18 06, 2020

Three Way Forecasting – managing your cash reserves

By |2020-06-18T12:04:03+10:0018 June 2020|

What is three-way forecasting and how is it performed? Colin Wright explains how understanding the future cash position of the business requires quality planning processes. This is achieved through the three-way forecast. As the name suggests, there are three components to this planning process. The profit & loss forecast determines expected cash flows from operational activities The balance sheet forecast determines expected cash flows based on the balance sheet movements of the business The cashflow forecast is determined from the profit & loss and balance sheet forecasts How well this process will forecast the cash position throughout the forecast [...]

6 04, 2020

Setting up your ‘Cash War Room’ to plan your crisis survival strategy

By |2020-06-18T11:19:41+10:006 April 2020|

Cash is the lifeblood of the business. Colin Wright explains how the business can manage liquidity through the 'Cash War Room' concept, and who should be involved in 'Cash War Room' activities. The Government has set up a War Cabinet to plan Australia’s response to the current pandemic crisis. Similarly, your business needs to set up a Cash War Room to plan your response to the unfolding crisis so that you can survive this period. The immediate risk to ongoing business is one of liquidity. Therefore, there are two key issues that all businesses need to focus on. Ensure [...]

3 04, 2020

Three phases of successfully negotiating the current pandemic

By |2020-04-06T22:17:49+10:003 April 2020|

This article explains how a business can use scenario planning and modelling to make it through the pandemic period successfully and become a stronger business on the other side. We face one of the biggest challenges to business since the Second World War. We all expect that the extreme disruption we're all dealing with could last for six months or even more. It's a fact that many businesses will not survive this period. There will be a mix of luck and natural selection that will determine which businesses survive and thrive. The luck element refers to the fact that [...]

14 03, 2020

More encompassing virtual CFO services with new ‘Executive’ package

By |2020-04-07T14:50:23+10:0014 March 2020|

Some companies need more than the usual level of assistance from a virtual CFO. This is why The Virtual CFO Group Australia has developed a specialised service offering. Colin Wright explains the 'Executive Virtual CFO' package - what it means, and when it's most needed. Our virtual CFO offering continues to develop in response to client needs. We have recently introduced our Executive Virtual CFO package as a result of these requests. The Standard Virtual CFO offering is targeted as a support package where the virtual CFO provides the planning framework for business performance targets. Along with the forecasting, [...]

11 03, 2020

How a business can emerge as market leader following a crisis

By |2020-03-31T07:44:12+10:0011 March 2020|

Lessons learned from the GFC... The severity of COVID-19 has sent shockwaves through the economy and affected businesses on a massive scale. As the outbreak continues, business owners are counting their losses and wondering how they’re going to survive. The government has offered support measures and lifelines to assist businesses and their employees to endure periods of partial and perhaps total lock-down. For businesses forced to hibernate temporarily, it's time to plan and position for rapid recovery on the other side. Economists are forecasting tough times ahead, with most suggesting that a global economic recession is imminent. But while [...]

29 01, 2019

How expert financial reporting helped Detector Inspector grow quickly from micro to major-sized business

By |2020-04-04T00:04:06+10:0029 January 2019|

Jordan Kagan Gescheit and Jason Radolnik started a simple side-gig as university students. Now, with the help of a virtual CFO (Colin Wright), their side-gig is a multi-million dollar company expanding into other countries. Often the most successful business ideas are founded on the simple premise of identifying a need or gap in the market and developing a service offering that fills it. Detector Inspector have done just that and grown into a multi-million dollar business within about ten years. Rapid growth can be challenging for business owners and in 2014 directors Jordan Kagan Gescheit and Jason Radolnik engaged [...]

26 11, 2018

Good business decisions are supported by accurate financial reports!

By |2020-04-04T00:49:59+10:0026 November 2018|

Accurate financial reports are essential for making key business decisions. How do you know if your financial reports are accurate? This article discusses the critical areas of business performance and how to ensure your metrics are meaningful. No doubt you rely on your financial reports for many of your key business decisions. Of course, there will be a range of metrics that you rely on to understand how the business is performing, but it is the financial reports that are your final arbiter of your business’s performance. Some of the critical performance areas you will want to know in [...]

20 11, 2018

The 3 BIGGEST REASONS why your monthly reports are MISLEADING you!

By |2020-04-04T00:43:43+10:0020 November 2018|

When a business relies on financial reporting for vital decision-making, it can be extremely concerning to learn that these financial reports are incorrect. Here are the three most common reasons for misleading financial reports. Our virtual CFOs have worked with numerous small and medium sized businesses over many years. Without exception the first few months tend to always the same. When we review their financial reports at the end of each month, it’s very common to find that their financial results are inconsistent. So we ask a range of questions about how their business is handling a number of [...]

25 08, 2018

“Why I love having a virtual CFO” (by a serial start-up entrepreneur)

By |2020-04-04T00:39:11+10:0025 August 2018|

The owners of high-growth businesses can really benefit from having a virtual CFO to help guide their decision-making and ensure that growth is sustainable. This story tells how even an experienced entrepreneur can be more sure-footed going forward with a virtual CFO as their expert inside advisor. In my latest start-up adventure, a kind of D-day occurred when the P&L showed turnover would hit $1m in the current financial year. "Performance is on-track with your budgets and objectives," our bookkeeper said. "Well done," said the accountant. While most business owners would celebrate this 'Magic $1M' milestone now looming, I [...]

7 08, 2018

The 8 BIGGEST MISTAKES made by small business owners – are YOU making any RIGHT NOW?

By |2020-03-24T11:44:17+10:007 August 2018|

When a small business is growing, visibility is key to managing profitability and ensuring that growth is sustainable. Too many small business owners start losing track of the true picture of performance once the size and complexity of the business increases - typically by the time turnover has reached $1M+. Is your business making any of these 8 BIGGEST MISTAKES RIGHT NOW? If your profits vary significantly from one month to the next and you are not clear why, you have little clarity on how you are actually performing If your accounts are not structured correctly you [...]