changingthe of retirement20061001]2006_fall.pdf2006/10/01 · volume 7 issue 1 fall 2006 plus:...

VOLUME 7 ■ ISSUE 1 ■ FALL 2006

PLUS:Franchising 101—Don’t just window shop

Know all about yourpotential customers

Advice and information to help you manage your business

the LEADING

thechanging face

of retirementFinances, interests,

longevity meanno single

definition applies

PUBLISHED BY Henry & Horne, LLP

2 VOLUME 7 ■ ISSUE 1 ■ FALL 2006

The Leading EdgeFALL VOLUME 7

ISSUE 12006

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Selected as one of the “Best Places to Work

in the Valley”for 2005 by the

Phoenix Business Journal.

Dear Clients and Friends,We need to constantly ask ourselves if the culture at our company holds a strong presence of integrity.

Here at Henry & Horne we have built a culture of integrity that we work every-day to maintain and improve upon. We firmly believe having and maintaining a strong ethics policy is what will help grow our firm. By building this culture among our team members we are building a family of trust, credibility, fairness, respect, and responsibility that will lead this company into another 50 years of business.

It’s a give-and-take situation where we want to have credible team members which the firm and its clients can trust and respect, and where our team mem-bers can feel the same way about the company and the clients they are working for.

Building a strong, persistent culture of integrity is one of the most important long-term investments we will ever make in our company. Besides building integrity into our culture today, we want to make sure that we also leave behind a legacy of what integrity represents when the time comes for us to exit the company.

Accomplishing a strong culture of integrity is never easy but it is definitely worth the effort.

Enjoy the fall issue of The Edge!

Sincerely,

Mark F. Eberle, CPAManaging Partner

www.henryandhorne.com

The Leading Edgewww.LeadingEdgeAlliance.com

The Leading Edge Alliance is a global alliance of major independently owned accounting and consulting firms that share an entrepreneurial spirit and a drive to be the premier provider of professional services in their chosen markets.

Members are top quality firms who are very successful, have deep client relationships, and strong ties to the community. The Alliance provides members with an unbeatable combi-nation: the comprehensive size and scope of a large multinational company while offering their clients the continuity, consistency and quality service of a local firm.

Member firms have access to the best and brightest teams of business advisors—a peer-to-peer connection that provides the right business solutions for clients.

The combined revenues of the Alliance totals more than $1.1 billion with more than 6,000 professional staff. The Alliance continually assesses new member firms, to extend into all prominent international markets.

Leading Edge Advisory Committee

Linda Watson Brady Ware

Marshall LehmanLurie Besikof Lapidus & Co., LLP

Raissa EvansPannell Kerr Forster of Texas, P.C.

Gary VothPannell Kerr Forster of Texas, P.C.

Elizabeth ReedPostlethwaite & Netterville

Belinda Ressler Wilson Price

Karen Kehl-RoseThe Leading Edge Alliance

in affiliation withCustom Publishing Group (CPG)

Ann M. Gynn Editor

Amanda Horvath, Natasha Fletcher, Stacy VickroyArt Directors

Andrea JagerGraphic Designer

Custom Publishing Group (CPG)Editorial & Design Services

The Leading Edge is published quarterly by Custom Publishing Group, 812 Huron Road, Suite 201, Cleveland, Ohio, 44115, (216) 523-1212, FAX (216) 241-5458. Periodicals postage paid at Cleveland, Ohio.

IRS Treasury Regulations require us to inform you that any tax advice contained in the body of this communication was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penal-ties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

VOLUME 7 ■ ISSUE 1 ■ FALL 2006

the LEADING

THE LEADING EDGE 3

contents

features

departments

Winner 2006 AGD award for publication design

9 News and information from our firm

16 Top 10 misconceptions about doing business in ... the Netherlands

18 In a nutshell: Q&A Chris DeSantis responds to your workplace dilemmas

19 The Leading Edge Alliance Members

4 COVER: The changing face of retirement Finances, interests, longevity mean no single definition applies

13 Prospecting for business Know all about your customers

14 The franchise buying experience Don’t just window shop

THE LEADING EDGE 5

L iving in Arizona, Dean Young can see retire-ment living around him. Three years ago, he

could have become part of that community.A partner at Henry & Horne, a Leading Edge Alliance firm, Young turned 65—the mandatory retirement age for partners.

“I’ve worked for the firm since 1961. I always work. When it comes time to retire, what do you do?,” Young says.

His response was “work less.” For the last three years, by 9 a.m. Mondays, Tuesdays and Wednesdays Young is at his desk. By 4 p.m., he has left for the day.

“I went to three days right away (after official retirement). I take trips, cruises, vacations. It’s the flexibility,” Young says.

“That leaves plenty of time—a four-day week-end to go to the mountains or the beach,” he says. From Feb. 15 through April 15, an accountant’s busy season, he works more often.

“It’s becoming more normal as time goes on. My girlfriend doesn’t want me at home all the time,” Young says with a chuckle. “I have two sons in Scottsdale and spend as much time as possible with them and I play golf.”

Young is far from alone. A recent survey by Merrill Lynch showed only 17 percent of Baby Boomers (a generation that started turning 60

this year) say they intend to stop working for pay throughout in retirement.

Young’s clients have stayed with him during this transition. His firm also has worked with him to introduce the next generation of partners on many of his accounts. “It’s about relation-ships. These people don’t want me to go away,” he says. “Clients can always reach me. I think that’s important.”

So far Young says he likes the part-time arrangement.

“To me it’s an ideal situation. I don’t feel old,” he says. “If you quit, your mind goes dead and your body follows. It’s wise to continue.

“Now I can’t foresee a day I quit coming to the office.”

Less traditional, more opportunities

Carina Diamond, a director at Leading Edge Alliance firm subsidiary SS&G Investment Services, says she hears from clients who feel similarly to Young.

“I see a wide variety, less traditional scenari-os,” she says. “They say, ‘why would I want to retire? I love what I am doing.’”

Other clients, she says, are eager to retire from their existing work to follow their passions. “I’m seeing more and more people in their 20s, 30s

and 40s understanding what retirement prepa-ration takes.

“Some follow the dream financially. They don’t want to work. They want to work for not-for-profit organizations. They want to go on adventure travel. I’ve seen physicians, dentists go into the Peace Corps at age 50.”

Diamond says she first suggests anyone want-ing to change their lifestyle dramatically, such as going into the Peace Corps, take a couple weeks of vacation to live the new lifestyle and see if that’s what they really want to do, she says.

A path that chose her

Florence Kranitz, an SS&G client, didn’t dream for her current “retirement” years. The passion found her after her husband was diagnosed with and succumbed to a rare, fatal brain disorder known as Creutzfeldt-Jakob Disease (CJD).

