Over the last few years, Lee Beall, CPA, principal and current CEO of Rea, has been focused on laying the groundwork for the future of the firm and he will join Dave on this week’s episode to talk about his experience and the importance of managing a comprehensive succession plan as well giving us insight into his unique leadership experience. Lee took over as CEO at the beginning of the recession and his first obstacle was to develop a strategy to overcome a loss of 15 percent of the company’s top-line revenue and the resulting downsizing that left 73 men and women looking for work. These days, Lee gets to tell another story, one where the firm just recorded record revenue and is on track to continue to build on that success in the years ahead. Lee and the firm’s board of directors have established a sound governance structure, one that emphasizes the importance of a proactive succession planning strategy. Therefore, two years ago, the wheels were put in motion to identify the firm’s next CEO to step in at the end of Lee’s term. To find the right person for the job, the board of directors deployed a tool to identify the attributes of the firm’s current principals to get a better idea for their existing leadership traits. Working with an independent testing organization, the board proceeded with compiling a list of 15 of the most important attributes they wanted the firm’s next leader to possess. The tool used these attributes to rank the most viable leadership candidates based on these specific leadership attributes. “That process was pretty eye-opening for everybody who participated in it, and it helped each of us identify what our wheelhouse was.” The top three leadership attributes established by Rea & Associates’ new leadership transition process were: • Communication Skills – There are two levels of communication: external communication with clients, vendors, etc. and internal communication with other employees. • Vision & Strategic Planning – It’s important to be visionary and have a concept of where the organization should go, and to have a plan to work with the organization to make that change happen. • Change In Management Implementation – When you take over a leadership position in a professional organization, you need to get outside of the organization and expose yourself to different training; talk to thought leaders in your profession to get a sense of where they see the landscape going for your profession; and understand the younger generation’s view of the world, because they are the future of the organization. Diverse perspectives will allow you to better understand and implement an appropriate plan for the future. “I want you challenging yourself and learning from all the people in the room that you observe.” Lee is retiring as CEO, but he is not retiring from Rea & Associates. He will continue to consult with CPA firms and businesses across the country on strategic planning while searching for additional opportunities for growth within those organizations. Want to learn more about Lee’s next endeavor? Give him a call at 614.923.6546. Learn more leadership insight. Visit www.reacpa.com/podcast for great advice and tips to help answer your succession planning questions.

Doug Feller, CFP, a principal and financial advisor with Investment Partners, joins us on today’s episode of unsuitable on Rea Radio to talk about how to manage and grow your wealth. Developing a plan to promote personal short- and long-term financial success is difficult, which is why it’s so important to meet with a financial planner regularly. Financial planning is a process, one that your professional advisor can help navigate. From overcoming difficult situations to pivoting toward changing goals and anticipating potential problems, choosing to work with a professional financial planner is essential as you embark on your long-term wealth management journey – especially if you are a business owner. Because it’s rare that you will find a single consultant or advisor who knows everything, Doug also suggests appointing a quarterback to your advisory team, someone who can help get your entire advisory team in the room and who knows what everybody knows and doesn’t know. “The most valuable work a planner or an advisor will do for you is keeping you from making a mistake when it counts the most.” If you are looking to hire a financial planner, Doug has a few tips. • Know what you want. Walk into an advisor’s or planner’s office with an idea of what you need to accomplish. Then you can begin the process to see if they will be a good match. • Make trust a priority. When interviewing advisors, consider whether you think you can build trust in that relationship. • Your financial interests come first. Make sure your financial advisor is a fiduciary, or a person who is required to put your financial interests ahead of their own. • Hold interviews. Talk to several advisors to find the ideal person for the job. Doug’s philosophy is that you should meet with your financial planner as often as necessary – any time life changes, your goals change, or your financial status changes are great times to ask, “What’s next?” Like what you heard? Visit www.reacpa.com/podcast to learn more about this topic and more. You can also ask questions and leave feedback in the comments section of this page. Also, don't forget to use #ReaRadio to follow the conversation on Twitter.

