andrews
Day: (215) 489-5563
Cell: (215) 534-5085
e-mail: dandrews@marketri.com

By Cindy Lucas

I like to think of it as a gift with purchase. A cost segregation study identifies and reclassifies real property to personal property. Think about your building as a dollhouse, now pick it up and turn it upside-down; everything that falls out is personal property, meaning it can be removed.

Traditionally commercial real-estate is depreciated straight line method over 39 years. Well the truth is that nothing in that building is going to last 39 years. Components like carpeting, pluming, and furniture even down to the wiring in electrical systems should be reclassified. The IRS has released the Audit technique guide, which serves as a reference for an engineering company to allocate these components to 5, 7 or 15 year lives.

What that means is cash flow to the property owner. The typical benefits of a cost segregation study are 7-10% of the purchase price or build cost realized back to the owner within the first five years. Some aggressive CPA firms may be doing some safe methods of accelerating their clients’ depreciation but in no way can achieve or justify the level of benefit that can come from an engineering firm who specializes in this. Afterall, how would a CPA know what your insulation would cost to replace?

Speaking of replace brings me to the insurance aspect. An Engineered Cost Segregation Study gives the ability to substantiate the replacement costs to the insurance carrier. This enables an insurance agent to go to their underwriters for the most aggressive pricing. The underwriter will have a very high comfort level of the risk due to the comprehensive building review in their file.

What if something happens to your building? I am sure we have all played the insurance game and it can be quite frustrating trying to collect for what you need to replace or repair.

A cost segregation study can serve as a substantive document that an owner can use as support to a claim that is being disputed to their favor. The depth of our reports helps an owner to avoid the need to hire a third party professional to justify their claim.

To an underwriter this becomes a disclosure safeguard whereby at time of claim the owner is able to substantiate a full disclosure position with the insurance adjuster which puts the onus on the carrier to pay!

For more information please feel free to contact me directly at 954-439-1671 or email clucas@engineeredtaxservices.com
Cindy Lucas
Director
Engineered Tax Services

By Don McDougall

We all travel for business, and I had one boss who was robbed once a year.  He used to say he had bad luck.  But since he is an ex-boss, I can share that he caused most of his own luck (or rather caused his own bad luck) and that you can learn from his mistakes.

Lesson 1.            Valet your car if you cannot find a well-lit and public parking spot. This sounds so obvious, but at night you don’t want to be walking the streets looking for your car.  If you do have to park on the street, park your car in a well-lighted public area, or find somewhere else to eat.

Lesson 2. Don’t look like a business person on an expense account. Leave the $8,000 Rolex in the room, don’t wear a suit to a local joint, and do try to blend in.  Business travelers don’t come back to help the police with line-ups and rarely will even show up for a trail.  Guess what – the criminals know this.  The criminal knows that robbing a traveling business person has a low rate of prosecution.

Lesson 3. Don’t flash cash If you carrying a pocket of cash (I use to travel with $500 in cash) don’t flash a big role of dollars.  Leave most of it in your room, or divide it up between two pockets.  Try NOT to look like a good target to be robbed.

Lesson 4. If you’re going drinking, take a cab or better yet, do so in your hotel. I suppose this one should go without saying.  If you do go out, bring ONE credit card and minimal ID and cash.  Don’t make yourself a tempting target.

Lesson 5. Don’t wonder off on foot in a city you don’t know, late at night.

Remember that boss I mentioned above, one night around 2am he could not sleep, so he went for a walk, off Bourbon St. in New Orleans … to get some air.  He put on his suit, and the $8,000 Rolex, put a couple hundred in his pockets and wondered off.

Cost him the watch, his wallet with the credit cards and all his spare cash.    –  Yeah we never quite bought that “went for a walk excuse” either.  But it was still an expensive walk around the block.

The “book” on self-protection suggests you keep looking around, assess your danger zones and keep an exit strategy in mind.  All good ideas, but you will never learn them in a 1000 word article. Don’t be stupid or flashy, avoid placing yourself at risk.  Take a cab when you can.  They pick you up in a well-lit doorway and drop you off in one, when you are done.

Ladies – That $900 coach purse is $100 at a pawnshop to anyone who can steal it, not counting what is in side. If you can spend $900 on a purse you probably have something in the purse worth stealing. Carry a small clutch, or something less obtrusive is you are going to be in a vulnerable spot.

Here is yet another story for traveler beware… This last story has so many lessons, but the key one is “she is probably not a college girl down on her luck.”

We had a new employee coming in to get started, his 1st day of work. Picks up his new Dell super-duper PC, corporate Amex-Card; and has the 1st night on his own, we will all meet for training and orientation on Tuesday.

