Marketing consists of longer-term, big marketing strategies and also small, quick tactics.  Marketing should be done daily - but no-one said it has to take hours every day!

Maybe you’re having a “blah” day and don’t feel like doing much?  Pick a handful of these fast and easy marketing tactics, do them and then go read your fiction novel!

• check out competitor’s websites and see what kinds of products and services they’re offering their clients
• send a response to a client’s question that was sent in via website, blog, email, phone message, etc.
• send out an email to your list just to say hi and give them a couple valuable tips or some interesting, helpful links
• check out different groups on Facebook and Yahoo Groups that you might join
• call or send an email to a customer who has just purchased something from your website.  Say thank you and ask them if they need any questions answered or anything clarified
• if you’re offering a teleseminar, give enough advance notice and send reminder emails providing the pertinent details
• check out a company’s website that you are interested in possibly doing a joint venture with
• put a link on your Facebook profile to your new ebook
• send out a press release talking about the teleclass that you’re going to be giving
• send a friendly reminder email to remind people that your special promotion is ending today
• call a new client to find out if they have any questions on their recent purchase
• send an article, with a note, to a client you know is interested in the topic
• order a thank you gift, on the web or by phone, to be sent to someone who just referred a client to you
• submit an article you’ve written to an article directory website
• send a handwritten note to someone you met recently - and make a note in your calendar to follow up with them in one month
• write up something for your blog and post it
• record a podcast of an article you just wrote and submit to podcast directories

If you are need to expand your marketing activities and don’t have the time, visit Resource Nation’s online marketing business service center.

Now that the November elections have come to a close and all of the politicking is over, we can finally sit back and divulge or at least try to comprehend what changes might be in store for us in the coming years.  As you would expect, local, regional, and global tax and professional service firms are diving into any information that is available in an attempt to predict what the country’s income tax future may hold.  One of the most recognizable and respected firms is that of the Tax Policy Group of Deloitte Tax LLP, in Washington, D.C.  Recently, this group issued “Tax policy decisions ahead - President-elect Obama’s call for change”, which focuses on the President-elect’s likely tax agenda for 2009 and 2010.  According to the Deloitte study, the likely agenda for 2009 and 2010, “may unfold in two distinct pieces.  The first could be tax cuts focused on economic recovery and other stimulus actions meant to address the current economic downturn.  The second could be a package of tax proposals to address the longer-term issues that were raised in the campaign.”  Now that we have a very broad understanding of the agenda, what does this actually mean to small business, referred by many as the “backbone” of the economy?  Let’s take a look.

The Deloitte study categorizes Obama’s business tax strategy into four broad themes.  They are the following:

• Protecting and growing U.S. jobs;
• Changing how we produce and use energy;
• Restoring “fairness” to the tax code; and
• Providing quality health care.

Let’s take a further look into the categories that will have the largest impact on small businesses, “Protecting and growing U.S. jobs” and “Providing quality health care”.

-Protecting and growing U.S. jobs

President-elect Obama ran a campaign that strongly endorsed creating incentives to companies for maintaining jobs in the U.S. and limiting benefits of companies that ship jobs overseas.  Based on the Deloitte study, we can come to the conclusion that there are several key incentives for small businesses as well.  These include proposals to:

• Reduce the corporate tax rate for companies that start or expand operations domestically;
• Elimination of all capital gains taxes on small business investments and for startups;
• New American Jobs Tax Credit during 2009 and 2010 that would provide existing businesses that make net additions to their U.S. workforce a $3,000 refundable tax credit for each additional full-time employee hired. President-elect Obama has also proposed to extend the temporary increase in the small business expensing allowance to $250,000 through 2009.

-Providing quality health care

We have also seen President-elect Obama call for health care reform throughout his campaign.  Based on the Deloitte study, most of the reform that Obama is referring to will impact the economy’s larger employers.   According to the Deloitte study, Obama’s changes would create a potential mandatory contribution to the National Health Insurance Exchange for those large employers that do not offer or make a meaningful contribution to the cost of health care to their employees.  Obama’s plan, however, would exempt small businesses from this requirement and they would receive a new Small Business Health Tax Credit intended to reduce their health care costs.