It’s time to button up the year and look ahead to 2017, and with that comes preemptive tax and business planning with today’s guest is Alan Hill, principal and director of Rea’s dental services division. Alan has developed a unique service offering for dental professionals, but many of the techniques he uses can be applied to across a wide variety of industries. Here’s what he has to say … If you don’t sit down at least once a year to give yourself selves a complete business physical, you are wasting your time and will have trouble moving the needle in the year ahead. When working with his clients, Alan starts the business physical process by gathering the business owner and their key advisors to go over key issues like finances, bonuses, retirement plans and personal life. He also makes time to address the specific challenges and concerns clients bring to the table. In other words, this is an excellent opportunity to bring all your professional advisors together in one room to express what is happening in your business – the good, the bad and the ugly. We’ve learned to start by asking ‘what’s going on?’ Alan says the biggest issues that might come up in these meetings include: • Revenue • Cost Savings – Are you taking advantage of strategic planning opportunities? For example, if you are projecting a huge tax liability at the end of the year, you may be able to take steps early on to defer or reduce your tax burden. Ask yourself if you can: • Push some income into next year. • Make a large purchase or pay off a debt this year. • Accrue contribution for your retirement plan. • Employees – Your business can not continue to run without nurturing positive relationships with your people. Don’t overlook discussions about evaluations, benefits and compensation. It’s getting harder and harder to find good employees. So when you do, invest in their professional development and earn their long-term commitment. And with the experts together in one room, the time to identify solutions that will benefit the business as a whole while advancing the needle is now. Once you’ve had a thorough discussion about the present state of your business and your aspirations for the year ahead, start considering your personal financial wellness and the financial wellness of your employees. For example, when was the last time you reviewed your life insurance policy or encouraged your employees to review their policies? This is a great time of year to ensure that your correct beneficiaries are in place. And then there is the topic of your company’s business valuation In Alan’s practice, any business should get a formal evaluation done at least once, and then if you and your partners can agree on the change from year to year that’s fine. Alan recommends updating that formal valuation every five years. If you’re wondering how Rea & Associates is doing or if you are looking for some tips to get 2017 started out on the right foot, check out our website at www.reacpa.com/podcast. We’ve got articles written by seasoned thought leaders, resource centers and a ton of really great calculators. You can always send questions tor [email protected].

On episode 55 we are joined by Katie Snyder, a supervisor in Rea’s Wooster office as well as one of the firm’s hyper-engaged and socially proficient millennials. Katie brings a unique perspective to the task of understanding social media’s impact on consumer behavior and on this episode of unsuitable on Rea Radio, she takes listeners inside the millennial mindset. There are many avenues customers and companies can take to communicate with each other directly, but to do so efficiently, you have to get comfortable using the hashtag (#). Not sure what a hashtag is or how to use it? Here’s a very brief crash course. A hashtag: • Is used by typing this sign  #  in front of a word or phrase included in your online post. • Makes a particular post publically discoverable. • Can be used by businesses (to promote products and services) as well as customers (to find products and services). • Is kind of like utilizing the Dewey Decimal System (back in the day). Hashtags are kind of like the call numbers you are used to using. • Helps you filter through the noise that pollutes social media and helps you find what it is you are looking for quickly. • Provides the user (you) with a customized experience. Social media has changed the way many millennials consume products and services. On the spectrum from material things to experiences, social media is driving millennials towards consuming experiences. And if your customer finds your products and services to be valuable, they are more likely to share information and insight about their own experiences on social media. On the flip side, if your product or service fails to deliver, social media is a popular place to share those negative experiences as well. Professionals must carefully consider how they are represented on social media. There is no such thing as a private profile. If your profile on Facebook or Twitter is public, you should be prepared for employers, clients and other important audiences to type your name in the search bar to see what will come up. Katie, for example, says she always reviews how applicants are branding themselves in public. But don’t be frightened. Once you have established a great personal brand, you can use social media to continue your education in the field. For example, there are a ton of niche blogs to help you gain additional insight and stay up to date in your particular industry. Then, as you continue to consume online content and share it on your social media channels, others will begin to take notice – which is incredibly valuable as you continue to look for ways to become a respected thought leader. Savvy companies are already using social media to create excitement around their virtual events. Netflix, for example, has deployed a targeted social media advertising campaign to get people excited about the new Gilmore Girls sequel series. By tapping into the active and passionate fan base, the media company is able to capitalize on nostalgia to generate excitement around a new Gilmore Girls series. The new version of the original show, which has been off the air for years, will likely enjoy high ratings, active engagement and social media success. Ultimately, we are pretty sure that it’s safe to safe to say that social media is not just another passing fad. Therefore, baby boomers living in the professional sphere should begin educating themselves in social media literacy or risk getting left behind. Katie has two tips for how baby boomers can improve their social media awareness. 1. Experiment. The more you use it, the more you’ll learn. 2. Ask a millennial for help. Like what you heard? Check out our website at www.reacpa.com/podcast for more great insight and social media awareness. And don’t forget to leave your questions, comments and suggestions in the box below!