During his illness, she came in contact with two women in Florida who had started a foun-dation, primarily a Web site, in 1993, to raise awareness about the disease. They had one con-ference. “So much needed to be done,” Kranitz says. She got involved.

The Florida women also were raising families and did not have the significant time necessary to advance the efforts of the CJD Foundation

FINANCES, INTERESTS, LONGER LIFESPAN ALL MEAN NO SINGLE DEFINITION APPLIES

cover

The changing face ofretirement:By ANN M. GYNN / illustration by BRIAN WILLSE


cover

(www.cjdfoundation.org). After reaching a mutual understanding, Kranitz worked along-side the two for seven or eight months, then brought the foundation to Ohio, where Kranitz lives, in October 2002.

As owner of an advertising business, Kranitz says she never had an epiphany that CJD aware-ness and advocacy would be her next path in life.

“I just realized advertising was not part of my life,” she says of her decision to go full-time with the foundation work. “I gave the employees the business.”

But she kept the office space and today oper-ates the foundation with a full-time executive director, a full-time administrative assistant and a part-time administrative assistant.

“My family, my children, told me to slow down,” Kranitz says. Then they got involved in the foundation as well. “When they see we’re accomplishing things, they’re not quite as vocif-erous (about her slowing down).”

Kranitz says the foundation has been success-ful in raising its profile over the last few years. “We’re very involved with the Food & Drug Administration, the Centers for Disease Control, National Institutes of Health.”

But, she says, the focus is on the families affected by the disease. She says one year the foundation had its family conference in Washington, D.C. During part of the gather-ing, participants were given advocacy training then went to Capitol Hill the next day to push their elected officials for research money, public policy, etc.

In addition, two years ago the foundation created a professional DVD on CJD shown to medical students and professionals at hospitals throughout the world. “It has been distributed in 17 countries,” says Kranitz who also serves on an FDA advisory committee that meets nation-ally and internationally.

“We’re hoping to start work this fall on a second DVD about infection control and funeral issues,” she says.

Kranitz says the foundation is careful about how it spends its money. “There isn’t a penny that goes out that isn’t needed,” she notes.

Over the last few years, Kranitz says her atti-tude about her work has changed, though her

passion has not. “I used to look every day at what we hadn’t accomplished. I stopped doing that awhile ago,” she says. The real proof that good work is happening is when a family affect-ed by the disease says thanks for the help.

“It’s work. It’s what I do,” Kranitz says. How long does she plan to continue working?

“As long as I have the strength and feel like I am making a difference,” she says.

A new career

Jim Kollaer, a 60-something Houstonian, says he has to keep working because his son is still in college. “Besides, I get bored,” he adds with a laugh.

A little more than a year ago, Kollaer embarked on what he calls his “fourth career.” At the time he was president and CEO of the Greater Houston Partnership, the city’s chamber of com-merce, world trade and economic development organization. He had been there 15 years, long beyond the average three years for a person in that role, Kollaer says.

When the partnership started a new strategic plan, it was time for a change for him as well.

In Kollaer’s tenure, the partnership had dou-bled its board, totaling more than 100 executives and CEOs, including a former U.S. president, from the Houston area. People used to running multi-billion-dollar entities typically do not sit quietly on the sidelines of a group devoted to the growth of Houston’s economy. Kollaer was busy.

“I had two full-time assistants, 135 board members and 80 staff,” Kollaer says. “Now I share an assistant, work with six partners and no board.”

Today, Kollaer is an executive vice president/partner at the Staubach Company, a global real estate advisory firm. He represents corporate clients looking for office space in Houston and the rest of the country.

Kollaer says he had known Roger Staubach, owner of the company (who embarked on this career after retiring as a professional football player), in Kollaer’s first career in real estate, and Staubach asked him to consider working for his company.

Kollaer, who also is an architect, says he enjoys what he is doing now but that doesn’t mean he sees himself working forever.

The

chan

ging

face

of

reti

rem

ent:

IT’S ALMOST AS THOUGH YOU CAN

DESIGN RETIREMENT ANY WAY YOU WANT.”

Jim Kollaer, Partner, Staubach Co.

THE LEADING EDGE 7

cover

He has experienced a couple of health issues in the past.

“At 70, I might see some scaling back,” Kollaer says.

Of course, not all his friends and col-leagues have embarked on a new career as they approached official retirement.

One man “retired” by selling his business, which gave him a nest egg to do other things. That includes houses in Aspen and Houston and golf every day, Kollaer says.

“Others start new businesses,” he adds. A for-mer CEO of a major oil company, whom Kollaer knows, has spent the last five years as a venture capitalist, putting money into start-up compa-nies until they come onto the market.

Another friend chose a new part-time career, consulting on real estate for a bank executive who is evaluating real estate loans.

Job portability—advanced by technology—also allows people to work from locations around the country (including their home) and be tied into their clients and their company.

In addition, some follow the “soul work” path, spending their time giving back to the community through the ministry or other vol-unteer work.

“It’s almost as though you can design retire-ment any way you want,” Kollaer says.

“I guess the difference from the idea that you work 40 years, retire with a pension, sit on the porch is that there are so many alternatives, so many options,” he says. “To me, it’s an incred-ible choice.”

Choices arise from planning

“All clients want to know is ‘when can I retire’ and ‘can I still live the way I’m living now,’” says David Borden, principal of CCR Wealth Management, Leading Edge Alliance firm.

“Retirement planning is of No. 1 importance in financial planning,” he says. Gone are the days when people had corporate pensions and retired to collect a percentage of their salary annually.

“Now people have to self-plan. People just don’t retire on a specific date. They gradually settle into retirement. People are more flexible. Not everyone likes retirement,” Borden says.

“The idea of planning is a unique process for each client,” he says. “You can’t just fill in the blanks.”

“A Type A personality is go, go, go for years. It’s not easy for them to turn off the switch. They can’t fathom retirement,” Borden says. “It’s social too. People enjoy working even if they don’t like the idea of work.”

He says most younger retirees (starting around 60) really want flexibility. But to do that, plan-ning is a must.

Borden explains that the type of lifestyle someone wants to have in retirement and the ability to maintain that lifestyle for 30-plus years are important considerations.

“You need to do the right things with money. Planning, properly investing and staying on top of it are important,” Borden says. “The old adage that people should invest the percentage of their age in bonds (a safer, steady investment with typically smaller returns) is no longer appropriate.”

Borden also cautions that a plan likely will not work forever and should be reviewed periodi-cally. “The numbers change,” he notes. “People are living longer. That fact has changed the way you need to invest and take care of the money. The money has to last so much longer.”

Start early, more options

“Anything can be done if you’re ready to make tough decisions,” says SS&G’s Diamond. “The earlier it’s made part of your lifestyle, the advan-tages are greater.”