Now that we have an idea as to the basics surrounding Obama’s tax plan as it relates to small business, we should also quickly consider its impact on the small business owner.  The good news is that if you are a single small business owner that makes less than $200,000 or married making less than $250,000, your benefits are preserved and most likely, your taxes will not increase.  However, once above those thresholds, there is the possibility that taxes will increase for the higher tax brackets.  There have been recent discussions that suggest that Obama will not be making any changes to the existing tax structure in 2009 and will instead wait until the Bush tax plan expires in 2010.  There is fear that the sluggish economy will take longer to recover if taxes are raised at any level.  These questions will most likely be answered fairly shortly after the President-elect takes office.  As a San Diego accounting firm, we can recommend that it is always best to consult with your tax advisor over any questions that you may have.  In San Diego alone, there are plenty of San Diego accountants, CPAs, and accounting firms of which to choose from.

The common perception among small business owners is that the tax environment proves more challenging with a Democratic President in office.  However, with the current state of the economy, the President and Congress will be hesitant to raise taxes on the economy’s “backbone”.  As a result, small businesses may catch a break… in the short term.

If you’re a small business needing accounting and consulting services, visit Resource Nation online accounting and bookkeeping business center, or Signature Analytics.

One of the reasons that I started my business, MarketGarden, was to help Green Businesses, those that offer green/sustainable products or services, market themselves. Often times these start-ups or smaller companies can not afford a variety of agencies – a marketing firm, pr firm, web developer, and advertising agency – to do so. I wanted to offer all of those services in a more efficient, cost effective way. In order to be true to my mission, I needed to find better ways to market – greener ways, more cost effective ways. Over the last year, I have realized that this balance is not just for Green businesses, but all businesses.

There has been a shift toward global agreement that we must to take more responsibility for the health of our planet and reduce our Carbon Foot Print, but balancing that with building a business and in a difficult economic climate can be overwhelming. That said all of these challenges require a more creative strategy that can benefit from the newest marketing tools. Market smarter (have a good strategy) and have your tactics work harder (lower cost, targeted and more impactful.)

Market Your Business – Use Green Marketing Methods – Reduce Costs, this marketing Trifecta is possible and effective. Here are some tips for you to use to reach your goals.

Direct Mail

• Use a more targeted mailing list. This reduces your list size and increases response rates. You can use the postage savings on more effective creative, possibly variable printing.
• Make sure to purge and update your lists
• Reduce waste by mailing smaller pieces – driving recipients to your web site for more information. This will also reduce postage costs.

Printing - Use green printers such as Greenprinter.com and Printingforless.com that offer green printing solutions and operate their business with a reduced Carbon Foot Print.

Electronic Collateral – Limit your use of printed materials, but emailing brochures and presentations, rather than printing them. This is a huge cost savings. Many retailers offer online catalogs rather than mailing them out.

Invoicing and other communications – Try using email for invoices and statements, once again saving on postage and printing. You can always offer mailed and emailed versions, and let your customers choose.

Websites

• Have your website do more of your “heavy lifting” by posting communication items such as –brochures, annual reports and newsletters, on your site where they can be viewed or downloaded as needed. FTP large documents or information, rather than overnighting them. You can send emails out with links back to your site for more information.
• Spread the word through blogs and social networking sites
• Post videos on your site or YouTube to tell your story show a demonstration of your product or service or provide tutorials.

Need inspiration? There are some great publications and websites out there that showcase unique and effective green marketing campaigns. One my favorites is USPS’s publication Deliver Magazine, http://www.delivermagazine.com/. The site offers white papers, podcasts and case studies as well as a subscription to the publication.

To find vendors to help you with your marketing campaigns, visit Resource Nation’s online business center.

Business owners that sell retail products are counting down the days to Black Friday, also known as the busiest shopping day of the year. On the day after Thanksgiving, eager shoppers brave long lines to get the best deals at their favorite stores. This year, increase the number of customers purchasing your goods by using telemarketing services to notify current clients and potential shoppers about all of the great deals your business has to offer during the Christmas season. No matter what type of industry your business falls under, people are interested in hearing more about your holiday specials.

