March, 2014 | RKL LLP
Posted on: March 28th, 2014

RKL Expands into Greater Capital Region with New Harrisburg Office

One of Pennsylvania’s largest CPA firms is expanding its presence in the Greater Capital Region to meet growing demand for its tax, accounting and business consulting services. Reinsel Kuntz Lesher (RKL), Certified Public Accountants and Consultants, will open its new Downtown Harrisburg office in early May under the leadership of newly-appointed Office Managing Partner Wade G. Becker.

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Posted on: March 18th, 2014

15 Questions Every Business Owner Should Ask His/Her Accountant

It’s tax season and that means that if you are a business owner, you will likely be meeting with your external accountant in the weeks ahead.  To many, this is a dreaded annual event.  Make the most of this meeting by using it as an opportunity to look beyond your tax return and discuss issues with a trusted advisor that are critical to the future of your business.

Do any of these questions keep you up at night?  If so, make sure to include them on your agenda when you next meet with your accountant.

  1. Business Value. What can management do next year to increase the value of the company? What initiatives would have the largest effect on the company’s value? What is holding the company back?
  2. Goals. How does the company’s financial condition align with our strategic goals? Is the company on solid financial ground? What are the company’s vulnerabilities?  Where should the management team concentrate?  Is the company ready to “take on” its goals?
  3. Capital. How can I improve the company’s ability to access capital? What other sources of capital should we consider? What does the company need to “look like” before we are legitimate players in these capital markets?
  4. Management Team. Have I developed a management team that is capable of sustaining operations when I leave the business?  How can I retain key management without giving up equity in the business?

You shouldn’t have to wait a year to revisit these issues with your accountant.  Commit to a quarterly lunch meeting to follow up and explore these and other questions in depth.  Take advantage of your accountant’s understanding of your business and breadth of experience and engage in regular conversations that can assist you in your role as business owner and save you from many sleepless nights.

RKL’s tax, accounting and business consulting professionals help business owners address issues, take on challenges and achieve new levels of success. Want to know more about how we can help you? Contact one of our office locations today.

gretchen_2Contributed by Gretchen G. Naso, CVA, MBA, a principal in RKL’s Business Consulting Services Group. A Certified Valuation Analyst, Gretchen has extensive experience in general and family limited partnerships and valuations for financial reporting, purchase price allocation and gifting and estate tax purposes.


Posted on: March 13th, 2014

RKL Among Nation’s Largest and Fastest Growing Accounting Firms


LOGOSTACKED_RGBLANCASTER, PA (March 13, 2014) – A familiar name in accounting services in the Central and Eastern Pennsylvania region is earning national attention in the industry for its climb to the 72nd spot on Accounting Today’s “2014 Top 100 Firms” list. Reinsel Kuntz Lesher (RKL), Certified Public Accountants and Consultants, earned several rankings on the annual survey, underscoring its impressive growth in the past year.

In its annual “Top 100” supplement, Accounting Today recognized RKL among its “Movers and Shakers” for the firm’s double-digit move up 11 positions from 2013. The firm was also named 9th on a list of “Pacesetters in Growth” and the 17th largest firm in the Mid-Atlantic region, in a list dominated by metropolitan-based firms from Pennsylvania, New York and New Jersey.

“In some ways, it’s a bit surreal to see RKL’s name among these big city firms. We’ve grown to meet the demand in our local communities for the services and capabilities that RKL provides. We’re very grateful to our expanding client base for making this possible,” commented RKL CEO Edward W. Monborne.

RKL’s geographic expansion played a significant role in the ranking. In the last two years, RKL added four partners and 30 team members to its York, PA office. Firm-wide, RKL employs 300 full-time and part-time team members, as well as 32 seasonal employees and interns.

The firm has also experienced in growth in various services areas including audit, business valuations, cost segregation, forensic/fraud accounting, litigation support, mergers and acquisitions, international tax and others. Additionally, RKL’s client base saw growth in the manufacturing/distribution, nonprofit, construction/real estate development and government sectors, among several others.

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Posted on: March 11th, 2014

CFOs: Get the Most Out of Your Data with Power Financial Models

financial modeling and analysisData drives decision-making; there is no doubt about it. But how do CFOs and controllers wrap their arms (and heads) around large, internally generated data sets? Accounting software packages typically have some capabilities for ad-hoc reporting but what if those are not enough? Or what if there is a desire to use existing data sets to project the future of the organization? And what if there are going to be changes in the future?

Using Microsoft© Excel to create bespoke financial models is an executive’s ticket to getting the most out of their data. Not all models are considered equal and what may work for one organization may not work for another. Preparing a customized model is the best way to analyze the data of an organization and generate outputs that are meaningful to management teams.

Building a financial model begins with setting the goals of the outputs. What is important to the entity and what will drive better decision making? One base-line output includes periodic reporting. Models can also drill down to a product or customer level and provide relevant information on the profitability of each. Calculation layers are included and add value to the data, such as the allocation of overhead to customer groups, that may not always be available in software packages.

Beyond historical data, good models also allow for future analysis. With a clear set of input assumptions, financial teams can deliver management with a projection of what is expected to happen in the future. And that projection can be adjusted for various scenarios.

CFOs often question: what would happen if we increased sales by 5% and shaved 1% off of cost of goods sold? Margin would increase on larger sales and drive more profit to the bottom line. But what do the numbers look like on a monetary and common-size basis? The model will display that information with a couple of key strokes. By seeing what the financial future might look like given a certain set of changes to the existing operations, financial teams can disseminate goals and targets throughout the organization and be focused on working toward those goals while monitoring progress on a periodic basis through the model.

A high-performing financial model has at its core a standard data set. In any model the user should be able to pull a standard data extract (typically the general ledger) from their accounting system that can be “dropped” into the model on a periodic basis (monthly, for example). The data set is then coded to be searchable for various data points (date, customer, other criteria). Formulas can then be written to search the standard data set based on selected inputs.

Beyond historical analysis and future projections, models can be built to handle a wide variety of other tasks that may be more specific to certain entities. For instance, clients that have multiple locations may want to use certain industry benchmarks to rank the locations categorically. For example, a restaurant with 10 locations may want to compare revenue between the locations several different ways such as: revenue per employee, revenue per square foot and revenue per seat. The rankings may be different for each category but with enough analysis the better-performing locations emerge as well as the poor performers. Furthermore, top locations may have a category or two (such as percentage of sales discounts to revenue) that, if focused on, could make them even better performers.

Data analysis is a powerful tool that can be handled through the use of a powerful financial model. Models should use a standard data set to drive meaningful analysis that is relevant to an organization and will assist in financial and operational decision making. When designed and used properly, financial modeling of data results in a competitive advantage you do not want to miss.

Need help making sense of your company’s financial data? RKL’s Business Consulting Services Group provides financial modeling and data analysis services that will assist management in making informed decisions.

Jamie Spencer business valuation analystContributed by James M. Spencer, CPA, MBA, CVA, a manager in RKL’s Business Consulting Services Group. He provides business valuation, financial modeling and analysis including projections and forecasts, project feasibility analysis and assistance with acquisition and sales of closely-held businesses.