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6 Essential Management Tips During the Looming Trade War

By: Matt Wirth


Currently a potential trade war face-off continues with the U.S. and China.  So far both nations have imposed tariffs of $34 billion worth of goods against each other.

Trade talks are set to resume, but with this spiraling dispute at stake is $16 billion worth of levies.  In addition, the threat of another $200 billion is on the table.

For most of my clients, costs are soaring for raw materials and transportation. Toss in the labor shortage which is causing not only employee wages to escalate, but wreaking havoc with overtime, employee turnover, training costs, and decreased productivity.

Raising prices is always the first reaction.  My recommendation is to use the EFocus holistic approach to not only answer this question, but to monitor your results.  The following are some suggestions:

  • Evaluate your product line margins.  Where can improvements be made?  Determine which products have strong brand loyalty in case a price increase is necessary.
  • Focus and brain storm on new operation ideas that lead to continuous improvement in labor/production efficiencies and utilization. 
  • Lock in rates with your suppliers and try to negotiate terms.
  • Monitor trade terms.  Are people starting to pay you more slowly on the inventory they buy from you?
  • Track your inventory in conjunction with commodity prices and buy in bulk when beneficial.  Manage your inventory on a last in, first out basis so increases in selling prices coincide with increases in your input costs. 
  • Communication with your customers is vital. Explain the reason why you are raising prices.  Attaching a 3rd party report that shows cost increases can create some visibility.  Also, try to find out what terms your customers are willing to accept.

It is imperative that you have in place a performance measurement system that monitors all your business metrics and they need to be reviewed each month with the management team.

CDH’s Executive Focus is an excellent solution for helping your business manage and monitor your operating expenses. Executive Focus is a visualization tool that provides transparency within the organization and empowers people with knowledge by helping them have a better understanding of all departments within the business. How do we do this? (read more)


If you would like to learn more about the CDH Executive Focus process ,
please contact Dennis Pierce (
mwirth@cdhcpa.com or 262-784-4040).


Does your business have any type of data privacy program?  If not, it is well past time to put data privacy on the list of corporate priorities.

It might help to start by clarifying exactly what is meant when we speak of data privacy.  Data privacy relates to how personal data relating to individuals, be they employees, customers, or others, is being collected, shared and used.  Examples of such personal data would include address information, social security numbers, and health information. 

If you want to know the direction data privacy is headed, familiarizing yourself with the European Union’s General Data Privacy Regulation, or GDPR, is a good place to start.  Some key provisions of the law, which went into effect on May 25, 2018, include the following:

  • Privacy policies must be written in a simple, straightforward manner;
  • Individuals must provide affirmative consent before personal data can be used by a business;
  • Businesses will be able to collect and process data only for well-defined purposes.  Individuals will have to be informed if their data is going to be used for a new purpose;
  • Businesses will have to inform users without delay in the event of harmful data breach;
  • Individuals will have a right to access and get a copy of his / her individual data;
  • Individuals will have a “right to be forgotten” or right to erasure of his / her individual data; and,
  • Authorities will have power to impose fines on businesses who violate the rules.


So, stricter rules regarding data privacy are on the way.  In fact, the GDPR already applies to some of you reading this blog. (read more)

If you would like to learn more about Data Security,
please join Brian at our upcoming
Data Security Seminar.  See details below!

 
Data Security and Corporate Safety Seminar
Join CDH and the security professionals from Plan Prepare DO for
an informative discussion on data security and corporate safety.
We will highlight the factors creating the urgent need for proactive corporate leadership in both of these areas and provide insight into the process and requirements to effectively address each of these challenges.


Hyatt Place Itasca
Tuesday, September 25th
7:30 AM to 9:00 AM



CLICK HERE to RSVP today!
 


To be relevant today, we need to differentiate our product/service offering and be competitive to add value. We have to stay ahead of our customers, validate assumptions, and guide them to the next stage. Going to the cloud with Sage Intacct is a solid start in this constantly changing marketplace.

It will reduce ambiguity by giving you real time information so better, faster decisions can be made. Reducing the unknowns via better system information is a good platform to start the journey.

Our capacity to adapt is getting harder due to the speed of change brought on by technology and market forces. Speed is now a driver that can disrupt businesses quickly. The ability to look around the corner or envision competitive forces is now a desired skill set to remain relevant. Sage Intacct can help drive these insights.  
(read more)


If you would like to learn more about how Sage Intacct can help your company,
please contact Barry Coyne at
bcoyne@cdhcpa.


WHO: Yoko Tamai
 

WHAT: Devoted to helping and supporting the WINGS organization since 2014
 

ROLES: CDH Assurance Senior, fundraiser and organizer, volunteer coordinator, CDH team leader

DETAILS: Yoko Tamai has been dedicated to helping the WINGS organization for almost 5 years. Every year, Yoko encourages CDH employees and the firm to donate school supplies and holiday gifts for WINGS families. She also organizes and coordinates groups of employees to volunteer at WINGS locations. This year, the CDH staff helped WINGS to count their inventory and fill backpacks full of school supplies. Yoko’s good heart and hard work have made many kids very happy over the years. She makes CDH very proud.

WINGS is an Illinois based organization that provides a pathway to independence for people whose lives have been disrupted by domestic violence. The organization welcomes all kinds of support and donations that help to do their important work. CDH’s LEAD initiative is focused on helping women to thrive and is dedicated to give back to local organizations as well as make a difference in our community.


IN HER WORDS… “Working with WINGS gave me a great opportunity to connect with a local organization that supports women and their children as well as to develop my event coordination skills. I just finished the 5th Back to School Program and felt so accomplished. It makes me feel good that CDH is making a difference and supporting the community and individuals whenever I receive Thank You cards from those children who received our donated school supplies.”

To learn more about how Women LEAD at CDH visit  www.cdhcpa.com/women-lead-at-cdh.

The Future of Health Savings Accounts (HSA)

By: John Jaeger
 
A health savings account (HSA) is an account funded to help you save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment.

While HSA’s are growing in popularity, there are some features of HSA’s and the underlying High Deductible Health Plan (HDHP) that often serve as an employee deterrent from enrolling. For example, HDHP’s may not reimburse any claims expenses, other than preventative care, before the deductible is met.

To make good on promises to address the health insurance market by increasing choice and lowering cost, the House of Representatives has taken some steps to expand and simplify HSA’s. To learn more, please go to: https://www.onedigital.com/blog/the-house-takes-action-on-health-reform. The estimated read time is 3 minutes.


If you have additional questions, please contact
John Jaeger at OneDigital Health & Benefits; jjaeger@onedigital.com
Team CDH will be joining the American Cancer Society for the DuPage Making Strides Against Breast Cancer that will take place on Sunday, October 7th in Wheaton.

Your support would be much appreciated!
Curious about what CDH is up to?  Follow us on Facebook, Twitter, and LinkedIn!
 
 

Moore Stephens is in the running for six categories at the upcoming British Accountancy Awards.
 
  • National Firm of the Year
  • Audit Team of the Year
  • Tax Team of the Year
  • Outstanding Advisory or Client Project of the Year
  • Large Firm Innovation of the Year
  • Graduate and Non-Graduate Program of the Year

The Awards are regarded as the industry's most prestigious accolades. (read more)