Telemarketing can be done within your office, from an outsourced call center, or from home. Typically, it’s best to have a live person make the calls, but some companies use a recorded message to reach potential customers. Recorded calls don’t allow for real-time feedback which can be important. Telemarketing agencies recommend making at least two calls to your customers during the Christmas season. In the first call, introduce your company to the potential customer and determine their needs in relation to the goods you are offering. In the second call, motivate the customer to make a purchase.

There are four subcategories that telemarketing companies use to reach out to customers.

· Lead generation is used to gather information about your potential customers.

· Sales uses persuasion to sell your goods or services

· Outbound call centers use a proactive marketing approach where your current and potential customers are contacted directly.

· Inbound calls occur when customers contact the business directly to learn more about your company. These calls are generated by advertising and the efforts of your sales representatives.

Before you start working with a telemarketer to get more sales leads during Christmas, you will want to write a script that the telemarketers must abide by. Include information about your company and products and what is in it for the recipient. If you are offering a special promotion over the holidays, mention that and mention that others are interested. This call to action will also encourage customers to start their holiday shopping with your company. Make sure telemarketers have a firm understanding of the concept of your business and have various routes to take if they experience a rebuttal from the client about the call or service.

In order to get a healthy list of potential customers, you can acquire information from their past purchase history, credit limit, competition entry forms, previous requests for information and application forms. If your budget allows for it, you can also purchase names of like-minded individuals from a broker’s database.

Be aware of the nation’s telemarketing regulations and follow the guidelines. During the holidays, people can be more sensitive. The few consumer privacy laws intact that must be abided by are the Telephone Consumer Protection Act of 1991 and various Do Not Call lists. Consumers can opt to include their home or business phone number on these lists and telemarketers are restricted from calling them about services. Also, many states have their own lists in addition to the national Do Not Call List so research the rules about recording calls, Sunday and holiday calls in your state.

Last, make sure the telemarketing company is professional and is effective with their services. Shop around at different vendors and don’t be afraid to ask about mock trials to gauge their communication services.

If you are a small business looking to get out information about your products and services this holiday season, visit our online telemarketing business service center.

Email newsletters are a powerful tool that can be used to boost your marketing efforts, without draining your marketing budget. They provide a platform to discuss issues happening in your market, your customers’ potential concerns due to economic shifts and new tips, tools or products.

Offering a newsletter benefits you in multiple ways, including:

1. Helping to build your email list

2. Establishing you as an expert in your service or product arena

3. Providing a great reason to reach out to your list – keeping your company Top Of Mind

4. Enabling you to establish a strong Loyalty program

5. Driving traffic to your site

There are some pitfalls to avoid. Email marketing can be tricky because you want to reach out regularly, but you do not want to over do it. Make sure your e-newsletters are pertinent to your audience. You also want to give recipients an easy way to opt-out with every communication, so they know they do not have to make a long term commitment.

Some of these key mistakes to avoid include:

1. Sending unsolicitated emails more than once. You never want to be viewed as SPAM. When sending your e-newsletter to someone for the first time, you may want to include a line that explains where you got their address and ask them to sign-up for future e-newsletters.

2. Sending poorly designed or written newsletter. Remember, every marketing piece is a reflection of your brand, including your e-newsletter.

3. Using your newsletter simply as a brag piece or an advertisement. It should include helpful information that recipients will benefit from.

4. Be sure to include a clear “call to action”, whether a request for feedback, link providing more detailed information or additional articles, or a coupon or discount offer.

5. Always include contact information and links to your web site and email.

There are some great web-based e-marketing services, but my favorite is ConstantContact.com. Their prices are low enough for the most budget conscience business and they offer all you need to get started – including FREE online tutorials and local seminars. I have learned a lot from both their site and their in-person trainings.

If you don’t have the time yourself, use Resource Nation’s business service directory and find online marketing experts that can help.

President-Elect Obama:
As you take power for what is the most remarkable statement our country has made in ages and having run the best campaign ever, we know you are taking over what will be the worst job in the world.

