This program has been developed with the assistance of finance people and Excel experts to meet the requirements of small to medium size businesses.
Planning in any business is very important. Financial management in business and in life is equally important.
“Cash is king” is a hackneyed and often-used phrase, but it is real. Businesses survive and grow on cash. You cannot develop your business with profit – only with cash. Working hard to bring in the revenue, and maybe looking at the bank balance each day saying “There’s a credit at the bank so we are OK” is less than adequate in these days of business complexity. There are several key areas of financial management – cashflow planning; profit improvement; investment in growth strategies; Directors’ compensation; and the list goes on.
Many business owners work very hard, day after day, to bring in the income, but if they don’t maintain clarity around their business numbers, things can rapidly get out of control.
One of the first areas in which challenges can arise is cashflow – “I never have enough cash to meet commitments” Another is profit – “I’m working very hard but not making enough profit”
Business growth and an annual business valuation are also KPE’s Not getting into debt with or getting out of debt with the ATO are key business financial parameters. Collectively in Australia we owe the ATO over $40b at the time of writing, and I know from talking to accountants, that the ATO would like to get it all back.
Business owners can assess and maintain their business financial sustainability by using this financial projection program. There is 20+ linked spreadsheet pages. Businesses can apply their basic data and their assumptions in the first few sheets and the program calculates the Profit and Loss, the Cashflow, the forecast Balance Sheet, the Debt and Repayment schedule, the Break-Even analysis, the Sensitivity analysis, and much more.
The Program is divided into Parts A and B. Part A is for most businesses. Part B is for financially experienced business owners or advisors. This program can then become the basis of many future financial decisions – “What if we employ 2 more people?” or “What if we increase prices by x%?”
Data is changed in one cell, and it recalculates all the sheets. Any number of “what if?” analyses are possible. This program is provided to clients who join the Financial Management Essentials Program, at no extra fee.
