Innovation projects require predictive accounting
Business Advisory Services Update
Accountants, businesses that start with a Research Project are commencing the “Innovation Journey”. Many clients will not appreciate the various processes and challenges that are going to confront them on the “Innovation Journey.” They need your support to bring a project to a successful end.
The Predictive Accounting process is to interpret the Business Plan in a “financial sense”, comprising “Budgets” which record all of the estimated expenditure and income that is projected to be received
The next component of “Predictive Accounting” is the cash flow forecast. This report highlights projected financial shortfalls that have not been covered by the client’s own cash contributions or by government grants. This raises the question: At what stage and how much “seed capital” will be required from family, friends and associates to ensure that the research project culminates with a final product suitable for commercial sale?
The “Predictive Accounting” segment concludes with a “Projected Balance Sheet”. This illustrates what the financial position of the business will be at the end of the “Innovation Journey.” It highlights the funds that are going to be required to allow completion of the “Innovation Journey’.
SMEs are the greatest contributor to “Research and Development” activity by businesses in Australia.
Assisting SMEs on the “Innovation Journey” is interesting and challenging work for your team members to work on.
ESS BIZTOOLS has developed a series of “Product Packages” to assist accountants to deliver “Advisory Services” to SME clients.
Want to know more? Call us on 1800 232 088 to arrange for a complimentary 45-minute zoom meeting, to discuss how the ESS BIZTOOLS system can assist you to deliver “Innovative Services” to your clients.
