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Review…React…Recommend

You remember when growing up, your parents told you, as they took you to the first day of school: “Make sure you learn your three R’s, Reading Writing Arithmetic.”

In business, we should make sure to fulfill our responsibility in delivering our three “R’s”, Review React Recommend.”  We should review a client’s financial results as of June 30 and how they compare to last year and plan.   


Review…React…Recommend


As we review the financials as of June 30, we must react to any changes that we can recommend which would have a positive effect on the balance of their business for the remainder of the year.  What responsibilities do we have as their accountant, lawyer, banker or consultant in this process?

 

The responsibility is huge.
We must do a thorough job of
reviewing information supplied.
We must react. We must give 
alternative recommendations to
either enhance their results or cut
their potential losses.  
 
A number of years ago, I had a client who had a service business. The business required to have their doors open five days a week throughout the year, but in their high season, they needed to be open six or seven days a week with enhanced hours. They came to me after completing their primary season, and it showed that their revenues and profits were substantially below their plan. I asked them the pointed question: “Why are revenues below plan, and yet your profit margin is spot on?”  I then asked the next question: “Did you extend your hours as we planned for?” They told me that they just could not work the hours and they did not want to hire more staff. In my review, I had the hard decision to tell them they were not suited to own this business. I recommended selling and finding a livelihood which fit their life style better. It was a hard decision, but it was my responsibility as their advisor to make this recommendation.

We are not just engaged to take their interest and fee payments. We must review clients’ performance to evaluate, react and recommend ways for them to improve to either meet or make their projections for the year. We must deliver insights as to products and service that empower them to understand how to move ahead in the right direction.


At Elanstrategic our tag line states that we provide “actions to create value.” This time of the year is our last shot to help our clients move ahead and cross the finish line with their best results. If you or your staff need the help with a client, contact Elanstrategic and we will help you add value to your relationship with your clients.

 Call Elanstrategic at 952-960-6688 or yale@elanstrategic.com for help.

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