Advisory Services Reflects How You See Accountancy

Good day! 

Welcome to this update on ESS BIZTOOLS ADVISORY SERVICES NEWS.

“ADVISORY SERVICES REFLECTS HOW YOU SEE ACCOUNTANCY”

A key question for Accountants is what is the breadth of services that your clients require to assist them to survive, grow and if they wish to “scale up” their business operations.

Many large companies operate their businesses seemingly as a “group of small businesses” whereby they have appointed an area manager who is supported by an accountant and some clerical staff to administer a number of businesses.

Within each area a “rhythm of meetings” is established by the area manager to ensure that there is adequate communication within the group of businesses that the area manager is responsible for.

The head office of these companies has established a Systems Manual which identifies work requirements on a:

• Daily basis – daily KPIs – daily cash position
• Weekly basis – weekly performance and profit estimate – KPIs – Business Metrics – the area manager reviews performance of each business activity and if there are any problems or variations from expectations a review is immediately undertaken to correct the problem
• Monthly reports – Monthly Profit and Loss Account for each business activity – comparison to Budget – monthly KPIs and Business Metrics
• Fiscal Management Review – working capital evaluation – revised Cash Flow Forecast – are charge out rates adequate? – selling prices geared towards achieving profitability targets?

This process is then repeated during the following month.

Annual

• “Business Due Diligence Review” to ensure that management has an understanding of the business “1 inch wide and 1 mile deep”
• Business Plan/Business Plan Update
• Predictive Accounting Reports (the financial interpretation of the Business Plan) – Budgets for each business operation – Key Drivers of major financial activities (debtors, inventory, capital expenditure, creditors and others), Cash Flow Forecast, Projected Balance Sheets for at least the next three years
• Reports are prepared at the end of the month for submission to the company’s Board of Directors and if required to the company’s bankers.
• During the year auditors are in attendance at the company’s premises for the preparation of audit reports

Special tasks/ reports are undertaken during the year.  These could relate to:

• Research and Development;
• Capital Raising;
• Exporting of products/services; and
• potentially many others

Taxation return – has to be prepared, reviewed by the Company Directors and then lodged with the Australian Taxation Office.

This is a brief overview of how many larger businesses operate.

You can find more information by visiting www.essbiztools.com.au.  An attractive subscription discount is currently available until 17 September 2024 – details are available at www.essbiztools.com.au click on Packages and Pricing.

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