Younger people planning for retirement first must avoid common money mistakes, then work proactively on saving and planning retire-ment. Diamond offers these suggestions:• Get your debt paid down. • Don’t run up your credit cards.• Pay yourself first. “It’s a boring concept,” she

admits, “but it’s true.”• Encourage your children in their teens to

buy Roth IRAs. “It’s consciousness-raising. They are little steps,” Diamond says.

• Buy a home moderately priced for your income.

surveysays...

According to a recent

AARP survey of Baby Boomers:

WORK in retirement

79 percent plan to work in some capacity

during their retirement years

30 percent say they will work part-time

for enjoyment’s sake

25 percent say they will work part-time

for the needed income

VIEW on retirement

69 percent are very or fairly optimistic

about their retirement years

46 percent say their retirement outlook

has changed for the better in the last

five years. Many attribute this to efforts

to save more

48 percent of Baby Boomers define

retirement as a time to indulge

themselves

31 percent equate retirement with

having enough money and financial

security

RECREATION and SERVICE

in retirement

70 percent have a hobby or special

interest to which they will dedicate a lot

more time after retirement

51 percent expect to devote more time

to community service and volunteering

62 percent of those who volunteer now

expect to devote more time to it


cover

Diamond says she once had an appointment with a couple in their 20s trying to decide whether to buy their “dream home” even though it would stretch their finances. Later, she was visited by their possible future—a couple in their 50s who regretted ever falling in love with their “dream house” as it had become a money pit that led to their spending down their retirement.

Remember, she says, banks are willing to loan you a lot more than you should spend. “That can really prohibit you from reaching your retirement goals,” Diamond says.

Not counting on Social Security?

Both Diamond and Borden say they think Social Security will still be around when 30- and 40-somethings turn 65, but don’t plan for that. “You’ll get something, but don’t count on it,” they say.

Even Henry & Horne’s Dean Young and other retirees over age 65 (or 62 in early retirement) who receive a stipend from the federal govern-ment each month know it’s not sufficient to live beyond the basics.

“Social Security doesn’t go very far. Often your standard of living increases (in retire-ment),” Young says, explaining people have more leisure time, which translates into more time to spend money.

Borden says because people fund their own retirement today, it is paramount to start sav-ing as early and as much as possible. “The new 401(k) rules make it advantageous and easy for people to save for their retirement,” he notes.

He says many families choose to spend money on schools, camps for their children, vacations and start saving for retirement later.

That means, of course, a person age 50 who followed that path must save a significantly greater portion of their salary than someone in their 30s to maintain the same lifestyle in retire-ment given the magic of compounding.

“A dollar saved today is worth twice as much in retirement as a dollar saved a few years from now,” Borden says.

“People in their 50s should take advantage of the catch-up provision that allows them to save additional money in their retirement plan,” he says. “I’ve also seen people working longer so they save more the last few years and prolong the time they have before drawing on their assets.

“It’s all just money and time,” Borden says.

Changing workforce

Staubach’s Kollaer says the necessity for people to remain in the workforce beyond traditional retirement years is not just for the people who are retirement age.

“With the number of people retiring, there is not enough in the workforce to replace them,” Kollaer says. “People in their 60s and 70s still contribute.” e

The changing face ofretirement: what

do you want?Henry & Horne’s Dean Young

says deciding whether to keep

working can be done by asking a

few questions, such as:

• Do you like to work?

• Do you like relationships

(socialization)?

• Do you want to start a new

life or to maintain your

existing one?

THE LEADING EDGE 9

the LEADING

Henry & Horne, LLPAdvisors to Business

VOLUME 7 ■ ISSUE 1 FALL 2006

As an owner or a board member

of an organization, do you feel comfort-

able with the organization’s inter-nal control system? Do you trust that management has designed, implemented and is maintaining an effective system that should help prevent and detect fraud? Even if you can answer yes to these ques-tions, it’s important to take things one step further.

Management trust

Owners and board members invari-ably trust the people they have in top management positions, oth-erwise those people would not be in those positions. But if manage-ment is responsible for designing, implementing and maintaining the internal control system, the system will only be effective in prevent-ing and detecting employee fraud. Employee fraud would be fraud committed by any employees under the top level of management.

Of course, it’s great if your internal control system can help prevent employee fraud. After all, according to recent surveys, most frauds occur at the employee level. However, something more important to consider is that the average dollar amount per occur-rence (according to a 2003 KPMG fraud survey) of employee fraud

is approximately $460, while the average dollar amount per occur-rence of financial reporting fraud is approximately $258,000. And financial reporting fraud is usually perpetrated by management since the internal control system usu-ally prevents lower level employees from fraudulently misstating finan-cial information. Since manage-ment designs and maintains the internal control system, managers are in a position to easily override that system.

Management pressures

Another item to add to your con-sideration of the possibility of man-agement override is the pressure that management may feel to meet certain objectives. Management may have pressure to maintain assets at certain levels in order to meet loan covenants, to keep expenses down in order to come within budget, or to achieve certain predetermined financial results that determine a portion of their com-pensation. Another consideration is that management may intention-ally misstate financial information and not even regard it as fraud. They may, for example, feel that an adjustment will “fix” the error in the next fiscal period. Any inten-tional misstatement of financial information is fraud.

What’s the answer?

So what can an organization do to attempt to prevent management override of controls? A third party could be the answer. An audit com-mittee could be that third party. An audit committee that has knowl-edge of the internal control system and has identified where that sys-tem can be overridden by manage-ment can provide oversight over management which is an excellent way to reduce the risk of financial reporting fraud.

To assess the operations of the organization and to determine how management might possibly over-ride controls, the audit committee needs to be consistently skeptical. Even if the consensus of the board and other employees is that man-

agement is honest and trustworthy, the audit committee must main-tain skepticism in order to exer-cise effective oversight. The audit committee can also accomplish its oversight responsibilities by taking advantage of the work being done by outside auditors. The audit committee and the outside audi-tors could work together to identify fraud risk areas and develop ways to test those areas.

The risk of management override is in your organization. Third party oversight by an audit committee could help mitigate that risk. e

Colette Kamps, CPA, is an audit manager in the Scottsdale office of Henry & Horne. She specializes in performing audits for not-for-profit organizations. She can be contacted at (480) 483-1170 or [email protected].

Is management cooking the books?By Colette Kamps, CPA


H&H

Are you encouraging fraud at your business?Test your vulnerability

By Donald R. Bays, CPA, CVA

The opportunity for fraud in your busi-

ness may be greater than you think. It

may be quite easy to pull off … and, it may come from one of your most trusted staff. How does your company measure up in control-ling the potential for fraud, and what can you do about it?

How easy is it for your employ-ees to commit fraud against your company? You may be surprised at how vulnerable the assets of your business are to theft by your staff. According to the Association of Fraud Auditors in its “Report to the Nation on Occupational Fraud and Abuse (2004),” the average organization loses about 6 percent of its total annual revenue to fraud and abuse committed by its own employees.

