WELCOME ! Client & Alumni CPE Forum

December 10, 2008

Opening Remarks

Howard Cohen

Managing Partner, Amper, Politziner & Mattia

Speakers:

Tom Mulhare CPA, Partner, Amper

- Practical Advice for Navigating Tough Economic Times

Michael Hadjiloucas CPA, Partner

Lori McMahon CPA, Senior Manager

- Incentives and Planning to Consider in Tough Economic Times

Practical Advice for Managing YourBusiness in These Economic Times

Tom Mulhare CPA, Partner

December 10, 2008

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Don’t let the “GRINCH” steal your holiday for 2009 and 2010!

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…but we do not have ALL the answers either !

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Cash Is KING

…long live the king!!

Know where your cash is 24 hours a day

Know what “safe” accounts mean

Monitor your bank’s financial health

Where to invest excess cash

Safety trumps return

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Getting Your Cash – Accounts Receivable

Be relentless to increasing cash collections

Monitor credit

Billing strategies/Payment terms

• Consider adding an interest charge

Deposit availability

Asset based financing

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Inventory – How Low Can You Go?

What are the “right” levels of inventory?

What’s hot? What’s not?

Monitor critical vendors/suppliers – Plan “B” ?

Pricing – Changes in Overhead

Lifo – keep it or lose it?

Imports – price protection

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Keeping Your Cash at Home! –Accounts Payable

Take full advantage of payment terms-payin 30 not 15

Use EFT to make payments the last day theyare due

If you have an issue - communicate

Work with your key vendors

• keeping the relationship

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Keeping Your Bank Relationships

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Understand and monitor your bank debt

• Review all provision for compliance

• Renewal Dates

• Best Deal in bad times

• Explore alternative sources

• Lines of Credit

Communicate

Keeping Control of Your Cash –Cash Flow Forecast

2009 Budgeted P&L

2009 Budgeted Cash Flow Statement

• Reflects your current reality

Stress test now !!

• What you will do if…

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Your Cost Controls

Payroll

• Make decisions early

Selling, General & Administrative

• What’s really necessary?

• Marketing in a downturn

Capital Expenditures

• Time to minimize purchases?

• Sell unused equipment (inventory too)

• Deals to be had?

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Other Considerations

Insurance Coverage

• Review

• Strength of carriers

Real Estate

• A chance to buy?

• Renegotiate leases

• Property tax appeal

• Leasing?

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Growth Through Acquisitions

Troubled competition

Lower values

Motivated “sellers”- bank and other investors

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Managing Your People

Upgrade?

Retention

Benefits

• Cash

Fraud

• Pressure of the times

Morale

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THANK YOU !

Questions & Comments

“The material contained in this presentation is for general information and should not be acted upon without prior professional consultation.”

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