Financial Investing for Your Future (Transcript)

This is the transcript from EntreArchitect Podcast Episode 227, Financial Investing for Your Future. Listen to this podcast episode or download the audio file here.

***Start Transcript***

Mark R. LePage:            Do you know if your firm is profitable? Do you know how much profit you’re actually making? Do you? Do you know how much profit you should be making? Do you know how much you should be charging to make that profit? Well, you can learn how by downloading our free course profit for small firm architects right now at EntreArchitect.com/freecourse. My name is Mark R. LePage and you are listening to EntreArchitect podcast where I speak with inspiring, passionate people who share their knowledge and expertise all to help you build a better business as a small firm entrepreneurial architect. This is Episode 227 and this week I’m speaking with Henry Dominguez about Financial Investing for Your Future. Continue reading "Financial Investing for Your Future (Transcript)"

Three Financial BasicsEveryEntrepreneur ArchitectMUST Understand

Financial Management Terminology for Architects

For many design professionals the subject of Financial Management is complex and can become problematic if the terminology used in the discussion or writing of this subject are not precise. For clarity, the term, Financial Management, refers to the accrual-basis accounting process of a professional design firm. Accrual-basis accounting is primarily used to determine true profitability and the metrics, or key financial performance indicators (KFPI’s) that can be calculated only in this form of accounting system.

Three Financial Basics Every Entrepreneur Architect MUST Understand

The following are three financial basics every architect my understand. Unfortunately, they may be some of the most problematic and misused terms used by architects when structuring their financial management systems.

Profit/Loss Statement vs. Income Statement

Each of these terms are uniquely tied to the respective accounting process they represent. The Profit/Loss Statement refers to the financial report for the
Continue reading "Three Financial BasicsEveryEntrepreneur ArchitectMUST Understand"

Three Financial BasicsEveryEntrepreneur ArchitectMUST Understand

Financial Management Terminology for Architects

For many design professionals the subject of Financial Management is complex and can become problematic if the terminology used in the discussion or writing of this subject are not precise. For clarity, the term, Financial Management, refers to the accrual-basis accounting process of a professional design firm. Accrual-basis accounting is primarily used to determine true profitability and the metrics, or key financial performance indicators (KFPI’s) that can be calculated only in this form of accounting system.

Three Financial Basics Every Entrepreneur Architect MUST Understand

The following are three financial basics every architect my understand. Unfortunately, they may be some of the most problematic and misused terms used by architects when structuring their financial management systems.

Profit/Loss Statement vs. Income Statement

Each of these terms are uniquely tied to the respective accounting process they represent. The Profit/Loss Statement refers to the financial report for the
Continue reading "Three Financial BasicsEveryEntrepreneur ArchitectMUST Understand"

How Project Accounting Will Transform Your Architecture Firm

Take the Time to Examine Project Financials—You Won’t Regret It

Your projects have many moving parts, and sometimes tracking their financials might seem overwhelming. You might not get all the information you want or maybe, you don’t even bother to determine the profitability of each project because it would involve too much time. It’s completely understandable, but if you want to get serious about boosting your firm’s efficiency and profitability, you need to start monitoring your project financials in a routine way. You can do this through what we call project accounting. It sounds simple enough, as it is essentially the practice of accounting on the basis of individual projects. In reality, though, it’s so much more. If you do it correctly—and have the right tools—project accounting will transform your firm. You’ll keep projects on schedule and within budget, you’ll have more time for new ideas, and you’ll experience the
Continue reading "How Project Accounting Will Transform Your Architecture Firm"

How Project Accounting Will Transform Your Architecture Firm

Take the Time to Examine Project Financials—You Won’t Regret It

Your projects have many moving parts, and sometimes tracking their financials might seem overwhelming. You might not get all the information you want or maybe, you don’t even bother to determine the profitability of each project because it would involve too much time. It’s completely understandable, but if you want to get serious about boosting your firm’s efficiency and profitability, you need to start monitoring your project financials in a routine way. You can do this through what we call project accounting. It sounds simple enough, as it is essentially the practice of accounting on the basis of individual projects. In reality, though, it’s so much more. If you do it correctly—and have the right tools—project accounting will transform your firm. You’ll keep projects on schedule and within budget, you’ll have more time for new ideas, and you’ll experience the
Continue reading "How Project Accounting Will Transform Your Architecture Firm"

10 Ways An Architect Can Make More Money

This is an edited repost from deep in the archives. Originally published on the week of this blog’s relaunch on December 12, 2012, this article has been the most popular week in, week out. Leave a comment below or post your thoughts over that The EntreArchitect Community Facebook Group and share your tips and tricks. How do YOU make more money?
To successfully complete a project, an architect is responsible for making thousands of critical decisions. To complete the development of a standard residential additions and alterations project, it takes several months of focus and dedication. Many of us work long hours, long into the night, through weekends and holidays. The innovative ideas and concepts we create can often only be born after hours (sometimes days) of intense thought and several dozen layers of sketch paper. The personal emotion, attachment and dedication that each project receives is unequaled in any other Continue reading "10 Ways An Architect Can Make More Money"