What is fraud?

Fraud is a broad term. Webster’s defines fraud as “deceit, trickery, sharp practices, or breach of confi-dence, used to gain some unfair or dishonest advantage.” The World Book Dictionary defines fraud as “any deliberate misrepresentation of the truth or a fact used to take money, rights, or other privilege or property away from a person or persons.”

In business, occupational fraud and abuse includes asset misap-propriation, false statements, false overtime, petty theft and pilferage, use of company property for per-sonal benefit, and payroll and sick time abuse.There are three categories of fraud:1. corruption (e.g., bribery, con-

flicts of interest, economic extortion, and illegal gratuities),

2. asset misappropriations (e.g., cash, fraudulent disbursements, expense reimbursements, pay-roll, bogus invoices, claims and loans), and

3. fraudulent statements (e.g., financial).

Employee fraud generally is found in the second category: misappro-priation of assets. The likely cul-prits could be anyone from manag-ers down to accounting and book-keeping personnel, or to warehouse staff.

Fraud causes

There are usually two major fac-tors that can cause an employee, who has otherwise been an honest and trusted employee, to suddenly become involved in an embezzle-ment or theft. The first is involve-ment with drugs by either the employee or one of the employee’s loved ones; the second is pressure created by an economic downturn.

Unlikely perpetrators

You may least expect a trusted employee to engage in theft from your company. However, experi-ence has shown that when a sig-nificant embezzlement or theft is discovered, it is usually a situation where the employee is a trusted person who has been with the company for an extended period. The employee has an exemplary work record, is dedicated and is considered to be a “company per-son.” Additionally, if an employee did not have the implicit trust of the employer the embezzlement or theft might not occur. A break-down in internal control of a com-pany’s assets can create a situation

where the dishonest employee can manipulate the system.

Companies unwittingly assist the fraud process

Typically, the employer is extremely busy and does not have time to get involved in the accounting depart-ment. Also, smaller companies usu-ally lack numerical depth in their accounting department, which pre-cludes the implementation of strong internal control procedures. When you combine the previous factors with the employer’s feeling of total trust in the employee, the situation can prove to be dangerous.

What are your business’ red flags?

How susceptible is your business to fraud? Answer the questions in the accompanying checklist to find out. A few negative responses may not be serious in some asset handling functions. On the other hand, just one negative answer in another area may be a huge red flag of impending trouble.

Summary

Businesses aren’t always as secure against employee fraud as their owners may believe. Use the check-list to help correct internal control problems. Owners must be ever vigilant about potential employee theft. Fraud can happen … and, it can occur by the most trusted employees. e

Don Bays is associate director of Henry & Horne’s Business Valuation and Litigation Services Group. He can be contacted at (480) 839-4900 or [email protected]

THE LEADING EDGE 11

H&H

Fraud indicator checklistHow to use the checklist:1. Review the concept for each internal control area and answer the questions following each section.2. Each answer identifies an area that needs stronger internal controls.

Segregation of dutiesConcepts: Certain accounting/bookkeeping functions are designed to cross-reference each other for accuracy. If the same person is responsible for multiple duties, the natural check and balance of the system is removed.

Trust is not the issue; verifying business transactions is. Giving a single person unquestioned authority of your finances is not a wise business practice.

Checklist (each checked answer identifies a potential problem area):

Is the person who handles your cash also responsible for recording the cash?

Does the person who pays for or orders inventory also receive the materials?

Are two or fewer people responsible for the accounting function?

Is only one person responsible for reviewing financial statements each month?

Is your review of financial journals sporadic?

Bank reconciliationsConcepts: Bank statements can only flag discrepancies if they are reconciled on a timely basis. Reconciliations should be done once a month. Bank adjustments need to be tracked carefully from one month to another.

Segregating duties is also important in this area. Reconciliations should be performed by one person and reviewed by another. Also, the person who writes the checks should not have the authority to sign checks.

Checklist (each unchecked answer identifies a potential problem area):

Do you review canceled checks and endorsements on a monthly basis?

Do you compare payroll checks with your current employee records?

Do you question funds transferred between bank accounts?

Do you track the number of credit card bills you sign per month?

Are bank reconciliations performed on a timely basis?

Is someone responsible for reviewing the reconciliations each month?

Do you verify reconciled items? Does the owner receive and open the bank statement prior to turning it over to the person who performs the bank reconciliation?

Supporting documentationConcept: Enhances communications and serves as final checkpoint.


Do you ever sign blank checks? Do you ever sign checks without original supporting documentation?

Do you ever sign checks without canceling supporting documentation?

Have funds ever been transferred between accounts without review or verification?

Do you ever sign checks for new business vendors without knowing or verifying their name and association with your company?

Employees/personnelConcept: Know your employees and be aware of changes in behavior.


Are any of your employees extremely possessive of their work records and reluctant to share their tasks?

Are any of your employees apprehensive about vacations and time off, while always being the first in the office and the last out?

Have you noticed a substantial change of lifestyle in any of your employees?

Do any of your employees have a possible substance abuse problem?

Are any of your employees living beyond their means?

Have you ever hired an employee before checking references?

Do you permit your accounting personnel to work longer than a year without taking a vacation?

Do you have any accounting staff or key personnel who have not been secured with a fidelity bond?

Safeguarding assetsConcept: Limit and monitor access to important documents and supplies.

Checklist (each unchecked answer identifies a potential problem area):

Are blank check stocks and signature stamps safely secured?

Do you restrictively endorse all checks when received?

Do you deposit cash and checks daily?

Do you maintain a list of office furniture, equipment, and company vehicles?

Do you have adequate insurance coverage for assets?

Are all systems backed up on a daily basis and is backup stored off-site?

Is there password restriction and security for all computer systems and programs?

Are passwords changed at least every six months?


H&H

Appropriate steps for a referralBy Mark Eberle, CPA

In business, we all work very hard to

do the right things so our clients, friends

and associates willingly and hap-pily refer their friends and contacts to us. But do we always remem-ber to do the gracious, polite and appropriate steps when the referral call comes in? As a reminder to all of us, here are some of the items we should consider doing when we do get that all important call:

1. Get the person’s name.

Ask the referral to repeat his or her name because it’s important to him or her and to us. Ask for the spell-ing or clarify the spelling, even if it seems obvious, and make sure to write it down. In the course of a busy day we can easily be distract-ed making the name and the spell-ing easy to forget. Similarly, don’t try to do two things at once. Focus on the phone call and put e-mails or other work you were trying to finish or get through on hold.

2. Get vital information from the caller.

Why did the referral call? What does the referral need? Spend more time listening to the referral’s needs instead of trying to tell him or her what you’re good at. Find out both the referral’s street and e-mail address. You might even suggest to your caller that at the end of the conversation you will send a summary e-mail regarding your discussion to ensure the informa-tion you have is correct. This will help keep you focused on what the referral is saying and will help to minimize misunderstandings or incorrect information.