How much do you know about the Department of Labor’s new overtime exemption rule? Well, on today’s episode of unsuitable on Rea Radio, Renee West, human resources manager at Rea and our resident Federal Labor Standards Act expert, takes on the topic to help business owners sort through the details in advance of the December 1, 2016, deadline. Here’s what you need to know: • In May, the DOL announced overtime exemption regulations that will allow millions of Americans who were previously exempt from overtime to be eligible to receive additional compensation. • Current regulation increases the annual salary threshold from $23,660 to $47,476. • Even though the rule has been passed and is in the process of being enacted, pending legislation may impact the timing of the rollout. If the legislation to postpone the rollout is successful, the implementation date will move to June 1, 2017. • Even though there is currently legislation uncertainty regarding this rule, businesses should not wait to explore their options. Renee tells us that, from an employer standpoint, this regulation is kind of a big deal as it will limit a company’s ability to hire new employees, which could put a huge strain on a variety of businesses – especially those with 30 or fewer employees. But wait, there’s more. Increased compensation of employees is not the only concern. To protect the bottom line, business owners will also have to tackle tax issues, employee benefits and bonuses. Renee tells Dave that, even though a delay is possible, it’s not certain. Therefore, companies must have a plan in place to carry out changes that could be coming down the pike. On this episode of the award-winning Rea & Associates podcast, Renee lays out several planning techniques employers can take advantage of moving forward, including reviewing employer classification, existing salary ranges, communication tactics and more. If you own a business, the new overtime exemption rule will impact you. And the best thing you can do, to protect your company is to stay informed. Listening to this episode of unsuitable is a great start. In addition to in depth insight and tips, listeners will discover: • Which employees are exempt from overtime pay under the existing rule as well as under for the new rule. • When the rule was last changed and why this change is happening now. • What next steps will take effect after the initial rule change. • What penalties can businesses that don’t adhere to the new rule will face. • How much the change will cost employers over the next 10 years. • Who will be impacted by the new legislation. You are not going to want to miss this valuable episode of unsuitable. And, after listening, you want to learn more about the new rule or you want to get answers to your specific questions, visit our website at www.reacpa.com/podcast for additional insight and to connect with a regional expert.

Mary Beth Koester, a manager on Rea’s business valuation team, joins Dave to discuss professional service valuations and to debunk common valuation misconceptions. Episode 53, “dispelling the myths of business valuations,” provides listeners with key insight into the art of knowing the true value of a business practice and how that knowledge can help facilitate future growth. Practice valuations, according to Mary Beth, appear to be on the rise. And the reasons go beyond owners who are simply preparing for retirement or entrepreneurs considering selling for economic gain – although the aging Baby Boomer population certainly does contribute to the growing popularity of business valuations. These days, more and more business owners are realizing the overall value enhancement associated with knowing the value of their company or practice. They are finding out that having this knowledge helps facilitate better management decisions and greater process and operations considerations. The podcast goes on to highlight common “over valuation” assumptions business owners make regarding their own practices. This is due, says Mary Beth, to the entrepreneur’s emotional bond with the business and the way it operates. When an owner becomes wrapped up in the day-to-day operations of the company, by the time it comes to sell the business they have already invested their own “blood, sweat, and tears” into establishing and growing their company. The result is that they have a tendency to, like all humans who have formed an emotional attachment, over value its “market worth.” A buyer, on the other hand, will not pay a price determined by emotional value, which means, at the end of the day, your business is worth whatever a willing buyer will pay for it – nothing more, nothing less. This eye-opening episode of unsuitable on Rea Radio touches on: • What events generally trigger a business or practice valuation. • How a valuation can serve as an overall health assessment of the practice or business. • How a valuation can reveal additional, previously unconsidered opportunities. • The factors that ultimately determine the outcome of a valuation. • The general role of a business valuator and their impact on an owner’s business or practice. • The “must-have” criteria all businesses should be able to bring to the table prior to conducting a valuation. • The benefits of utilizing the “Know & Grow” concept as a way to increase business value and what that process entails. • Important considerations for business owners resulting from new IRS proposed regulations regarding estate planning and gifting, which may eliminate discounts used in valuation purposes for estates and gifting. Mary Beth gives listeners real world examples of valuation scenarios and important tips and advice for both novice buyers and veteran business owners. If you currently own your own business or practice, you are going to want to listen to this episode of the unsuitable podcast now. Like what you heard? Don’t miss out on the next one. Subscribe to unsuitable on Rea Radio on SoundCloud or iTunes. Then follow us with #ReaRadio on Facebook and Twitter for great behind the scenes features and visit our webpage at http://www.reacpa.com/podcast for some great articles and insight.

On episode 53, we are joined by Mary Beth Koester, Manager, Rea & Associates Business Valuation Team. Mary Beth shares insights into her specialty, valuation of professional services and medical practice sectors. Firstly, she argues for business owners to get rid of the notion that their most recent year’s gross revenue x 1, equates to the true worth of their practice – it doesn’t. This calculation is a misnomer. Practice valuations seem to be on the rise, and Mary Beth states, this increase isn’t just from the increase in businesses readying themselves for sale, but more importantly, it is from the demand use as an essential business planning tool; allowing owners to better manage their practice processes and operations. And of course, valuations are presently popular, according to Mary Beth, due to aging Baby Boomer business owners reaching retirement age and thus seeking an associate to buy in, or other alternative exit strategies. The podcast goes on to discuss the common “over valuation” that business owners make regarding their own practices. Mary Beth states that this is due to the entrepreneur’s emotional bond with the business and the way it operates. Since they are so close to it and have invested so much “blood, sweat, and tears,” they have a tendency, like all humans do, to over value its “market worth.” Mary Beth must educate her clients on the valuation process and in the end she oftentimes gives this simple advice, “Your practice is worth whatever a willing buyer will pay for it.” The reason for having a valuation, the podcast discusses, is as important as its result. If the valuation is for the purpose of a business planning tool, then the appraisal acts as a health assessment on how well the practice is performing. The results are then shared with ownership to alert stakeholders on what specific opportunities they need to be working toward in order to grow practice value. Other times, Mary Beth states, valuations are triggered by the initiation of, or updates to, Buy-Sell Agreements. In this scenario of course, valuations are conducted because the business owner is ready to retire – selling the business outright, or having an associate buy into the practice. Mary Beth explores the key factors that determine business valuations. The earnings stream, she states, takes precedent over cash flow. The normal operating earnings, after non-recurring, unusual expenses, and taxes and depreciation, are what matters most – as earnings reveal what is truly generated for the owner as an investor of the practice. However, Mary Beth warns, cash flow is king to continue normal practice operations, which must be sustained to increase those earnings. Mary Beth points out that as a business valuator, she is also a business advisor, and must educate, direct, and guide clients (buyers and sellers) toward possible options and proper channels of expertise in order to ensure a successful practice transaction. Mary Beth gives listeners real world examples of valuation scenarios for both novice buyers and veteran business owners. Sometimes, the podcast points out, the owner is the bank for the buyer, other times, a normal business loan is acquired. The episode discusses that a “must have” criteria that any business should employ prior to a valuation being performed, is 3 -5 years of “clean” books and organized financials. The “Know & Grow” concept is shared by Mary Beth, which helps owners in increasing the value of their business. Through this valuation process financial ratios, current thresholds and baselines, and future trends are unearthed, in identifying opportunities for value growth, while planning and projecting the business’ readiness to sell. Like what you heard? Check out recent posts about this topic to learn more.

On episode 52, Tim Kight, founder and president of Focus3, a leadership development consulting company headquartered in Central Ohio, talks about what it takes to transform good leaders into exceptional leaders capable of executing great strategies within complex environments. As published in the Wall Street Journal, Tim’s expertise has helped current head coach of the OSU Football team Urban Meyer author “The Power of Ohio State’s Positive Thinking.” Tim begins the podcast by sharing his three critical components for entrepreneurial success which, he later explains, is the premise behind his company’s name – Focus3. The moniker, Tim explains, comes from the three key disciplines within any organization or business – leadership, culture, and behavior. These systemic disciplines, he says, drive everything. Focus3 and its skill-building systems are not simply a one-off project or a program. Rather, they help lay the groundwork for an organization’s journey toward greatness. This episode highlights the fact that optimized leadership, culture and behavior are the means by which companies execute strategy at an elite level. On this episode, listeners will: • Learn How To Unlock Your Company’s Potential – A strategy’s potential, Tim argues, is controlled by the quality of leadership, the quality of culture, and the quality of behavior. He goes on to discuss how leadership works, why culture is dysfunctional, and what makes behavior embarrassing. • Discover How Focus Three Impacts Your Organization’s Brand – Every organization’s brand is defined by how people behave and the experience this behavior delivers to its target customers. Southwest Airlines, for example, offers a superior brand based on the behavior of their people, their culture and the way their culture is built and sustained by the company’s leaders. • Find Out What The ‘R Factor’ Means To Your Business – Of course an interview with Tim wouldn’t be complete if we didn’t dive deep into his organization’s cornerstone deliverable, “R factor,” an essential component of a life/work formula and framework, that states: E (Event) + R (Response) = O (Outcome). Focus Three teaches organizations how to manage the only thing they can truly control, their “R,” or “Response.” He shares the importance of businesses skillfully managing “R-responses” in a discipline-driven (above the line) manner, versus a default-driven (below the line) reaction. He concludes that by managing responses with discipline we get the best possible outcomes given the realities of the events we face. In a competitive marketplace, the company that manages the “R” the best – with intentional, purposeful, on-brand decisions – wins. Contrarily, default responses (those full of comfortable habits and momentary emotions, fueled by impulse and auto-pilot) – lose. E + R = O is the new operating system for business decision-making, supported by six competencies for R factor management. Tim argues that, more important than strategy, IT, marketing, etc., the ultimate performance variable in any business, is the way employees manage their responses, because responses are what ultimately produces a company’s most impactful results. Listen to the entire podcast to learn more. Like this episode? Don’t miss out on the next one. Subscribe to unsuitable on Rea Radio on SoundCloud or iTunes. Then follow us with #ReaRadio on Facebook and Twitter for great behind the scenes features.