How To Measure Your Financial Performance as an Architect

 The material for preparing an annual budget, an annual profit plan, developing project fee budgets, and calculating billing rates—is the stuff of financial planning. Each is a type of forecast that serves as a benchmark for financial management. Annual profit plans and annual budgets are your firm’s financial goals expressed in dollars—your vision of what you hope your firm will achieve in the coming year. Accurate project fee budgets and profitable billing rates are your tools for achieving those goals. With an annual budget and profit plan in place, and with good accounting and financial management practices (time and expense reporting; accurate project fee budgeting) throughout the firm, managing your firm’s finances is a relatively simple process consisting of three tasks:
  1. Measuring the variances between your year-to-date actual financial activity and your year-to-date budget
  2. Understanding why these variances have occurred
  3. Taking prompt, corrective action, as necessary
You can complete
Continue reading "How To Measure Your Financial Performance as an Architect"

Putting First Things First for Balance & Prosperity

First Things

How To Get To The Business of Your Business

In a recent conversation with a professional colleague who is a small firm practitioner (3 people total), he expressed his frustration with not being able to get to the ‘business of his business’. The demands of clients and project activities, plus other daily priorities leaves precious little time to do what he realizes is necessary to sustain his firm financially, from a management perspective. This young architect loves to spend the time required to develop the design excellence of his firm and all that entails on a project-by-project basis each and every day. After much thought he came to understand that his love of design was not something that required him to ignore the non-design business aspects of his practice. On the contrary, he decided to embrace the challenge of taking on the time-consuming and complex issues of the management side
Wintner
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The Financial Chart of Accounts for Architects

Chart of Accounts This is a guest post written by Steve L. Wintner, AIA, Emeritus, an architecture management consultant and co-author of the book, Financial Management for Design Professionals: The Path to Profitability. To learn more about Steve, his firm Management Consulting Services or to dive deeper into the subject that Steve is sharing with us here at EntreArchitect, visit his website at ManagementConsultingServices.com.

The Financial Management Cycle

Effective financial management is a continuous, cyclical process. In setting up a financial management system, at what point and with what should you begin? An annual budget is developed on the basis of information contained in past financial reports. Financial reports use the budget as a benchmark for measuring actual financial performance. So which comes first? How do you develop an annual budget if you don’t have good historical data? What good are the financial reports without a reliable budget to compare them to? To
Wintner
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A Financial Management System for Architects

financial_management

This is a guest post written by Steve L. Wintner, AIA, Emeritus, an architecture management consultant and co-author of the book, Financial Management for Design Professionals: The Path to Profitability. To learn more about Steve, his firm Management Consulting Services or to dive deeper into the subject that Steve is sharing with us here at EntreArchitect, visit his website at ManagementConsultingServices.com.

A Financial Management System for Architects & the ‘P2P Format’

The vital relationship between your firm’s financial performance and its ability to fulfill its mission and achieve its vision is made possible through an ‘internal’ accounting practice referred to as ‘Financial Management’. Once that connection is clear to you, both your skill and interest in financial management will grow and your firm’s operations will, if you follow all of the lessons you receive, be enhanced. The P2P Format is a proprietary system created and developed by this author starting Continue reading "A Financial Management System for Architects"

A Financial Management System for Architects

financial_management2

This is a guest post written by Steve L. Wintner, AIA, Emeritus, an architecture management consultant and co-author of the book, Financial Management for Design Professionals: The Path to Profitability. To learn more about Steve, his firm Management Consulting Services or to dive deeper into the subject that Steve is sharing with us here at EntreArchitect, visit his website at ManagementConsultingServices.com.

A Financial Management System for Architects & the ‘P2P Format’

The vital relationship between your firm’s financial performance and its ability to fulfill its mission and achieve its vision is made possible through an ‘internal’ accounting practice referred to as ‘Financial Management’. Once that connection is clear to you, both your skill and interest in financial management will grow and your firm’s operations will, if you follow all of the lessons you receive, be enhanced. The P2P Format is a proprietary system created and developed by this author starting Continue reading "A Financial Management System for Architects"

A Financial Management System for Architects

financial_management2

This is a guest post written by Steve L. Wintner, AIA, Emeritus, an architecture management consultant and co-author of the book, Financial Management for Design Professionals: The Path to Profitability. To learn more about Steve, his firm Management Consulting Services or to dive deeper into the subject that Steve is sharing with us here at EntreArchitect, visit his website at ManagementConsultingServices.com.