3. Ask how the referral came to give you a call.

If you forget to ask, you will miss the opportunity to give an appro-priate “thank you” to your referral source. It’s nice to let the referring party know that you received the call, are appreciative of that indi-vidual’s confidence, and have set

up the appropriate next steps. Even more impressive and important is to follow up later with the referral source a second time, to let him or her know how the relationship is progressing and to take the time again to say thanks.

4. Confirm what you will do next.

Try not to leave anything to chance, but instead leave nothing to chance. Repeat the dates, times and phone numbers and then most important, make sure you follow through. Set up a plan of action and clearly state what that plan is.

All of us know these things to be true but taking the time to do them takes a certain amount of commitment. And often, in our busy schedules, we need a little reminder to do the things we know we should be doing.

We each have our own particular variations of how to react and treat a referral call but respecting the importance of the call is critically important. Making the caller feel respected and important to you is a basic step that does not change. And, as an added extra, don’t for-get to smile when talking on the phone. It gives your voice a special hint of friendliness and apprecia-tion towards the caller.

Enjoy your next opportunity—you worked hard to get it. e

Mark F. Eberle, CPA, is the managing part-ner of Henry & Horne. He is also a member of the firm’s Executive Committee and can be contacted at (480) 483-1170 or [email protected].

THE LEADING EDGE 13

growth

Unless you operate a retail business, most of your business does not just walk through

the door. Customers don’t wander around like in a grocery store, seeing what’s on sale, what’s not and comparison shop.

Instead, you face the world of attracting cus-tomers from a different vantage point. You may not even think of it as sales. You most likely do not have “sales” in your title. And yet, as a representative of your business you are selling the company every time you answer the phone, attend a meeting or talk about what you do at a dinner party.

Tom Grottke, partner in charge of advi-sory services at Leading Edge Alliance firm CCR Group, says taking some time to think about your strategy, what you’re already doing and how to build upon your strengths all are impor-tant to successful prospecting. He identifies industry, product and geography as segments where companies can distinguish themselves.

When prospecting for a particular industry, one must demonstrate expertise in that subject. For example, a banker interested in construc-tion loans should show a familiarity with the construction industry. Being an expert in loan-ing money is not enough.

“If you don’t have the knowledge of a bor-rower’s business, it doesn’t work as easily,” says Grottke who has worked 22 years at three pro-fessional services firms.

Demonstrating expertise includes showing past work, speaking the “language” of that indus-try as well as speaking or writing on the topic in outlets that speak to the targeted sector.

Another attribute of successful prospecting is to have people within your company who are well known in the industry or the commu-nity. These include seasoned professionals who belong to associations or chambers, or are seen at community functions, Grottke explains.

“They are high profile,” he says, noting many industries and markets require people to be vis-ible to gain recognition for the individuals as well as the company.

“If you’re not as visible, you’ll have less busi-ness,” Grottke says.

However, just because a professional is high profile does not mean she or he is the one who will get all the work. “That person may get the call from a prospect but may not be the final guy,” he says.

Thus, do not make the mistake of assuming high profile employees are the closers. In reality, they create brand awareness.

Another prospecting concept that is eas-ily understood is that people prefer to work with experts. Health care, banking, insurance, government contracting, utilities all are niche-oriented markets who want experts with famil-iarity of their industry. Not coincidentally, these markets also are highly regulated.

As for geography’s role in prospecting, it makes sense that someone in Hartford, Conn., is hampered in selling to someone in California. By being thousands of miles away, the Connecticut-based person may not be aware of all the local issues as well as the local competition. “It limits your ability,” says Grottke.

Yet if the Connecticut person can put together a package, bringing in a more local company to assist, that California deal could happen. This practice is especially helpful in geographically diverse companies as well as for smaller busi-nesses that belong to national associations or organizations in their field. The Internet and other technological communication vehicles also enable businesses to cross great distances easily.

Grottke says he sees a multi-pronged approach as essential for prospecting. “You have a blend of channels—internal capabilities, industry, prod-uct,” he says. “Your strengths can position you well in sales opportunities.”

For example, an auditor who specializes in banking would have two prongs (industry and product expert) and be well positioned to suc-ceed.

With any prospecting path, realize the job is to first get the door open, not to close the deal.

Know the hot topics related to the product or industry. Grottke says companies are eager to know your “quals”—the qualifications that enable you to do the work they want. So if it’s a particular industry to which you’re marketing, identifying clients with whom you worked on projects related to that industry would be help-ful. Be aware of confidentiality agreements too.

If you do not have the necessary “quals,” but really want to pursue the industry or sec-tor, consider building up your experiences to get that background. Work within your exist-ing relationships to see if they need assistance in that particular area or consider offering a discount until you have built the necessary qualifications.

Prospecting for business:Potential customers want to know you know all about them

Remember, Grottke advises, businesses want to hire companies that can help make their businesses better—operationally or financially. Ask yourself, “what are the things we do that are unique? What do we do that adds value?” By answering thosequestions—and conveying those points to your prospects—you set yourself apart from the competition.

When Grottke hires someone to join CCR, he looks for eager people who can think on their feet, communicate well and speak quickly with wit. They are responsive and appropriately aggressive.

“The buyer recognizes your unique capability when you communicate in a clear, articulate, succinct manner,” he says. “Write bullets, not books.”

So here are a few bullets from Grottke on prospecting:

• Listen. People are more likely to trust some-one who listens because they know this per-son can deliver what they are asking.

• Take notes all the time. Later, you can identify key elements of the buyer’s needs and wants, and respond appropriately. The notes give you memory cues too.

• Hone the conversations. You’re in a stronger position to close the sale if you can clarify, identify and focus on the prospect’s targeted goals as you talk.

• Respond quickly. People who are slow to respond, with a proposal or some other response, lose more deals because the delay opens the door for your competitors to start their own conversations. e


strategic

Grab a bite to eat, ship a package, get the car repaired, drop your child at day care, attend

an at-home shopping party or visit a host of other retail or professional outlets. In any one of these ventures, chances are great that you have patronized a franchise.

As a sector of business, franchising con-tributes more than $1.5 trillion to the U.S. economy. That’s nearly 10 percent of the private-sector economy, according to the International Franchise Association. In addition, franchises employ more than 18 million people.

Deciding whether to own a franchise means facing a staggering number of choices. There are nearly 2,500 franchise concepts, with 500 of those in the fast food industry alone. Over the past three years, the International Franchise Association reports, nearly 900 concepts started franchising, with more than half starting in 2005.

So where to begin?First, realize that even though it will be your

franchise outlet, you’re not the ultimate boss. “Any time you get involved in a franchise, you’re not in business for yourself; you’re in business for the franchisor,” says Mike Stover, who works with franchise clients at Brady Ware, a Leading Edge Alliance firm.

