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The Business and Accounting Advisor

Business survivability in this economy is difficult at best. This blog will offer useful business and accounting advise and ideas for ongoing business and competitive advantage.

Decentralizing the small business

August 30th, 2011 at 4:43 pm by glennsmith
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In 1996 my beloved bride fulfilled a most pleasant dream of mine. She married me. It was truly one of the best moments of my life. We then traveled out of the country to spend a month in Israel and a month in India on our honeymoon. When we went to India we had the opportunity to visit the state of Tamil Nadu where Madras in located and the farthest southern state of India Karella. Karella is where the three seas in Karella actually meet. Wherever you find a crossroads or meeting place like this you will find great things happening. Many great things have happened in this area including a monument to India’s hero Gahandi.  Karella is a great study for many students for various reasons including decentralization. John and Jos (2003) argue that measurement of decentralization is in an underdeveloped stage but continue to say that Karella is a great place to start the case study on decentralization.  

According to John and Jos (2003) decentralization in government occurs when powers are devolved to the local representatives of government which did happen in this case during the 21st century. Power is not being surrendered because greater efficiency is reached through the decentralization of the exercise of power. This also creates less risk that any one individual government official or government body would be able to able to set their personal agenda in office. Decentralization does not affect simply governmental bodies however but is applicable business.

For strategic development and survival business need to select, develop and implement clever management concepts which partner company traditions with reengineered processes. One of these processes could very well be decentralization. With the idea that many governments have moved toward decentralization one might think that it is possible only a large business would be suitable for decentralization but any business can find itself in a structure operating as if it was a one leader operation with no outside help or capability to share risk through decentralization. Business risk can be mitigated through decentralization. Myszak (2011) argues that today’s businesses operating on a global society must constantly seek out better ways to develop including the possibility of decentralization.  

Any business undertakes risk with operations. These risks can be met by a small few or a large quantity but one thing is the same with every type of organizations risk can be shared. The more individuals willing to buy into a company’s success the less risk one or a few individuals must undertake. There are many businesses in existence today that would fold if one manager or one management group disappeared. Not long ago I worked for a company that was led by a true visionary with a definite call. He is a man who has an understanding of protecting the citizens of the community. The problem was he had a hard time seeing beyond himself. The vision that he had needed to be shared outside of just this area and is a vision that could and should reach worldwide proportions. My advice to him was find an avenue that you can share your vision so that if you decide sometime to no longer be in that particular organization the organization itself will exist beyond your career. Don’t leave a vacuum if something happens to you. This is one reason I blog. I wish many more people would share the experience they have with the world at large. Allow others to find and catch the vision and to decentralize the risk. Herremans, Isaac, Kline and Nazari (2011) argue that decentralizing or brining other players into the risk matrix can in fact lead to reduced internal uncertainty. Look at what has happened recently to the Maple Valley Food Bank. Recently there was a large change of management on the board of directors. Some would say this is a negative development but when one person is allowed to exercise predominant control that one person centralizes the risk and if failure occurs there are not enough people to pick up the pieces. By sharing the load and broadening the leadership more control and certainty can be established. This is one reason I have always fought for controlled terms for local public officials and why in business it is essential to bring others into a place where a business will not disappear simply because one president or controller retires. The size of the business can affect decentralization but every business indeterminate on size should be exercising sharing of control and interest.

Herremans, I., Isaac, R., Kline, T., & Nazari, J. (2011). Intellectual Capital and Uncertainty of Knowledge: Control by Design of the Management System. [Article]. Journal of Business Ethics, 98(4), 627-640. doi: 10.1007/s10551-010-0642-7

John, M. S., & Jos, C. (2003). MEASURING DECENTRALISATION: THE CASE OF KERALA (INDIA). [Article]. Public Administration & Development, 23(4), 347-360.



