Where is my Business at?
Employ your own Virtual CFO to have these questions resolved.
1) These are the most common question I get asked when consulting with small to medium sized businesses. Do these sound familiar?
- How much profit is my business actually making?
- Why is cash flow always a problem?
- How much money can I take out of this business and how will that effect my personal taxation?
- I never seem to know at one point in time my Income tax, GST, Super, Workers comp and Payg liabilities
- What are my profit margins?
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- Why do our expenses keep rising when sales and profit margins are falling?
- Who are my most profitable customers?
- Which brands / products are making the most profit
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2) Why is this key information so hard to generate?
- In my experience I have found there to be a gap between what the book-keeper produces and then the tax agent.
- Most small – medium size companies simply can’t afford an experienced and fully qualified Financial controller or CFO
- The financial information is usually basic without relevant or beneficial strategic information to help critical business decisions to review, maintain and improve financial health of the company
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- By the time the tax agent prepares the return this can be up to 9 months later than when the results occurred which can prove detrimental in some cases and create cash flow problems
- When the tax agent makes changes to the accounts this is rarely transferred to the business records creating a situation of running two books
- So the business simply does not have access to timely or relevant key financial information required for the long-term profit and sustainability
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3) How do you fill this gap and produce the relevant financial information
- Firstly, an audit of the current financial information your business receives
- Work out where your business is at.
- Devise a plan to acquire the financial information required to implement Key performances indictors relevant to your business
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- These will be the driving force for financial strategic and what –if scenarios to gain thorough and relevant financial strategies for your business
- Set up systems to make this information readily available for monthly financial reporting and strategy implementation
- Review, track and communicate strategic improvements for your business
- Ongoing access to future information
- Recommend accounting systems
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4) There are 3 options available – Firstly the Tailored Financial Snapshot
So how much will this cost and what do we receive?
- This will be a snapshot of the fundamental financial information and key performance indicators for your business including :
- Full current Profit and Loss statements
- Balance Sheet if appropriate
- Cash flow position, forecasting, including tax and GST and other ATO obligations
- Brand / product / project analysis
- Sale to expense analysis
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- Provide key performance indicators relevant to your business
- Break even analysis overall
- The Snapshot analysis starts from $1,950 ex gst. This will depend on company size
- Report generated within 10 working days
- This will include explanation and presentation to key stakeholders
- Future access to live ongoing information
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5) Secondly, the Tailored Financial Detailed Solution
So how much will this cost and what do we receive?
- This will be a detailed analysis of the fundamental financial information and key performance indicators for your business including :
- Full current Profit and Loss statements, analysis and recommendations
- Balance Sheet analysis
- Cash flow position, forecasting, including tax and GST and other ATO obligations
- Brand / product / project analysis, with a detailed breakdown of profitability by brand / product or project.
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- Provide key performance indicators relevant to your business
- Measurement / forecasting of key performance indicators
- Break even analysis overall
- Break even analysis brand orientated
- Debtors Analysis, review collection policy
- Inventory analysis and trends
- Profit improvement suggestions
- The detailed solution starts from $3,900 depending on company size
- Information will be generated within 10 – 20 working days
- This will include review, explanation and recommendations to key stakeholders
- Future access to live ongoing information
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6) The Ants Pants solution – The Virtual CFO in full swing
So how much will this cost and what do we receive?
- The details of this are shown below and can be broken into three main components
- Taxation services, strategic profit improvements and general accounting services
- These projects will be quoted on a case by case basis due to the detailed requirements
- Generally a package will take care of all financial reporting, taxation and strategic requirements delivered monthly
- This will be an agreed annual amount billed monthly
- A basic package with accounting, strategic and all tax matters will start from $880 per month. So for $10,560 per year, you can have all your tax, accounting and strategic performance reports completed in a timely accurate and informative fashion.
- The assumption in these cases is the basic book keeping duties are completed internally