McDonald’s, for example, has significant influence over its franchised stores on every-thing from how to advertise to how to make a Big Mac. “That’s not a bad thing,” Stover says. “You don’t have to invent a menu. You don’t have to provide training (on your own). There’s an already proven process.”

He says people buying into franchises want a proven concept. They want to know it works and is profitable.

Leading Edge Alliance firm SS&G Financial Services’ Teresa Moore, who leads the SS&G Restaurant Services’ franchise accounting sector, agrees. Of course, with the rapidly growing num-ber of franchise concepts, some concepts may not have had sufficient time to prove successful.

“If they haven’t had that time, you’re taking a chance and should somehow cover yourself in case the franchisor doesn’t live up to the expectations,” Moore says, adding those protec-tions could include paying your franchise fee over time or allowing for a refund for unfulfilled obligations.

Both Moore and Stover advocate thoroughly investigating before buying into any franchise. “Do the research, look at the demographics and you’ll have a lot better chance of succeeding from the start with that support,” Stover says.

Moore says if a franchise is successful in one market, it does not guarantee success in another. For example, a franchise targeted at upscale cli-entele would not do well in an area lacking such clientele and vice versa, she says.

Applebee’s, for whom Moore has worked, does its own demographic research before it will approve a new franchise. She says that indicates the parent company is interested in success as well.

“Some franchisors just want the franchise fee,” she says.

That’s why Moore urges franchisee prospects to read the fine print before they sign franchise or development agreements, identifying all fees and hidden agendas, and making sure royalties are reasonable.

For example, the franchisor could spell out in the agreement that a franchisee is to use a specified construction company to build the restaurant. But if the construction company is based in Atlanta and the franchisee is building in Colorado, who covers the cost of travel and housing? If it’s the franchisee, that can add on a significant expense that likely would have been unexpected without asking first.

Another way to check on the franchisor’s reputation is to see if it owns any stores itself. “Call other franchisees of the concept and ask them hard questions,” Moore says.

Stover, who works with franchises such as KFC, McDonald’s and Chuck E. Cheese, says most franchisees already have experience in the industry. “A lot of McDonald franchisees worked at McDonald’s and had a good experience,” he says. Buying into the franchise is not purely financial for them, the franchisees are building on their positive experiences too.”

Even if a prospect franchisee has not worked for the franchise, he or she must have a famil-iarity with the industry. “You have to know the business you’re getting into whether it be kiddie care or restaurant,” Moore says.

In addition, franchisees should expect to put together a good team of advisors, including a CPA, to help make the best decisions. “You need your own advisors,” Stover says. “Franchisors look out for the franchisor. It’s not always the same interest at heart.”

Accounting systems and financial reporting also could be dictated by the franchisor. Others allow flexibility. If they’re not specific, use the system and software that bests fits your needs and budget, Stover says.

The franchise buying experience—don’t just window shop, advisors say

Other questions a new franchisee needs to answer include how its own company will be structured. Will it be a sole proprietor, a limited liability company or some other entity?

And the essential component of any success-ful franchise is a well-capitalized franchisee who understands how expensive it is to get started. Moore advises that franchisees be able to oper-ate at least a year without making any money, and certainly not expect any income in the first month.

Initial fees can vary from a few thousand dol-lars to millions, according to an International Franchise Association Educational Foundation study. Franchisees can expect to pay less than $5,000 for some sports and recreation fran-chises to nearly $6.5 million for hotels. Fast food franchises, the most popular sector, can range from $180,000 to $3 million, the study reports.

Stover says while franchises are expensive to start, they also require capital reinvestment for things such as new signs, equipment, etc. “There’s plenty of opportunity to go deeper into debt,” he says.

Franchisees should strive to pay down their debt as soon as possible, making sure they do not sign loan agreements that include pre-pay-ment penalties. “If you’re able to be on secure financial footing, you expand your leverage,” Stover says.

Successful franchisees often own more than one location to maximize their investments—they replicate their own process just as the franchisor replicates its own process, Stover explains.

Moore says some franchisees expand in a market then diversify. “It’s easier. Companies are looking for experienced people to come in. Panera’s (a bakery-cafe) will gladly take an Applebee’s (a neighborhood full-service restau-rant) franchisee because that person has the experience and the capitalization,” she says, add-ing competing franchises won’t be as eager. e

THE LEADING EDGE 15

INNOVATION A MUST FOR BUSINESSTwo-thirds of 765 top executives report seeing fundamental changes ahead for their companies in the next two years, according to IBM’s 2006 CEO Study.

“They see opportunity—opportunity through innovation,” the study reported. The CEOs’ thoughts fell into three main areas—the need to innovate business models, the essential importance of external collaboration, particularly with business partners and customers, and the necessity of innovation to be orchestrated from the top.

In addition, the CEOs also talked about their own insights in improving innovation agendas. Advice included such ideas as “think broadly, act personally and manage the innovation mix,” and “ignite innovation through business and technology integration,” as noted in the CEO Study’s executive summary.

To get a copy of the complete 64-page study, visit www.ibm.com/vrm/ceosrch1. After completing a short registration form, you can receive an electronic copy ofthe report as well as request a printed copy be mailed.

HR PROS FORECAST TOP TRENDSHealth care continues to dominate the list of trends impacting the U.S. workforce, according to a recent survey of human resource professionals.

Of the 9,000 surveyed for the 2006 SHRM Workplace Forecast released by the Society of Human Resource Management, the top 10 trends include:

1. rising health care costs2. increased use of outsourcing of jobs to other countries3. threat of increased health care/medical costs on U.S.’ economic

competitiveness4. increased demand for work/life balance5. retirement of large number of Baby Boomers around same time6. new attitudes toward aging and retirement7. rise in number of individuals and families without health insurance8. increase in identity theft9. work intensification as employees try to increase productivity

with fewer employees10. vulnerability of technology to attack or disaster

IN FOR THE LONG HAUL AT WORKApproximately one in four workers (26 percent) in the United States has been employed by his or her company for at least 10 years.

In September, the Department of Labor, Bureau of Labor Statistics released the data, citing hourly and salary workers ages 16 and older. Broken down by gender, the percentages who have worked for their employer for at least 10 years are similar—men at 27 percent and women at 25 percent.

For the complete study, visit www.dol.bls.gov.


global

Working Globally: Top 10 misconceptionsof doing business in ... the NetherlandsBy Frans Tijssen, Bol International

How does the reality of doing business in the Netherlands compare with the perceptions

that may be held abroad? Netherlands-based Leading Edge Alliance firms Bol International and Van Oers Accountants provide some answers.

11From an international tax point, the Netherlands is not on the map.The Netherlands concluded approximate-

ly 90 tax treaties, in which the levy generally is reduced to zero at source on interest and royal-ties. Also, the treaty partners benefit optimally from the treaties, as Dutch legislation applies favorably to so-called flow-through entities.

