Jennifer, I changed first line so it wasn't in the

1

st

person but not sure what is better on a website) L

isa (additional note is green in part 3)

Brenda Hodgkiss, CPA, an experienced CPA of 24 year

s plus practicing in the profession for 34 years.

The service I provide is Chief Financial Officer fo

r hire. A CFO has the responsibility for all finan

cially related activities of the company. This

includes but not limited to:

1.

Managing processes of budgets, financial forecasti

ng and associated reporting to management.

2.

Ensuring financial credibility by providing timely

and accurate analysis of budgets, financial trends

and forecasts.

3.

Providing recommendations to enhance financial perf

ormance.

4.

Directing and overseeing all aspects of the Finance

and Accounting functions of the company

5.

Maintaining a strong relationship with the owner an

d senior executives in identifying their needs and

exploring business solutions with

them

6.

Ensuring that effective internal controls are in pl

ace and the records are maintained in compliance wi

th Generally Accepted Accounting

Principals, federal, state and local regulations.

Many owners do not have any of the above in place f

or their company. They are probably spending more

time than necessary on the financial

aspect of their business rather than concentrating

on their strengths or they are not spending any tim

e on the financial aspects then are in

trouble at the end of the year when they need to fi

le their tax returns or make financial plans or dec

isions.

THIS IS WHAT I WROTE FOR THE LANDSCAPING ASSOCIATIO

N NEWSLETTER

“Show Me the Money”

Financial Statements for your business show you whe

re your company’s money comes from, where it goes a

nd where it is now. This

is valuable information for you to know and to unde

rstand.

There are four basic financial statements:

(1) Balance Sheet

(2) Income Statement

(3) Cash Flow Statement

(4) Statement of Shareholder’s Equity.

Each serves a different purpose. Together, they te

ll the complete story to business owners, potential

investors and potential lenders.

A balance sheet is a snapshot of a company’s assets

(company owns), liabilities (company owes) and sha

reholder’s equity (owner

investment plus or minus earnings since inception o

f the business). This snapshot is at the end of a

reporting period (month, quarter,

year). I recommend that a business owner review th

is statement at least monthly.

An income statement demonstrates how much revenue a

nd expenses (costs) your company has over a specifi

c time period. I

recommend that business owners review this each mon

th and their year to date “bottom line”. The “bott

om line” demonstrates

whether the company earned or lost during that peri

od.

A cash flow statement tracks the inflows and outflo

ws of cash. It is extremely important because your

company requires enough

cash to pay for the supplies, payroll and purchase

assets when needed. The changes in the cash balanc

e are derived from the

balance sheet and income statement changes for the

period. The “bottom line” of the cash flow shows w

hether your company

generated cash.

A stockholder’s equity statement is the detail of t

he owner’s investment plus or minus the earnings si

nce inception of the business

and the current year’s net income.

STORIES OF WHAT HAS BEEN SOLVED ----

I'm thinking that the anonymity of clients isn't b

eing kept well enough.......

Manufacturer – client since ????. I began with thi

s client when they were working out of their house

and have been with them ever since. At

first, it was separating their business income and

expenses from their personal records as they had ju

st begun the business. I worked with the

business owner and also the owner’s wife to set up

an accounting system. I trained the owner’s wife o

n proper accounting for the business. The

business has grown to a million dollar company, emp

loying 5 people. I have trained their new staff on

QuickBooks; worked with staff to integrate

an inventory software into QuickBooks; assisted the

ir tax preparer in getting ready for an IRS audit.

They have recently opened a second

company to restore automobiles and once again I was

the person who worked with them to set up their Qu

ickBooks so that the financial

information was understandable to the business owne

r.

Church/School/Rental Property and Café – client sin

ce 2001. This client had records which were not cl

ear to management. I was hired to correct

the records so that they would be able to have an a

udit of the financial statements. I worked with th

e tax person to re-construct the existing

records and create meaningful financial statements

to report both internally to the Board of Elders a

nd externally to the lenders. I have worked

with them since that time to train their staff; con

vert their accounting system from QuickBooks to a c

hurch accounting software; created a

procedure book for better internal controls; overse

e the year end external CPA review process and tax

preparation from an independent CPA.

Guard Service/Security Consultant/Security Hardware

Sales – client since 2006. This client was unhapp

y with his current CPA. They would create

year end adjustments to the financial statements wh

ich the client did not understand. He needed an i

n house person to be the Controller and

manage all of his accounting records so that he wou

ld be able to understand all of his financial state

ments. At the same time, this person was

taking one business and separating it into three se

parate businesses. I worked with the owner to set

up the accounts he would need for his new

businesses making them the same in all three compan

ies so that if he wanted to see them combined to pr

ovide him with consolidated

information it would be easy to accomplish with an

excel spreadsheet. I had him institute a budgeting

process which he had never done before.

