Fiscal Management was Poor

Welcome to this update on ESS BIZTOOLS ADVISORY SERVICES NEWS.

FISCAL MANAGEMENT WAS POOR!

The CEO of MYOB Paul Robson, indicated in a recent Financial Review article that “Fiscal Management Was Poor” in a large number of small businesses which failed in the first six months of their business life not because their idea was a bad one but because of not understanding fiscal management.

The ESS BIZTOOLS Financial Forecasting Product Package enables Accountants/Bookkeepers who are interested in supplying Advisory Services to assist new small business operators to have a far better understanding of Fiscal Management than the examples which were outlined by Mr Robson in the Financial Review article.

Peter Towers, Managing Director ESS BIZTOOLS and Paul Barnaby the Regional Representative of PlanGuru and Director of Beyond Accounting Technologies presented a webinar on the resources that the ESS BIZTOOLS Financial Forecasting Product Package gives to accountants and bookkeepers to be able to supply an “Enhanced Range of Services to Their SME Clients”.

The key points outlined in the webinar were:

1. The absolute need for a Business Plan to be prepared at the beginning of a business venture and for the Business Plan to be referred to monthly and a rewrite undertaken every twelve months.

2. Predictive Financial Accounts to be prepared at least annually comprising:

• Budgets for all business operations
• Key Drivers of subaccounts – inventory – team – debtors – creditors – capital expenditure etc.
• Cash Flow Forecast
• Projected Balance Sheet

This type of financial projection will empower accountants/bookkeepers to be the “Storyteller” to clearly articulate to your client what the end result of their endeavours will be.

3. 52 week business enhancement system:

• Daily overview report on each business operation
• Weekly Performance Report/Profitability Estimate for each business operation with Key Performance Indicators and Business Metrics
• Monthly Financial Report for each business operation
• Comparison to Budget
• Key Performance Indicators and Business Metrics

4. Virtual Chief Financial Officer Services

• Coordination of all aspects of the appointment
• Regular communications with the CEO
• Mentoring Leadership Team on Directors’ Role and Board of Advice Members’ role

5. Fiscal Management – a challenge for many SMEs

• Negotiating payment terms with key suppliers
• Monitoring payments to key supplies within the negotiated terms
• Confirmation documentation with new customers on terms of payments required
• Debtors’ Invoices to have due date for payment clearly stamped on them
• Debtors’ Statements to be emailed twenty-four hours is after the end of the month
• An awareness of the actual Debtors’ Days Outstanding figure compared to the budgeted figure
• An awareness of the Creditors’ Days Outstanding especially for key suppliers as compared to the negotiated payment terms

6. PlanGuru Software

Facilitates the preparation of the complete financial package that will supply real time information and assist your client to survive, grow and if they wish scale up their business operation.

7. Webinar Recording

You can access the webinar recording of the overview of the ESS BIZTOOLS’ Financial Forecasting Product Package by clicking here.

You are invited to visit our website www.essbiztools.com.au

If you require further information please give us a telephone call (07) 4724 1118 or send us an email