22From a fiscal point of view the Netherlands are unattractive for for-eign employees.

The tax authorities grant special tax benefits to foreign employees who are temporarily assigned to a Dutch subsidiary or branch from abroad, i.e., employees who reside in the Netherlands. Under the so-called 30-percent ruling, 30 per-cent of the employee’s salary may be paid as tax-free compensation for related living costs.

33The Dutch language is difficult to speak and understand.This really is not a misconception. It is

true. Fortunately, 87 percent of the popula-tion speaks English well enough for conversa-tion, which makes the Netherlands the leading English-speaking nation in continental Europe.

44In the Netherlands everybody is wear-ing wooden shoes, has tulips in their garden and smokes pot.

We really have to disappoint you on these. We only use wooden shoes when tourists are around, we do have beautiful tulips and other

flowers but only in a certain area of the country. And although we have a liberal drug policy, our drug problem is not higher than in any other western European country.

The Netherlands also is a safe country. Your children can safely ride their bikes to school and you can safely go out to dinner even in the “big” cities after dark. In the big cities, you should take the same precautions you should take almost everywhere else in the world.

55Concluding agreements with the Dutch tax authorities is quite difficult.The Dutch tax authorities have a special

information office for potential international investors. Provided that these investors meet certain conditions, they can conclude agree-ments in advance with the Dutch tax authorities about fiscal aspects of their proposed invest-ments.

66From a logistical point of view it doesn’t matter where you start your European operations.

To become successful in the European market, it’s essential to set up an effective supply chain. One of the most common is the centralized European distribution model, in which your entire European supply chain is managed from one central point in Europe. In fact, 65 percent of all U.S. firms using a European distribution center have located it in the Netherlands.

Unique characteristics of the Netherlands include:• central location within the European market• excellent sea and airport facilities• extensive transport infrastructure with fast

connections• excellent and well-developed logistics industry

In fact,65 percent of all U.S. firms

using a European distribution center have

located it in the Netherlands.

THE LEADING EDGE 17

77It is difficult, time consuming and expensive to set up a company in the Netherlands.

First of all, you are not obligated to establish a new legal entity, as you can decide to set up a branch office.

The incorporation of a private limited com-pany takes about two weeks. Gathering the necessary information regarding the beneficial owners, first managing directors, etc., by the incorporators is often the most time consuming part of the process.

Out-of-pocket expenses for the services of the civil law notary are in the range of $3,000 for a limited private company (B.V.). Dutch law also requires a minimum issued and paid in capital of 18,000 Euros (approximately $22,500).

88Tax rates are extremely high in the Netherlands.There is a distinction between income tax

and corporate tax. The 2006 corporate income tax rate is 29.6 percent. The government plans to reduce this rate to 26.9 percent.

To understand the Dutch individual income tax system, you have to look at what the Dutch tax code considers three different “boxes” of income.

The first box includes income from entrepre-neurship, from employment and from a princi-pal residence. This income is taxed at progres-sive rates, ranging from 1.8 to 52 percent. A lot of deductions can be claimed including pension payments and mortgage interest.

The second box only applies to individuals owning a significant shareholding in a com-pany.

The third box applies to passive investment income. The actual income is not taxed, the tax-able basis, which is the average value of assets

of a particular year, is taxed. The effective tax rate amounts to 1.2 percent of the calculated average value.

These tax rates put the Netherlands on a very competitive footing with the other EU loca-tions.

99Firing people is not simple in the Netherlands.Unfortunately, this is not a misconcep-

tion. An employer can either have an agreement for an indefinite period or a fixed-term agree-ment. A fixed-term agreement ends by opera-tion of law upon expiration of the contract term. An employee can be given no more than three consecutive fixed-term contracts.

An agreement for an indefinite period can only be ended by approval from the Centre for Work and Income or the court. Any dismissal by an employer without the approval is null and void.

Normally the Centre for Work will approve a dismissal if the reason for terminating is economic or due to the financial situation of the company. In this case there is a legal notice period. Termination by court often means the court will award the employee a compensation to be paid by the employer (one month’s salary for every year of service under the age of 40, one and a half month’s salary per year of service between the age of 40 and 49 and two month’s for the years of service above the age of 49).

1010The Netherlands has a very open culture.It’s true, although we also have a

habit of having our opinion on almost every-thing that is happening elsewhere in the world. Sometimes we jump to conclusions without investigating all aspects. The positive side is that we are able to see our own mistakes once in a while, as you can see in this newspaper excerpt:

From the boardroom to the darkroom, from the jungle to the supermarket aisle, Duck & Birdie are masters at combining the witty and intelligent with the silly and crude. Started as a student prank, they now enjoy great popularity in the Netherlands. Both endearing and repul-sive, Duck & Birdie are remarkably ver-satile in their consistent effort to redefine the boundaries of good taste. e

Frans Tijssen shares his views from an insider’s per-spective. A resident of the Netherlands, Tijssen is a partner at Bol International, a European member of The Leading Edge Alliance.


Q&A

Q: Our company will see a significant number of employees retire in the next few years. As such, we are ramping up hiring and bringing in less-experienced people to “train” and learn from the retiring employees before their departure. However, it’s not a formal mentorship program and it’s nothing we’ve announced that we’re doing. We don’t want anyone to feel forced into retirement, but we can’t be starting from scratch if they do. How can we foster a “learning/training” environment when the company still needs to operate at full speed and everyone needs to fulfill their responsibilities?

A: Your experience is like that of many compa-nies—the first wave of Baby Boomers is heading for retirement in the next few years. A great deal of knowledge is held in their heads and when they leave that knowledge leaves with them. I believe your issue is an interesting one and certainly one that can be addressed. One of your challenges will be to determine how willing your employees are to share what they know. Clearly you can have two outcomes, one where they will willingly commit to teaching those who follow or one where they feel they have to comply with teaching new employees. I favor commitment over compliance because compliance won’t give you the desired outcomes.

In a Nutshell by Chris De SantisNewbies learning from seasoned workers—can we all work for a common goal?

I’d like to back up a bit before we address the question. You first need to answer a ques-tion: How would you describe your culture? Knowing the culture tells you a great deal about what people will willingly do. If it’s open, hon-est, and meritorious in its nature, that’s great. If there is a great deal of skepticism, control and blaming then that will be a significant hurdle to getting people to share what they know.

For purposes of this column, let’s assume it’s a great place to work. If it is, then I would sug-gest you are up front about what you are trying to accomplish. A seasoned employee who is loyal to the company would willingly mentor others. But having said that, I think what you would like to accomplish will require structure. I would also encourage you to involve the “sea-soned” knowledge workers and the “newbies” in determining what needs to be taught and in designing how to pass on this knowledge.

