Annual and Quarterly Meetings
We insist on having annual and quarterly meetings to discuss your business. While we provide the other services listed on this page, an opportunity is missed if we do not have actual meetings to discuss your financial results, discuss future goals and plan for them, develop measurement processes to ensure that your business is moving in the planned direction. We can help you explore growth opportunities for your business during these sessions. This is a must in the CFO package. If you are ready for that business partner to help you grow, we are here for you.
Cash Flow Forecasting
An important element in running a business is cash flow: actual, forecasting, and budgeting. Everyone should have an idea as to where and when their cash is coming in and going out in order to make sound financial decisions. Have you ever created a worksheet to try to understand your cash flow? Do you know how long your receivables age before receiving cash, on average? Do you know when you will need to infuse more cash into your operating cash account? Do you know when payments are coming due in relation to cash coming in?
Do you wish there was a way to increase your cash flow? There are methods to help you keep more of your cash on hand.
Do you have a budget for your business? Have you thought about creating one, but are unsure how, or where, to begin? Budgeting is not a waste of time, but rather an opportunity to take a serious look at your business and its future. In creating a budget, you need to review the past and then think about the future and where you want to take your business. It gives you an opportunity to reflect on what worked and what has not worked. Do you want to continue down the same path, or do you see an opportunity that may be a better fit for your company? Without creating a budget, how do you know how well you are doing regarding your plans for your business?
Did you know that you should begin your budget with a projection for revenue/sales and then work on expenses from there? While the task of creating a budget can be daunting, it does not have to be complicated. I can help you create your annual budgets and teach you how to use your budget in your financial analysis of your company. Give me a call and lets talk about your budget.
Quarterly Estimated Income Tax
Does the though of going through this process keep you awake at night, let us take this process over for you. As we analyze your statements, we can develop the calculations to pay your estimated quarterly taxes. All you will have to do is submit it with the payment.
Financial Statement Review
You get financial reports on a timely basis, that is fantastic! But now what? Do you truly know what they are telling you? Do you know how to analyze them to understand what happened during the period you are reviewing? Does your income statement say one thing while your cash account is saying another? Have you ever really looked at the Statement of Cash Flows? Did you know that the Statement of Cash Flows is just as important as your Income Statement (P&L) and Balance Sheet?
Would you like someone to analyze those statements for you each month and give you a summary of what they are saying? Or, maybe you are a hands on type and would like to learn how to analyze them yourself. We can help you. We can guide you and your team through the financial statements so that you can learn to understand what they are saying and how to use them to make more informed business decisions. A better understanding of these statements leads to a better understanding of your business.
Variance and Ratio Analysis
What is a variance analysis? This is when your statements are reviewed and compared to your budget and/or prior periods.
Why is this important?
It helps to see where your business is beginning to make a shift. Without this information, how do you know if your business is moving in the direction that you want?
What types of variances do you examine?
The first analysis is through your financial statements to see where there are significant, and unexpected, differences. This can then flow down into:
- Purchase price variance
- Labor rate variance
- Overhead variance
- Efficiency variance
This is information that should never be overlooked. If there is a significant change to your expected outcomes, it is important to know why it happened.
What is it?
This is a different way to look at the financial information of your business. It provides a method to compare your business to industry standards even though your business may be smaller, or larger, than what is typical in your industry.
Why are they important?
Ratios can give you more information about your business and establish goals that are measurable/quantifiable. Ratio analysis fall into 5 general categories:
- Liquidity Ratios: measure a company’s ability to pay debt obligations.
- Asset Management Ratios: they measure how well a company is managing and using its assets.
- Debt Management Ratios: these measure how much of a company’s operations are financed using debt
- Profitability Ratios: used to assess a business’s ability to generate earnings relative to its revenue, operating costs, assets, and equity over a period of time.
Using these ratios, it is much easier to develop benchmarks and improve a business’s operations.
If you would like to learn more, we would be happy to discuss this in more detail.