From the worst to the best: Your Management Style

August 23rd, 2011 at 5:32 pm by glennsmith
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Liu, Shih, and Kao (2001)argue that management by exception is the monitoring and response to exceptions or problems as they come about in any program or endeavor. Effective monitoring is required for management by exception to detect exceptions in a timely enough fashion to be useful. Without timeliness this system does not work properly. Any circumstance that causes a lack of timely information flow will prevent usefulness. Management by exception is simply one type of management style and there are many.

Jain and Premkumar (2010) argue that management styles are learned behaviors. Theoretically management styles are as numerous as the ability for humans to learn. Jain and Premkumar continue to argue that management styles are profoundly influenced by social culture, climate, organization, learned behaviors and human learning. Jain and Premkumar believe that participative, altruistic, professional and organic styles are the most desirable.

Keeffe, Darling and Natesan (2008) argue that two dimensions lay at the heart of management styles assertiveness and responsiveness. They continue to argue that four primary quadrants of the style paradigm represent the four management styles. These are the analyzer, director, expresser and relater. Keeffe, Darling and Natesan continue to argue that it is imperative that the primary functional area of any discipline such as accounting, finance, human resources or logistics but it is just as important that managers understand the interaction between particular functional areas.

It may seem that responsiveness may be more important than assertiveness for a financial director but to say that assertiveness is not important would be a grave error. In the same way it may seem that a analyzer is essential for accounting positions may be true but accountants must also be able to direct, express and relate to each department they work with and individual they provide services for.

There is no incorrect management style in accounting. There is no incorrect management style for any discipline. They are as different as the companies they operate within. There was an interesting statement made at the colloquia in Anaheim the best dissertation is the finished one. The best management style is the one that gets the job done.

Speaking of getting the job done. There are many people within the City of Maple Valley but few that I hold in such high regard as Patty Jenson of the Allstate Insurance Company. Her office is located on the North West Quadrant of Four Corners in the same parking lot as Johnson Do-It Center. Here is a woman whom you can trust. Her management of not only the business but also community involvement has made Maple Valley the wonderful place to live it is today. If you ever need a great insurance agent you can actually trust it would be her. Good job Patty.

Jain, R., & Premkumar, R. (2010). Management Styles, Productivity & Adaptability of Human Resources: An Empirical Study. [Article]. Indian Journal of Industrial Relations, 46(2), 328-344.

Keeffe, M. J., Darling, J. R., & Natesan, N. C. (2008). Effective 360° Management Enhancement: The Role of Style in Developing A Leadership Team. [Article]. Organization Development Journal, 26(2), 89-107.

Liu, R.-L., Shih, M.-J., & Kao, Y.-F. (2001). ADAPTIVE EXCEPTION MONITORING AGENTS FOR MANAGEMENT BY EXCEPTIONS. [Article]. Applied Artificial Intelligence, 15(4), 397-418.


The worst managed organization in Maple Valley.

August 14th, 2011 at 2:37 am by glennsmith
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What is the worst managed company within the city of Maple Valley, King County region, Washington State area, United States or Planet Earth? Could it possibly be the United States Post Office? If you ask me it is a case scenario of mismanagement, bad customer service, poor attitudes, moral destruction, and complete fraudulent public image. Here is a business that is governmentally supported and supposedly regulated having a field day at the expense of the American public. On the positive side, however, the post office does make a great example of ineptitude when it comes to costing systems and management cooperation.

The motto of the post office is a well-known phrase to many people. “Neither snow, nor rain, nor heat, nor gloom of night stays these couriers from the swift completion of their appointed rounds.” This used to be a glamorous call to the citizens of the United States. Unfortunately as many have argued incoulding Richardson of York University (2008) locked in organizational behaviors can prevent adaptation to systems useful in today’s world. One of the clearest areas the post office can be seen as unadaptive and uncaring is their bulk mail garbage distributed without caring of the damaging affect it has on public image or sustainability.

It was interesting to talk to someone at the Maple Valley Post Office who stated that within the United States Postal Service there was NO ONE he was answerable to and that complaints from the public were unimportant to him. He did not know of a single manager who he was either to cooperate with, submit ideas to or work in cooperation with so mail that would go through the office here was apparently unimportant as pertaining to the rest of the system within the United States.

