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An Overview of the NARPM Accounting Standards (NAS)

An Overview of the NARPM Accounting Standards (NAS)

Today, I’m discussing the NARPM Accounting Standards (NAS) with Danny Craig in preparation for the NARPM Broker/Owner Conference February 25, 2019.

The first episode of this series is designed to provide you with some basic insight into the current practices and standards in place and some insight to any upcoming changes.

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Topics covered:

  • (2:00) – Intro
  • (03:12) – Accounting can be exciting 
  • (04:17)- Accounting – The Two Sides
    • (4:45) – What you get vs. What you want from CPAs
  • (6:00) – A Push to the Standard
    • (7:40) – Chart of Accounts – What Should Be Clear?
  • (8:10) –   Financial Performance – Focus on Best Practices
    • (9:00) – The Importance of Financial Modeling
    • (10:05) – Segmentation for different functions of the business
  • (11:00) – Sections of the NAS
    • (11:10) – Chart of Accounts
      • (12:00) – Accommodates for multiple streams of revenue
      • (14:35) – Flexibility: The addition of sub-accounts and categories
      • (18:15) – The difficulty of finding a standard explained
  • (19:15) – How To Change to the Standard Chart of Accounts
    • (21:00) – Historical re-classification has value, but not required
  • (21:17) – Metrics for Financial Standards: What’s important?
    • (22:30) – Determine what is included with distinction
  • (24:35) – Why Not To Use Operational Metrics with Financial?   
    • (26:15) – Optimizing for Profit
  • (27:00) – Metrics and the Meaning
    • (27:35) – Lifetime Value
  • (29:00) – June 2017 – Growth of the Benchmarking Study
    • (32:00) – The Segmented View of Profitability
  • (34:50) – Financial Controls Guide – What is Unique in this industry?
    • (35:25) – Mom and Pop vs Wall St
    • (36:30) – Entrepreneurs are generally not accountants
    • (37:50) – Consideration for Expenses: An Overview
  • (40:00) – Essential Sections
  • (41:30) – For Entrepreneurs by Entrepreneurs
  • (42:33) – Shout Outs and Closing

Resources mentioned:

ProfitCoach Mixer at the Mirage
NARPM Accounting Standards