Eight One Partners

Accounting for the Entrepreneur

At Eight One we’re focused on providing outstanding and customized professional accounting & consulting services to small businesses and entrepreneurs.

(720) 309-4511

Contact Eight One Partners

We are helping emerging companies manage the complexity of their growth. We're a firm with core values and one focus: your business goals.

we are here to help you with

Fractional CFO Services

We have served in this capacity for a number companies on a contract, fractional or demand basis.

we are here to help you with

Tax Filing, Research & Administration

Tax is more than annual filings and documentation. Tax can have a tremendous impact on the return a business can generate.

we are here to help you with

Custom Financial and Information Modeling

There are times when a web-based or off the shelf software suite just isn't customized enough to be useful.

    Our Services

    At Eight One we’re focused on providing outstanding and customized professional accounting & consulting services to small businesses and entrepreneurs.

    Fractional CFO Services

    Many businesses need a bit more than a bookkeeper but less than a full time financial professional.

    Tax Filing, Research & Administration

    Tax is more than annual filings and documentation. Tax can have a tremendous impact on the return a business can generate.

    Custom Financial and Information Modeling

    We are Microsoft Excel masters and can help you develop management reporting dash-boards, reporting tools or simply help you organize data in useful ways.

    Bookkeeping

    We always recommend engaging a bookkeeper early. We're happy to work with your bookkeeper or service your needs with some of our own partners.

    Our Team

    Our expertise spans accross tax, financial reporting, valuation and advisory services.

    member-1

    IAN NETHERTON

    CPA/ABV, CGMA - PRINCIPAL/FOUNDER

    More About Ian

    member-2

    JACOB BRUINTJES

    DIRECTOR OF BUSINESS DEVELOPMENT

    More About Jacob

    member-3

    LOREN VERVILLE

    PRINCIPAL

    More About Loren

    Financial Models

    We recognize that sometimes the right sized solution is one that is a little more D.I.Y. We'd like to help in this effort. We'll be regularly adding useful models and decision tools here your use. Please feel free to reach out to us if you have any questions about our models and their applicability to your organization.

    Ian-

    Daily Cash Flow (enable macros)

    Keeping it Sorted

    • post-1

      Managing from the checkbook

      One of my favorite parts of tax season is the seeing clients succeed more than they realize.

      Managing from the checkbook

      One of my favorite parts of tax season is the seeing clients succeed more than they realize. This statement is probably confusing. Let's unpack this. Doing what we do, we tend to develop a cadence with what a business can accomplish in a period. Sometimes, we're lucky enough to work with one that exceeds these expectations.

      Nonetheless, the business owners won't likely have the context we enjoy. We do our best to encourage them as I think it's important to benchmark accomplishments. It helps to know if a process or behavior is working.

      Surprise Surprise! Success has a dark side. Especially if the firm makes a product. Once the dollars get larger, the valleys get deeper... or mo money, more problems.

      This is explained by something called the cash conversion cycle. Essentially, its the average days from inventory to sales + the average days sales are unpaid - the average days the business pays the bill. This measure is a good benchmark to optimize working capital requirements.

      The trouble is nascent business owners tend to manage cash from the check book. And why not? It's worked so far. The trouble is that a manager can doom their business months before they even notice. We recommend viewing cash on a daily basis at least 2-3 cash conversion cycles out. This allows us to manage cash needs and diligently pursue our expansion goals.

    • post-2

      Breaking the model

      There's no model that can't be broken.

      Breaking the model

      There's no model that can't be broken. We, like all the other firms in our space, have a specific mode of doing things and this is often reflected in our models. One requirement of all of our model work is to facilitate collaboration. This of course invites risk or rather harm on all our good work. Inevitably, we get an email from a user describing their woe with just a simple task and I really sympathize with them.

      It's almost easy to see people get defensive of their models. Having worked with a number of Excel jockeys, I've seen this fairly often. (If I'm honest, I've done the same.) At the end of the day, the requirements are twofold:

      • Facilitate collaboration
      • Simplify & standardize communication

      It should take information and provide information. Like any worthy effort, its an easy idea that's hard to achieve.

      We've found that a focus on putting collaborators first is the best and most sensible approach. We aim to design something that asks simple questions and receives simple inputs. Our job isn't to convince you that what we do is complicated. Our job is to convince you your job is easier with us.

    • post-3

      Budgets, forecasts & keeping up with reality

      We all tend to get the idea of what a budget is. It's intuitive.

      Budgets, forecasts & keeping up with reality

      We all tend to get the idea of what a budget is. It's intuitive. You have a plan, you translate it financially, and then you measure your execution against it.

      Often the confusion comes with what to do with the plan when it comes up against reality. The truth is that revenue targets will be missed. Landlords increase rent. Your development time will exceed your best estimates.

      So do we change the plan? The short answer is that there isn't a short answer. Traditionally, the budget was a plan made at the beginning of the year and you are judged against that plan for the rest of the year (despite very real and unavoidable challenges). What smart managers do is pivot and formulate a better plan. We can call it a forecast. We can call it a budget update. But really what's more important than hitting OpEx numbers is being able to roll with the punches. We know your arena changes so shouldn't you be judged on how well you adapt? The consistency of your victories?

      We encourage clients to stay honest and real about what they can achieve. However, what we really want to encourage is short run dexterity and long run focus. Because maybe your firm's future is bigger than a budget.

    • post-4

      Interest Charge-Domestic International Sales Corporation

      It's a mouthful isn't it? This is a tax strategy whereby an exporter can allocate a portion, roughly 50% of export profits, to a sister corporation (the IC-DISC).

      Interest Charge-Domestic International Sales Corporation

      It's a mouthful isn't it? This is a tax strategy whereby an exporter can allocate a portion, roughly 50% of export profits, to a sister corporation (the IC-DISC). This allows the original export business to essentially halve their taxable income at the normal ordinary income tax rate. The IC-DISC company, having received the other half of the export profits from the original exporter, can now distribute these profits back to the shareholders of the original exporter at the long term capital gains rates. The entire arrangement results in a possible tax savings of approximately 20%.

      Here's a simple example:

      It's important to realize that the tax rates are rounded for the effects from the ACA and state taxes.

      One would think this tax strategy would be more common but it's actually quite underrealized.

      If you're an exporter, please consider bringing this arrangement up with your tax professional or contacting a group that specializes in such an arrangement.

    • post-4

      Why you should see cash on a daily basis

      It sounds obvious doesn’t it? I’m often told by business managers that they know what their cash position is and will be.

      The less you say, the more people listen

      It sounds obvious doesn’t it? I’m often told by business managers that they know what their cash position is and will be. The follow up question is as to what time unit basis they use to forecast their cash. More often than not, forecasts are done on a monthly basis. It seems sensible that forecast should match accounting periods. The problem with this method is that cash is used on a daily basis. Payroll might be on a Friday but you won’t collect on that big contract till the following Monday. Can you make payroll?

      I usually recommend an easy approach. Simply dump your outstanding payables & receivables in a spreadsheet and sort them by date. Fill in enough data to cover a 90 day period and you should have a pretty good idea when you’ll need to draw from your line of credit or push off that capital investment till that big contract payment comes in.

      If you do this once a week, you’ll be amazed how well you can save cash and control expenditures.

    Get in Touch

    Address

    • 10453 Dresden St
      Firestone, CO 80504

    Hours

    • Monday – Friday: 8AM – 7PM
    • Saturday: 10AM – 7PM
    • Sunday: Closed