A Financial Management System for Architects & the ‘P2P Format’

The vital relationship between your firm’s financial performance and its ability to fulfill its mission and achieve its vision is made possible through an ‘internal’ accounting practice referred to as ‘Financial Management’. Once that connection is clear to you, both your skill and interest in financial management will grow and your firm’s operations will, if you follow all of the lessons you receive, be enhanced. The P2P Format is a proprietary system created and developed by this author starting Continue reading "A Financial Management System for Architects"

A Financial Management System for Architects

financial_management2

This is a guest post written by Steve L. Wintner, AIA, Emeritus, an architecture management consultant and co-author of the book, Financial Management for Design Professionals: The Path to Profitability. To learn more about Steve, his firm Management Consulting Services or to dive deeper into the subject that Steve is sharing with us here at EntreArchitect, visit his website at ManagementConsultingServices.com.

A Financial Management System for Architects & the ‘P2P Format’

The vital relationship between your firm’s financial performance and its ability to fulfill its mission and achieve its vision is made possible through an ‘internal’ accounting practice referred to as ‘Financial Management’. Once that connection is clear to you, both your skill and interest in financial management will grow and your firm’s operations will, if you follow all of the lessons you receive, be enhanced. The P2P Format is a proprietary system created and developed by this author starting Continue reading "A Financial Management System for Architects"

Bookkeeping Basics for Small Firm Architects

bookkeeping_basics

Helping Firms Embrace the Language of Business

“Bookkeeping?!?! Psshh. It’s confusing, boring, and I don’t want to do it!” “I went to school for architecture, not business!” “Pencils I know, scales and tracing paper I know! Deciphering the client’s needs and wants? Bring it on! But bookkeeping?!?! What manner of evil is this?” These are the sentiments of many firms in the architecture community. There’s absolutely nothing creative about it and yet it is crucial to the growth of all design firms. Consider the following. To do what you love, you must have a profitable business. To have a profitable business you must make well informed business decisions. To make well informed decisions you need to have financial clarity. Financial clarity is achieved through great bookkeeping. With that being said, allow me to share my bookkeeping basics for architects. It’s a wonderful companion on the journey to
CanProfPic
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How To Build a Successful Architecture Firm With No Debt

no debtFor the first four years, Fivecat Studio could be found at a basement studio in our little cottage in the woods of Chappaqua, New York. The space was just large enough for one Dell workstation, a couple of bookshelves, a desk chair, a telephone, five cats and me. Each morning I would eat breakfast, kiss Annmarie good-bye and “commute” down 12 steps to Fivecat Studio World Headquarters. We were 29 years old and life was good. Annmarie’s studio was in another room on the main level of the house. That is one of the many secrets we’ve learned to stay married all these years (we celebrated 20 years this past July). Separate responsibilities. Separate offices. (This past week on the podcast, I spoke with another pair of architects about how succeed as a married couple in architecture. Check it out here.) From that original small studio, we built our reputation for Continue reading "How To Build a Successful Architecture Firm With No Debt"

Financial Management for Architects

Financial Management

This is a guest post written by Steve L. Wintner, AIA, Emeritus, an architecture management consultant and co-author of the book, Financial Management for Design Professionals: The Path to Profitability. To learn more about Steve, his firm Management Consulting Services or to dive deeper into the subject that Steve is sharing with us here at EntreArchitect, visit his website at ManagementConsultingServices.com.

Financial Management for Architects & the ‘P2P Format’

The vital relationship between your firm’s financial performance and its ability to fulfill its mission and achieve its vision is made possible through an ‘internal’ accounting practice referred to as ‘Financial Management’. Once that connection is clear to you, both your skill and interest in financial management will grow and your firm’s operations will, if you follow all of the lessons you receive, be enhanced. The P2P Format is a proprietary system created and developed by this author starting with its Continue reading "Financial Management for Architects"

Basic Financial Statements for Small Firm Architects

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A Most Important Habit for Success

Without any education in business basics, architects rarely understand the fundamentals of business success. Some months we have money left over and other months we struggle to pay each bill. For years, I ran my business with no real understanding of how to end each month with a profit. Seven years into owning our own small firm, Annmarie and I decided to make some changes. It was during that year when I committed to a business program offered by Westchester Community College titled the Academy of Entrepreneurial Excellence. I wrote about my experience at the Academy in the introduction to my original Entrepreneur Architect Academy blog series back in 2013. One of the most important habits I developed during that year is the preparation of a financial schedule. During the first two business days every month I prepare my client invoices (receivables), pay my bills
Continue reading "Basic Financial Statements for Small Firm Architects"

Building a Culture of Transparency at Your Architecture Firm

This is a guest post by Todd Reding, the Chief Operations Officer and Vice President for Investments at Charrette Venture Group. How Much Should We Share With Our Employees? Some design firms have a culture of secrecy. Few people outside of the partners know anything about the finances, the vision or the ways in which the […]

Building a Culture of Transparency at Your Architecture Firm

This is a guest post by Todd Reding, the Chief Operations Officer and Vice President for Investments at Charrette Venture Group. How Much Should We Share With Our Employees? Some design firms have a culture of secrecy. Few people outside of the partners know anything about the finances, the vision or the ways in which the […]