• We want your optimism to be contagious and your can-do-attitude to inspire us
• We are terrified you will tax us and hold us up as scapegoats, while we are survivors
• We are hopeful you will see us as family leaders not large corporate thieves
• We are one-third democrats, one-third republicans and one-third independents*
• We love your dreaming but worry we are not included in those dreams
• We care little about NAFTA but worry more about being virtual
• We want to give people jobs but aren’t sure we can carry them
• We believe we give service to society by virtue of the value we provide to customers, the people we hire and the young that we train
• Lastly, it’s always been lonesome as a small business owner and we have no expectations that government will help us. We love our country and want to see it, and you, succeed.

While the entire world is holding their breath as to what an Obama victory really means to them, fear, uncertainty and doubt have already gripped most small business owners. From losing or maxing out their credit lines, to fearing that consumer demand will simply dry up, entrepreneurship is in upheaval. On one hand, it is still the American dream for so many; on the other, it is a grim reality for so many who depend on it.

Regardless of their industry, tenure, or age, never before have most business owners been so apprehensive about their futures. Why? Because, all the institutions and resources they count on—particularly banks, big customers, skilled and available workers, and economic stability—are all in disarray. Whether they voted for Obama, believing that a recovering middle class will lift all small business ships, or against him, fearful that the new burden of regulation, health care costs and increased taxes will torpedo their plans, business owners are downright scared. And when entrepreneurs are scared they become inactive or at the very least stop expanding. Why? Because owning a small business is all about:

• Being confident that you know your threats
• Knowing how to avoid and exploit your threats
• Confidently spending the resources to do so

Why are business owners so nervous? Because for the first time in decades, they don’t know what to do. Nothing has prepared them to cope and face what is upon them. Wondering if they will have a working business at all has replace traditional “E Myth” goals of “working on one’s business” as opposed to working “in one’s business.” The new threats are not the same as the old threats and knowing how to even respond, let alone find the courage to invest the needed time, money and energy in the correct responses, is beyond the “pay grade” of most owners.

But before we can address these concerns, how did entrepreneurship get to this point? Since 1980, business ownership has grown from a wry dream for most to a total investment for so many. From under ten million in the 1980s to some 25 million† today, nearly ten percent of Americans depend directly on their own businesses for financial security and another ten to thirty percent are customers, vendors, employees or investors of small business. From being seen as outsiders or rebels, the small business owner has become in many ways the focal point of the American Dream. Large corporations spend billions marketing to them. This last election created “Joe the Plumber” and the small business owner’s laments of paying too much in taxes, having bad health care options and struggling for visibility and respect are daily themes our news media covers ad nauseam.

As importantly, the entrepreneurial movement has produced a new lifestyle and set of values. Magazines, such as Fast Company and INC. along with owners-only support groups such as EO and VISTAGE have sprung up to enhance the entrepreneurial way of business and personal life. Entrepreneurship is so ingrained in our society that it has outgrown the stereotypes of being part of one political party. A 2007 Fortune Zogby Poll of business owners reported that 37% are registered Republicans, 35% are registered Democrats and the remaining are Independents.

While the novelty of entrepreneurship has worn off, today’s business owner remains as much a lone wolf as ever. All of the 20% who survive their first five years† do so by quickly learning to sell, manage cash, find and keep good people and create satisfied customers. But over the last few years, multiple forces in the economy and society in general are converging into a perfect storm and threatening both established business owners as well as the dreams of emerging ones.

So in closing, President-Elect Obama, we as business owners are fearful of what you may do to us and the harm you can bring to our small businesses yet we wait with bated breath to see if you can deliver your promises and help us continue our American dream of successful entrepreneurship because “Yes, we can.”

About Andy Birol: Based on interviewing over 5,000 businesses Andy Birol authored The Five Catalysts of Seven Figure Growth (CareerPress, 2006), has advised over 400 business owners.  By focusing on the role of the owner as the “fuel” that drives a firm, Andy speaks to hundreds of groups of entrepreneurs on six continents, helping thousands to clarify or discover their Best and Highest Use^® (BHU) and achieve sustained and profitable growth.  Andy holds an MBA from Northwestern’s Kellogg School and a BSBA summa cum laude from Boston University’s School of Management.  His website is www.andybirol.com and his blog is www.birolsblog.com.