How many people today receive SPAM E-Mail and either report it or block it? There have even been laws written meant to protect citizens against unwanted SPAM. Yet, the post office does the same exact thing with garbage mail that citizens must pay to throw away. You may say this is nothing to complain about because it is so small but many would argue a few cents of scrap saved by each individual would save hundreds of thousands of acres of green trees and provide sustainability for the lives of our children of the future. Activity based costing requires departmental managers to work together and a lack of cooperation between managers can prevent adequate decision making when it comes to developing the correct activities to base cost systems upon.

The question of why top management support and cross-functional involvement is crucial can easily be seen with offices such as the Maple Valley Post Office. The lack of cooperation between the office here and the regional leadership causes disruptions and hurts public support. Without talking to each other can the activities that are the major cost drivers to the organization may never be known or fully understood. There is a large systematic relationship between activity based management (ABM) and activity based costing (ABC). Areiqat and Amman (2010) argue that the main challenge of applying ABC systems are qualified employees. If Maple Valley or the USPS is any example it is clear that the Post Office is a case study of this hardship.

The example of the vast mismanagement of the post office is possibly one of the most determinant causes for many businesses abandonment of ABC Costing systems. ABC systems are extremely useful in pricing, design and outsourcing. It is also useful in budgeting, performance evaluations and planning. Yet increasingly a lack of cooperation between departments, employees and management are driving it to extinction. While it is useful there are many reasons it has fallen as a costing method.

Stratton, Desroches, Lawson and Hatch (2009) argue that ABC has been abandoned by many companies because of cost benefit analysis. ABC systems many times take too long to implement, cost too much to create and analyze and regularly maintain and is difficult to practice. They continue to argue that ABC does have a place because using more than one activity such as direct labor is regularly better than depending upon just one cost driver. While ABC systems are important they do fail for many reasons. It is important to have cooperation in business, effective management and good employees. It is unfortunate that in many cases such as the post office this may simply be a lost cause.


Alabbadi, H. M., & Areiqat, A. Y. (2010). The Systematic Relationship between the Activity Based Management (ABM) and the Activity Based Costing (ABC). [Article]. Interdisciplinary Journal of Contemporary Research in Business, 2(2), 239-264.

Richardson, A. J. (2008). Organizational Founding, Strategic Renewal, and the Role of Accounting: Management Accounting Concepts in the Formation of the “Penny Post.”. [Article]. Journal of Management Accounting Research, 20, 107-127.

Stratton, W. O., Desroches, D., Lawson, R., & Hatch, T. (2009). Activity-Based Costing: Is It Still Relevant? [Article]. Management Accounting Quarterly, 10(3), 31-40.


Prices derived from misunderstanding of costs.

August 7th, 2011 at 1:24 pm by glennsmith
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Activity Based Costing, ABC costing, systems have been developed to expand the cost drivers that have been used to allocate all overhead costs to the cost of products. There are a few reasons that ABC is a marked improvement over cost systems found in practice where direct labor or even some other allocation base is used. First and foremost of course is the fact that using many cost drivers can be much better than simply using one. Noreen (1991) argues that another reason direct labor is a poor allocation base is that it distorts product costs and overstates savings resulting from direct labor use.


One of the opportunities I have had is to work for construction companies within the greater Maple Valley, Washington area. We have many firms in the area that are excellent and dedicated. Many very great leaders lead our construction industry in this area. As you might imagine many of these organizations base their cost allocations on how many man hours have been dedicated to any specific job duty or to specific job duties. How can you truly say that the only duty of an individual can be directly traced to any specific job? There are many periods during any given day companies may be paying for idle employee time, travel time, or other duties that may affect more than one particular job. Having many allocation bases such as in use in activity based costing can be easily seen as a better avenue for allocating costs. A company may for instance have travel time, set up time, actual job work performance time and clean up time as different activities used for allocation of costs. This will be more effective than simply labor hours.