That night, he meets a girl in the bar, she is a “college girl” he father told her that her boyfriend was no good. She moved in anyway, and ….. well the BF was caught sleeping with her best friend. She feel embarrassed, stupid, HOW could she be so gullible. She cannot face her father, he is Miami on business till Friday. She is alone and trapped and has no friends and no place to spend the night or stay until her family is back in town.

Well… Our boy has an idea, she can stay with him. At first she says no, but then after a while suggest that IF they were to go on a date that night, and IF they liked each other.. well.. she would stay with him for the week and then MAYBE see each other when he is in town since his corporate office is there anyway. They get back to his hotel at 2am, after dinner and a night on the town. He wanted to … well guess.. she is just too tired, but she will be “his” in the morning and every time he wants, until he has to leave her. She PROMISES… She was lost and he saved her, he was her hero.

He called the office about 10am that morning, turns out his PC has been stolen, he thinks when he checked in, SOMEONE must have reached in and taken it. Turns out he was also missing, all his cash, his credit cards, his briefcase and his suite case.. and.. ALL of his cloth. He was buck ass naked in a hotel room 1,100 miles from home on his 2nd day at work.

We found out when we got a fraud report from American Express that morning, he had put the dinner and his date with the girl on his corporate card. She has added $400 in jewelry. (Would have been more but we had a spending limit on all new employees.)

I’m not sure where to start on the mistakes he made, and we advanced him a month’s salary and a quick trip to Target to get some cloth. He turned out to be a great employee, and a VERY cautious man after that when he traveled.

In addition to being an expert on EPAct, Don McDougall teaches Personal Protection in the Home and the Refuse, on don’t be a victim course, for the NRA.  From experience, Don has provided us this article on personal protection.

Don McDougall can be contacted at dmcdougall@engineeredtaxservices.com or on 213.280.2266. Don is a Director with Engineered Tax Services, seasoned traveler and based in California.

May 30 – June 2, 2012

Bellagio Las Vegas

MGI is a worldwide association of independent auditing, accounting and consulting firms. Established over fifty years ago, MGI is now represented in over 265 offices on all continents, and in more than 80 countries throughout the world.

Join Kimberly Merrill at the 2012 MGI North American Area Meeting. Learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business. Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more. For details click here to visit the registration website.

Wednesday, April 25, 2012

1300 Guadalupe,​ Roof Deck Lounge, Austin TX

Green By Design Event Flyer2.2

Learn about the impact in cost savings of the local Austin energy tax incentives. Kimberly Merrill, Engineered Tax Service, will be providing an informative presentation on key objectives on how to benefit from the recently extended 179D federal tax benefit. This is a cocktail party followed by a presentation. For registration details info@burtwatts.com

Green By Designs Seminar

June 6, 2012

Town Center City Club – Norfolk, VA

Join Norbert Crabtree as he presents the popular and informative Green By Designs – Energy Tax Benefits Presentation at this lunch and learn, hosted by Strickland and Jones. Norbert can also assist you to learn how ETS can assist you with specialty tax benefits to increase the ROI in your business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details call James V. Strickland, CPA.  on 757.627.7672

Tax Strategies To Increase Building Cash Flow

May 10, 2012

One Riverway, Suite 1000 | Houston, Texas

Join Mark Barbour as he presents the popular and informative presentation for building owners – Tax Strategies To Increase Building Cash Flow over lunch, hosted by Harper Pearson, P.C.. Mark can also assist you to learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details call Mark Barbour on 310.383.1302.

ASHRAE Lubock Texas Chapter

April 19, 2012

Join Chris Ostler as he presents the popular and informative Energy Tax Benefits Presentation at this lunch an learn. Chris can also assist you to learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details call Chris Ostler on 702.525.8154

BuildingsNY Conference and Expo

May 2 – 3, 2012

Javits Center, NY, NY

Join Michael D’Onofrio, presenter at Green To Gold Finance and Incentives Panel, May 2, 2012, 10.15 – 11.15am. Also Visit Peter Scalise and Michael D’Onofrio of ETS at our booth number 757. Learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details click here to visit the registration website.

North American Regional Meeting

May 20 – 22, 2012

The Pfister Hotel, Milwaukee

Join Chris Ostler and Art Goessel at the NARM 2012. Learn how ETS can assist you with specialty tax benefits to increase the ROI in your client’s business.  Specialty tax benefits include Green Energy Tax Deduction, Research and Development Tax Credit, Repairs and Maintenance Studies, Cost Segregation Studies, Energy Star Benchmarking and Certification and more.  For details click here to visit the registration website.