Abrigo

APRIL 8, 2015

'By Bakley Smith, CFA Strong businesses have a solid handle on their financial reality, and the cash flow statement is an excellent, if not the best, measure of a company’s ability to generate cash in excess of cash invested. Over a sufficiently long period of time, all businesses have to generate positive cash flow or they will go out of business. Forecasting the statement of cash flows is a valuable exercise for a business for several reasons.

Days Sales Outstanding 137

Days Sales Outstanding Accounting Firms 137

Abrigo

APRIL 29, 2015

Home sellers know that the first step to selling a home is getting it ready to be shown to potential buyers. And home buyers know that a fresh coat of paint, a clean yard and functional doorknobs can make a home more appealing. Even if you’re not selling your home, a thorough cleaning is much more valuable than just the lemon scent. Organizing your possessions can optimize the use of your spaces and can save time in daily tasks.

Transactions 68

Transactions 68

Abrigo

APRIL 9, 2015

'The OCC defines “top down” stress testing as “applying estimated stress loss rates under one or more scenarios to pools of loans with common risk characteristics.” This method of stress testing provides deeper insight into a financial institution’s portfolio or portfolio segment during stressed scenarios. For top down stress testing to be performed properly, banks and credit unions must appropriately segment their portfolio into pools of like characteristics, to which loss rates can then be app

Credit Unions 68

Credit Unions Credit and Collections 68

Abrigo

APRIL 29, 2015

If you’re a sports basketball fan, you know that the NBA playoff matchups are underway. As it stands, the average field goal percentage for the current season is.449. Of all 30 NBA teams – from first place standing in the Eastern Conference to last place in the West – players are making fewer than half of their shots from the field. In most other professions, making 45 percent of your shots might be frowned upon, particularly if those shots equate to scoring business.

60

60

Abrigo

APRIL 23, 2015

'A new bill proposed on April 16 aims to increase the exam cycle period for a larger pool of community banks. The bill, spearheaded by Senator Joe Donnelly, D-Ind., and Senator Pat Toomey, R-PA., would make more banks eligible for an 18-month exam cycle as opposed to the norm of a 12-month schedule. OCC guidance on Community Bank Supervision states all national banks must receive a full-scope, on-site exam at least annually.

Credit Unions 60

Credit Unions 60

Abrigo

APRIL 22, 2015

'By Natasha L. Closs, Director of ProfitCents Consulting & Advisory Services A lot of new ProfitCents customers understandably want to get the most out of the solution without devoting a ton of time in order to ramp up. One of the first steps in making sure you generate an acceptable return on your investment is to identify quickly a small number of clients with whom you can incorporate the industry data, financial analysis and projections available through ProfitCents.

60

60

Abrigo

APRIL 20, 2015

'Much like peanut butter and jelly, social media and content marketing are two things that go together in the world of forward-thinking marketers and business owners. So how does a firm get started using social media to build their valuation practice? Given the competing pressures on business valuation professionals or accounting firms that have developed this area of the business, neither of these two topics are likely to take high priority on your daily to-do list.

Accounting Firms 60

Accounting Firms 60

Abrigo

APRIL 16, 2015

'By Brad Spence, Director of Sageworks Valuation Solution What drives new business for your valuation practice? Referrals ? Marketing ? Cross-selling current accounting clients? How about technology? Is your firm using technology to drive new valuation engagements? Many accounting firms view technology expenses as overhead – costs that chew up precious revenue dollars rather than bolster them.

Accounting Firms 60

Accounting Firms 60

Abrigo

APRIL 15, 2015

'By Bakley Smith, CFA Most business owners - especially those in the startup space - have an eye on valuation. At what level does the market value the company? The media, of course, feeds the frenzy with television shows, articles, podcasts and a steady stream of click bait, aimed at illuminating the opaque world of valuation. Your writer spent ten years valuing companies in the public sector and did work on several IPOs and secondary offers in the those markets.

60

60

Abrigo

APRIL 14, 2015

'Get ready to breathe a sigh of relief… you’ve almost made it to the end of busy season. If your Twitter feed has consistently seen nothing but #busyseasonproblems for the last few months, it’s nearly time to make them a distant memory (but admit that you’ll miss the comic relief). Hopefully your firm has a little celebration planned for the hardworking accountants, auditors and support staff and there’s a champagne toast in your near future.

60

60

Abrigo

APRIL 13, 2015

'By Natasha L. Closs, Director of ProfitCents Consulting & Advisory Services In working day in and day out with accountants, we often hear that a main reason people subscribe to ProfitCents is to provide additional value to their clients. Accountants want to be able to help clients understand what their financial statements mean in the context of: • How the business is currently doing • What the business might consider changing, and • Where the business’ strengths and weaknesses lie, especia

Accounting Firms 60

Accounting Firms 60

Abrigo

APRIL 10, 2015

'When confronted with multiple clients, each requiring days of your time or your employees’ time to produce a customized valuation report, it is common to ask: How can I make this process easier? How can I make this process more productive for my bottom line? In speaking with financial professionals daily, the Sageworks team has generated a few recommendations that any valuation professional can follow to streamline the valuation report-writing process. 1) Get the documents, all the documents Wh

Accounting Firms 60

Accounting Firms 60

Abrigo

APRIL 6, 2015

'Few bankers enjoy having a federal examiner onsite, conducting a safety and soundness examination. It can lead to bottlenecks, additional reports that must be prepared, lost focus for bank or credit union executives, stress for board members and, in some situations, a bad report from examiners. How can you cheat the "test"? While it may not be cheating, seeking advice from peer banks or credit unions is an easy way to gauge what questions will arise during an exam or what feedback other institu

Credit Unions 60

Credit Unions 60

Abrigo

APRIL 2, 2015

'The phrase “expected credit loss” (ECL) is one that bankers will be hearing a lot more of in the coming months. Currently, financial institutions adhere to the incurred loss model for their allowance for loan and lease losses (ALLL). However, final guidance on the FASB''s Current Expected Credit Loss (CECL) model is anticipated to be released this year, so many banks and credit unions are beginning to seek information about the model and plan for the transition.

Credit Unions 60

Credit Unions CECL Credit Risk 60

Abrigo

APRIL 1, 2015

'Bank directors have always played a critical role in ensuring the success of their institution. Unfortunately, the recent economic crisis highlighted shortcomings in boards’ understanding of risks and the proper oversight of those risks. This may have been due to some directors lacking experience and/or being too closely tied to the bank. A recent Wall Street Journal article by Victoria McGrane and Jon Hilsenrath highlighted how the nation’s regulators are increasingly questioning and turning t

Credit Unions 60

Credit Unions 60