What We Do

The truth is in the cash flow

What We Do

We give business owners the confidence to sustainably grow their business.

Your accounting software is a treasure trove of information and we have the keys to unlock this information and make it available to you.

Everything we do has a purpose.

We know the information you need, how to extract it and then organise it so you receive valuable insights into what is going on inside your business.

The first step is to turn your business plan into a three-way financial forecast so that the capital requirements of those plans are clear. Our forecasting tool is:

  • flexible
  • customisable
  • used to help you explore alternative paths to achieving your plans
  • able to be updated for actual outcomes and rolled forward.

The second step is to make sure you know where you stand financially. We do this by working with you:

  • on a monthly basis.
  • comparing actual outcomes to forecast for the month and the year to date.
  • understanding the projected outcome for the remainder of the year.

The third step is to focus on the Sales and Gross Profit outcomes, which are key drivers of business performance and cash flow. We identify for you:

  • those Sales lines that need your attention.
  • whether it is Sales Volume, Sales Margin or both that you need to focus on.
  • the magnitude of the specific variance so you can prioritise your attention.

The fourth step is to focus on Sales and Gross Profit by Customer and Product line. We identify for you by major product line and customer group:

  • Sales, Gross Profit and Gross Margin for the month, year to date and in the last 12 months.
  • trends over time in Sales, Gross Profit and Gross Margin.

Now, you not only know which Sales lines needed attention, but also whether the issue is specific to a particular customer, a particular product type or across a range of customers and/or product types.

The fifth step is to focus on the drivers of your Working Capital.

This is where most businesses tie up their cash.

Our aim is to identify whether there are actions that can be taken to release some of this cash.

We do this initially by tracking trends in:

  • the dollar value of capital invested as working capital.
  • the cash conversion cycle of your business.
  • debtor days, stock days and creditor days.

The final step is to take a hard look at your inventory.

Typically, this is working capital area where you tie up most of your cash.

We provide information to help you make more nuanced purchasing and/or production decisions.

We help you understand on a per item basis:

  • inventory units sold last month and in the last 12 months.
  • trends in units sold per month over the last 12 months.
  • inventory days on hand at month end.
  • trends in inventory days on hand by month over the last 12 months.

Our services are particularly suited to family owned businesses with turnover greater than $5m.

We do not replace your in-house bookkeeper/finance manager or your external tax and compliance accountant. We are a complimentary resource, doing the things that those parties do not have the skill or experience to do.

We have blogged on these topics extensively, and invite you to find out more by visiting our blog page.