Q: Do you accept all businesses that come to you?
A: No, we are selective. In most cases we will be able to work with you, but differing expectations or serious financial situations may not allow for an effective relationship. If we cannot help we will try to find you the help you need.
Q: What’s the difference between you and my accountant?
A: Basically it is the difference in disciplines – finance and accounting. Accounting is defined as a system of measurement and reporting of historic economic events. Conversely, finance, while historically being thought of as simply related to the management of money, credit, banking or investments or providing the funding of funds or capital, is very much more. It is a way of strategic thinking and planning to measure and quantify risk and effectively deploy or attain an enterprise’s assets to achieve superior returns on investment. Finance uses the past to look into the future. Both disciplines need each other to achieve these superior results.
Q: Can my accountant do what you are proposing?
A: In almost every case – no. Finance is a specialty in of itself. Due to the lack of adequate numbers of financial advisors to many enterprises, accountants have filled the finance void, and in many cases have done an adequate job. For superior results though, an enterprise must retain superior finance personnel and superior accounting personnel working together. We must know and use accounting and accountants must know and use finance and each must know how to rely on each other to achieve these results.
Q: Can you replace my accountant?
A: No. While we know accounting, we only use accounting as a tool. Every business needs a qualified accountant for not only for reporting, but for tax planning, internal controls, personnel development and advisory services.
Q: Can I get a preliminary analysis of my company?
A: Yes. This is the way we determine whether you will be a good fit for our company and whether our company will be a good fit for you. While an initial analysis is provided, we may need additional data from you to make a final determination on our relationship.
Q: Do I have to send original financial statements?
A: Original statements are preferred since they provide us with complete information including footnote, disclosures and schedules.
Q: Is there a written agreement between us?
A: Yes, a very short agreement that outlines our relationship (known as an Independent Services Agreement).
Q: What kind of reports can I expect?
A: Whatever you need. We don’t like spending a great deal of your money creating reports, unless you or a related party needs it. We will though, document our work especially analytical work and provide it in easy to understand plain language.
Q: How long does it take to make changes in my business?
A: Some changes can be immediate; others will likely take some time. All changes can be outlined and time lined to generate maximum results. In most cases, the client controls the timelines.
Q: Do you offer any guarantees?
A: Like your business, we cannot offer any guarantees. Finance is an art, not a science, and is subject to influences by others that cannot always be controlled.
Q: How fast can I expect an answer after providing data?
A: In most cases we provide a response to you within 48 hours of receiving the data we need. Should situations occur where our workload will preclude this response time, we will contact you to let you know when a response is expected.
Q: What about confidentially and privacy?
A: We value your confidentiality and privacy immensely. For this reason we do not list our clients, nor ask for your permission to do so. We also do not make referrals of existing clients without your permission. While this may hurt us, we believe your privacy takes preference to our growth.
Q: What does this work cost?
A: This is usually the main question since many clients already are short on liquidity when we are engaged. The fees are on an hourly basis and can range from several hundred to several thousand dollars or more depending on the scope and complexity of your business. An estimate of total cost can be provided, but not necessarily relied upon. We can provide an update of our hourly rates upon request. There has yet to be a situation where the benefits to you and your business have not been greater than our fees.
Q: Do you require a retainer?
A: In most cases – yes. The retainer is based upon the expected level of work and ranges from $1,500 to $5,000 (higher in rare circumstances). There are alternatives to the retainer that can be discussed before we commence our engagement.
Q: How long will I use your service?
A: As long as you deem necessary. Careful consideration should be given this decision since “coming back” usually is more costly and time consuming. Because of our relationship with many lenders, especially banks, we will disclose to those we have worked with on your behalf that we are no longer involved.
Q: Are there any long term commitments?
A: No, we work together as long as each of us feels necessary.