MyProfitsee CEO, President, & Chairman of the Board Peter Vessenes : Crazy? or Crazy Like a Fox?

MyProfitSee makes Business Intelligence / Analytic apps-tools for Quickbooks & Xero environments.    About a year ago we tinkered with their apps and found them to be quite impressive.   In fact at the time for integration with Quickbooks we thought Profitsee was at the top of the class & leader in the space (in comparison to  Qvinci, Finagraph, BodeTree, InsightSquared, Fathom, & Spotlight Reporting).   We never got around to actually getting our hands on Bison Analytics system.  

Why?  Their predictive analytic algorithms - the ability to devise and play "what if scenarios" going forward - on the spot, efficiently.   Analyzing financial history via KPI tools is readily available by various developers.  But Profitsee's predictive analytic algorithm tool enables users to deliver to Quickbooks based businesses real CFO forecasting work product - on the spot.   As Profitsee says, "Instantly see how new business tactics and strategies affect cash flow, profitability, and the financial health of your company. What is the impact of marketing campaigns, new hires, new sales channels? Critical business decisions can happen in minutes, not weeks or months."   

This week I participated in a MyProfitsee Webinar hosted by the CEO, President, & Chairman of the Board President Peter Vessenes on the topic "How to Expand your Tax Practice During Tax Season".   When was the last time you ever heard of a CEO, President, & Chairman of the Board giving 1 hour of their time, insights, and wisdom - entirely free to the at large public?  

I knew this webinar was going to be good when Mr. Vessenes opened by describing Profitsee's "global expansion" (his words) and soon to be Europe based offices.   Prior to the Webinar I had viewed Peter Vessenes as a 'thought leader' in the space (BI/Analytics for Quickbooks environments).  However after actually experiencing Peter Vessenes through a webinar?...I'm trying to decide if he's just crazy.....or "crazy like a fox". 

Specifically - in this webinar Mr. Vessenes advised CPAs to approach their business clients this tax season and inform them their are "gaps" in the financials of their business   (using that specific language).  Mr. Vessenes was essentially describing "insights not surfaced and shared".   He continued and drove the point into the ground that CPAs should "apologize" to their clients [business owners/CEO's, etc] about these newly discovered "gaps" existing in the financials of their business.   I counted Mr. Vessenes to stress the advice, "CPAs should apologize" (using that specific language)  14 times over the course of 6 - 7 minutes.

What's this all leading up to?  Mr. Vessenes said the purpose, goal and objective  in this tactic (announcing the gaps and apologizing) was to raise the stress level of the client and business owner (using that specific language).    Once you've successfully raised the stress level of your client you are to inform them you now must perform a review of their business (financial records) as soon as tax season is over.  Mr. Vessenes then advised CPAs  to offer a money back guarantee of the fee of payment for performing the review if the client-business owner were not satisfied and pleased with the final work-product and resulting advisory.  He literally said inform your client you'll be happy to 'return the check'. Mr. Vessenes went on and stressed you as a CPA "need to do this, it's a responsibility" (you are the client's most trusted advisor after all....using that specific language). Mr. Vessenes said you then deliver the review, followed by a "presentation" (what you discovered in the financials).    

It's at this point Peter Vessenes advised CPAs to concede to their client you, the CPA, have been in neglect in serving them (using that specific language).  He instructed saying specifically, "I've been the one that's been in neglect".   Mr. Vessenes again stressed CPAs need to escalate concern for the purpose and objective of getting the client on retainer.   (the concern being what the newly discovered 'gaps' indicate about the business, the gaps you as a CPA can now see - that you could not see before - thanks to you now using ProfitSee's BI/Analytic tools - The client/business owner is then moved to 'cure' the concerns going forward by placing you the CPA on retainer - at the ready to address concerns and advise accordingly). 

Mr. Vessenes then took the 10,000 foot view and theorized how if you repeat this process across your clients....you can get 10 clients or so under retainer and in using his software (Profitsee) it would only take you about 15-20 hours a month to serve 10 clients paying $1,000/month on retainer (all his words & numbers).

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While shredding the AICPA Professional Code of Conduct is not our quite our cup of tea, we do realize "shtick" has proven to be effective throughout many business spaces.   Who knows - perhaps Mr. Vessenes is onto something.   This our dilemma, is Peter Vessenes crazy?....or crazy like a fox?    Let's review:

1). Intentionally raise the stress level of your client

2). Concede you've been negligent with their financial records and apologize accordingly,  inform your client that due to your negligence you're now compelled as their most trusted adviser to review their business in whole - but not to worry about the fee you will be charging them for the review, if they are not satisfied with the end resulting advisory you will refund them the fee of payment

3). In the review/presentation escalate the concern to your client  (the gaps) but assure your client you are their to save the day (with your new Profitsee tool)  and all will be well going forward assuming they now place you on retainer for $1,000/month.  

4). Repeat this across your client base and you'll soon have 10 clients paying $1,000/month on retainer and it should only take you about 15-20 hours per month (using Profitsee) to serve 10 clients as their most trusted adviser

Crazy?  Or Crazy Like a Fox?

In the spirit of  "don't knock it till you've tried it"....we'll reserve judgement.    

These 10 Changes to Financial Rules Could Impact You in 2015

Vanessa Richardson for Huffington Post / Wise Bread writes: Welcome to 2015 -- now is a good time to examine the financial changes that will impact you in the days ahead.

