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April 2018

Lessons from Public Company Adoption:

  • The new Standard often requires companies to obtain new information to meet the accounting and disclosure requirements
  • Even though the effect on revenues themselves may not be significant, the effect on underlying internal controls as well as policies and procedures likely will be
  • The best time to consider new internal controls over new revenue recognition information is when this information is first assembled as opposed to waiting to consider controls at a later time
  • There are likely to be questions around gross vs net presentation and performance obligations. Companies should carefully consider these areas along with other implementation issues specific to their facts and circumstances
  • The understanding by those charged with governance of management’s implementation plans and the status of progress, including any required updates to internal controls, has a positive impact on implementation efforts (read more)
 

I have noticed this year that many of my clients gross profit %’s are on track to last year and budget, but there appears to be a disconnect with some companies in regards to some higher operating expenses. Of notable mention, it appears credit card fees and freight expense are on the rise for many businesses.

Your sales may be strong, but have your cash sales been dropping? Accepting credit cards is crucial for a business to be successful, but credit card fees are among the fastest growing costs of doing business and can erode profits. Each credit card merchant provider has different credit card processing fees that can range from 1.15%-3.25%. These fees are based upon different types of methods such a flat rate fee or interchange plus fee. In addition, there can be monthly or one time fees. Research is the key in deciding the right merchant. Another option is to pass on the credit card fees to the customer with a credit card surcharge. This is allowed in 42 states provided you comply with the rules set by the card brand.

It is a Trucker’s market in 2018. Freight costs are rising and pushing down profits. High demand, low supply of drivers, bad weather including last year’s hurricanes, and climbing diesel prices (up 18% through Q1 2018) are the culprits.  (read more)

If you would like to learn more about the CDH Executive Focus process please contact Matt Wirth, Senior Manager:  mwirth@cdhcpa.com or 262-784-4040.

 
Congratulations to CDH on making the list of Best Places to Work in Illinois for the Ninth Straight Year!!
CDH was recently named as one of the 2018 Best Places to Work in Illinois. The awards program began in 2006 and is promoted by The Daily Herald Business Ledger in partnership with the Human Resources Management Association of Chicago (HRMAC), the Illinois Chamber of Commerce, MRA-The Management Association, the Small Business Advocacy Council and Best Companies Group. (read more)  
For more information on the Best Places to Work in Illinois program, visit www.BestPlacestoWorkinIL.com.
 
Accounting Today ranks CDH as a Top Firm in the Great Lakes Region!


Accounting Today magazine ranked CDH as one of the top 30 firms in the Great Lakes Region. The region consists of all CPA firms in Wisconsin, Illinois, Indiana, Michigan and Ohio. CDH is the fastest growing firm in the region and ranks in the top 10 nationally.
 

Recently, policymakers in multiple states, including Illinois, have been pressing to ban employers from asking applicants to provide their salary history.  This has been a question asked by many hiring managers for years in order to quickly screen applicants that may have pay expectations above their budget and to identify those who are qualified to do the job and may accept a lower rate of pay.   

The question becomes, “why are policymakers getting involved in the hiring practices of employers?”  Their reasoning lies in the statistics around inequality of pay in America.  The belief is that if employers continue to make salary offers based on the candidate’s previous salary history, women will perpetually be paid at a lower rate than their male counterparts.

According to the Department of Labor, the gender earnings ratio (women’s earnings as a percentage of men’s) for full-time, year-round workers is approximately 80%.  The earnings disparity between women and men is narrowest for young workers ages 25-34 and widest for workers ages 55 to 64. While the biggest discrepancy is experienced by Black and Hispanic women who are also out-earned by White non-Hispanic and Asian women.
With the candidates’ salary history off the table, employers are relying more heavily upon benchmarking using market data and creating a formal Salary Structure to ensure they are competitive externally and paying equitably internally for the knowledge, skills and abilities of their employees.  (read more)
 
Each year, applicable large employers (ALEs) must complete Affordable Care Act (ACA) reporting with the IRS, and provide employees with a copy of their form 1095-C showing their healthcare coverage status for the prior calendar year. Find out the deadlines for filling and furnishing ACA returns and ensure your organization remains compliant. (read more)

If you have additional questions, please contact John Jaeger at OneDigital Health & Benefits:   jjaeger@onedigital.com.

 

Today most accountants consult on traditional services like tax, compilation and audit. The new accounting vision is to become more tech savvy and advise clients on moving away from older/out of date/on-site legacy ERP/accounting systems so they can close the books faster, become more productive, and drive more value to the organization.

The biggest obstacle is the status quo or not addressing client legacy system weaknesses as part of this new role. Part of the new mission of the accounting technologist is to educate clients on new cloud platforms like Sage Intacct. We need to provide an enhanced vision on how clients can benefit by moving to cloud Sage Intacct and the next level of performance. Clearly delineating this vision as a trusted entity is a key requirement for the new accounting technology role.

Artificial intelligence, advanced natural language generation, and machine learning are already disrupting the traditional accounting world. Sage Intacct on the cloud is the beginning of this transformation as the solution for many companies stuck in an older on premise legacy or QuickBooks environment. Older on premise systems pose a significant security risk for data hacks or loss. They also continue to use out dated tools like Access or Excel to supplement reporting weaknesses. We have a responsibility to our clients to advise today more than ever, as business disruption within the next 24-36 months could change client profitability…..updated cloud tools like Sage Intacct begin the new evolutionary process for handling the new competitive business landscape.
For more information on Sage Intacct, please contact Barry Coyne.
 
Join us at this networking opportunity for a presentation on the New Revenue Recognition Standard!
When:
Wednesday, May 30th
7:30 AM - 9:30 AM


Where:
Hyatt Place Chicago/Itasca
1150 N Arlington Heights Rd
Itasca, IL 60143


RSVP today!
 
The Top 100 firms and regional leaders list has been released by Accounting Today for 2018, and several Moore Stephens North America (MSNA) member firms have been acknowledged.

Nine members have been named to the list of Top 100 Firms. Armanino, coming in at #22, was also acknowledged as a Pacesetter in Growth with a 27.18% growth in revenue. Other Top 100 Firms include Citrin Cooperman at #23, HCVT at #30, Elliott Davis at #37, The Bonadio Group at #40, Doeren Mayhew at #63, Grassi & Co. at #70, Brown Smith Wallace at #90, and Rea & Associates at #99.

MSNA members were also featured in most of the regional leader lists, including Mid-Atlantic (Citrin Cooperman, The Bonadio Group, Grassi & Co.), New England (DiCicco, Gulman & Co.), the Great Lakes (Doeren Mayhew, Rea & Associates, CDH), the Midwest (Brown Smith Wallace, Lurie, LLP), the Southeast (Elliott Davis) and the West (Armanino, HCVT, Peterson Sullivan).

Additionally, a few member firms were noted as Firms to Watch. These are firms on the rise “within striking distance of next year’s list.” The MSNA members acknowledged include Lurie, Peterson Sullivan, and DiCicco, Gulman & Co.

“We are very proud of the accomplishments of our member firms, and growth is always something to celebrate,” said MSNA CEO Tony Szczepaniak. “We look forward to having even more members on this list in the coming years and are committed to giving all of our firms the resources they need to become a top firm.”  (read more)