2007 August Edition

A Message from Doris:

Where will I be in ten years, as a business owner and a CPA and consultant to so many diverse businesses? Is this something I should be planning for now and how can I help our clientele address this planning question?

In my last newsletter we talked about how most businesses are in fact small, that being 80% according to the 2001 Census bureaus. When we talk about small companies I am thinking in terms of employee count and controlled ownership. Where will those companies be in ten years? Are we asking ourselves now how are we to retire, reap back the financial investments we’ve dedicated our lives too? Our employees too eventually think about this question, but can often solve their retirement goals within the offerings of their employer.

Actions are needed “now” to plan for retirement transitions, employee buy-in or sell strategies. Entrepreneurs, at least most of the ones I know, invest in the risk of their companies trying to achieve profits. From that profit they can reap their investment through retiring.

For many, retiring means accumulated money is used in order to maintain a standard of living without working on a day to day basis. This becomes important to any principal at some point. Too often the “unplanned for” event drives a less than favorable end to a once prosperous business. What I mean by less than favorable is that once very profitable companies often manage their way into a crisis, and find their profits are on the decline. This can be offset by proper planning when profits are on the rise for owner transition.

Below is a sampling of disappointing ends to once wonderful small companies:

• Changing markets, industry concentration that hits a decline, no diversification.
• Illness and no management team.
• Unforeseen cash mismanagement and bankruptcy.
• Slowly declining sales, creeps up on you.
• Waiting too long to make an exit strategy.
• Bad employee(s).
• Bad client(s).

Planning and discussing goals with owners regarding transitions is something we here at DMC do. DMC is in an ideal position to share best practices. And here are just a couple of reasons why:

• We have serviced 500 clients and work closely with operations, we see the success stories.
• We are skilled in understanding how to make profit, and monitor profit.
• We know the people who know how to create contracting and agreements that will benefit your firm and thus the principals and the employees.
• We know the people who wish to acquire firms and have interest in your goals, making the relationships that can make transactions occur.

- Doris

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Elkus Manfredi Architects: A Success! by Doris Cahill

Elkus|Manfredi Architects, a 200 person architectural firm in Boston, engaged with us at DMC Accounting + Technology in May of 2007 to upgrade and deploy Deltek Vision® from Deltek Advantage™. Working with their CFO, their IT Director, and their accounting department, our staff was able to deliver a smooth and timely procedure, enabling them to upgrade successfully.

After our initial kickoff meeting to review the client's needs, we developed a schedule that incorporated an installation and configuration plan, along with testing and training. We worked closely with their management team to best understand the new features they wished to take advantage of with their upgrade, and the technical requirements needed to achieve this.

Group training followed by “one on one” sessions took place so that users could immediately apply their new knowledge and feel comfortable enough with the software that they could perform their jobs post installation. We tested transactions, developed reports and templates in a phased approach so any “go live” date issues would be identified and resolved in advance. We supported them in identifying new features available in Deltek Vision® such as a simplified billing template with fully supported logo formats and dashboard reporting that replaced much of the need for custom reports.

Elkus|Manfredi Architects is a full-service design firm providing Architecture, Master Planning, Urban Design and Interior Design Services. Elkus|Manfredi Architects is a highly experienced Boston firm, which has received many awards over the years for its creative projects. For more information, visit their website at: www.elkus-manfredi.com.

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Company Employment Manual: by Catherine Chubbuck

We at DMC Accounting + Technology have been focusing on small business lately and one area that many small businesses seem to be lacking in is the presence of a written company employment manual. We would like to remind you that no matter the size of your company, a written manual is an essential part of your business. It is very important to have all of your company’s rules and regulations in writing, so that there is no room for misunderstanding. A copy of your policies should be distributed to all employees, and be readily available.

Your company manual should cover many aspects including but not limited to the following:

• Standard Office Hours - Employee’s Work Schedule (set or flexible)
• Part time vs. full time Benefits – state clearly the benefits the company provides such as paid holidays, vacation, sick time, health insurance, etc, and how each of these is computed; which of these are provided for by the company, and which are expected to be partially paid for by the employee.
• Unpaid time and/or Overtime
• Non-smoking policy (citing the MA non-smoking law)
• Company Travel - Expense reports process and schedule
• Timesheets and Payroll process and schedule
• Company dress code
• Sexual Harassment Policy (most insurance companies have a ready made one for you to use)
• Overall standards of conduct
• Written Performance reviews on a scheduled basis, typically annually

While these manuals are not easy to write, if you use a payroll service, most of them have standard ones and can assist you with yours. If you do not use a payroll service, there are standard templates on the internet. If you write your own manual, be sure to have an employment lawyer who is familiar with the laws of the Commonwealth of Massachusetts review it for you to be sure it complies with all of the State’s laws. Even though it is your company, there are guidelines that must be followed. While this is not a service that DMC offers, we do have many contacts, and can certainly offer references to those who need them.

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The Importance of Small Business

Small business is important. Why? Because even today the larger part of our economy still consists primarily of small businesses. Small business encourages dynamic competition, supports free enterprise, and keeps segments of our economy interdependent and intact with each other. Better working conditions and higher wages are typically found in smaller firms, while larger firms may offer lesser varieties of work with lower wages.

Larger firms, such as chain stores, eventually become autocratic over time, resulting in depersonalized treatment toward employees, suppliers, and even customers. Products are sometimes stripped to the minimum in order to maximize profits. That is why free enterprise is essential to maintaining a wide range of consumer choice, eliminating the regimentation and standardization so easily found in big business today. Independent enterprise is the ideal outlet for creative impulses, experimentation, and innovation, pioneering new and better ways for a product. Small business makes the face of the country, full of personality, energy, and freedom.

If you’ve ever thought about owning and operating your own company, DMC Accounting + Technology Group, Ltd can help you along the way. We offer consulting and accounting services for start-ups all across the country while maintaining deep-rooted relationships with our clients, often lasting for years. Visit www.dmcsystems.com or call us today at (617) 779 8806 for more information about our services.

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Employee Recognition

DMC Accounting + Technology recognizes the following employees for their excellence:

Annie Chubbuck

We would like to welcome Annie Chubbuck as our new Project Coordinator at DMC Accounting + Technology. Annie accepted a temp to permanent position when we had an unexpected opening, and has made the job her own.

Annie has a few years of college behind her, and has worked at various types of jobs in the past, from retail to photography to bookkeeping. She is comfortable around computers, and hopes to be able to increase her skills and contribute even more to the company. Annie hopes to return to school part time in the fall, and is looking to work towards a degree in accounting.

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