Get To Know MORE About Chris Honkomp.

Chris was recently honored to be recognized by the Corridor Business Journal as one of the 40 of the Corridor’s outstanding leaders under the age of 40.  We spent 15 minutes with him to pick his brain on leadership, family and writing papers in college!


1.    What are some of the more important leadership lessons you’ve learned in your career?
I have learned the true meaning behind the cliché, “you’re only as strong as your weakest link.”  To me, leadership is about developing young talent as fully and quickly as possible so that the overall team succeeds.

2.    Why accounting?  What brought you to this career and what do you like most about it?
To be honest, I chose a major in college that would require me to write the least amount of papers.  And although that was beneficial to me at the time, I’ve since learned what a career in accounting really means.  Today it’s a challenging environment that is different every day and is conducive to my competitive nature.  I put that competitive energy toward helping clients consistently get better!

3.    Why BP?  What differentiates this firm for you?
You know, coming out of school, I thought about leaving Iowa but with four younger brothers still here and active in school and sports, I knew that I wanted to stick close to home.  I chose to invest in my family and community and work for the firm that had the reputation as the best and that was – and is – Bergan Paulsen!

4.    What do you look for when you hire?
We look for individuals that come from a good educational program but beyond that we look at their work experience.  We want people to come to us with developed communication skills and a desire to help clients succeed.

5.    How would you summarize your leadership philosophy?
Balance.  This is an interesting and important word to me.  I think with most things, in work and in life, the right answer usually lies somewhere in the middle.  The word pertains to work / life balance as well as the balance you bring to providing the right solution for a client.

6.    What advice would you give someone getting out of school right now?
Find what you’re passionate about and good at, set goals and go after it!  Be confident in your ability to share fresh ideas and make an impact!

FASB Committee Considers Nonprofit Financial Reporting Changes

Nonprofit organizations are neither public nor private businesses creating a unique situation in regards to accounting standards. Because nonprofits are accountable to the public, the Financial Accounting Standards Board’s (FASB) Not-for-Profit Advisory Committee (NAC) is studying ways to improve financial reporting for nonprofit entities. The NAC has identified several potential projects for the FASB’s standard-setting agenda, three of which are:

1. Net Asset Classes – Redefine or relabel classifications to better convey nonprofit liquidity. 
2. Form of Financial Statements – Improve statements to better communicate the financial landscape. 
3. Management Discussion & Analysis – Include commentary from nonprofit directors to further explain the financial story. 

For more information, read the full article: FASB Not-for-Profit Advisory Committee Recommends Improvements to Financial Reporting.

Tax Strategies for a New Economy

During economic downturns, states are often searching for ways to supplement their declining tax revenues while businesses are formulating strategies to improve their profitability by reducing tax liabilities. Businesses look to sales and property taxes to reduce their overall tax payments but in an economic environment that has been declining, companies must prepare themselves to deal with states’ more aggressive pursuit of sales and property tax revenues.

Options to Minimize Corporate Sales Tax 

• Restructuring Individual Transactions or Business.
  Vendor contracts often offer good opportunities to restructure transactions to be more tax advantageous. For instance, a vendor that bills one lump sum for both telephone support and software updates could be restructured to bill them separately so that the support is not subject to state sales tax.
  In addition, a company may look at restructuring its business. For instance, a company may operate an internal fleet of trucks and delivery vehicles. By restructuring, the company could isolate the delivery of its own products to possibly take advantage of a exemption on the trucks, tires and fuel used for delivery of business’ goods. 
• Request Formal Rulings on State Tax Interpretations.
  Companies can also request formal rulings on state tax interpretations which could provide further insight into what is taxable. 
• Adjust Business to Market Products that are Exempt from Sales Tax.
  Companies may be able to tweak their offerings in order to remain exempt from sales tax. As an example, an electronic information service company may change its model so that consumers are unable to print anything tangible. 

External Obsolescence and Property Taxes
External obsolescence can be used to reduce the assessed value of property and, in turn, property taxes. While sales taxes may increase, there is potential to offset that cost with reductions in property taxes during a down economy. External obsolescence occurs when external forces beyond a company’s control – such as the economy – negatively influence property value. In today’s market, it’s not a question of whether a company or industry is experiencing external obsolescence but rather to what extent is it experiencing external obsolescence?

In a tight economy, companies must be aware of the effects that sales and property taxes can have on their profitability. As always, it’s important to work with a trusted advisor who can help you navigate tough times so that you can weather the storm and come out the other side better than before!

Fraud: No Organization is Immune

Bergan Paulsen Partner, Mike Regan, was published in the most recent Fall edition of the Minnesota Grain and Feed Association’s Mill & Elevator Magazine. The full article, “Fraud:No Organization is Immune” dives into what agribusiness organizations can do to protect themselves from the three types of fraud.  Read the highlights below.

Businesses purchase insurance to protect their companies from natural disasters and develop procedures to secure trade secrets from outside competitors, but not all businesses have developed the proper processes to protect themselves from internal corruption and fraud.  Because instances of fraud can cost a company millions, it is important to know that there are ways to prevent fraud and to detect these instances early. 

The top five things agribusiness organizations can do to protect themselves from fraud:

1.      Fraud hotline – Allowing others in the organization to submit anonymous tips of fraudulent activity accounts for over 40% of initial detections and is, by far, the most effective action an organization can take. 

2.      Internal procedures established by management – Developing budgets and establishing measurable financial objectives set clear expectations of acceptable employee behavior.

3.      Fraud awareness/ethics training – Ensure that all employees are aware of what to look for and understand company policies and procedures on reporting potential fraudulent activities.

4.      Internal audits – Internal auditors provide ongoing monitoring and assessments of activities.

5.      Surprise audits - An unannounced audit or a different auditing process can bring to light fraud that perpetrators did not have time to cover up. Surprise audits can also be useful at deterring fraud, not just detecting it.

Source: 2010 Report to the Nations on Occupational Fraud and Abuse, published by the Association of Certified Fraud Examiners.