As a child, I loved watching movies about summer vacations. To someone from a low-income household whose summer adventures were circumscribed to the occasional elementary school-run day camp, the idea of vacationing was exotic – regardless of whether the family went to Walley World (National Lampoon’s Summer Vacation) or to a charming Massachusetts beach town like Amity (JAWS). Even the latter, where an insatiable Great White swallows poor beachgoers whole, seemed preferable to languishing away hours reading comics in my sweltering bedroom, ignoring my mom’s relentless nagging to ‘go play outside.’
Although many cast JAWS aside as simply a horror movie, to me, it’s always been much more. It’s a classic-if-not-quintessential man vs. beast odyssey, not much unlike those found in Greek mythology. But whether you classify the film as horror or adventure, JAWS undeniably plays to certain fears. Galeophobia (the fear of sharks) is akin to a fear of the dark in that it taps into an anxiety of being unable to see those things which may harm us. In terms of sharks, however, this fear is largely misguided.
Continue reading "Is Watching Shark Week Deadlier than Actual Sharks? " »
By now, most professionals who serve not-for-profit organizations in governance or financial accounting roles have gained a basic understanding of the impending changes to the not-for-profit financial reporting model. This two-part series focuses on implementation and offers actionable recommendations to help not-for-profits prepare for the impacts of the new guidance.
Look at the New Standard through the Lens of Your Chart of Accounts
The Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, will impact several line items in the financial statements of not-for-profit organizations. To accurately and efficiently reflect those changes, it’s important that not-for-profits create a plan to adjust their chart of accounts during 2017 or 2018.
Continue reading "Rethink Your Not-for-Profit’s Chart of Accounts" »
Are you looking to expand your practice beyond financial statements and tax returns? If so, providing more personal financial planning advice and support, which will help clients plan for their financial future, may be the key to successful expansion. But how do you express the value you’ll provide to your clients? Here are some value propositions that CPAs can use to both describe and demonstrate value of those services.
Step One: Recognize the Difficulty of Selling an Intangible Value
In the world of investment advice, defining a value proposition is relatively straightforward because the return on investment (ROI) can be easily measured. And tax savings from effective tax strategies is similarly concrete.
However, when it comes to financial planning, defining a value proposition becomes far more difficult because it involves selling an intangible service and the results are hard to measure.
Continue reading "Winning the Value War" »
There is a good chance you have visited a physician for a routine check-up. At that appointment, your doctor asked many questions – inquiring about your diet, exercise, stress, and health history – and ran diagnostic tests to assess your overall health. Your physician may not have solved any problems at that appointment, but you undoubtedly valued and were willing to pay for an objective professional to assess your health status.
Why is it, then, that many CPAs doubt the value of offering similar diagnostic and planning services to assist clients in identifying potential problems and improving their overall financial health? Broadening your services by asking the right questions, understanding your clients’ financial situation and delivering advice (or making referrals to trusted specialists) is not only valuable to your clients – but also to your practice.
Before you tune out by citing common objections, allow me the opportunity to debunk some of the common myths about personal financial planning (PFP) services.
Continue reading "Myths about Personal Financial Planning Services" »
Not-for-profit organizations are always thankful for the generosity of their donors. Sometimes, however, they must consider whether a proposed gift should be accepted. A gift of $100,000 in cash is easy to immediately direct toward the not-for-profit’s mission. On the other hand, a donation of real estate worth $100,000 may come with additional expenses and effort to sell the property before the proceeds are available to support the organization’s mission. Having a formal gift acceptance policy can help define when an organization should, or should not, accept a proposed gift.
Continue reading "Not-for-Profit Gifts: Thanks or No Thanks?" »