2007 May Edition

Message from Doris:

May has been a busy month for the staff at DMC Accounting + Technology Our clients and prospects have presented us with many challenges that will keep us hopping in the months ahead. After wrapping up our largest Deltek Vision upgrade and implementation to date for a prestigious architectural firm with a Boston head count of over 100 people, we are in the midst of kicking off another like kind of project with double the Boston staffing plus integrated CRM.

Our role in both engagements shows how our team is able to provide the leadership to stay on schedule, reduce downtime in accounting departments, and provide step by step operational training and meet the reporting needs of management. The design team at Deltek has done an excellent job in solving for the upper management reporting requirements by creating a user interface much simpler than their predecessor product. Also, the integration of CRM with email systems, collaborative workflow tools, when fully implemented greatly enhance communications between all departments, resulting in a net sum gain for the service firm and the client.

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Understanding Your Company's Financials

How much money do I have in the bank? Why do I not have any money in the bank if my company is making money? These are two of the most commonly asked questions we get from most business owners, and of course it is a logical one, as everyone wants to know if they have enough money to pay their employees, their bills, and of course, themselves.

Questions we do not hear often enough are: “How is my business really doing?”; “Am I really making money the way I am operating?”; “What is the bottom line?” While we understand that not everyone is an accountant, if you own a business, then at the very least you should educate yourself so that you know how to understand your company’s financial reports. You need to know how much money you are making or losing, and some of the reasons behind this. Are you billing enough for your services? Do your customers pay you in a timely manner? Are your salaries at proper level?

DMC Accounting + Technology can review your financials, assist you in planning all different aspects of your services, and we can teach you what numbers you really need to look at and how to plan a budget. These services can be provided either at our office or yours, at a fairly reasonable cost. Please call us today if you are interested in our Management Training programs.

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Too Much Accounting Data?

What do I do with all this accounting data? How often do we at DMC hear this question? Accounting data should be practical and should have value.

Mainly, for accounting information to be valuable it must be timely, that is, it must be up to date and reflect actual business practices in order for business owners to make informed decisions. However, just because accounting data is timely does not mean it is valuable to managers. There must be a purpose for collecting financial information. For most business entities, there are two main types of accounting data, management or internal reporting data and financial or external reporting data. Management accounting data is for internal purposes only and helps managers with, among other things, pricing of products and services, and labor costing.

Financial accounting deals with external presentation of company accounting information useful for banks, stockholders, creditors, tax agencies, and others who rely on the accuracy of audited books. Certainly what is valuable to one person or entity may not be valuable to another. As a business owner, you may be required to file certain tax reports and payroll information to federal and state taxing agencies. Of course in this scenario you would want to have both timely and accurate accounting information. Remember to think of accounting information as a tool to help your business.

DMC helps businesses use their financial information to better understand and ultimately reach their goals. Most importantly, however, it is up to the business to embrace the need for tools such as accounting in order to maintain and grow a strong business. In addition to providing bookkeeping services, DMC Accounting + Technology, Ltd uses raw bookkeeping information to help clients grow their businesses. Accounting information, in the form of both internal (management) and external (financial) reports, must be meaningful.

Setting up a new accounting system or modifying an existing one requires expertise going far beyond basic transactional knowledge. Businesses must determine at the outset who the users of the accounting information will be; will they be internal managers, tax preparers, owners, stockholders or creditors? Managers may be interested in salary and job costing information, whereas banks may be interested in company financial strength (indicated by financial ratios such as debt to equity) in order to approve a capital improvement loan.

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Summer Vacation

Ah! Summer Vacations!

That magical time of year when we all look forward to taking time to travel, spend time with our loved ones, or just revitalize ourselves, but are you really prepared for yours?

We all work very hard during the year and deserve some rest and relaxation, but many of us never do that. How many of us worry about who will take care of everything while we are away? Do you run around like crazy the week before trying to make sure everything is done before you leave? Are you taking the “office” with you on vacation? Do you just know that there will be a mountain of paperwork awaiting you upon your return? Leave your laptops and cell phones at home, and pamper yourself as you deserve.

Call DMC Accounting + Technology and ask us to help. We can assist you with vacation coverage, or any other full time or temporary needs you have.

We have a group of able consultants who can take care of everything for you, from writing checks, processing payroll, sending out bills, balancing your checkbook, to providing financial reports if needed. Call us today, then pack! You will be glad you did!

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