THUT 2016 Fiscal Review and Outlook

THUT 2016 Fiscal Review and Outlook

Our fiscal year ending August 31, 2016 has been the BEST year in our 10 year history! What follows are the positives and negatives from the past fiscal year + expectations and framework for the future.

Four 2016 Positives

  1. Payroll turn-around is up.

  2. Rewarding existing customers for new customers: More than $24,000 of referral discounts were credited between new customers and our customers that referred them. vs. only $990 of referral credit in 2015.

  3. Productivity increase: $3.95 of revenue generated for every $1 of payroll paid out vs $3.31 of revenue generated for every $1 of payroll paid out in 2015.

  4. Bad debt is down

Three 2016 Negatives

  1. Decline in year end file preparation turnaround: We aim to have year ends out the door 30-45 days after year end. Everything we do is for the long-term so we have no interest in hiring new staff temporarily while we wait for the framework listed below to bring about real change in our business. We appreciate your patience over last year and we will not let you down!

  2. The law of vital few: We only get 2 hours of revenue for 7 hours of man hours worked in the fiscal year. That means 1 person working @ 80% ideally should have generated the same work as 3 people at 100%. Where do we lose our time? 80% of our hours were spent on generating 20% of our business profits. Since all activities consume the same limited amount of time and attention, we have reduced our customers in order to choose to spend our time in higher-impact activities. Any possible referrals from you are much more valuable than the referrals from whiners and complainers so it is our mission to help you eventually clear $1 MILLION in a year either by selling your business or establishing recurring revenue.

  3. Decline in deep work: Too much work being done that does not create much new value for our customers. With people just walking in without appointments at all times, leaves us in a state of frenzied chaos, spazzing and being unproductive due to lack of sleep and missed lunches over an extended period of time. More than 80% of appointments are reschedules, late, or no show. Accounting is something we need at least 90 minute blocks of uninterrupted concentration.

2017 Expectations

Alberta’s macroeconomic climate will only get worse before it gets better. Make the best of it “when blood flows in the streets,” hat tip to Freiherr von Rotschild.

Compounding our efficiency will give you better service and convenience. Drop off with Malak and Connie (joined 2016) or Elaine (joined 2014). Most customers have always insisted on speaking to Christian.  Everyone wants Christian to do the physical work and be responsible for everything, so where will he get this time, when people open their bag and tell him “here is the gas.” As the Head of Product, Christian dedicates 100% of his work time to being the final point of quality control and to ensure our customers pay the least amount of combined corporate and personal taxes legitimately possible.

Our fee must remain stable and transparent to all customers. Security and precision: our service is a reflection of my homeland. Like all things Swiss, you can rely on us for superior results in the long term. It would be better to explain our fee one time than it would be to apologize for mistakes forever. Our offerings are worth what it can do for you (in terms of tax and time savings) and not what you have to pay for it. We realize there are cheaper accountants out there so we appreciate your business, and we will work closer with you to make sure you are getting the best result. We have no shortage of work so we will never recommend our services if we don’t think we’re the *best value* for your business. We want any premium on our fees to more than pay for themselves in tax savings. Good things are not cheap and cheap things are not good. We will compound our efficiency by following framework below so that our fees will never increase despite inflation.

3 Part Framework – Starting Today

  1. Fixed-schedule productivity: Our accountants will be disconnected by phone and internet 8am-noon.  If we are allowed to eat our lunch and work uninterrupted in 90 minute blocks, we can focus on what really matters to you. There are only 2 choices in life: discipline or regret. Anyone who promises you anything more is lying to you.

  2. Compounding our efficiency will give you better service and convenience. Feel free to request meetings, drop-off, pick at your facility. There should be no excuses of paying avoidable interest.

  3. Drop off with Elaine (joined 2014) and Connie & Malak (both joined 2016). Most clients have always insisted on speaking to Christian. Everyone wants Christian to do the physical work and be responsible for everything, so where will he get this time, when people open their bag and tell him “here is the gas.” Christian dedicates 100% of his work time to being the final point of quality control and review for a client’s books and financial strategy, and to ensure our clients pay the least amount of combined corporate and personal taxes legitimately possible. 

Advertisements