September 2 Intuit's Outlook is Changing

It’s that time of year again – the annual release of a new QuickBooks software version.  I don’t expect there to be many changes in QuickBooks 2016 that would affect professional practices but let me explain why.

The landscape of Intuit is completely changing.  For the first time ever, Intuit announced last month that Quicken, the personal finance software, is up for sale.  I’ve been using Quicken personally since it was DOS and continue to love its ease of use.  I was very surprised with this announcement but the online version of Mint has been doing well, so they are selling off Quicken.  Demandforce and QuickBase is also up for sale.  

Intuit laid off 5% of their workforce (399 employees) in June and laid off another 249 employees last week in an effort to restructure the remaining business for their “strategic goals.”   Intuit laid off many employees last year as well, and the year before.  It has been an ongoing trend for the past few years.

But, be aware that Intuit is seriously pushing QuickBooks Online even though it continues to be an inferior product to the desktop version.  QuickBooks Online – strategic goal.  QuickBooks Desktop – not so much.  Sadly, it may be the next product to sell but most say not for the next five years.

Why do they want their customers to migrate to online, when the desktop version is so robust?

Revenue.  Intuit makes much more money (as do your accountants) with the online version.  For a $27 per month fee, in two years you could have purchased 3.5 copies of the desktop version.  Most businesses do not purchase a new version but every three years.  Some string it out longer before their version is no longer updated.  So encouraging migration to online, establishes a more consistent and dependable revenue stream.  It's not a bad business decision but the online version is still not up to par with the desktop version.

Feature Rich.  The desktop version is already robust and feature rich.  How does the company keep up to the level of changes that have occurred in the past?  It’s already the sharpest tool in the box!  What could the developers possibly change that would make it incredibly more feature rich?  They've already announced the developers are concentrating on the online version, so, again, I doubt there will be many changes.

How does this affect you?   It will eventually.  Professional practices primary accounting software for accounts payable is QuickBooks desktop version.  Some have migrated to mac, some have migrated to online but the desktop version is still, the most robust version available at this time.  Since they have repurposed the developer's attentions to the online version, I expect the online version will catch up within three to five years.  I also believe Intuit may phase out QuickBooks Pro to QuickBooks Accountants version within three years.

Will I write a QuickBooks Online book?  Good question.  I’ve been pondering that the past couple of weeks and may be closer, only due to market demand but that is still a few years away.  The desktop version is the feature rich product, not the online version.  There will need to be many advancements yet before I switch sides.

In the meantime, QuickBooks 2016’s release is right around the corner!  If you are using 2013, it is time to upgrade.  The Getting The Most Out Of QuickBooks In Your Practice’s publication date is tentatively set for October 31, dependent upon QuickBooks actual release date.  If you need help, call me - let's organize your practice's financial data together so that you can make wiser financial decisions in 2016!

Update note:  Since the first release of this blog, many have stated I'm shooting my business in the foot by keeping you informed.  I hope not because it's my job to keep you informed.  QuickBooks desktop version is still the best version available at this time.  When QuickBooks online is fully matured, I will let you know.

August 8 Heat Advisory and Willis Carrier

Heat Advisory.  Yes, I live in Texas but the older I get the more grateful I am for Willis Carrier.

Since Ancient Egypt, we have sought relief from the heat.  All of them understood the concept of water flowing to cool air.  Ideas built upon ideas, from Romans to Chinese to Benjamin Franklin to Michael Farady.

Then a Cornell graduate, Willis Carrier, went to work for a forging company.  He had an idea to solve a problem and built the first air conditioner in 1902.  One hundred thirteen years ago, Carrier built a contraption that not only controlled temperature but humidity.

It was so successful, three years later, the Carrier Engineering Company was formed and five years beyond that, they bought their first manufacturing plant in New Jersey.

In 1906, Stuart Cramer originated the widely used term “air conditioning,” which replaced the term “water cooling,” because the machine “conditions” the air.

When our house was first built, it had an attic fan to distribute air on these hot Texas days.  But, not long after my birth, during the air conditioning boom in the residential market, Dad had an air conditioning system installed.

This time of year, in Texas, we go from air conditioning to air conditioning.  I didn’t have a car with air conditioning until 1985, and it was not factory installed on my 1984 Nissan Sentra.

In 53 years, air conditioning went from an idea to a given expectation.  A few things got in the way of development, such as the Great Depression and both World Wars, before air conditioning really expanded.   

Sadly, Willis Carrier died in 1950 at the age of 73.  He died just before the explosion of the air conditioning market.  But 53 years later, the Carrier Corporation has annual sales of $15 billion and employs over 45,0000 people.

One idea to solve a problem.  It took many long hours, and a lot of failures, before they were successful in developing a widely used tool, a truly necessary tool here this week, during our Heat Advisory.

Twenty years ago, I watched a news clip about a man who truly had a novel idea, that had built into a business.  I can’t remember what the idea was but I do remember how I felt.  “Wow – how cool is that!  He had a unique idea and has truly built on it.  He is amazing!”

I’ve long believed we should work according to our uniqueness’s.  Since my “aha” moment watching the news clip, I’ve written 32 books on how to use QuickBooks accounting software in conjunction with professional practice software.  There is not another book like these books. I had an idea, the demand was there, so I did it.

There were a few failures along the way, as I learned how to write a technical manual in an understandable format or how to develop a unique understandable practice management chart of accounts designed for business management.

My idea hasn’t changed the world, like Willis Carrier’s idea, but it has changed the lives of so many dental, veterinary, chiropractic and medical practices as they now truly understand their business cash flow.  Even CPA organizations have changed their chart of accounts.  

But, I still stand amazed.  The Traveler’s Gift, by Andy Andrews, is a very uniquely written book I encourage everyone to read.  I don’t want to give away what Andy builds up to but it’s a short read and a truly encouraging read to use your gifts and talents.

I believe everyone has a unique purpose, along with unique gifts.  What’s your unique purpose?  Are you doing it?  If not, what are you waiting for?  Could your idea truly make a difference?

Yes, I’m truly thankful for Willis Carrier!   I’m sure he never fathomed how his idea, his invention would change our daily living.

August 6 May Flood Damage Repaired

The May floods claimed my small outside detached office and back garage.  It’s been a process to get everything repaired and ensure the flooding doesn’t ever happen  again.  

Landscaping has been removed and apparatuses installed on the roof to divert the rain.  The office now has two new walls, one rebuilt, and new windows.  In the interim, all the office contents were hastily stored in my garage, so the carpet and other wet contents could be tossed.   

There were many other lives much more greatly affected than mine.  My damage was just an unplanned and non-budgeted interruption.

I decided since the floor is bare and contents evacuated, it was time to paint before moving everything back in.  It is August in Texas.  So, this past week, I’ve gotten up shortly after God, hoping to have a little cooler temperature to paint in an non-air conditioned space.

Not much cooler but, to be fair, it was cooler than 2 o’clock in the afternoon.

Yes, I know I could hire someone to do the painting but I like painting, and I save money if I do it!  This was an unplanned expense, not covered by my homeowner’s insurance (it was a flood).  Painting gave me lots of time to think.  

Every early morning, I could hear Dad in my ear saying, “Get up!  The office won’t paint itself!”  My Dad was a home builder and the detached office was where he bid his jobs, figuring out costs, running the old fashion adding machine.  When I started my business, I took over his little office, painting the inside of his built in cabinet doors hot pink!

Painting was a process of prepping, cleaning, getting ready.  Day 1:  I prepped the two new walls with sealer and texture.  I absolutely love spray on texture.  Day 2:  I cleaned and painted the two new walls and started the built in cabinets.  Day 3:  I finished the built-ins and painted the ceiling.  Day 4-5:  I cleaned-up.

While I was painting the ceiling, it doesn’t surprise me that I got a little inspired. 

There are many parts of painting a ceiling:  you, the paint, the vehicle of administering the paint (the roller brush on a stick) and the ceiling.  The part not moving is the ceiling.  Let’s break it down.

