Steve Wintner and Michael Tardif discuss their book Financial Management for Design Professionals. How can modern firms measure “true profitability” and create fast and easy financial indicators to insure their success? This podcast reviews practical strategies to creating effective financial management systems that allow one to achieve their dreams as an architect.

An accessible guide to financial management, the book is written for design firm principals who are responsible for their firm’s finances but have little or no financial management education or experience. For mid-career design professionals looking to advance their careers, the book is an indispensable reference and training guide. Using a simple, step-by-step format, this book shows design professionals how to:

• Develop an annual budget and profit plan;
• Manage overhead expenses to enhance profitability;
• Determine the break-even rate and hourly billing rate for each employee;
• Determine how to balance between project workload and staff size;
• Establish project fees;
• Use readily available financial information in successful negotiation;
• Design and interpret financial reports;
• Clear explanations of the fundamentals of financial management; and
• Calculate the six financial performance indicators.

Most design firms cannot sustain serious downward fluctuations in their business. If a firm's profitability continues to erode, it could be a serious threat to the firm's sustainability. Being able to respond to new opportunities, challenges, and trends enhances a firm's prospects for long-term success. This presentation will teach participants to recognize developing trends through the calculation of key financial performance indicators that might affect the firm’s profitability target and provides a review of methodologies to help avoid such threats.

Financial Management for Design Professionals, by Steven Wintner, AIA, and Michael Tardif, Assoc. AIA (Kaplan, 2007), is just the tool for mid-career design professionals looking to advance their careers but who have little or no financial management experience. The book lists for $49.95; AIA members may purchase it for $44.95. Order by phone: 800-242-3837, option #4 or online at the AIA Bookstore.