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Jeffrey Waks

Accounting Professional

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A Flash Look At Macro Economic Policy Impact on Society

Jeffrey Waks · Nov 26, 2019 · Leave a Comment

Societies evolve and change.  Technology creates new products and services.  Our economy has transitioned from an industrial society to a technological society, and is now moving into a phase termed knowledge based in less than 50 years.  This pace is an overload on the legal system and various institutions.  As a result, the relationship of elasticity on product and service demand changes, which causes business and governments to rethink policy, methodology, law and how to operate in a new environment as it changes before its eyes.

Elasticity directly impacts price.  In the 1980’s it was not important to have a cell phone or email to conduct business, so these type of products and services’ price movements did not affect demand.  However, in the 21st century cell phones and email are imperative in order to do business, consequently the elasticity of demand and supply of the products and services has changed.  These products and services’ changes in elasticity of demand and supply create behavioral changes in purchasing, due to price changes and feature functionality, and utility.  Consequently, people must have cell phones and email to for example, gain employment, conduct business, and deal with family issues.  This means a new item of nondiscretionary spending has now entered a family, or businesses mix of products and services that it must have.  As a result, this changes the effect of government policy and spending patterns, hence economic analysis and policy creation.

Now one can see that the new requirements placed on society and business by these changes, leave less money available for normal purchases that have always been required, or part of the family budget that cannot be omitted.  However, the flip side to this is employment gains in the new industries that create these products, or services.  Although, the net employment increase is less than the employment decrease since the recession of 1990-91, due to innovation driving down labor needs and costs at faster pace.  This leads to lower GDP and less national income per capita; society must find ways to deal with this issue.  One might ask is this dilemma and or trade off correctable so as to increase national income or GDP, and per capita income.  The short simple answer is yes.  However, the outcome is dependent on the extent to which the government utilizes what economist call the multiplier principle and its dynamic relationship with the private sector.

Policies must be implemented that focus on employment that results in economies of scale, or reduced cost and increased utility patters.  Consequently, polices that embrace education, infrastructure such as transportation, water, energy, health care and delivery become imperative in this type of secular development phase of a society.  Education has a long payback period that can be from 18 to 30 years; this makes these policies difficult to implement when a country such as the USA is facing large debt.  The appetite is currently.  However, a low appetite for education is the wrong direction because of economies of scale and utility that education provides a society.   In a low interest rate environment these opportunities must not get away from a country in the midst of globalization.    Infrastructure such as transportation, energy and water can bring down the long run average cost curve thereby increasing families discretionary spending. 

These types of investments also increase the amount of leisure time people can have.  Spending on health care technology, disease cures, and delivery methods also reduce the long run average cost curve affecting family’s finances and per capita income.  If the opportunity to seize the low interest rate environment is not seized, then a society will find it too expensive to invest in these areas, leaving the country at a competitive disadvantage as compared to other countries in a globalized economy.  The choice will either increase or decrease the standard of living.

Accounting For Sales Tax Systems For Multi-Unit Companies

Jeffrey Waks · Nov 22, 2019 · Leave a Comment

A well designed sales tax system must function off of one inventory item database, with a multi-jurisdictional state tax matrix in order to provide the proper audit trial to satisfy department of revenue compliance; which will minimize audit liability risk.  Item taxability should lie in an algorithm that combines the item master, with the customer master for location, and the jurisdictional matrix for taxability.  This type of design will allow a state auditor to obtain an item sales history by location.  This process will minimize the risk of an auditor using alternative measures of averaging your data in order to compute liability during a sales tax audit; otherwise the auditor will use averaging methodologies if they determine they cannot rely on your system data.  This may result in over payment of taxes in an audit due to the inability of a company to prove to the auditor otherwise; due to poor system design. In accounting we call this a robust point of sale system that provides sales item history by location.  These types of systems apply best for retail, wholesale and manufacturing companies that sell tangible personal property.

However, the same logic will apply to a service organization that has revenue streams from software, service, implementation and maintenance type sales and contracts.  In order to accommodate service type organizations, systems need to be augmented to accommodate different types of contract structures.  Contract structures usually dictate how a jurisdiction will tax different type of sales of service organizations.

Accounting Staff and Senior Staff Support Positions

Jeffrey Waks · Nov 20, 2019 · Leave a Comment

Accountants in mid-level staff support positions must continue to reinvent themselves in order to provide meaningful data analysis to the management they support.  As software systems have evolved, many companies found themselves investing in software over a decade ago with the advent of Y2K.  As a result of competitive cost pressures, organizations may not have the opportunity to keep pace with the investing cycle.  Consequently, these companies are unable to take advantage of new economies of scale from the latest software features.

However mid-level staff must play an important role to enable the organizations to keep pace with competition.  Mid-level staff can do this by utilizing data mining tools such as Excel, Access, Domo, Crystal Reports and other report writing and data mining tools.  By utilizing data mining tools staff can come up with advanced ways to look at complex data outside of the accounting system when these accounting systems do not provide the data in the format required by management.  Staff can set up queries, pivots, VLOOKUP’s, If then, and sumif equation’s in  order to accommodate analysis for decision making that moves beyond the confinements of the organizations accounting software system.  This becomes especially true if nomenclature of master file level data changes and cannot accommodate analysis by your traditional accounting system.  There may also be industry, customer and vendor changes in requirements that cause companies to work outside their accounting software systems.  For these reasons it is very wise for staff accounting personnel to keep pace with the innovative data mining tools and methodologies available in the market place, in order to provide meaningful data analysis to top level and mid-level management.