Let’s start with the paint.   I was raised by my Dad all things repair, so I used paint I had from remodeling the house 4 years ago.  It was good paint and went on smoothly but I also bought premium paint 4 years ago.  Some paint is cheap and runny, more of it splatters than gets on the walls or ceilings.  Cheap paint requires multiple coats and frequent baths.  My Sherwin Williams paint was STILL amazing.

Then there’s me.  I wish as a kid I would have known how many walls and ceilings I would paint in my lifetime.  I could hear Dad again, “Honey, don’t push so hard on the roller.  Lightly, lightly.”  Or “try to get a little less paint on the roller and you the next time.”   If you’ve never met me, I’m short.  I was 5’3” in junior high and I’m still 5”3” many years later.  Reaching the ceiling, even with a roller extension, is challenging but that’s the purpose of toes and step stools.  

I use what I have (toes) and can supplement (step stool) and the roller-brush-on-a-stick.  I’m pretty sure the roller-brush-on-a-stick was invented by a short person who was seriously tired of getting up and down off the ladder.  I do suggest making sure that the brush is SECURELY screwed into the pole prior to administering paint to the ceiling.  I am my best source of entertainment but it does create a mess.

Most importantly, cover your hair when painting a ceiling.  It’s a little thing called gravity and some of the paint will fall on you, little spots everywhere on you.  Also, do not paint with your mouth open.  I did wonder how they found out about lead poisoning from lead based paint.

Back to my analogy.  Now the ceiling, the receiver of the paint.  Paint sticks better to ceilings if the ceilings are cleaned of cobwebs and dust first (step stool and broom).  Paint also sticks better if it’s the right paint.  I tried painting a ceiling once with the wrong paint.  Did you know flat paint doesn’t work well on enamel?  I do now.  I learned my lesson and the right thing was applied to this ceiling.  While I was painting, I continuously checked to make sure it was even and I didn’t miss any spots.  There’s nothing worse than finding spots AFTER you clean the brushes.

There are so many personal applications.  

Remember how our parents told us to be careful who we chose as friends.  When we interact with each other, sometimes we are the painter and sometimes we are the ceiling.  And sometimes the paint is cheap (bad choices) and takes a lot of applications to attempt make it right.  

If as an employee (roller-brush-on-a-stick), I chose to not honor my employer (the painter) with diligent time on the job (the ceiling), then there is no reason to keep me as an employee.

If as a leader (the painter) I chose the wrong message with my attitude (cheap paint) to share with my staff (the ceiling), the affect requires much more work and results in high employee turnover.  

If as a speaker (the painter), I give the wrong message (cheap paint) to an audience (the ceiling), time has been wasted and bad reviews will ensue.  

I challenge you to make sure those you spend time with encourage you to be the best you, not the worst you.  It’s a lesson for adulthood, as well as childhood.   

You always have a choice.  I am truly blessed to have great long-term friends, as well as colleagues, who truly encourage and support each other.  If you don’t, it’s time for a change.  Again, it’s simply your choice.

Yes, I have been accused all my life of over thinking, but I had plenty of time to do so.  At the end of my time each of those mornings, I was soaked from the heat.  Determination to get my car back in the garage got me out of bed early.  Perseverance kept me from quitting before my daily goals were finished.  Common sense and a desire to not have heat stroke did prevail when I needed to take a break for cooler air.   

Good old fashion, roll up your sleeves work, getting dirty, grimy & smelly in the process, was good for my soul.  Now, I have to move everything back in!

July 27 My take on a new Texas bill

May I have your attention?

Fingers poised on my keyboard, I’m trying to formulate exactly what I am thinking at this moment.  Let me take the emotion, frustration and cursing out and see if it helps.  

[deep breath]

My home state of Texas passed a new bill (SB 519) that goes into effect September 1, 2015 that may affect consultants in the dental industry.  A big thanks to my colleague Duane Tinker for the heads-up email blast!  If you do business with Texas dentists, this could affect you.  Keep reading.

