14 10, 2021

Small business and the ‘accounting gap’ issue that MUST be resolved

By |2022-11-17T13:12:51+10:0014 October 2021|

This white paper discusses the 'accounting gap' issue for small businesses - an issue that MUST be resolved for any small business to become a successful larger business. Smaller businesses face a serious disadvantage compared to larger businesses when it comes to financial management support. This can leave management unsure of how the business is performing and with a limited understanding of how the drivers of profit are behaving. This puts the business at a high level of risk, impacts its ability to raise finance, and ultimately devalues the market value of the business if the owners wish to [...]

28 09, 2021

Beware the coming CASH TRAP as your business emerges from COVID-19

By |2022-06-22T13:16:07+10:0028 September 2021|

Can your business finance its rebuilding as we emerge from the long era of COVID-19 lockdowns? As we finally move out of this prolonged period of lockdowns and border closures, many businesses that have experienced a fall in revenues will be able to start rebuilding their businesses back to pre-coronavirus levels. But how many of these businesses are fully aware of the “cash trap” they are facing? And how many have a plan for financing their businesses as they try to overcome this “cash trap”? The sad and ironic reality is that many businesses will have survived the two [...]

15 09, 2021

Accessing finance – why it’s CRUCIAL to have strong financial controls

By |2022-06-22T13:16:44+10:0015 September 2021|

Accessing debt to finance your business growth opportunities is a critically important requirement to achieve business success. All lenders place a heavy reliance on the financial reports provided by applicants. Lenders are very sophisticated businesses and they will have experienced people scrutinising the applicants for finance. If you assume their default position is that the application should be denied - and that their job is to find the reasons why it should be denied - you can also assume they will take a sceptical approach to assessing the reliability of financial reports. So, to ensure that you can verify [...]

9 09, 2021

What are the financial management requirements of your business?

By |2022-06-22T13:16:52+10:009 September 2021|

It depends on your management culture and the stage of your business lifecycle How different levels of financial management services can add value to businesses in relation to their lifecycle stage Stage 1: Start up/Early stage Requirements will vary for the different profiles of businesses in this stage. Profiles will include: Limited capital/grunt equity/lengthy early stage Well capitalised/short early stage Financial Management Issues: As the management team grows, reliable financial reporting becomes more important for profitable decision making Early-stage companies often have under-developed financial reporting capabilities. This requires appropriately structured general ledger [...]

21 07, 2021

“3 WAYS” to instantly improve business performance

By |2022-06-22T13:17:03+10:0021 July 2021|

The importance of 3-Way Forecasting in the growth phase of your business This article discusses the importance of 3-Way Forecasting in a growing business because: growing businesses face unique issues management need strategies for a range of outcomes a detailed understanding of the drivers of revenues and costs is critical to business success a detailed understanding of the impact of the balance sheet on cash reserves is critical to business success incorporating a 3-Way Forecasting system into the planning and operational activities of the business provides clarity on the impact of key drivers of business performance Growth [...]

29 01, 2019

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

By |2022-06-22T15:19:54+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 |2022-06-22T13:17:59+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 |2022-11-17T15:06:55+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 basic [...]

25 08, 2018

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

By |2022-06-22T15:06:25+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 felt [...]

26 04, 2018

What margin should we target?

By |2022-06-22T14:34:34+10:0026 April 2018|

Over the years I have been asked this question on many occasions. The enquirer is looking for a number but the number depends on many factors. So the answer is to explore a range of principles that apply to these factors. Let’s look at this for both from the “gross profit margin” and the “net profit margin” perspectives. Gross profit margin The first issue to explore is how vertically integrated the business is. From procurement through production/delivery through to sales & marketing. What activities is the business responsible for and how complex are these activities? The growth phase the business [...]

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