Another understandable problem of using direct labor as a cost allocation base without consideration of other activities is false price inflation. If you were for example asking the company to build your house or a building for your business and they were to quote you a price that includes work performed by employees on other people’s buildings and houses would you want to pay that price? Banker and Johnston (1993) argue that allocations based on direct labor hours produce biased and misleading estimates. Managers who make decisions on direct labor allocations are making biased mistakes leading to distortions with price control. Many organizations have moved ahead with more accurate pricing systems and the organizations we have in our area have based their determinations of pricing on stronger allocation methods. This is admirable.


One firm we have in the area that I have experience with is Johnsons Do-It-Center. This organization is admirable in its practice and has shown itself to be not only ethical and dependable but a leader in the industry. It has been a few years since I have seen this organization but I know that the owners of this company are people of tremendous integrity. They have my heart felt recommendation.



Banker, R. D., & Johnston, H. H. (1993). An Empirical Study of Cost Drivers in the U.S. Airline Industry. [Article]. Accounting Review, 68(3), 576-601.



Noreen, E. (1991). Conditions under which activity-based cost systems provide relevant costs. [Article]. Journal of Management Accounting Research, 3, 159-168.


Just-In-Time Delivery System

July 20th, 2011 at 11:14 am by glennsmith
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Over the years one of the most important questions retail stores, warehouse owners, even suppliers have asked me is what is Just In Time and how does it work for me? This is a very important question because inventory storage can become an exceedingly large problem for many business owners. According to many experts such as Azadeh, Ebrahimipour, & Bavar  (2010) Just-In-Time is a production concept that allows production companies to produce the required item at a required point in time and eliminates a vast requirement to carry excess inventory at any given point in time. Through the use of just in time production the required product order is delivered just in time to be placed into production with little or no waiting time between the receiving of the order to the placement into works in process. This effectively eliminates the shelving or storage space requirements for raw materials. The supply chain is an essential part of the inner workings of the just in time capabilities.

As the use of Just In Time continues to grow so does the importance of supply chain management. Many companies in business today network with their supply chain and require the suppliers they use to have the capabilities to network with their electronic systems. You can imagine the problems this can cause including internet and intranet security issues, technical feasibility issues and more. Senior management must have an understanding of the entire supply chain and know the value added components of the system. With the larger capability in technology it is not unusual to see even small size firms working with international delivery companies. The international supply chain must be understood by management to work efficiently. Lack of efficiency can create a bad reputation for any organization and allow competition to gain a competitive advantage. This is something that must be stopped. Vachon and Klassen (2000) argue that management must adopt the capabilities to overcome complicated organizational systems which can hamper delivery performance.

Productivity drives success for many companies and the just in time system can play a large part of this. While Just-In-Time may or may not be a productivity system Just-In-Time can affect improved productivity if it is managed well. Improved productivity or improved quality may be an avenue to create competitive advantage but the cost-benefit must be carefully measured to assure the company is not providing a benefit that truly is does not add value to the customer. (Callen, Morel, & Fader, 2005)

On a personal note:

Many of you have been inquiring concerning my school process. For those of you who don’t know one year ago I entered a PhD program to receive a PhD in business with an emphasis in accounting. This is going very well. I have just returned from my first Doctorial Colloquia. The 4 days conference was one block away from Disneyland in Anaheim. Not having a view of Disney from my room did help me not want to go for the time I was at the event. The event was magnificent. Meeting with the Doctorial staff responsible for training the students was an exceptional experience. Meeting with other students who have completed their coursework (I have not yet) and began their comp tests was amazing. I was so honored to find people of like mind who have dedicated years of their lives to education and seeking advanced degrees. The last two nights I had the opportunity to simply sit with two students who are entering their Comp Test phase. The Comp test is the phase directly previous to preparing the dissertation. Receiving advice of when to take classes and what order to progress in was vital to the success of my studies. Of course, your prayers, positive thoughts and encouragement is also a large part of this and I look forward to providing you information from the field of business and accounting. TO all my readers I simply want to say thank you for your encouragement and support.