This process of educating mid-level staff is also very important to Management.  Management must make sure its workforce is well trained, aware of these issues, and how to deal with them.  Solutions for such outcomes are simple education, mentoring and collaboration.  Knowledge workers must share and be encouraged to share capabilities with each other in order to raise the knowledge level of all staff.  Corporate Human Resources and Executive level staff must engage in this process in order to achieve their desired results to remain competitive in today’s ever changing business environment.

Perfecting The Online Job Search

Jeffrey Waks · Nov 18, 2019 · Leave a Comment

Over the years the way we search for jobs in our career has changed. In order to succeed at job searching one must master the art of job searching on line by capitalizing on technology and innovative thought. With that said, the ability to fill out online applications fast, deliver great content on your resume, be a polished interviewee and interviewer, and support your claims one must be innovative and willing to adapt to change.

This begins by organizing yourself. Make sure you have pdf and or jpeg files of all of your degrees and certifications. A Word document resume that conveys a brand with support to back up your statements and accomplishments. In addition, have a standard cover letter that can be quickly augmented for a specific position. Also, have a career summary which highlights accomplishments, personality traits and a value proposition; this should not look like your resume, but shorter and similar to an elevator speech. Next, make sure you have a few letters of recommendation, a demographic listing of all of your education, employers, and references in a Word document that includes names, addresses, dates and contact information. With these files and tools open while you are online applying for a position you can easily copy and paste the appropriate information into the applicable parts of the online application form, this will decrease your time to complete the application.

LinkedIn profiles are a great way to showcase your career. Your LinkedIn profile should be more than your resume. Profiles on Linked in should have examples of work, career summaries, and letters of recommendation, endorsements, and online references and yes even written and published posts. Posts that you publish should be related to your field, designed in such a way to convey your knowledge, a political and objective; this can drive traffic to your profile. An online profile should contain all of your favorite stuff including your degree itself. I suggest also placing pictures of examples of the product, service and or theme with each company you have worked for; along with examples of your work; this will add to the visual experience of your profile.

After you have interviewed for the position, consider the appropriate strategy and time to add the people you interviewed with as connections; this will help grow your network. I cannot tell you how many times I have interviewed with a company years after my first interview because of this type of strategy, and received multiple offers from the same company. Maintain a database of notes and outlook contacts for all places you have interviewed. Do not rely on your profile in a passive fashion. Make sure you always respond to job postings; it is a numbers game. Although I would advise applying to positions in your field that you are qualified for. Have a strategy that positions yourself maximum flexibility. My personal experience is that my rate of securing an interview from answering posts online applying for a position has ranged from ten to fifty percent.

Often times I have been able to maintain interviewing with companies two to three times a week for months on end. This has allowed me to grow my network. Use your face time in the interview to make a connection during the interview and after, which is what Linked in is for. This strategy has helped me to save time and money while expanding my network in the most productive and visible fashion. I do not attend networking events any longer; because of the strategy I explained and implemented has a greater success rate for me. Most people tell me they send a hundred resumes out before they get one phone call. I have a 25% average success rate as explained above, never been out of work, and learned to be extremely polished at interviewing; and receive lots of offers all the time. One can use recruiters, I do suggest doing so, however recruiters should not be relied on. Recruiters do not provide the same opportunity that you can provide yourself. I have held over 75 jobs as an employee, contract worker, or consultant over the years by marketing myself. In the end your search, online presence, attitude, applications, recruiters, staffing agencies and networking combine to enable the success rate of career moves. I have been able to do this simply from my home computer, telephone and face to face interviews.

If you would like to learn more about how to brand yourself, save time and money, and increase your rate of success on your job search without spending an enormous amount of time please feel free to contact me on my LinkedIn profile, email or cell phone. I have access to all the tools and the ability to teach you how to succeed without wasting time and money.

Designing an Effective Accounting System

Jeffrey Waks · Nov 15, 2019 · Leave a Comment

An effective accounting information systems provides accurate, timely information regarding your business while meeting regulatory compliance.  In order to achieve this, organization and systematization is required.  This means that duties must be segregated to comply with internal control guidelines and GAAP.  Another key element is software systems that are integrated that omit manual rekeying of data.  Data structure conventions that mean something to your company, customers and vendors is the most important part of a sound financial system.

In order to achieve the proper systematized and organized Accounting information system, careful planning must happen prior to implementation.  Master files for the General ledger should be departmentalized mirroring your product or service flow sequence.  General ledger accounts must be set up using nomenclature that compliments extensive filtering capability, for example:  (GL account codes=XX-YYY-DDDDD-AAA), where each component preceding a dash means something to you, your employees, customers and vendors to allow for achieving further filtering and reporting requirements; this will lend flexibility to your reporting system by allowing multiple dimensions of looking at your data.

If your company has inventory then arrangements must be considered for data structure in order to effectively utilize filtering fields at the master file level.  In addition inventory nomenclature should be designed by segment:  example (sku=XX-YYY-DDDDD-A), where each component preceding a dash means something to you, your customers and vendors to allow for the filtering requirements; this will lend flexibility to your invetory reporting system.

In cases when your organization operates in an industry that has a National Stock Numbering system, or does business with a vendor or customer that has standards, you may be required to use the National Stock Number or standard as the SKU.  In these instances there are systems that have features to manage such a situation.  However, in the case where you have a canned packaged software system, there may not be a specific feature to deal with this sku issue.  When that situation arises it is simple to explore alternative ways to use the software to attain the accommodation.  This is also why the data structure nomenclature must be considered, in order to accommodate filtering, reporting and compliance.

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