The document discusses different approaches to structuring an organization and reporting financial information. It presents a "radical but logical" model of organizing all revenue under an "Operations" department and reporting financial data at the project, project manager, principal-in-charge, owning department and performing department levels. This approach aims to simplify budgeting and reporting by eliminating issues that arise from traditional models that departmentalize revenue and costs.

1. A Radical (but Quite Logical) Approach to Structuring Your Company’s Organization & Reporting Presented By Mike Brennan, CPA

4. A Tale of Two Industries What is the message here?

5. A Tales of Two Industries What is the message here? We have to simplify and make our systems highly efficient.

12. The Typical Organization Structure

13. Breaking Down the Budget Costs Revenue Performing is easy, our numbers are right there. How do we do owning?

14. Partial Income Statement by Department

15. The Radical Organization Structure Ah…… Mike, What’s the diff?

16. The Radical Organization Structure “ Operations”

17. Breaking Down the Budget (Operations) Costs Revenue – All revenue goes to Operations These go back to the departments Options here Operations It is as easy as it looks No employees are based in Operations, except for an Operations Manager

18. Partial Income Statement (Operations) Believe it or not, this is all we really need.

19. Income Statement (GM) by Project

20. Income Statement (GM) by Project Manager

21. Income Statement (GM) by PIC

22. Income Statement (GM) by Owning

23. Income Statement (GM) by Performing ** Lump sum invoices make this problematic or not feasible. T&M invoices cause problems as well when some WIP needs to be written-off.

24. Who Gets the Write Off? Who wants to squabble over this? Let’s say for several hours with no resolution. How has this squabbling affected your relationship?