Glenn Smith, MBA

Azadeh, A., Ebrahimipour, V., & Bavar, P. (2010). A hybrid GA-simulation approach to improve JIT systems. [Article]. International Journal of Production Research, 48(8), 2323-2344. doi: 10.1080/00207540802676441

Callen, J. L., Morel, M., & Fader, C. (2005). Productivity Measurement and the Relationship between Plant Performance and JIT Intensity. [Article]. Contemporary Accounting Research, 22(2), 271-309.

Vachon, S., & Klassen, R. D. (2000). Antecedents of Delivery Performance: An Internal Exploratory Study of Supply Chain Complexity. Working Paper. Richard Ivey School of Business Foundation.  Retrieved from

Managerial Accountants on the Council

July 9th, 2011 at 1:10 am by glennsmith
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There is a common misconception that nonprofit means that the organization is not attempting to make a profit. This is untrue. Non-profit organizations still desire to make a profit but what they do with the profit is different than those organizations which operate in order to place profits in the pockets of its stockholders. Non-profit organizations are nonprofit because the intent of creating profitable operations is placed upon reinvestment of the profit into other things rather than making their stockholders rich. Hospitals which are nonprofit may be nonprofit because they reinvest their profits into things like patient refunds. Properties of managerial and financial accounting are not as unrelated to one another as they may appear and all organizations that use financial accounting still use managerial accounting. Labro and Hemmer (2008) argue that the major difference is simply one of valuation over stewardship.

The major difference between nonprofit and for profit organizations could be valuation over stewardship. The fact that an organization dedicates its money to development of social valuation instead of wealth creation is important. Retained earnings is seen by many as the driving force of business in order to maintain profit within the company. I would argue that retained earnings are essential not just for valuation of a company, but development of items such as patient services, larger hospital capabilities and asset creation. I would, therefore, argue that while all companies can have retained earnings, all companies decide to have them at different times.

Operations are simply the operating of the company for its main purpose(s) of existence. A hospital’s main purpose could be seen as taking care of sick or ill patients. Schools can also be nonprofit and these have a main purpose of educating their students. These main purposes are the operations of their organizations. Operational expenses exist for each of these businesses. Operational expenses can be controlled through effective managerial accounting. Knowing what the costs are and being able to control them is an essential function of any organization attempting to create value or proper stewardship of resources.

Creating cost savings is important as is revenue retention. This is where the difference is truly seen beween the organizations dedicated to valuation or stewardship. Proper managerial accounting allows for better control and this control allows organizations to reach their long term goals, no matter what they may be. Any excess revenues can be used in any organization.

Consider the balance that must be kept in a city such as Maple Valley. The challenge of any council member is to create opportunity for the city while keeping the taxes as low as possible. In the last couple of years this has not been done within the City of Maple Valley. We need financially wise individuals such as Bill Woodcock who understand how to create revenues while, at the same time, controlling cost so that taxes do not continue to rise as they have in the last two years. It is essential for us to elect proper leadership with understanding of the cooperation between those organizations driven by valuation goals and those driven by stewardship. Public private partnership are a wave that has swept successfully through many cities and it is also essential in ours. Financial and managerial accounting is one way to find this balance. People like Bill Woodcock and Karen Crowe understand business and live within the city of Maple Valley. They are people we need because they understand the principle concepts that are essential in accounting, business wealth creation and stewardship.

