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This page contains a review or recap of recent past meetings. Members are requested to write down their review of meetings attended. If you've been to a recent meeting, please tell us about it, and we will publish your review here. Please send requests to lee.bennett@imamichigan.org.
September 18, 2012
21st Century Financial Planning and Analysis As management accountants, our job is it to add long-term value to our organizations. Periodic financial statements are necessary, but short-term. Management accountants need to craft costing/reporting systems to meet the unique set of circumstances found at each company for long-term growth. Financial Planning and Analysis provides comprehensive and economically sound information to form effective business strategies. An accurate cost model is essential to making the right decisions for your business. Once you know your costs and formulate your strategy, map a way to get there using a cost model that shows cause and effect relationships for your organization's significant activities. Costs cannot be spread evenly over products / services. Activity Based Costing is essential to properly allocating costs and generating profits. Performance measurements (both in meeting goals and how you are following plan to meet those goals) along with feedback is critical. The Deadly Virus of “GAAP” Management accountants need to see GAAP numbers differently when making cost and investment decisions. For example, in GAAP, depreciation expense reflects periodic costs of equipment wear. But should depreciation be included in product costs since 1) the cost of the machine is a sunk cost which is irrelevant in decision making and 2) the method of depreciation chosen is arbitrary? Investments need to be measured by their value, not original cost. Another dangerous practice is basing next year’s rates on this year’s actuals. Management accountants must understand their fundamental long term cost structure and attainable capacity. Otherwise, abnormal higher expense years can cause the following years’ sell prices to the customer to be overinflated. Many companies also put growth costs into the selling price of their products…this will overinflate product costs. Subsequently the organization will be uncompetitive. There is also a major difference between cutting costs (eliminating forever) and deferring costs. The former affects your long term cost structure, the latter will not. |
April 17, 2012"Financial Process Analysis and Improvement: Is There Any Value?" by Mr. Eric J. Matyac of Experis. Our IMA Detroit Chapter learned the importance of process design in Mr. Eric J. Matyac’s informative presentation Financial Process Analysis and Improvement: Is There Any Value? Mr. Matyac is the Engagement Manager in Process and System Optimization at Experis. Our Chapter engaged in a lively discussion on how critical good process design is to improving productivity and error reduction. We learned success requires more than just dedication and hard work. Process design is integral to optimizing organizational performance. We also learned significant cost savings can be realized through effective, team implemented processes. April’s Chapter meeting proved once again how meaningful attendance, networking and education can be. At the end of our meeting, several attendees announced employment opportunities within their organizations. A couple of our chapter members were directly responsible for hiring and gladly accepted resumes. We hope to hear of more employment opportunities as our economy continues to improve and hope more of you join us. "Cloud Computing for Financial Management and Accounting Software" by Mr. Howard Rabotnick, President of Tendras Business Advisors Our IMA Detroit Chapter was treated to an informative and engaging presentation on cloud computing by Mr. Howard Rabotnick, President of both Tendras Business Advisors and The ERP Team. Mr. Rabotnick explained exactly what cloud computing was along with the choices available when working in the cloud. We learned how far-reaching the cloud is, impacting us both as consumers and as business people. The cloud can be used anytime and anywhere using a web browser. The different components of the cloud were described in an interesting and understandable way. The cost and benefits (both qualitative and quantitative) of working in the cloud were explored along with overall impacts, such as leveling the playing field for small and mid-sized versus large businesses. Many organizations find working in the cloud to be far less expensive and far more productive. In addition, Mr. Rabotnick alleviated concerns regarding security, explaining cloud computing is a very secure form of working with and storing data. Each business must compare costs of in-house IT versus cloud computing. If a business decides on the cloud, careful selection and proper implementation of your cloud based solution are essential to success. |
To see our Detroit Chapter meeting schedule, visit our Events Calendar page.
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On September 15th our Detroit Chapter met at the Westin Southfield for our first meeting after the summer to hear Mr. Douglas T. Hicks, CPA (President of D. T. Hicks & Co., a consulting firm specializing in the decision costing needs of small and mid-sized organizations) speak on two very important topics: 21st Century Financial Planning and Analysis and The Deadly Virus of “GAAP”. 