Articles by Birol Growth Consulting are © copyrighted and all rights are reserved. However, articles may be reprinted with prior written consent if attribution is included as follows:

This year’s marketing tag lines have been incredibly catchy. From political campaigns to electrical devices, marketing campaigns and hot shot advertising agencies seem to be wittier than year’s past. Here are the Top 11 Marketing Taglines:

1. Change we need – Barack Obama 2008 political campaign. These three simple words were embedded into the mind’s of voters via bumper stickers, commercials, marketing tools and instilled in his public speeches.
2. Can you hear me now? …Good – Verizon Wireless. A common saying for most cell phone users, the tagline correlates with this booming phone provider.
3. Wii would like to play – Nintendo Wii. The quirky characters in the television commercials help to reiterate the fun to be had with this gaming system.
4. Five dollar foot long — Subway. The tag line has kept us singing the message throughout the day and has become an effective marketing tool to attract customers looking for an affordable meal.
5. What’s in your wallet? – Capital One. A simple question that has attracted many new customers looking for an extra credit line.
6. What happens here, stays here – Las Vegas Convention and Visitors Authority. The saying is already popular with those visiting the area and Las Vegas continues to be a popular destination for those looking for guilt-free vacations.
7. Are you in good hands? – Allstate. With their dramatic and eye-opening television commercials, the tag line brings home the idea of the importance of full coverage auto insurance.
8. Easy, breezy, beautiful Covergirl – Covergirl makeup. The makeup manufacturers use models from all backgrounds and continues to be a popular choice for women looking for a fresh and breezy look.
9. Delightfully tacky, yet unrefined – Hooters. Known for their wings and peculiar work attire, Hooter’s offers casual dining in an even more casual atmosphere.
10. Foster’s. Australian for beer. – Foster’s. With an extremely simple commercial and tag line, American’s love the accent and the beverage.
11. It gives you wings — Redbull. Redbull continues to be one of the top selling energy drinks in the country and continues to draw up the best animated commercials. And yes, it gives you wings.

If you’re a small business owner and looking to get more from your current online marketing plan, or if you’re ready to start marketing online, visit our online marketing business service center.

How to Create your own effective Tagline?

As a small business owner looking to increase the number of consumers who recognize your brand and products through your online marketing business, you have probably thought about working with an advertising agency to create your own campaign. And after intensive consideration, you have then found out that these services don’t work within your budget. With some creativity and clever plays on words, you can create your own effective tagline to work with your business.

Figure out what you want to communicate with your tagline and who your target audience is. You have probably brainstormed a few selling propositions or services that you set you apart from your competitors. Keep a running list of these ideas and concepts and see how they correlate with your list of potential tag lines. Next, study your target audience and think about how this audience will benefit from your product or service. Create a sense of a call to action and activate your potential customers to learn more about your company. Evoke feelings, either comedic or more profound, within your audience members and let them know why they should seek you instead of your competitors. You may also want to look into pay per click services to best attract your target audience, so speak to a specialist about your options.

Brainstorm and start doing research. You will want to look at other effective advertising campaigns and product brands and try and see why they were so effective in attracting new customers. Look in categories like your own and also those industries that have no similarity for tag line ideas. Look at the words they use and see how you can incorporate those ideas with your own. You might come across a brilliant tag line idea while looking at other successful ones. Look around your own environment for examples: anywhere where you can find advertisements, clever packaging, or logos that attract an ideal set of targeted individuals. Conduct a brainstorming session with your friends, family and those familiar with your business to feed off other ideas for your campaign.

