Jay D. Silver- CPA
Mahoney Cohen & Company CPA, P.C.
According to Jay Silver, Audit Partner of Mahoney Cohen ,“ In today’s environment, reviews and certifications of financial statements is a commodity business. To excel as an accounting firm today, the firm must provide services that are proactive in assisting clients with overall business solutions.”
To illustrate his point he provides us with a classic example, the suppliers of “Big Box Retailers”. You know, those little Wal-Mart Stores on your favorite street corner. To supply a Wal-Mart and any other mass market retailer, you need to coordinate design, production and warehousing/distribution systems in order to meet the stringent inventory requirements of the Big Box Retailers.
For example, Wal-Mart may e-mail an order on a Sunday for delivery by Wednesday on a store- by- store basis. In order to meet this requirement, a supplier must be able to maintain a 90-95% replenishment factor.
As the mass retailers grew in size, so did the suppliers and their challenges of meeting this growing demand. This is where proactive firms like Mahoney Cohen get to put their expertise to use. Besides doing the commodity side of accounting, they go into a supplier and assist the company in design and production calendars as well as logistic expertise in coordinating supply chains whereby inventory levels are maintained at the most efficient levels. Lower levels of inventory will reduce the amount of capital required and borrowing costs while increasing overall profitability.
Imagine importing products from Asia. The simple idea of utilizing a third party warehouse on the west coast can save two weeks of freight which translates into savings of two weeks of financing.
Moving from a commodity business of accounting to one that includes advising clients on practical business solutions in a pro-active manner has dramatically increased the revenues and profitability of Mahoney Cohen. They have differentiated themselves from the clutter of commodity accountants to specialists in strategic markets.
Congratulations to Jay Silver and Mahoney Cohen , our Titan Profile of the Month. Their approach to business is a case study on how one must excel in adjusting to the market place. It is the only way to survive in highly competitive times.