As for your concern about forcing them to retire, as I said, if this is a great place to work I believe that fear is unfounded. Historically people have always been willing to teach those that follow. The question to ask your employees is what do you wish your legacy to be? In turn, what will the company do to recognize these “teachers”? What rewards are appropriate to those who commit rather than comply? One other suggestion, you might consider involving these young people in the process by having them act as the recorders of this legacy. If what is being passed on is critical to the operation of your business, write it down and make it a living document. One thing the “newbies” are sure to bring to this process is the leveraging of technol-ogy. Put it somewhere where it can be accessed and updated. Maybe then people will learn even more from each other than you had hoped.

No program will be perfect so explore a vari-ety of options in how this is initially launched, take what you learn and get iteratively better. And as I said, bring in both the “seasoned” and the “newbies” into the development pro-cess. One final point, I believe you will have three kinds of knowledge that will be passed on. First, the kind the organization wants for purposes of continuity. Second, the kind the

individual might want for maneuvering through the politics of an organization. Finally, the kind of information that is just plain wrong. Ferret out which is which and you have one heck of a great future as an organization and a business. Best of luck. e

Do you have a workplace question you want answered? What do you want to know to make work a better place? Send your questions to [email protected] to get Chris DeSantis’ two cents as to what he thinks you might want to do.

Chris DeSantis uses his 20 years’ experience in training and development as an independent consultant. He spe-cializes in the design and delivery of management and organization development interventions. A presenter at Leading Edge Alliance seminars, DeSantis focuses his work on assisting individuals or groups in identifying obstacles to effectiveness and subsequently works with them to create user friendly solutions aligned with the company’s strategic initiatives. He earned his undergraduate degree from the University of Notre Dame, an MBA from the University of Denver and an MA in organizational develop-ment from Loyola University.

T H E U N I T E D S T A T E S O F A M E R I C A / C A N A D A

LEA ASIADezan Shira & Associates China

Hongo Tsuji Tax & Consulting Japan

The Iyer Practice Singapore

LEA EUROPEBol Accountants Boxmeer/Schijndel/Venray, The Netherlands

BPG Beratungs - undPrüfungsgesellschaft mbHBerlin/Frankfurt/Düsseldorf, Germany and Poland

Dr Kleeberg and Partner GmbHMunich, Germany

Groupe Ex et ComParis, France

H. W. Fisher & Co. London, England

Hübner & Hübner Austria

Johnston Carmichael Edinburgh/Glasgow/Aberdeen/Inverness, Scotland

Russell Brennan Keane Chartered AccountantsDublin/ Athlone, Ireland

Studio Caramanti E TicozziMilan, Italy

Van Oers Accountants en Belastingadviseurs Breda/Roosendaal/ Etten-Leur, The Netherlands

LEA UNITED STATESOF AMERICAAlpern RosenthalPittsburgh, PA

Argy, Wiltse & Robinson, P.C.Washington, D.C.

Baden, Gage & Schroeder, LLCFort Wayne/Indianapolis, IN

Beach Fleischman & Co., P.C.Tucson, AZ

Brady Ware Dayton/Columbus, OHRichmond, IN

Brown, Edwards & Co., LLPBluefield, WV / Roanoke, VA

Brown Schultz Sheridan & FritzHarrisburg/Lancaster, PA

Burr, Pilger & Mayer LLP San Francisco/Palo Alto

Carlin, Charron & Rosen LLP Mass., Conn., RI

Clark Nuber P.S.Seattle, WA

Ehrhardt Keefe Steiner & Hottman Denver, CO

Elliott Davis, LLCGreenville/Columbia, SC

FGMK, LLCChicago, IL

Freed Maxick & Battaglia, PCBuffalo/Rochester, NY

Fuller Landau LLPToronto, Ontario and Montreal, Quebec

Gifford, Hillgass & IngwersenAtlanta, GA

Haskell & White, LLP Irvine, CA

Henry & Horne, LLPTempe/Scottsdale/Casa Grande/Pinetop, AZ

Honkamp Krueger& Company, P.C. Iowa

KAWG&FBaltimore, MD

Kafoury, Armstrong & Co.Reno/Las Vegas, NV

Kahn, Litwin, Renza & Co.Providence/Newport, RI

Karns, Murakami & Hanashiro, LLP Honolulu, HI

Keiter Stephens Hurst Gary & ShreavesGlen Allen, VA

Kostin Ruffkess & Co., LLCHartford, CT

Kreischer MillerPhiladelphia, PA

Lane Gorman Trubitt, LLP Dallas, TX

Lattimore Black Morgan & Cain, P.C.Nashville/Knoxville, TN

Lurie Besikof Lapidus& Co., LLPMinneapolis, MN

Lutz & Company, PC Omaha, Nebraska

Marcum & Kliegman, LLPNew York, NYGeorge Town, Grand Cayman

Morrison, Brown, Argiz & Farra, LLPFort Lauderdale/Miami, FL

O’Sullivan Creel, LLPFort Walton Beach/Pensacola, FL

Pannell Kerr Forster of Texas, P.C. Houston, TX

Postlethwaite& Netterville, APAC Baton Rouge/New Orleans, LA

SS&G Financial ServicesAkron/Cleveland/Cincinnati/Columbus, OH

Stonefield, Josephson, Inc.San Francisco/Los Angeles, CA

Suby Von Haden & Associates Madison/Milwaukee, WI

Warren, Averett, Kimbrough & Marino, LLC Birmingham, AL

Wilson, Price, Barranco, Blankenship & Billingsley Montgomery, AL

Wiss & Co., LLP Livingston/Red Bank, NJ

Yeo & Yeo, P.C.Saginaw/Alma/Ann Arbor/Flint/Kalamazoo/Lansing/Marlette/Midland, MI

The Leading Edge offers:• Access to the best and brightest teams of business

advisers—a peer-to-peer connection that provides the right solutions for clients.

• Innovative, practice-proven strategies for improving performance in management, business processes, finance, operations, information technology and marketing.

• A leading knowledge resource for multi-disciplinaryinformation and industry-specific expertise responsiveto clients’ unique needs.

• The strength to attract the highest quality team members.

• The ability to service clients worldwide. The alliance offers accounting and consulting services through a global network of firms, with 245 offices in more than 68 countries.

• The Leading Edge Alliance offers world-class businessadvisory expertise and experience with innovation, progressiveness and quality.

To find out more about The Leading Edge Alliance, visit www.LeadingEdgeAlliance.com or contact Karen Kehl-Rose, President, at (630) 513-9814 or [email protected].

The Leading Edge Alliance is an alliance of major independently owned accounting and consulting firms that share an entrepreneurial spirit and a drive to be the premier provider of professional services in their chosen markets. Leading Edge members are CPA firms that are preserving the core quality and integrity of the public accounting profession while stimulating growth and progress through innovative practices.

THE LEADING EDGE 19

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