Financial Management Services
Upgrading a Compliance & Admin Practice to Provide Financial Management Services
It’s a logical step for any basic accountancy practice that has ambitions to do more for its clients and itself. Mastering these techniques paves the way for the goal of ‘whole business’ advice that provides clients with every type of advisory needed to create a ‘One Stop Business Support Shop’.
Benefits include:
Longer term client loyalty /retention
Increased fee income
Increased profitability
Trusted advisor status with clients
Raised market profile
More referrals
Greater job interest / fulfilment
Easier recruitment of trainees and qualifieds
Staff retention
More respected by / useful to, business owners
How it works for your clients: (Modules FM1-FM8)
FM1. Selling Financial Management
By showing your client the ROI that your fee investment will produce through enabling him/her to see into and control the future and add to sales, margins, productivity, cash at bank. So, you will assure the financial results for the coming year, rather than a bad year being the result of no planning and a good year the result of luck.
FM2. Forecasting & Budgeting
Knowing where to reasonably aim, what to sensibly expect and how to resource it all in advance, saving crises that become apparent when it’s too late to correct them.
The ROI on this service is obvious as the cost of just one mistake greatly exceeds it.
FM3. Financial Performance Reporting
Clear understanding of all the forces that influence the published financial results and showing how to manipulate them to put the client in full control of their business.
The ROI on this service is a predictable profit stream that far exceeds its cost.
FM4. Pre-Finance Key Performance Indicator Reporting
Focusing on the early indicators of cost and revenue enables clients to influence the financial results while there is still time.
The ROI on this service is the certainty that financial results will be achieved that otherwise would be missed.
FM5. Cashflow Forecasting & Reporting
Knowing exactly what cost and revenue cash movements will be for a coming period is vital to staying safely funded and guiding the owners as to their ability to invest, withdraw or borrow.
The ROI on this is priceless.
FM6. Interpreting Management Reports
Understanding how to converge all the different data to form pictures of where the business is now, where it is headed, the causes of divergence from plan and the key issues to deal with.
The ROI on this is the generation of planned profits with no budget misses.
FM7. Business Funding Methods
Through application of the budgeting, forecasting and management review services, identifying future funding needs well ahead of need and sourcing the best options in good time.
The ROI on this is that business growth plans will not blocked and investment wasted through enforced cutbacks as cash runs low.
FM8. Financial Advisory / Fractional FD Service
The ROI on this service should be equated to the difference in its fractional cost and the full cost of a salaried Finance Director (FD) which will be many times more.
Management Performance Reporting Technology
|
Financial |
Management Accounts |
Trading |
Balance Sheet |
Budgeting |
Cashflow |
KPI Reporting |
|
Quick Books |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Sage |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Xero |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Marketing |
Database |
Messages |
Enquiry |
Quotes Value |
Pipeline |
Conversions |
|
Salesforce |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Hubspot |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Pipedrive |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Operations |
Orders |
% On Time |
% Returns |
Complaints |
Referrals |
Stock |
|
Products |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Services |
✓ |
✓ |
✓ |
✓ |
✓ |
X |
|
Software* |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
People |
FTE Headcount |
Vacancies |
Training |
Appraisals |
Sales Per |
Wagebill |
|
Staff |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Contractors |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
Software* |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
|
|
|
|
|
|
|
|
|
Matched to Specific Business Type* |
||||||
How the Technology Works for Clients
This matrix sets out the classic Management metrics to embed in a comprehensive reporting system that works for any business owner and provides the framework for providing Financial Management Advice.
Using existing software and other off the shelf apps as needed it all works together to generate reports that show early indications of future financial performance by tracking issues and trends in:
Marketing - that will influence sales revenue
Operations - that will determine customer ordering and retention behaviour
People – that will affect productivity and commitment to the company
Finance – trends that need early correction or reinforcement