Quarterly Update – September 1994

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We strive to meet and surpass client expectations. We demand much of ourselves, and we ask that our clients evaluate us shortly after the completion of an engagement. Clients rate us by answering twenty questions in two ways: the performance expected from an excellent CPA management consulting firm, and the performance delivered by representatives of Todd L. Herman, CPA. The paired answers then are summarized into five categories, for which the client has established relative importance.

For projects that we have completed in 1993 and the first half of 1994, key client personnel have given us the following percentage ratings by area:

Overall Importance Area and Description Overall Rating
8% Tangibles – Appearance of facilities, equipment, representatives, and materials. 92.4%
40% Reliability – Ability to perform the promised service dependably and accurately. 99.8%
18% Responsiveness – Willingness to help clients and provide prompt service. 93.6%
15% Assurance – Knowledge and courtesy of representatives, and their ability to convey trust and confidence. 95.2%
19% Distinctiveness – Willingness to go beyond what normally is expected, to ensure a client's satisfaction. 94.7%
100% Total Weighted Average Rating 96.4%

The Big Six accounting firms have long held a reputation for high quality service; however, this reputation may be slipping according to a survey of the 1,000 largest public U.S. companies conducted by Hudson Sawyer Professional Services Marketing. For example, the most highly rated firm in the survey achieved only a 71% overall rating. Since virtually all of our clients use a Big Six firm for attest and tax services, we believe this declining satisfaction with Big Six services provides excellent opportunities for a high quality CPA management consulting firm like Todd L. Herman, CPA.

To experience the "Small Firm, Big Service" difference, call us – we are always available to explore ideas for improving your business.

Todd L. Herman

Todd L. Herman

Client Project Update:

I am pleased to provide you with an update on our client projects. Projects we have completed over this period are...

Enhance Credit and Collection Functions

Reviewed the procedures and organization of the accounts receivable department of a knitwear manufacturer to enhance its credit and collection functions.

Developing a Custom Application for Complex Applications

Developed a custom application for a stock analyst to allow him to perform complex calculations and store the results for a large number of stocks.

Analyzing Financial Information to Improve Competitive Knowledge

Analyzed financial information of a sportswear company against its key competitors data to improve competitive knowledge and plan future financial directions.

Lowering Estimated Implementation Costs

Evaluated a proposed financial planning and analysis system for a fashion apparel company, resulting in lower estimated implementation costs.

Identifying Weaknesses in Order Processing

Identified weaknesses in order processing procedures of a knitwear manufacturer that had increased the days' sales outstanding.

Enhancing Insurance Proposals

Enhanced an insurance agent's use of personal computers to prepare more effective insurance proposals.

Developed Procedures to Accurately Record & Report Management Information

Developed and implemented procedures to allow a growth-stage company to accurately record and report management information.

Enhanced Accounting System to Interface with New Ledger & Payable System

Enhanced a work-in-process accounting system for an apparel designer and marketer to reflect changed business dealings with contractors and to interface with new ledger and payable systems.

Future projects we are planning include...

Shop Floor Scheduling & Tracking

Develop procedures to improve shop floor scheduling and tracking for an intimate apparel manufacturer.

Develop Overhead Rates & Assess Profitability

Develop overhead rates for personnel categories in a law firm to assess the profitability of services.

Increase Budget Process Efficiency

Increase the budget process efficiency of a long-term care facility by interfacing budget data from personal computer spreadsheets to the UNIX-based ledger system.

Improve Time Usage & Productive Output

Increase the budget process efficiency of a long-term care facility by interfacing budget data from personal computer spreadsheets to the UNIX-based ledger system.