Ongoing healthcare legislation continues to motivate business owners (including small and midsize employers) to innovate when it comes to providing their employees with optimal and cost effective health and wellness options. This week on unsuitable on Rea Radio, Dave is joined by Rick Pipes, a partner at Pipes insurance, an independent insurance agency headquartered in New Philadelphia, Ohio, to discuss onsite medical facilities. Rick explains the benefits associated with onsite medical facilities as well as the costs associated with the extra manpower. According to Rick, installation of an onsite medical facility begins with a relationship between the company and an independent healthcare company. The employer goes on to select their medical staff, which would include a physician, a nurse practitioner and a health and wellness coach. These staff members would be paid hourly. In these types of onsite facilities, the employer and the third party administrator design specific plans and employees set behavioral health goals, while physicians can get back to what they love – helping, serving and caring for patients regarding their health. This unique healthcare option, Rick explains, has plenty of opportunity. About 40-50 percent of the U.S. population does not have a general practitioner. As a result, these employees look to urgent care staff to manage their health. This behavior does not give patients the ability to manage their long-term health needs, because they are only concerned with any immediate health concerns they may have. In contrast, onsite medical clinics help to focus on patient preventive care, thus reducing backend, long term health costs down the road – which create larger volume claims. Advantageously, onsite medical facilities such as this give employees healthcare convenience, with quick, easy, and timely appointments, and much needed quality-care time with their facility physician. Rick states that this kind of onsite care is applicable to smaller companies starting at 250 employees with 400 member participants, including family members. Smaller companies also may join regional clinics, whereby plan designs are customized with higher deductibles, saving premium costs, and employers pay a per member (employees and their family) flat rate for medical appointments at the clinic, where services are free. This kind of “intimate’ employee care, Rick states, shines a positive spotlight on the employer by granting immediate access to a credible physician who serves each employee and their family. Additionally, onsite care programs work to help employers attract, hire, and keep potential employees. Rick argues that on site medical clinics offer less liability for the employer, as a third party administrator and the medical staff are a separate organization such that employees’ information is not being shared with the employer’s HR department, thus further insulating the employer from any healthcare risks. The session discusses that the function of onsite clinics is much like a general practitioner, focusing on health and wellness, common colds and flus, and maintenance of chronic conditions such as diabetes and COPD, as well as supplying prescriptions, administering blood tests, etc. Issues outside the scope of a general practitioner would be referred to an outside healthcare specialist. Want to learn more about your healthcare options? Visit the more resources page for this episode at www.reacpa.com/podcast. And don’t forget to show this episode some love! Like it, comment on it and share it. We will be eternally grateful! And you can learn more about PiPes Insurance at http://www.pipesins.com/pipes.

You’ve likely heard a lot of really great advice over the years … so have we! And so, for this episode, we decided to celebrate the podcast’s anniversary episode by compiling some of the best pieces of advice our guests have heard and/or given over the years. On episode 50, “the only advice that matters,” Mark Van Benschoten takes the mic as the show’s host one last time to question past guests of the show about some key pieces of advice that have stuck with them over the years. Sure there is a lot in this episode that will make you laugh, but there’s also a few pieces of great insight that will make you think. Listen now to “the only advice that matters” on unsuitable on Rea Radio. Want some more great advice? We’ve set up a resources page for this episode at http://www.reacpa.com/episode-50-the-only-advice-that-matters-one-year-anniversary/ to point you in the right direction. You can also access past episodes of unsuitable on Rea Radio at www.reacpa.com/podcast. Finally, if you liked this episode, let us know! Like it, share it, leave a comment … we’re not picky!