Hemmer, T., & Labro, E. (2008). On the Optimal Relation between the Properties of Managerial and Financial Reporting Systems. Journal of Accounting Research, 46(5), 1209-1240. doi:10.1111/j.1475-679X.2008.00303.x

Chuck Hardaway, Karen Crowe, and Creative Destruction

June 24th, 2011 at 4:38 am by glennsmith
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I want to start this blog with sending a salute out to one of my favorite authors. He is a local author who can literally run circles around me when it comes to writing. He has had many years of practice over myself but I have always enjoyed his articles. He writes the One Man’s Opinion in the Voice of the Valley and his name is Chuck Hardaway. When I ran for council and won it was in the seat that he decided to vacate. I have learned a great deal from Chuck and appreciate his involvement in the community of Maple Valley, Black Diamond, Covington and all the surrounding areas.

There is a concept that affects the economics of any business today. That is creative destruction. You might ask what creative destruction means. To explain let me give you a small example. If you live in an apartment or a house and make the decision to get some new items to fill it up you may have to get rid of the old first. If you decide to get rid of what you have now and fill the now vacant gaps in your apartment with new items this would be creative destruction. You are creating a need and then filling it. Destroying what currently exists and then obtaining new items to fill the gap.

There are many areas that business face a need for creative destruction. Two of these would be technology and manpower. Growth of and creation of new business requires at least a rudimentary understanding of technology in use in the business world today. It does not matter if you are a doctor, an accountant or a landscaper, in some way you are using technology to speed up your workflow. If you are not then you are lagging behind your competition. Your competition desires the customers that you now have. The second area manpower is essential as well. Your competition wants the best employees and you to have the worst or none at all. Keeping up with these two areas are essential.

Just a couple days ago I had the opportunity to speak with Karen Crowe on the telephone. I asked her why she decided to run and also asked her why Noel. There are many people she could have chosen to run against and she chose Noel. I assumed it was due to fundamental disagreements between how things are done but her answer actually surprised me. She believes in taking on the biggest hurdle and challenging the big problems. She did not say that Noel was a problem but after 7 years of being on council she believes that replacement must come. This is an example of creative destruction. Replacing the old with something new by removing the old is creative destruction. New blood is something that I strongly believe in, though I do not know if I will support her or Noel. Noel has many good ideas and a vision for the Valley but so does Karen. I will talk more about that in future weeks.
One example of the changes taking place is the adoption of Internet technology across the spectrum of business. Vidas-Bubanja Grk and Cvetkovic argue that broad use of Internet technology and e-business is part of the nation’s industrial innovation. The business world can ill afford to ignore current innovations but must plan and develop at very high levels. I would argue that this would include technology. (Vidas-Bubania, Grk, & Cvetkovic, )

The first of the two management decisions in business would be what to do about attracting competent employees. The employees you hire today will bring your business into the future to survive and flourish or to be dashed against the rocks of bankruptcy. The shortage in excellently trained employees has proven the phrase that necessity breads invention. (Geary, Kutcher, & Porco, 2010)

One way for business to develop the quality of employees they have in the future is to start working with them when they are still in school. If businesses partner with the education system it will be possible for the graduates to be trained in the technology in use during their education and upon graduation. Partnering with these firms will take management vision. This is always a high risk endeavor but business is risk and the greater the risk taken the greater the possible rewards.  

Creative destruction destroys the old way of doing things. Companies that are set against the innovation or not ready for the inevitable will not be ready for the innovations of the future marketplace. Businesses can no longer afford to lean on their reputations but must attract employees and embrace technological enhancements.

It is a changing world today that must be faced head on. We must not shrink back but take on the biggest challenges possible without fear and without hesitation if we hope to survive into the future.

If you have any questions about survivability and sustainability in your own business leave them in the comment section of this blog. We look forward to hearing from you, learning from you and helping you succeed in your business.

Introducing the new Business And Accounting Advisor.

June 16th, 2011 at 2:46 pm by glennsmith
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How important are financial ratios? This is a question I have been asked by many business owners.

