AEC Managing Partner Newsletter
November 2006

Welcome to the November 2006 Edition of the AEC Managing Partner Newsletter.

Yes it is already the middle of November.  Not only is the month slipping by - but year end is in sight.  With the end of the year it is a good time to speak with your tax advisor and plot a year end tax strategy.  With that in mind, my top ten list this month is titled the "Top Ten Reasons to Switch CPA Firms".  No time for an article thismonth - just best wishes for a great Thanksgiving.

In this Months Newsletter:

1.  Top Ten Reasons to Switch CPA Firms

2.  Valuations and Ownership Transition Seminar November 17th

3.  SMPS Southern Region Conference January 26-27, 2007

4. Texas Council of Engineering Companies Seminar August 24, 2007

5.  SDA Orange County Chapter October 18, 2007


Top Ten Reasons to Switch CPA Firms

1. Their Biggest Claim to Fame is "You were never audited"

The fact is their preparation of your return has little effect on
whether you are audited.  Yes, they must prepare it accurately and
honestly -- but their job is not to work for the Internal Revenue
Service and discourage legitimate tax strategies and deductions.  Even
though an audit is a pain in the neck -- I would actually prefer to
have an accountant who represented me in an audit with no change in my
tax liability

2. Their Second Biggest Claim to Fame is They Went to College with the
Founder

It is great to be loyal to your friends -- but this is business.  You
owe it to yourself to speak with other CPA firms to see how they can
help you develop strategies to minimize your tax liability, protect
your assets and increase your retirement benefits

3. Their Fees Seem to Increase in Proportion to Your Profits

It is sad to see how much some of my clients are being charged by their CPA firm for substandard to average work.  Many accountants see your financial success as a reason to charge higher fees for their services.

4. They are not Proactive in Saving you Tax Dollars

They never offer advice on how you can take advantage of tax favored retirement plans, savings plans or personal benefits.  They simply fill out your tax return, prepare your financial statements and send you a bill

5. They are Unable (or Unwilling) to Explain Things in a Way you
Understand

Some accountants are terribly poor communicators and can't explain anything -- even to other accountants.  Others seem to use the industry jargon as a way of keeping their clients in the dark and making themselves seem all that more valuable.

6. They Always Put You on Extension

Your information is ready by the end of January, but for some reason your tax return is always put on extension and filed 6 months after the original due date.  This is an indication that you are not an important client to them.  Find an accountant who is willing to file your taxes on time.

7. They Have a Large Personal Tax Return Practice for Non-Business
Owners

This is usually an indication that they are more geared to the consumer market rather than the business market.  You deserve an accounting firm that is dedicated to the business market.

8. They Love to Tell You Why You Can't do it

No matter what you suggest, from saving taxes to buying a building to acquiring another firm, their knee-jerk reaction is to tell you why you can't do it.  Most accountants are risk adverse to a fault and bask in the glory of telling their clients why they can't do something.  They somehow think that this is serving your best interests.  The problem is that I already know why I can't do it.  What I am really looking for is a creative strategy to help me do it anyway.

9. They Have Been Your Accountant for More than Five Years

Your company has probably grown tremendously over the last five years and so has your need for quality advice.  The accountant that could serve a 5 person firm may not meet the needs of a 20 person firm.  The accountant that could serve a 100 person firm may not be qualified to serve a 300 person firm.

10. They Have Zero to Few Other A/E Clients

Yes.  We are special and so is our industry.  We deserve the services of an accounting firm that specializes in the A/E industry

Strategic Planning Facilitation Services

Successful firms retain a facilitator exclusive to the A/E industry and take the time (2-3 days every year) to develop a simple plan of where they want to go and how to get there. The result of the session is a simple action plan that articulates the company's goals, assigns responsibility, assigns deadlines for action and has a mechanism for follow up.

AEC Management Solutions works exclusively with Architects and Engineers to develop strategic plans that help them earn and keep the money they deserve for their creative efforts.

Please call us at 732-705-5098 to find out how we can help you achieve
your goals.

Valuations and Ownership Transition Seminar November 17th

Herb Cannon will be presenting a ½-day valuation and ownership transition seminar in on November 17th.  This session will focus on the practical steps you need to take establish a fair valuation and insure an orderly internal transition, or prepare your firm for sale to an outside company.  Download the Registration Form.
http://r.vresp.com/?AECManagementSolutio/2d2338bd64/761882/TEST/TEST


SMPS Southern Region Conference January 26-27, 2007
Herb Cannon will be presenting at the SMPS Southern Region Conference
in San Antonio, TX on the topic of Strategic Planning.  More details
will follow

Texas Council of Engineering Companies Leadership Forum
For the sixth straight year, Herb Cannon will be conducting a 1/2 day
session in San Antonio, TX on the topic of Business Managment skills.
Visit the TCEC Website
http://r.vresp.com/?AECManagementSolutio/896881a1d3/761882/TEST/TEST

SDA Orange County Chapter October 18, 2007
Herb Cannon will be conducting a session on Incentive Compensation This popular session with cover all of the key strategies for establishing an incentive compensation program.  More details will follow


Visit the AEC Management Solutions, Inc. Website
http://r.vresp.com/?AECManagementSolutio/d315fb1d45/761882/TEST/TEST

Want to Reprint an Article from AEC Managing Partner?

As a publisher of a print or web-based publication, you are hereby granted the right to reprint any article contained in this newsletter with the following provisions

1) The words "By Herbert M. Cannon" must be included immediately following the article title.

2) The following "resource box" is included following or preceding
each article.

Herbert M. Cannon, President of AEC Management Solutions, Inc. and Publisher of AEC Managing Partner Newsletter, is a management consultant, seminar provider and speaker exclusive to the A/E Industry. He is available to speak at company meetings and conferences. For more information, contact Herb via e-mail hcannon@aecmanagementsolutions.com. Or visit his website at www.aecmanagementsolutions.com

3) You send us a hard copy of any printed publication in which one Herb's articles appear. Printed issues may be sent to 183 Higgins Road Matawan, NJ 07747

Thank you for taking the time to read my monthly newsletter. As always, I look forward to your feedback.

Regards,

Herb Cannon