We sat down monthly and discussed his actual result

s from his financial statements compared to his bud

get (what he thought would occur). In

this way, he knew what he needed to change going fo

rward to successfully manage his business. I coord

inated with his tax CPA to provide year

end data that was complete so that the tax preparat

ion was more efficient. As he grew and his account

ing requirements also got more complex,

he hired a recently graduated accounting person. I

trained her on the entire accounting process for m

onth end, budget and year end. Once she

was trained, the client still has me come in and re

view the records on a quarterly and annual basis.

Golf Car Distributor – client since 2010. This cli

ent had an inventory problem. They had fired their

previous financial person who had left them in

an accounting nightmare. I worked closely with the

staff to indentify and correct the problems in the

ir records. This required developing a close

relationship with the tax preparer to make the nece

ssary changes in both the internal accounting recor

ds and provide the tax preparer with the

documentation to correct the tax returns. I set up

a monthly closing procedure that allowed managemen

t to understand their financial numbers.

This company is a seasonal business. They rely hea

vily on the sales from April to October to sustain

their cash requirements from November to

March. I created a weekly cash flow spreadsheet so

the owner was able to manage his cash better durin

g the entire year.

Golf Car Distributor – client since 2012. This bus

iness owner separated from the above golf car distr

ibutor. He contacted me when he opened his

own shop. Accounting was the first thing he though

t about. I worked with him and his sales staff to

set up his QuickBooks. He does his day to

day bookkeeping for accounts receivable and account

s payable. I go into the office monthly to review

all of the information, correct as needed,

discuss his actual results versus his budget and fi

le his sales taxes in multiple states. I provide

year-end financial statements to his tax preparer

.

Condominium Association – client since 2013. The B

oard of the Condo Association wanted to bring their

accounting in house. They have

multiple buildings and a clubhouse that needed to b

e recorded separately within the QuickBooks system.

They needed a bookkeeper and a

Controller/CFO consultant to provide a smooth trans

ition. Working with the President of the Board and

their tax preparer, I first reconciled the

accounts to make sure that they were correctly stat

ed. Then set up a budget for them for the year. M

y staff bookkeeper performed the billing

and receiving payments from the condominium owners;

recorded bills from vendors and paid them; made de

posits during the month. I created

the financial statements for the Board of Trustees

on a monthly basis and met with them on a quarterly

basis to discuss their actual financial

results compared to their budget.

Chiropractor – client since 2014 when she purchased

an existing practice. I worked with her and her s

taff to set up the accounting records so that

they would provide the information she required to

make decisions about her business. She has an exte

rnal medical billing software that I

needed to integrate with the QuickBooks accounting

system. We worked together to incorporate the info

rmation into meaningful financial

statements for her to review on a monthly basis. M

y bookkeeper inputs her external billing data into

QuickBooks; records her deposits; records

her payments to vendors via check or debit card; re

cords credit card charges; reconciles the bank stat

ement and the credit card statement on a

monthly basis. I review all of the results monthly

and provide her with the Profit and Loss and the B

alance sheet. Quarterly, I meet with the

client to discuss the financial statements to make

sure she understands them. Next year, when she has

a full year of historic financials, I will

create a budget for the company and we will discuss

the results on a quarterly basis. As she continue

s in business, I will work closely with her

financial planner and tax preparer to implement tax

saving strategies and retirement goals.

Medical Billing Company – client since 2014. This

client had a bookkeeper who did not fully understan

d the whole accounting system. I provided

a bookkeeper who had a degree in accounting and als

o had me, A CPA with years of experience to review

the information and suggest

corrections. The bookkeeper was able to get the al

l of the accounting records up to date. I then wen

t into the office as the Controller/CFO

consultant to review all of the records with the cl

ient and the tax preparer. I set up a month end pr

ocess and trained their internal staff on

QuickBooks. I worked with the President of the com

pany to create a budget for the first time in the c

ompany history of over 30 years. I worked

with the external tax preparer to provide the finan

cial statements and also the back up documentation

for effective year end tax planning. I

implemented a pre-year end tax strategy meeting bet

ween the owners and the tax preparer to minimize th

e taxes to be paid by the company.

Landscaping – began with the client in April 2015.

This client has an external accounting service. I

nstead of augmenting his QuickBooks

accounting system, they download the software into

their own accounting system and provide him with th

e financial information on a monthly

basis. Unfortunately, this does not allow the clie

nt to understand his financials so that he is able

to manage his business. I have been hired to

correct the historical documents and train the new

internal staff on QuickBooks. We are working toget

her on a weekly basis to input missing

data from 2014. At the same time, I am training th

e staff on properly recording the current informati

on in 2015. The goal is to have the staff

record all of the daily activity, reconcile the ban

k statements, outstanding loans and credit cards.

I will review the records on a monthly basis and

discuss with the staff and business owners to conti

nue educating them on their financial results.