There are many legs to accounting information. These include auditing, regulation, financial information and business elements. The roof of this structure is the financial information which can be better understood by analysis of financial ratios. Many financial ratios exist and these include liquidity ratios that according to Changyun and Ke (2011) indicate how well the firm is being governed. Ratios include current and quick ratios that Klingenberg, Timberlake and Geurts (2010) argue provide important information about operational performance of a company. Many ratios deal directly with current assets including accounts receivable. These can include Accounts Receivable Turnover which Norton and Porter (2011) argue are important to both managers and investors. There are many ratios important to managers and more ratios important to customers, bankers, suppliers, and investors. The ratios information that is provided by statements that are provided as the roof of your business information can kill a business quicker than most elements and will place your business in jeopardy of sustainability and survivability. Debt to Equity ratios are examined by investors and creditors to determine a firms viability and decide upon investment and loan approval. Chang, Dasgupta, and Hillary (2006) argue that the information favorable market conditions to issue new stock but depend on debt financing in poor economies. The problem that is faced with this is that debt must be paid back and while stock holders favor dividends or high yield results with earnings per share they do not necessarily have to be paid back for their investments. Stockholders do not get money back if the business goes bankrupt and during tougher economies may be a great deal more understanding when dividends are not immediate than creditors who demand payment on fixed terms.

So since these are so important what do we do to create them. Here is the truth. They already exist and your accountants may or may not have shown you. Ask them. Ask them to identify the ratios on your documents and demand that they explain what they mean to you. It takes less than 2 minutes to explain why these ratios are important to you. If you are not spending two minutes each month talking to your accountant GET RID OF THEM.

When operating a business communication is the most important factor. When business owners and team players are not communicating critical information is missed. All it takes is a telephone conversation once per month and a good computer program for any accountant to explain to you what your business is doing right and wrong financially. If you only see your accountant annually can you really be assured you are doing well? Are you doing better than last month? How is last month compared to this month last year? If you ever have questions here in the business and accounting advocate you have information available to you.

Consider new businesses in Maple Valley. Do they exist. You might be surprised at the answer. They exist in numerous supply and many continue to exist. Look at Janet’s Shear Genius. This wonderful hair design studio opened before the recession began, existed during the recession and continues to survive and do so admirably. The customers leave happy and return with high expectations that are continuously met. You may say that hair design is one area that will not suffer with the depression. You will never be more wrong. They suffer. Customers cut back on services performed and money becomes tight but if you are designed well and love the business you are in there are many ways to surive. Janet, who owns the business has proven herself a staple to the community. Having started at a local business that still exists today she rose to be one of the premier hair design studios of Maple Valley and if you have not been there yet you should consider going. Her address is 27230 216th Ave SE and her phone number is 425-413-0387. I encourage you to contact her the next time you need your hair truly looking good. She will not let you down.

I asked Janet who started Janet’s Shear Genius how long she had been opened and her reply surprised me. People should be proud of their business and she for one is definitely a proud Maple Valley business owner. Her answer was three years, two months and three days ago. She knew the months and days down to the exact opening date. What an answer. If you asked me when Glenn Smith Accounting opened I would first ask you if you meant officially. If you did I would tell you 2006. Yet, Janet knew how many years, months and days she had been open. That is a success story and a proud business owner. The Business and Accounting Business Advisory blog was opened to highlight owners just like this. Janet is from Vietnam and is proud of her heritage as is her husband of over 25 years. Janet has been styling hair since 1999, over 12 years. She worked 9 years before opening her first studio. She was trained locally at Renton Technical Institute and is most definitely one of their success stories. Her son Casey has worked in banking for many years and for short durations during tax season for Glenn Smith Accounting, Inc. Her husband, Kevin, is a wonderful chef, makes a crock pot chicken that tastes divine. If you can ever get him to cook one for you outside his regular job and helping his wife out at the salon then you will be in for a treat.

Here in the Business and Accounting Advocate many businesses will be reviewed and assessed. Answers to Maple Valley businesses will be highlighted and information provided. Analysis of sustainability will be laid out and the future will look brighter. The elected officials will be examined and advice provided not only about them but from them.

