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November 2017

Hello, friends of CDH, I hope you have had a wonderful Thanksgiving Holiday week.

Our fiscal year end is September. So, we are already into the new fiscal year by almost 2 months! Last year, thanks to your support, we increased our revenues by 22% and our profits by over 100%. I want to share our notable organic growth percentage of over 15%. This increase will rank CDH as one of the top 10 fastest growing accounting firms in the nation!

I remain true to my conviction that management should be transparent in order to build a relationship of trust with our employees. I tell employees precisely what top management thinks and what our goals are, given the circumstances surrounding the company. By sharing specific situations, problems, and the overall direction of the company with all staff members, we can all align our vectors and concentrate all of our powers. Without this solidarity, a company can scarcely hope to achieve high goals or overcome adversities.

Another factor contributing to our last year’s success was our Executive Focus solution. I wrote an article in this newsletter about our E Focus service. We use the E Focus concepts in our day to day management. The results came out accordingly last year. E Focus is a proven way to improve a company’s performance.

As for this new year, we will focus on a large accounting rule change regarding revenue recognition (ASC 606). ASC 606, which will be implemented over the course of several years, includes major changes about determining how an entity records revenues and its disclosures. CDH will be working to educate our clients so that they can seamlessly integrate this modification into their business operations. In addition, we will remind our clients about the importance of increasing their equity ratios by reducing borrowings and increasing reserves from generated profits. The real estate prices on both coasts of the US are sky high. We should constantly improve the financial stability of our organizations to cope with any unexpected conditions that may arise.

I hope you enjoy our newsletter. As always, I welcome your feedback - please reach out to me at kfujimoto@cdchpa.com.

Happy Holidays!


Koh Fujimoto
Managing Principal
CDH  
 
Helping You Meet Your Global Objectives

As Moore Stephens firm, CDH is part of a global network of strategic services providers. Through this network, we have access to specific market and subject matter expertise that help us help you grow, realize and protect your wealth.

Click here to learn more about Moore Stephens and what makes us stand out!

 
 

CDH’s Executive Focus service is equipped to help improve performance of your organization at any stage.

In today’s competitive environment, businesses must strive to streamline processes and leverage technology to achieve effective change management. CDH’s Executive Focus combines over 50 years of proven services and capabilities to enable lasting business transformation with sustained results.


How It Works:

We examine operations first as a whole then identify workable solutions to specific problems for areas that require improvement. Our holistic approach analyzes all activities that are fundamental to your company’s performance. You will see the results reflected across your entire organization in a way that grows your business.

  • Sales Analysis

  • Productivity Analysis

  • Product Line Analysis

  • Profitability Analysis

  • Expense Analysis

  • Efficiency Analysis

  • Utilization Analysis

We develop a custom set of business metrics that represents the organization’s function. We focus on Key Performance Indicators that clearly reflect efficiencies and value add capabilities. We conduct monthly executive team meetings facilitated by an experienced CDH business professional that keeps the process alive.

We transform your data into useful information by converting it into easy to understand graphics. This allows everyday users to identify key trends immediately. Our visual performance displays and regular monitoring serves as an early warning system that makes timely adjustment possible and meaningful. (read more)
 



Employers have self-insured their health plans for many years, but historically self-insurance was a solution for large employers only.
Unfortunately, small employers have found themselves battling large healthcare increases with little warning and minimal to no data in regards to where the increases may be coming from. In a world where benefits can be one of the highest expenditures for an employer, the renewal process can be challenging. Fortunately, there is an option that brings transparency to the renewal cycle. (read more)


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

For many small and mid-sized businesses, QuickBooks is the preferred accounting software choice for solid reasons. QuickBooks is well-known and easy to use, and it offers the basic functionality that almost any business can use to get off the ground.

Unfortunately, virtually every growing business also soon realizes that the undeniable early value of QuickBooks is soon overtaken by the limitations and required compromises that emerge.
 

Challenges of QuickBooks:

  • Over-reliance on Excel to support financial process and reporting

“After spending over one week shifting through massive spreadsheets, we discovered that we had a calculation error in how we have been recognizing inventory for the past three years!”

“We have to keep Excel spreadsheets for fixed assets ledger and inventory’s overhead calculation.”

  • Too many manual data entries

“We need to key in all the customer orders into QuickBooks. Also, we spend many hours manually creating invoices in QuickBooks, and this is at least 3 business days of one bookkeeper.”

  • Inadequate controls around financial processes

“You can change the payee names in checks after they are issued. You can change prior transaction history from QuickBooks with one key stroke. Such an easy software to use.”

  • Not fit for growing business

“It takes 30 minutes to do a backup of our QuickBooks file. The speed is getting slower and slower. “


The new revenue recognition accounting rule called ASC 606 will become effective on January 1, 2019. ASC 606 is a massive change from the prior GAAP rule. Companies will be required to disclose detailed information about their revenue. You must be able to slice and dice your information to report your revenue.  (read more)



Carbonite Cloud Backup

Proven cloud data protection for growing businesses
The range of possible threats to your IT systems and data is wide and growing. Hackers, human error, hardware failure and natural disasters are among the reasons you need a powerful data protection strategy. But finding and implementing the right data protection solution when resources are limited can be a challenge. And many small and midsize businesses lack the IT staff needed to manage a backup system that requires additional onsite infrastructure.

Carbonite Cloud Backup Powered by EVault is a secure and easy-to-use cloud backup solution that doesn’t require onsite hardware. With flexible deployment options, support for physical and virtual environments, and geographic redundancy built in, Carbonite Cloud Backup provides peace of mind that all of your business data is securely backed up offsite. Carbonite Cloud Backup also supports a wide range of platforms, including legacy systems, so you don’t have to manage multiple solutions to back up your environment. (
read more)
 
On Saturday November 11th, a group of CDH employees volunteered at the American Cancer Society Bucket List Bash red carpet gala in Schaumburg. The event was held to raise money to fight cancer. CDH employees (from left to right) Rashesh Parikh, Steve Weging, Lorean Sneed, Wendy Kelly, and Emily Bartlett volunteered as greeters, volunteer room coordinator, and raffle ticket sellers. The event was a fun night with a live band, dinner and drinks, silent auction, wine pull and 50/50 raffle (in which the winner received $2,535!), and even a Joan Rivers impersonator! The CDH team enjoyed being a part of the night and look forward to more opportunities to help raise money for American Cancer Society.