Ask Jon Paul: Recent Comments

Comment on Revenue Recognition – It Affects Non-Profits Too

2010-01-07T11:55:05Z

I believe that being able to provide resources, events, and other generally useful items for our community is what has helped us develop and inform our community. For us, FB is just one in an ever-growing listing of communication channels at our disposal.

Comment on Going With a Board?

2010-01-06T21:08:32Z

Jon,

Another idea is to join a ceo peer advisory group. These are facilitated monthly meetings with a half-dozen non-competitive peers who act as the owner's board of advisors. I have advised Presidents Advisory Committee (www.PresidentsAdvisoryCommittee.com) but there are others including Vistage and TAB.

The benefits are accountability, perspective, advice, and feedback. A key advantage of a peer group is that it is set up and ready to go -- the owner just joins.

Costs: One day a month, about $10-$20k depending, plus members take turns hosting.

This is a great way for the president to quickly get the benefits you note without the risk of the meetings turning into an obligation.

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I agree peer groups can be an alternative or done in addition to a board. Another group is C12- Christian Business Owners.

A peer group can give you a dozen or so advisors- when it is a good group, you have other owners who are in the hot seat just like you but in different industries. The group may offer other resources.

It comes at a price- the time and the money. In addition, you don't get to select the members and there is turnover.

With your own board, you get to pick who joins and they will be more involved in your company. But it takes work to set up.

Jon

Comment on Going With a Board?

2010-01-06T17:04:49Z

Jon, well written summary. I myself and another Arthur Andersen & Co. alum have worked with companies that often express a similar desire to establish a functional BOD. A stumbling block we have seen is conflicting ownership perspectives in closely-held family situations, which ultimately slow or stymie what can be a very strategically important value preservation or creation structure.

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Family issues are important to consider. A dysfunctional family can render a board useless or just ceremonial. A consultant or a coach may be a better investment first to take care of family matters.

Jon

Comment on Revenue Recognition – It Affects Non-Profits Too

2009-12-18T23:39:54Z

This article is helpful. Could you clarify FASB Statement No.116 "Accounting for Contributions Received..." that seems to differ by stating, "that generally, contributions received are recognized as revenues in the period received at their fair values."?

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Great question.

The difference would be contributions as opposed to dues.

I am Treasurer at our church. We book the contributions when received, unless they have been designated as prepaid. In that case we book them as income in the next year.

But these are contributions- there are no dues to be a member.

When it is really dues, then FASB 116 does not apply as I see it.

Jon

Comment on Has Finance Kept Up With Your Growth?

2009-12-18T12:40:37Z

Great site. I like the way you explain everything without using complicated terms.

Comment on The Role of the Business Plan

2009-12-16T05:26:50Z

Great article. yes this is true we should value the time. nice shared.

Comment on The Role of the Business Plan

2009-12-15T10:28:19Z

Thats great, I never knew before this blog.

Comment on When the QuickBooks File Has Gotten Too Large

2009-12-09T23:16:04Z

JonPaul, how does one check to see if their QB file has gotten "too large"? What is too large? If things are sluggish?

My client's company file is over 4 GB and performance is fine, although they don't share the file over the network. Instead they log into a (Windows Server 2003) terminal server where QB is resident. Each user runs QB in a Remote Desktop session.

Even so, it's almost intolerable to run reports with such a huge file because there are so many transactions spanning years. I've replicated the data in a stand-alone SQL database, but now I need help archiving down the company file. Or should I start them on a new file going forward?

Your comments are appreciated. Maybe I should call?

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You hit it on the head- unbearably long to run reports. 4 GB sounds too large.

I would have them close out the year end and then archive the information- probably just keep 2008 and 2009- archive all the prior years.

That should cut it down significantly.

If not, look at the level of detail being recorded. My client had a lot of small transactions under $10 getting posted that were better off being consolidated into a monthly or weekly entry.

Jon

Comment on The Role of the Business Plan

2009-11-18T13:10:43Z

Thanks for a sharing this articles. That's very interesting.

Comment on The Role of the Business Plan

2009-11-06T05:37:05Z

A business plan is essential for your enterprise. Whether your business is starting up or already established, it's the roadmap for future development. The more planning you put in at the beginning, the better your chances of surviving the move with your cash flow intact and profitability increased.