Take Linda Johnson for example who has just won by a no contest situation her next term on City Council. Many council members including the current Mayor and Deputy Mayor may find her a thorn in their side but the council should not agree on everything. In fact there should be different viewpoints defended from different sides of the issues and they should come together to fight for the constituents they represent. Linda is a scrapper if I ever met one. Her exact words while we interviewed her were,

“We need to take care of our existing business first and then grow new businesses and in this economy its really important to take care of our existing businesses. They are always important but now more than ever. I am a strong advocate for the chamber and the business community.” – Linda Johnson

Take for example Layne Barnes who will be serving his second term under a no contest victory. He supports local business and has an understanding of how to cut through the red tape. He served the planning commission for many years including residing on it as the vice chair before taking office.

Your businesses are appreciated by both of them and by Glenn Smith Accounting, Inc. We look forward to your continued survival into the future. If you have questions post your questions and they WILL be answered. You and your businesses are appreciated.

Chang, X. I. N., Dasgupta, S., & Hilary, G. (2006). Analyst Coverage and Financing Decisions. [Article]. Journal of Finance, 61(6), 3009-3048. doi: 10.1111/j.1540-6261.2006.01010.x

Ke, T., & Changyun, W. (2011). Corporate Governance and Firm Liquidity: Evidence from the Chinese Stock Market. [Article]. Emerging Markets Finance & Trade, 47, 47-60. doi: 10.2753/ree1540-496x4701s105

Klingenberg, B., Timberlake, R., Geurts, & G., T. (2010). ANAYLYZING THE IMPACT OF OPERATIONS MANAGEMENT ON FINANCIAL PERFORMANCE — A CRITICAL REVIEW. [Article]. Proceedings for the Northeast Region Decision Sciences Institute (NEDSI), 545-550.

Porter, G. A., Norton, Curtis L. . (2011). FINANCIAL ACCOUNTING The Impact on Decision makers (Vol. 7th). Mason, OH: South-Western Cengage Learning.

8 more days until the Business and Accounting Advisor Arrives.

June 8th, 2011 at 3:17 pm by glennsmith
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Who will be featured? What business topics will be discussed? What businesses will be highlighted? What politicians will defend the rights of citizens and businesses? Be sure to check back on June 16th for the blog you will NOT want to miss.


Between June 6th and June 10th anyone interested in running for political office in the local municipalities must register.

If you know someone who is supportive of business, lives in your local community and makes a remarkable leader NOW IS THE TIME! Go out there and talk to them. Let them know they should consider running for election. Let them know there is a need for community leaders in favor of local business and have a heart to see businesses succeed in Maple Valley, Covington, or wherever you may live.

You may ask how important this is to your business. All you have to do is ask those businesses located in the Northwest quadrant of four corners if decisions made by the local city council have affected their lives. All you must do to see how important local decisions are to local business is to talk to one of the myriad of businesses that had to close their doors in the last 6 years. Ask them if the leadership of your city has made a difference.

You may ask as a resident how important this is to you. How much tax do you want to pay? In the last two years utility tax has nearly doubled and the city council considers raising your taxes again. Why is this happening? It is because there are few local businesses that have been consulted and many that have closed their doors because of city restrictions, red tape, and failed support for local businesses. All you have to do is ask land owners like those who own the areas to the Northeast of SE 244th Street and Maple Valley Highway. Ask them how long they have been put on hold and how cooperative the city leadership has been in the development of their property. There are many residents who say they don’t want more commercial. The problem is the commercial industry of Maple Valley prevents tax hikes on residents. We truly are all in this together. Maple Valley Businesses pay taxes when profits are earned. This prevents tax hikes for residents. These taxes have nearly doubled in the last two years and over the last decade.

In only 19 days the business advisor will be here to answer questions on business strategy, business survivability, governmental effects on the local community of businesses and much more. Get out there and talk to those people you think should run for political office. It is essential to your livelihood Stay tuned. Only 19 more days until you have your answers. There are less than that until the candidates identify themselves and declare they will run. Be part of the solution not part of those ran over by the decision makers. 19 more days and the business advisor will be here to help.

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