Take a look at your competitors’ taglines. By looking at your competitors taglines, you will know what works and doesn’t work when it comes to creating a brand. If you find a clever brand that attracts interest within yourself, try rearranging words or use your own words to create a similar idea. However, don’t ever make a tagline too similar to those already established, as potential clients might find you to be an unreliable company. Use a thesaurus or specialized dictionary for alternative words to the ordinary. Check out their website, if applicable, to see what certain keywords they use to increase their online visibility. If your budget allows for it, look into SEO services to optimize your website.

Gather your thoughts and decide on a tagline. Go through all of your ideas and look for the best potential taglines. Ask your peers about what tagline makes creates an impact on them and keep a tally of the results. You may want to contact a marketing specialist for their expertise and thoughts on the taglines you narrowed down.

As this historic year comes to a close, it will be necessary for all small business owners to take time from their busy schedules and conduct careful inventories of their respective financial situations. Unfortunately, in many cases due to the dramatic downturn of the second half of 2008 it will be a difficult and painful process. As a small business owner there are a few suggestions I have as the new year approaches. Conducting a thorough financial review will be an important first step in terms of tax preparation, a 2009 company operations budget (although in some cases this particular exercise will have already been completed) and anticipating changes that may be in order when the Obama Administration takes office. It is also absolutely the right time to make decisions on ways to make your organization leaner and more efficient heading into the new year.

If you’re a small business owner and looking for financing services or tax preparation, visit our tax reporting business service center.

The details in regards to proposed tax cuts are relatively few under President-elect Obama’s plan, even as to whether his $250,000 threshold is on Adjusted Gross Income or Taxable Income. That would make a big difference for many small businesses. Generally for everyone above the mark, you would want to maximize as much as your cash flow allows in terms of contributions to retirement plans: SEP’s, Simple’s, IRA’s, deferred compensation plans, etc. Equipment purchase write-offs are most important in those high income years. For one to consider deferring Social Security benefits or taxable retirement income to later years when income is lower may be preferable. At this point there is very little information as to what the Obama plan actually is and what will materialize from it, so it will be advisable to watch closely how this all unfolds in future months.

It’s certainly very easy to be negative and cynical when times are tough, especially after the second half of 2008. However, it’s also essential to keep in mind that history dictates this as a cyclical occurrence and things should improve at some point in 2009 or 2010. It’s equally essential to take a few minutes to remember every day how fortunate we are to live in the greatest country in the world. I ask that you reflect upon the incredible freedoms and capitalistic traditions we all benefit from.

During a year in which there has been a lot of disagreement throughout our country on a long laundry list of issues, at the end of the day, I don’t think you’ll find a lot of division on this particular statement.

Peter Miralles is the President of Atlanta Wealth Consultants (www.awc2.com).

Identity theft is now a pandemic, and a scourge for its victims. Is the federal government finally ready to fight back?

The Identity Theft and Restitution Act of 2008 was recently signed into law by President Bush. The new law is supposed to make it easier for the government to convict those charged with pursuing computerized identity theft. Supporters tout this legislation as allowing federal prosecutors to be more aggressive in cracking down on identity theft cyber crime. But will it work to protect millions of future victims?

The new law provides for the following:

1. Discarding the requirement that damage to a victim’s computer exceed $5,000 over a one year period before charges can be asserted for unauthorized access to a computer.

2. Eliminating the interstate jurisdictional requirement, thus allowing prosecution of those who steal personal information from a computer, even when the victim’s computer is located in the same state as the thief’s computer.

3. Allowing victims of identity theft to seek restitution for an amount equal to the value of the time reasonably spent to fix their problems.

4. Adding the charge of a conspiracy to commit cyber crimes. (The prior law only allowed for charges related to the actual crime, and made no provisions for conspiracy to commit the underlying charge.)

5. Adding the remedies of civil and criminal forfeiture to better allow federal prosecutors to combat cyber crime. Individuals found guilty of violating the act can be forced to forfeit both property used in commission of the cyber crime, as well as property obtained from any proceeds gained from the cyber crime.

6. Making it a felony to electronically damage ten or more computers no matter the value of the damage caused.

7. Making it a crime to threaten to steal or release information from an individual’s computer. (Prior law only permitted the prosecution of those who seek to extort companies or government agencies by explicitly threatening to shut down or damage a computer.)

