April 24 is National Administrative Professionals Day. And this year, we’re taking a different approach. At SDA, we’re celebrating how business professionals in the A|E industry with roles in marketing, finance, human resources, project management, and operations keep the firm in business. Instead of spotlighting individual achievements, we’re diving into the collective essence of our firms, celebrating the interconnectedness of diverse business functions that underpin design endeavors. Much like the celebrated Architecture and Engineering Weeks, let’s delve deeper all week into the intricate business ecosystem of our firms. Today's focus is Finance.

Financial management is pivotal in driving success and sustainability in the complex world of architectural and engineering firms. From navigating tax regulations to optimizing project profitability, finance professionals are responsible for fiscal health and strategic decision-making.

One often overlooked aspect of financial management is understanding and mitigating tax liabilities. In Virginia, firms are subject to a Gross Receipts Tax, which can significantly impact the bottom line.

Case in Point: Take, for instance, the scenario of a joint venture operating in Virginia. Not only does the JV incur Gross Receipts Tax, but each partner is also subject to additional taxation at the individual level. A double whammy can eat into profits and erode financial viability. However, astute financial analysis and strategic planning can uncover opportunities for optimization and savings. Consider the case of a recent joint venture where a firm’s controller identified a significant tax-saving opportunity. By strategically headquartering the JV in Colorado instead of Virginia, the venture saved $13,000 annually and $65,000 over the contract’s life. This simple yet strategic decision increased the JV’s profit dollar for dollar to the bottom line.

But tax optimization is just one piece of the puzzle. Equally important is understanding project profitability by client—a metric that can reveal hidden inefficiencies and identify lucrative opportunities. By analyzing profitability metrics, firms can weed out underperforming projects, allocate resources more efficiently, and prioritize clients with the highest returns.

At SDA, we’re committed to empowering our members with the knowledge and insights needed to navigate the intricate terrain of financial management. It’s one reason why we partner with industry leaders such as PSMJ, Profit by Design, and Morrissey Goodale during our conferences. Through these partnerships, we provide our members access to up-to-date financial analysis, industry trends, and best practices—like Deltek & A|E Clarity’s financial survey and McGraw-Hill industry trends—equipping them with the tools and strategies needed to thrive in a competitive marketplace.

Case in Point: After a member attended an SDA conference session by Mony Financial Services on deferred compensation plans using whole life insurance, she brought the idea back to her firm, the firm established and funded the plan, and it continues to be a successful part of the firm’s succession planning.

Finance is the lifeblood of A|E firms, driving strategic decision-making and ensuring long-term sustainability. By embracing financial acumen and leveraging our various member resources, firms can unlock new opportunities, optimize profitability, and chart a course toward continued success in the industry’s ever-evolving landscape.

Look for SDA’s new Certificate in Design Firm Financial Management (CDFO-FM) accreditation coming soon. CPAs and CMAs designations are helpful, but an accreditation specific to A|E|C finances will be a game changer.

Webinar Suggestions:

Benchmark Your Firm Performance for Growth – Deborah Gill

RAISE Your Value and Charge What You’re Worth– June Jewell

How to Achieve a Sustainable, Profitable Business - Mark Goodale

Editor's note: Happy Administrative Professionals Week! As we celebrate this week, let's take a moment to reflect on the value we bring to the world. Jennifer M. Greene, CDFA, Director of Marketing, Ronnette Riley Architect, shares her thoughts on the role of administrators in the blog post below.

If you're looking for more inspiration, check out the wildly popular webinar by Simon Goodhead of the Cox Group in Atlanta, Georgia, titled "Why Administrators Might Rule the World." In this webinar, Goodhead dives into administrators' vital and expanding role in organizations and provides insight into how we can empower ourselves to navigate the challenges ahead. He discusses the traditional roles for administrators in our industry before launching into the future and evolving roles we can take on. It's a dose of inspiration that will motivate and excite you about the possibilities ahead.

If you want to check out the webinar, you can find it here: https://www.sdanational.org/store/viewproduct.aspx?id=21893412. Let's continue celebrating and empowering our administrative professionals this week and beyond!

