Stephen Cummings was recently named vice president of business strategy and tax for GrowthLab Financial. He has more than 40 years of experience in finance, tax and treasury, most recently as managing director of the tax group for New York-based Nomad Financial. He has a bachelor’s degree in accounting from Pace University.
PBN: How does your experience in finance and taxes inform your new role with GrowthLab?
CUMMINGS: My professional experience goes wide and deep with companies in different industries and various stages of growth. I’ve been fortunate enough to have had years of leadership and functional role experiences in private industry, government and public accounting with a focus on financial strategy, tax advisory and elevated accounting.
The management team at GrowthLab is leaning on me to develop accounting and tax leadership so we can double down on national expansion in 2020 and beyond.
PBN: Why is it important for businesses to work with experts such as yourself in tax and financial strategy?
CUMMINGS: Our team aspires to, first and foremost, be an extension of our customers’ management team, which is one of my inspirations for joining GrowthLab. We are not looking to be just another expert or service provider that you talk to once a year on a metered basis. Our customers are looking for long-term, proactive partnerships.
GrowthLab has been built from the ground up with a keen focus on driving value through cadence and rigor, not just subject matter expertise. Customers, including small businesses and emerging growth companies, are challenged with understanding cash flow; where they are making and losing money; the notion of marketing for profit; and paying for performance.
Our accounting, finance and tax advisers are focused on constantly and consistently delivering value focused on those four challenges regardless if it is research and development tax credits, cash-flow modeling, capital raising, debits and credits, or general tax planning.
PBN: What specific tax advice would you give to businesses during this challenging financial time?
CUMMINGS: These are surely challenging times that impact both businesses and families. Now, more than ever, I would strongly recommend all businesses work with professionals to navigate, including determining the impact of the new laws and regulations which are being issued in real time.
Another piece of advice, due to the economy, many more companies will be showing losses in 2020. Therefore, there may be an opportunity to carry back these losses to unlock cash and drive value.
With that said, there may also be an opportunity for individuals with ownership interests in pass-through entities to carry back losses generated by the respective entities. There are restrictions, so buyer beware.
PBN: How has GrowthLab changed its overall services to customers during the pandemic?
CUMMINGS: GrowthLab has maintained its core services and, in addition, has increased communication by calling customers and providing other opportunities to share much-needed and critical advice as the business community navigates the fastest and deepest downturn in history.
Moreover, while many companies have pulled back and laid off part, or all, of their workforce, I’ve been impressed that GrowthLab has doubled down on customer touch points, increased hiring, created weekly events, started a podcast and freely distributed tools, including cash-forecasting models such as 13-week and 12-month cash-flow proformas.
All of this is motivated by the mission to drive customer growth and be a strong advocate and partner in their journey.
PBN: What long-term effects do you think this economic recession will have on business financial strategy?
CUMMINGS: The economy has fundamentally changed. It will look and feel different than six months ago. Here are a few of my observations:
- The corporate culture has and will continue to change as more companies are comfortable and embracing remote work.
- Business travel as we knew it, is dead … virtual is the new norm.
- The hospitality industry has been flipped upside down and will take years to recreate itself.
- The international market(s) will change and our tax treaties will need to be updated.
- Our tax laws will need to be rewritten, as the economy is fundamentally different.
- The speed of economic recovery in the U.S. will be a function of a bipartisan Congress.
- This will not be a three-to-six-month recovery. I believe we are looking at 12-18 months before we begin to recognize a pre-COVID economy. That being said, the economy we once knew has fundamentally changed and the long-term impact is unknown.
One thing I do know is that there will be an economic dichotomy: companies with cash and companies with too much debt and no cash. One of the pillars to this economic recovery will be private investors with capital to pick up the pieces of distressed assets post-COVID.
Now more than ever, it is of utmost importance to have strength in your accounting, finance, tax, and strategy team. So, while I don’t know what the economy will look like, I do know I am excited to serve customers with GrowthLab.
Nancy Lavin is a staff writer for PBN. Contact her at Lavin@pbn.com.
