CPA Trendlines

Creator of “Up Your Cash Flow” Goes Online

Harvey A. Goldstein, who invented Up Your Cash Flow and remains longtime managing partner of Singer Lewak CPAs in Los Angeles, is birthing a new brainchild: instant cash-flow forecasts for small business.

It goes by the unfortunate name GoHagIt, which seems to be based on Harvey’s initials. But otherwise it’s a bold and interesting way to handle small-business clients.

“Our process is simple and painless,” Goldstein continues. “Send us your current company’s financial statement, or budget. We’ll convert it to forecasted balance sheets and a cash flow forecast of the company’s future cash requirements. We’ll spend time with management, via telephone, gathering data, refining the forecast and discuss steps to consider to improve their economic conditions. ‘No surprises’ accounting!”

And he’s taking aim at every competing CPA in the business.

“Most accountants spend time telling their entrepreneurial clients what happened rather than what is going to happen. They’re historians,” Goldstein laments. “These are the services your CPA should provide but doesn’t.”

Auditors Beware: Parmalat Suit Against Deloitte Gets Green Light

“Shock waves.”

Stuart Grant of Grant & Eisenhofer tells Andrew Longstreth at American Lawyer that the Manhattan federal district court ruling to allow a Parmalat shareholder case to move forward against Deloitte & Touche LLP is “sending shock waves throughout the auditor community.”

Granted, he represents Parmalat shareholders, but we get his point. We’re sure that Pricewaterhouse Coopers, whose India affiliate audited Satyam’s books, does too.

Critically, Judge Kaplan ruled that the two Deloitte entities (DTT and D&T) could be held vicariously liable for the actions of Deloitte & Touche SpA, which served as Parmalat’s auditor in Italy before a major accounting scandal forced the dairy giant into bankruptcy in 2003. The two entities filed separate summary judgment motions. Deloitte & Touche Tohmatsu argued that it did not have control over Deloitte Italy, and Deloitte & Touche LLP, the accounting giant’s U.S. operation, claimed that it did not control Deloitte & Touche Tohmatsu. Judge Kaplan disagreed with DTT’s argument and ruled that the question of Deloitte & Touche’s control would have to be decided at trial.

“In essence, Judge Kaplan has said that the parent can’t hide from the misdeeds of its children,” said Grant.

FREE DOWNLOAD: Get the judge’s decision (PDF, 30 pages)

via AmLaw

Rose-Colored Glasses? Small Biz Owners Remain Optimistic

Nearly 9 out of 10 small business owners see opportunities.

And 60% still expect their business to grow in the coming year. Despite the fact that most of them said they’re coming off a flat to down 2008.

FREE DOWNLOAD: Intuit Small Business United Survey (PDF)