It is intended that the new law will allow federal prosecutors to be much more aggressive in prosecuting identity theft criminals. Elimination of both the $5,000 damage requirement and the interstate jurisdictional requirement should make it easier for prosecutors to bring charges.

But will it really help?

The federal government has tried to keep up with identity theft for years with few results. If the feds are truly interested in stamping out the pandemic, it is with the enforcement of the laws, and not just new laws, that will turn the tide.

Still, there are encouraging signs that a wide ranging effort is being made. The IRS is helping out by allowing in this next year all but the last four digits of taxpayer ID numbers to be blocked out on 1099’s, W-2s, and other informational returns. There is privacy in that move.

But it is not over. Stay tuned for more on this battle.

Because of the economic conditions that are currently facing our economy, many businesses are struggling to remain cash flow positive.  In order to accomplish this, the first thing that companies look to do is to reduce expenses.

As we approach the end of 2008, companies are also in the process of completing their 2009 budgets.  While the prospects of reducing salaries and headcount, advertising costs, or a host of other costs can be frightening and painful, reducing the fees that you are paying to your financial statement auditor can save your business thousands of dollars and can be easy and painless.  So what are ways to reduce audit fees and create a more efficient audit?  The following strategies can be used by businesses of any size to assist in creating a more efficient and less costly financial statement audit.

• - Manage your Auditor. As a former Audit Senior Manager with a “Big Four” San Diego accounting firm, I know firsthand the enormous amount of pressures and time constraints that the typical auditor is facing during the audit process. The typical auditor is juggling multiple engagements of all complexities, all while working 60+ hours per week. Because of this, it is the proactive companies that will get the best service and most attention. Being proactive and asking questions during the audit process will keep your auditor focused on you and your company. In addition, you will be more aware of what to expect during the process and will be more prepared for any obstacles that may arise.

• - Start early. Request a planning meeting with the auditor BEFORE year-end. Preferably this meeting would take place at the company’s location and would include Company management and all relevant parties. Depending on the size of the company being audited, this could include the company’s CEO/President, the individuals responsible for overseeing the progress of the audit (CFO/Controller/Accounting Manager), Audit Partner, and Audit Manager. Ask for a copy of the list of items that they will request of the company in order to begin the audit. Become familiar with this information and plan accordingly. Make sure that your team and accounting department is adequately staffed to take on the rigors of an audit. If you have any questions of the auditor, ask them now and any time prior to the start of the audit. By becoming familiar with the information prior to year-end, you will be in a position to appropriately prepare the information correctly, with no errors, when it is due. Remember, the auditor will send a bill for this meeting, but in the end, it will be well worth the extra few hours.

• - Be Complete. Fully complete the year-end close process AND the list of items and schedules requested by the auditor prior to the beginning of the audit. This is the cause for most inefficiencies during the audit process and as a result, the result of the increased fees. Many companies feel that they can complete the list of requested items during the completion of the audit. This is rarely the case. Unexpected questions will arise from the auditor during the audit process. These questions will create additional questions that Company management may have not been prepared for and will delay the preparation of the other items on the list. In order to maximize efficiencies and to support their accounting department, many companies these days will hire an outside specialist or accounting firm to work with the company and their auditors to assist in the year-end close process, preparation of all auditor requested schedules and documents, preparation of financial statements, and assistance with research and resolution of any complex accounting issues that may arise. These firms work with the company to put a plan in place that is in the best interest of the company. These services typically result in a reduction of audit fees that exceed the fees charged by the accounting firm. These firms also assist in offloading management time by providing an extra layer of expert review to reduce the number of audit adjustments and to make sure that all schedules, source documents, and sub-ledgers tie back to the final trial balance, thus providing Company management with additional flexibility to attend to their regular daily responsibilities. In San Diego alone, there are several San Diego accountants and San Diego accounting firms of which to choose from.

To summarize, an efficient audit results in the reduction of audit fees.  To accomplish this, a company must be organized, prepared, and must have the infrastructure in place within their accounting department to appropriately prepare and complete the requested information, along with the time to answer all audit related questions.