And it's mostly good news -- some of these changes can put more money in your pocket in 2015. Between changes to tax laws, retirement savings plans and student loan repayment options, this year's new rules are worth checking out to understand how they might benefit you.

Here are six big changes that start right now -- and one that starts at year's end.

Retirement Accounts

This year, contribution limits go up and the government unveils its new type of retirement account.

1. You Can Contribute More to Your 401(k)

If you regularly max out your 401(k) contributions, you will love this new 2015 rule. Contribution limits are increasing across the board by $500, to a total of $18,000 this year. (For those age 50 and older, the extra catch-up contribution limit has been upped by $500, to a total of an additional $6,000).

Putting an extra $500 into your retirement account every year starting now will really pay off when it comes time to retire. Assuming an annual return of 8 percent over 25 years, you could see close to an extra $40,000 in your portfolio.

Related: If You Want Your 401K to Grow, Stop Doing These 6 Things

2. The myRA Launches

The U.S. government launches a new type of retirement account geared toward low-to-middle-income earners who might not have much retirement money stashed away. The myRA is similar to a Roth IRA with a key feature: The government guarantees that your original investment will never lose value. Another difference: The myRA can be used until the balance hits $15,000, and then you're required to move your money into a different retirement account. Accounts are free to open, and withdrawals can be done via direct deposit from your paycheck.

Student Loans

While the president's plan for free Community College tuition is not yet a reality, the government is doing something to help defray the rising cost of higher ed.

3. "Pay As You Earn" Becomes Available to More People

If you're saddled with student loan debt, you may be able to get more help from the government starting in 2015. This year, 5 million more people are eligible for Pay As You Earn (PAYE), a government program that caps repayment of federal student loans at 10 percent of a borrower's income above the poverty line, and forgives any remaining debt after 20 years.

Currently, only those who took out loans after October 2007 are eligible to use PAYE, but the new change allows borrowers who have loans from before that date to become eligible if they meet certain requirements and income limitations. With this change, borrowers who took out loans before this date will become eligible, too.

Unfortunately, this is the only financial change you can't take advantage of just yet: the new revisions aren't planned to be launched until December 2015.

Health Insurance

As Obamacare matures, more and more of its provisions take hold.

4. Tax Penalties for Those Without Health Insurance

This is the year when the IRS will really start cracking down on those who haven't signed up for a health care plan, or are not covered by their employers. Under the Affordable Care Act, if you weren't covered last year, you'll pay $95 per person, or 1 percent of your gross income, whichever is greater, on your 2014 tax return. If that's not an incentive to sign up for health insurance this year, then consider that the tax penalties will get higher in future years. For tax year 2015, the penalty is either $325 or 2 percent of your gross income. In 2016, it goes up to $695, or 2.5 percent of gross income.

5. New Limits for Workplace HSAs and FSAs

If you have a flexible spending account (FSA) at work, you can stash more money into it for health purposes this year. The new annual limit on employee contributions went up $50 to $2,550. Previously, FSAs had a "use it or lose it" rule that forced employees to use up funds for eligible medical expenses before December 31 or forfeit that money. But now the IRS lets workers carry-over up to $500 from one year's FSA into the next, so long s its spent by March 15 of the new year.

The drawback: If you're also using a Health Savings Account (HSA), then you can't also take advantage of the FSA carry-over provision. If you don't have either account yet (and don't know which account to use), the HSA is often considered a better choice for most people because it has higher contribution limits (up to $3,350 for individuals or $6,650 for a family in 2015) and greater flexibility -- whatever you don't spend gets carried forward with no maximum limit.

Tax Form Changes

Due to inflation, the IRS announced changes to tax brackets, deductions, and credits on next year's tax paperwork -- many of which could help you keep more dough in your wallet.

6. Some Tax Payers Will Get a Break

The upward re-adjustment of tax brackets due to inflation means some folks may be paying less in taxes. For example, the tax rate of 25 percent will now apply to single filers who make over $37,450 and married couples making over $74,900. In 2014, it was $36,900 and $73,000, respectively. The 28 percent tax rate will now apply to single filers making over $90,750 and married couples making $151,200. Last year, those figures were $89,350 and $148,850, respectively.

7. The Standard Deduction Goes Up

The standard deduction also increases $100 to $6,300 for single filers. For married couples, it goes up $200 to $12,600. That means a little bit of a better tax break this year for those Americans who typically don't have enough itemized deductions to exceed the standard deduction amount.

While it's easier to claim the standard deduction than to itemize on your tax return, it's still worth running the numbers to see which option saves you more money. Consider itemizing if you made a lot of charitable donations, if you're a homeowner who paid mortgage interest and property taxes, and/or if you made a lot of out-of-pocket medical expenses last year.

8. Saver's Credit Income Limits Increase

Income limits for the saver's credit, which gives a tax credit to low-income earners, will increase. Single heads of households see their credit go up $750 to an income of $45,750, and those married filing jointly get a $1,000 boost to $61,000.

9. COLA for Social Security Recipients

Social Security recipients will get a cost-of-living increase of 1.7 percent in 2015, so the average retiree will get about $22 more each month, and couples will see an extra $36 in their check.

10. The AMT Exemption Goes Up

The AMT exemption amount for tax year 2015 is increased to $53,600 for individuals and $83,400 for married couples. Last year's income limits were $52,800 and $82,100, respectively, so you can make 1.5 percent more in income this year and not stress about triggering an AMT alert.

Just a little good news to ring you into 2015.