BiggsKofford Promotes and Grows to Eight Directors

hammond_smallBiggsKofford, one of the leading certified public accounting and business consulting firms in Colorado, announced today the promotion of Braden Hammond, CPA/ABV to Director. Hammond joins the firm’s team of seven directors: Chris Blees, Kurt Kofford, Greg Gandy, Greg Papineau, Michael McDevitt, Deborah Helton, and Austin Buckett.

Hammond joined BiggsKofford in 2001 and has a passion for the technical aspects of auditing and accounting. He understands that, rather than merely providing a historical report, an audit can help a move a company to its next level of success. In 2006, he was promoted to Manager and has continued to dedicate his hard work and leadership skills to the firm.

“Braden is an extremely valuable member of the BiggsKofford team,” said Chris Blees, Managing Partner. “He has the entrepreneurial spirit that all BiggsKofford Directors have.”

Founded in 1982, Colorado Springs-based BiggsKofford currently employs more than 25 professionals. BiggsKofford offers integrated business solutions, including tax, accounting, merger and acquisitions consulting, business valuation and litigation support.

BiggsKofford has expanded its services to meet the changing needs of over 500 business owners and entrepreneurs in Colorado’s Front Range.

Media, contact Jenn Watton at (719) 579-9090 for more information.

To celebrate the 2nd year of the Colorado Pro Cycling Challenge, a number of our team members, including our fearless leader, Chris Blees, will attempt to cycle the first five days of this year’s route. If successful, they will cycle over 500 miles from Durango to Colorado Springs, hopefully before the professionals catch them each day.

During, what should be an epic adventure, Chris and the team will be providing updates via our facebook page, and you can follow their journey by clicking this link and becoming a fan of our page. Every new fan we get between now and the end of the Colorado Springs leg of the race on August 24 will be entered into a drawing for a free BiggsKofford Cycling Jersey (like the one pictured here).

Given the recent events in town, they will also be raising money for those affected by the Waldo Canyon Fire. For more information about how you can get involved, go here.

Braden Hammond

Braden Hammond

Sr. Manager

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I have had people tell me that, while they understand why financial statements are necessary, they believe using them to run their business is like driving a car by looking into the rearview mirror. It’s true that historical financial statements have limited usefulness for decision-making. However, forward-looking or forecasted financial statements can be a powerful tool to help you grow your business.

To get the most out of your forecasted financial statements you should (1) start with your long-term goals, (2) go beyond the income statement, (3) identify milestones and incentivize employees to achieve them, and (4) monitor your progress.

Start with your long-term goals

Hopefully it’s apparent that the financial statements I’m referring to are not the stereotypical budget you hastily prepare, by adding x% to last year’s revenues and expenses, and then stick in a drawer until next year. Instead, these financial statements should be based on your long-term goals.

For example, assume your goal is to sell your business in five years for $10 million. You know that businesses in your industry typically sell for five times net income, so you need net income of $2.5 million five years from now to achieve your goal. You can work your way up the income statement to determine the revenues that you need to generate that specific net income and then fill in the rest of the details. Finally, you can forecast income statements for years one through four to get from where you are today to where you want to be in five years.

Go beyond the income statement

No one ever bought a vacation home with net income. To do that, you need cash flows. So, while forecasting the income statement is a great first step, you also need to forecast the balance sheet.

Growing a company generally requires upfront cash investments in advertising, inventory, equipment, personnel, etc. To be successful, you need to be able to predict when you will need that cash and where it will come from. How much extra cash do you need? Can it be generated internally? Will you need additional debt or equity financing? The only way to answer these questions is to forecast the balance sheet.

As an ancillary benefit, simply going through this process can help keep you focused on managing the balance sheet. For example, an active focus on reducing the time it takes to collect accounts receivable can accelerate your cash flows and reduce bad debts. Both will reduce the amount of external financing needed to fund your growth.

Identify milestones and incentivize employees to achieve them

One of the primary benefits of creating forecasted financial statements is to create expectations for employees in carrying out their job functions that lead towards your long-term goals. By soliciting feedback from key managers and employees in the forecasting process you can create buy-in for the overall objective.

An important element of any growth initiative is incentivizing your key managers and employees to align their goals with your goals for the company. Ideally, the milestones on which you base incentives should be a challenge to achieve, but also attainable, objectively measurable and based on things which your employees can affect.

The costs of these incentives should be included in your forecasted financial statements.

Monitor your progress

I recommend rolling financial statements for each of the next 12 months and then yearly financial statements from that point as far into the future as is practical. Each month you should compare your actual results with the forecasted financial statements to ensure the long-term goal is realistic and that you’re on target. If you’re not on target, or if circumstances have changed, you should update the financial statements to reflect your revised expectations.

Reviewing your progress monthly you will renew your focus on your long-term goals and improve your chances of success.

If you follow these recommendations you will find that your financial statements become less like a rearview mirror and more like a roadmap for growing your business. Clearly identifying your goals and monitoring your progress will give you peace of mind and the process will provide you with deeper insights into your business.