Basically, this is the bill.  You must register as a Dental Support Organization (DSO) if you provide two or more of the following services to a dentist: 

(A)  office space, furnishings, and equipment;

(B)  staff employed by the dental support organization;

(C)  regulatory compliance;

(D)  inventory or supplies, including dental equipment and supplies;

(E)  information systems;

(F)  marketing and advertising;

(G)  financial services;

(H)  accounting, bookkeeping, or monitoring or payment of accounts receivable;

(I)  payroll or benefits administration;

(J)  billing and collection for services and products;

(K)  reporting and payment of federal or state taxes;

(L)  administration of interest expense or indebtedness incurred to finance the operation of a business; or

(M)  insurance services.

Basically, the way the bill is written, this pretty much includes all vendors, exhibitors, and speakers.  But, wait, there are exceptions:

(1)  an accountant providing only accounting services;

(2)  an attorney providing only legal counsel;

(3)  an insurance company or insurance agent providing only insurance policies to a business; and

(4)  entities providing only investment and financial advisory services.

Wasn’t this half of the DSO list?  Why didn’t they just leave them out of the bill in the first place?

When registering with the state, the DSOs must provide the following information:

1. the DSOs name and address
2. the name and address of each Texas dentist the DSO has entered into a business agreement to provide two or more business support services
3. the name of the dentist that owns 10% or more of the DSO
4. the name of each person who is not a dentist and owns 10% or more of the DSO
5. a list of all the business support services provided by each dental client.

It is an annual registration that must be filed no later than January 31^st and if you add or discharge clients, you must file a corrected registration each quarter.  Basically, it’s a VISA to provide services to dentists in the state of Texas.

According to the Sponsor’s Statement of Intent, the State Board of Dental Examiners was instructed to survey the dentists and collect information about the DSOs.  And, according to the SSI, the State Board of Dental Examiners can request information of the DSOs.

What the heck?  Some of the wording in the bill affirmed my suspicion that this was an attempt to reign in Medicaid fraud.  Yes, it’s a concern.  I’m not sure why since the state of Texas is one of the lowest ranked providers of Medicaid.  But it is certainly an official someone’s agenda.

If you are a provider of any of the services that is listed in this bill, which pretty much includes all the vendors, exhibitors, consultants that I know, this is what it means.

You have to register all your Texas dental clients if you provide two or more services.  So, limit your service offerings to only two and you will be safe.

And, if you are a dentist, better make sure that your DSO is registered with the state of Texas, or you will be asked to provide that information by the Board.

Sarcasm aside, which has been extremely difficult, I know their intent was not to limit small business consulting firms in the state of Texas.  But it is how it is written.  Period. 

And the monitoring of this program is going to be a nightmare.  What’s the cost?  Is it worth it?

They obviously didn’t talk to any Dental Support Organizations prior to writing this bill about the economic impact of not being able to do business in the State of Texas, unless that’s what they want.  Since this feels they are going after a different fish than my species, why didn’t they write in some parameters, like DSOs over $1,000,000.00 or DSOs providing support to Texas dentists of over $500,000.

A typical DSO does not provide services only for the state of Texas.  I live here but am national in scope, providing only roughly 10% of services MAYBE in Texas.  Most DSOs don’t “live” here and a small part of their client base is here.  But that is irrelevant.  If you provide only ONE dentist two listed DSO services, you must register, according to the bill.

By the way, the bill does not state what they will do with the list of dentists that are having services provided to them.  There is a purpose to gathering that information.

I’ve contacted two House Members, who coincidentally, did not vote for the bill.  I’ve contacted the Texas Dental Association.  I’ve contacted the Association of Certified Fraud Examiners, since I perform dental embezzlement examinations in the State of Texas.  I’ve contacted an attorney for an interpretation for the scope of my business that will be affected.

Why?

It’s a $1000 per day fine if you provide services to dentists under the structure of the bill and do not register. 

Sometimes it seems like they have nothing else to do.  I tried to eliminate all the sarcasm, but sometimes I just can’t.  Beware and check back - I'll keep you posted.