RE: Sept 14, 09
High Turnover and "Shell Game"

Your statement (fn4tgrl) is below and I wanted to ask the question of: If a 'deal' is merely a signed contract, suppose the 'deal' falls through (as they commonly do) are then not the projections you speak of false? Exactly what did you mean by this response when you stated,

"Sold or Paid? Signed contract determines the revenue projections of Administaff. Actually they smartly just discuss "# new employees"

Are you saying then that projections are made based on what is hoped to be achieved, by way of the contract sticking aka soft numbers or did you mean that projections are made on hard numbers? Employees, money or otherwise which is it?

And please spare the finance, IRS lecture, if I were an accountant I would have framed my inquiry in such a manner. My question is regarding quarterly growth, decline what specifically is ASF basing its statements on? Something that is complete or hoped for? Its a fair and reasonable question to be asked more specifically and directly to the integrity of statements being made regarding projections not to the specific detail of how you counted it but, why you counted it as revenue.

TO RECALL, HERE YOUR RESPONSE:
There is nothing to "divulge" that is not in 10K's etc... Your question implies you dont understand accounting, specifically IRS regulations for revenue recognition... so here it is

The Deal is what determines rev projections. That is the contract with the monthly revenue. The Census is what determines the cost structure of the potentional client ( # employees, avg age, % married, % with kids, % over 50yrs, % with pre-existing conditions, % that will pay what % for all family members, 401K structure.. etc.) and what ASF ultimately bids for the PEO services. This is their risk, and its big. Get this wrong and they lose $$ on the contract.

Sold or Paid? Signed contract determines the revenue projections of Administaff. Actually they smartly just discuss "# new employees"

There is no Shell game... they can discuss net new employees.... never project the revenues (I think) AND PER THE IRS can only account revenue monthly as the services is delivered. EX: 3 yr contract for $10K/month... $360K total, they only count the revenue monthly. EVEN if contract is prepaid.... There may be some nuances that will allow "set Up fees" etc... to accelerate Rev Recog. but not much

who am I anyway?? - just a person that does not understand accounting for services in corporate america, and that is not a criticism.... few do.