Key Ideas From The 'Moment of Truth' - Part 1
Advisory Services News - Issue 52
Good day!
Welcome to this update on ESS BIZTOOLS ADVISORY SERVICES NEWS.
KEY IDEAS FROM THE ‘MOMENT OF TRUTH” – PART 1
Peter Towers, Founder and Managing Director ESS BIZTOOLS and ANDREW GEDDES, Joint Founder FMRC/Australian Accounting Guru, Past Public Company Chair had a discussion with the key questions being “Can we move from compliance dominance to virtual CFO Services Delivery?” and “The dawn for the new era for Accountants in Public Practice is here – Are you ready?”
The following is a summary of that discussion.
- REFLECTION
- In 1982 when FMRC was formed with assistance from the Institute of Chartered Accountants, ASA (now CPA), the main purpose of Accountants in Public Practice was the annual preparation of accounting reports for taxation compliance.
- Message to Accountants – “Let’s try to help our clients with running their businesses rather than just providing them with compliance services”.
- 42 years later Accountants in Public Practice are still “prioritising compliance work”.
- TODAY’S POSITION
- The opportunity for accounting firms “Can I help my clients to grow their business more than I am now?”
- The other tend is that Team Members want more “interesting work”:
- Drive Predictive Accounting
- 52 Weeks Business Enhancement Service
- Monthly Performance compared to Budgets
- Business KPIs and Metrics
- Preparing Business Valuations
- Getting alongside their client
- CFO Services Offer
- Review and fix (if required) the client’s bookkeeping.
- Produce Predictive Accounting Reports. Budgets for all business operations, Key Drivers for key accounts, Cash Flow Forecast, Projected Balance Sheet.
- Budget versus actual Monthly Reports.
- KPIs and Business Metrics
- Dashboard Reports
- Business Valuation every year
- How do we improve the value of the business through improving its profitability and cash flow.
- Identify 1 – 3 business improvement projects each quarter.
- Key questions with your client – “What do we need to fix or do better?”
- Additional funding?
- Section 708 Corporations Act
- Early Stage Innovation Company Capital Raising
- Crowd Sourced Funding Equity Raising
- Government Grants awareness
- DELIVERING THE VCFO ROLE
- Help a client think about improving their business:
- Value
- Sale ability
- Better profits
- Better cash flow management
- Payment of dividends
- Ask questions!
- What risks does this business have?
- Strategies to mitigate against risks.
- Creation of client’s “Senior Leadership Team”:
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- Business Improvement Initiatives.
- Gives them a “purpose to their work”!
- Why aren’t Accountants involved in asking these questions?
You can find more information by visiting www.essbiztools.com.au. An attractive subscription discount is currently available– details are available at www.essbiztools.com.au click on Packages and Pricing.
If you would like a one-on-one complimentary review Zoom meeting with our Founder and Managing Director, Peter Towers please send us an email:
