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Are You Neglecting Your Cost of Quality?

By: Matt Wirth


Cost of Quality in theory has been around since the 1950’s, but I find that many of my clients do not track or have a complete understanding of this concept. COQ is often misunderstood. It is not just the price of creating a quality product or service. It is the cost of NOT creating a quality product or service. 

The two typical questions usually asked by organizations not adhering to this concept are: What is the financial impact of COQ on my organization? How much money or capital do we need to spend on quality? The key is finding a balance between the costs associated with preventing issues from happening and the costs of the issues occurring.

Traditional accounting, which puts a focus on external reporting may fail to identify your COQ. I have recently witnessed a client discussing a highly profitable product line only to find it substantially overstated and misleading when taking COQ into consideration.

COQ can be broken down into four components: 

Reducing external failures is vital. They usually represent only a small part of total COQ, but they are the worst because they can lead to damaging your reputation.

Steps to launching a COQ program:

  1. Define your COQ categories and start collecting the data.
  2. Assign a person to be responsible for each category and set up your goals.
  3. Analyze and chart your COQ data monthly.An effective COQ program should push your organization towards continuous improvement, reduce costs and increase profitability. CDH’s Executive Focus is an excellent solution for helping your business not only set up your COQ program, but also help your management team improve overall company performance.


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 Matt Wirth at
mwirth@cdhcpa.com.


How do you know when your accounting system is running well? Unfortunately, there is no standard measurement of health for an accounting system: no blood pressure, BMI, or pulse check. However, here are some points to consider this month during your month-end close cycle:

  • Could you benefit from a shorter month-end close process by automating time-consuming, manual steps?
  • Are your financial reports accurate/dependable?
  • Are you spending too much time gathering/managing data rather than spending this time on deeper business performance analysis?
  • Are delayed/untrustworthy financial reports forcing you to rely on intuition when making business decisions?

Sage Intacct can improve your accounting process for every concern above by automating key financial processes to eliminate errors and also by providing real time dashboard reports for better and quicker decision making. Think of Sage Intacct as a competitive advantage giving your company a clearer path to better, visible results to drive your business forward.

Your accounting health score is a tool for making the right decisions for the firm, such as a cloud accounting system. Selecting a strategic cloud accounting system like Sage Intacct will set in motion the downstream data, reporting, and dashboard necessary to bring your firm to the next level.

So don’t delay any longer…make this the last month your accounting system needs a pulse check! Make an appointment to learn more about Sage Intacct today!
 
(learn more)


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

By: John Jaeger
 

As employers compete for top talent in a tight labor market, your benefit plan can play an important role. Analyzing and understanding how other companies are structuring and funding their plans can give your company a competitive advantage. In addition, understanding the strategies other employers are using to reduce cost will arm you with vital information when making important benefit decisions. 

The Compdata Benefits USA 2017/2018 National Survey of Company Benefits Programs and Policies provides that exact information. For example, employers with up to 100 employees in the Midwest who were surveyed were asked what cost reduction measures they planned on taking. The top three answers were:
 

  1. Increase deductible levels
  2. Increase employee portion of premium
  3. Switch carriers


To learn more, please go to: http://www.compdatasurveys.com/tag/benefits-usa.


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

 
CDH partners with Liberty Technology Advisors to provide Software Assessment Services
to help our clients evaluate their software system environment. 
Based on the assessment, a report including user training considerations, vendor/software recommendations, cost analysis, and more will be prescribed.
 If you are interested in a Software Assessment, please contact your CDH representative at 312.332.2900 or email Phil Lampugnano at plampugnano@cdhcpa.com. 
 

The weather may be getting cooler and wetter, but that is not stopping the CDH team from being active both outside, and for the community.

On Sunday September 30th, some members of the CDH team participated in the Inside Out Club DuPage 5k run/walk. The weather actually held off making it a beautiful morning at Danada Forest Preserve. One of our audit team members, Tsutomu Matsuhisa, and his wife Kahori Matsuhisa, even took first place in their age categories!

Then, on Sunday October 7th, the CDH Crusaders took to Cantigny in Wheaton and walked three miles to help fight breast cancer in the Making Strides Against Breast Cancer DuPage County walk. During the weeks before that, the CDH team from all offices raised money through an ice cream social, a happy hour, individual donations, as well as donations from many clients, connections, team members, family, among many others. Thanks to all our supporters, we were able to raise $4,521 for the fight against breast cancer and were ranked the #2 team! Thanks to everyone that came to walk, donated, or supported us in any way!

Curious about what CDH is up to?  Follow us on Facebook, Twitter, and LinkedIn!
 
Moore Stephens North America (MSNA), the eleventh largest accounting firm association in the United States, has launched a new program to provide informational webinars and discussions surrounding the evolution of technology.

The Digital Transformation Webinar Series brings together discussion leaders from QuickStart Training, CloudPulse Strategies, AICPA and Boomer Consulting, along with moderators from member firms, to provide insights and ont he technological disruptions accounting firms are facing.

“Our members are addressing the evolution of technology internally, but many are concerned they are not where they want or need to be regarding planning for the future,” says Tony Szczepaniak, CEO of MSNA. “By bringing the conversations into the forefront and engaging our members, we’re taking the guesswork out of it. Our members thrive and grow through collaboration…we’re just giving them the opportunity to do so!” (
read more)