The Essential Role of Professional Administrators in the Architecture and Engineering Industries

Happy Administrative Professionals Week! This week, we celebrate the hard work and dedication of administrative professionals who keep our businesses and organizations running smoothly. In particular, we want to give a shoutout to those who work in the architecture and engineering industries.

Professional administrators are the backbone of any organization. They are responsible for managing and directing operations, ensuring everything runs efficiently and effectively. But what makes professional administrators so important to these industries?

First and foremost, professional administrators bring expertise to the table. They are trained to understand and implement best practices in management, leadership, and organizational structure. With specialized knowledge and skills, they can navigate complex challenges and make informed decisions.

Accountability is also a critical factor. Professional administrators are responsible for the success or failure of the organizations they manage. They ensure that resources are used effectively, budgets are balanced, and objectives are achieved.

Professional administrators are also skilled at thinking strategically, identifying opportunities, and developing plans to achieve organizational goals. They develop long-term strategies and ensure that day-to-day operations align with those strategies.

Leadership is another key attribute. Professional administrators inspire and motivate their teams to achieve excellence. They are skilled at communicating effectively, building relationships, and creating a positive work environment.

Compliance is crucial too. Professional administrators ensure that their organizations comply with laws, regulations, and ethical standards. They stay up-to-date with changing regulations and policies to ensure compliance.

At SDA, we understand the critical role professional administrators play in the architecture and engineering industries. We provide support and resources to help you succeed in your roles. 

So, here's to you, professional administrators! Your expertise, accountability, strategic thinking, leadership, and compliance ensure that our industries operate efficiently, effectively, and in accordance with best practices. We appreciate all that you do!

6 Ways to Honor Your Administrator

Administrative Professionals' Week is April 25-29, 2022. Administrative Professionals' Day is April 27, 2022

Administrative Professionals’ Day is quickly approaching and although it might not be on your radar, rest assured your Administrative Professional is aware. What do you do?

Administrative Professionals often take on more tasks than almost anyone else in the firm. They wear many different hats and have multiple responsibilities to keep the firm moving ahead. Administrative staff, while often viewed overhead, function as income multipliers by keeping billing staff on tasks that generate more revenue.

When viewed in that light and reflecting on all your Administrative Staff does to keep the firm on track, I’m sure you are motivated to recognize your staff!

Administrative Professionals’ Day is a day to honor the staff that is typically under-appreciated and over worked. Here are some great ways to honor your administrator:

1)    Show them you recognize them as much a professional as your just as you do your Architects / Engineers with an SDA membership. Gifting a membership to SDA shows that you recognize their position and how important it is to have a network of professionals supporting them as well as allowing them the opportunity to grow professionally and an opportunity to become a Certified Design Firm Administrator (CDFA).

2)    Reward their hard work with a bonus, I mean who doesn’t like a bonus? This would be a great time to tell them that you recognize their contributions to the team and that they should share in the accomplishments of the work.

3)    The recent pandemic has made it more difficult to execute the standard appreciation lunch, but this can still be done using social distancing protocols or even by sending the administrative professional’s lunch to their house and hosting a virtual lunch that everyone attends together.

4)    This is also a great opportunity for the team or the firm to each take a moment to thank / praise your administrative staff for all that they have done to make each day a success or to point out moments where the administrative staff went above and beyond to help meet team deadlines, goals or expectations. This can be done with a nice greeting card that everyone signs (this can be done electronically now). The team might decide to take contributions to include a gift card to a local restaurant or for something relaxing.

5)    Maybe the firm is too large or just doesn’t acknowledge days like this, but that doesn’t mean the team or individuals can’t take on the task themselves.

6)    Do all these items feel like too much work? I bet your administrator would also feel honored by flowers from the store, a bag of their favorite candy / chocolate, a donut from the donut shop next door, or even a word/words of affirmation on a post-it note stuck to their computer screen. Virtual ideas: a quick email that says “I appreciate You, Thank You for all You Do” or an instant message that says “You are The Best” …. Any of these would bring a smile to my face and make me feel appreciated.

What are some other ways that would make you feel honored on Administrative Professionals Day? Share them in the comment box below.