BIZ Impact –Driving your Business

Mead Partners has introduced an easy to understand financial modelling software program to provide a critical financial analysis of your business, reported by JOHN PITITTO.

RECENTLY, the major banks adopted this very same soft ware for the specific purpose of processing and approving business finance applications.

Aside from assisting in identifying a business’s ability to meet the banks “hidden criteria” for finance applications, it has been proven to be most beneficial in predicting possible tax liabilities before the end of a financial year.

Even where there hasn’t been a tax problem, this service has been invaluable in graphically identifying the key drivers within a business that can assist in turning a loss making or average turnover business, into an extremely profitable one.

How would you like to know the financial impact of every business decision before you make it?

Have you given your business a health check lately?

Looking for ways to improve your cash flow or your bottom line profits?

Thinking about obtaining finance and want to know if you will be successful before wasting time with lengthy and costly applications?

If you have answered YES to any of these questions, then you should definitely read on to find out more about our exclusive BIZ Impact services.

WHAT IS A BIZ IMPACT?

Our Biz Impact Service is essentially a ‘health check’ of your current and future financial positions. It allows us to diagnose your business and offer recommendations and solutions to potential tax problems, cash flow and profit issues whilst maintaining a focus on the overall improvement in financial performance. BIZ Impact aims to provide you, the business owner with a clear picture of:

• Where has your business come from
• Where it is now
• Where you want it to be & how to get there

Biz Impact has many functions and review points for the business owner but we believe cash flow control is one of the most important key areas to focus on as this is usually the difference between success and failure of your business.

The example below maps out the working capital cycle of a “sample business” for the past 3 years.

Working Capital analysis is basically the number of days you hold inventory, the days debtors take to pay you and finally how many days you take to pay your creditors.

In this sample case the business has 201 days of negative cash flow from the date they produce/buy the inventory, pay their creditors and then get paid by the customer. Clearly there is deterioration over the past three years.

The question is how do you fix it? Biz Impact allows us to work through a number of “what if” scenarios with the business owner, with the changes updating your accounts live right in front of you to find out what options are available. From there the business owner has the data to go away and implement the strategies discussed, after which we hold regular reviews (usually quarterly) to see how your business is tracking, and reviewing other aspects of your business.

Mead Partners believes that you cannot afford to allow your business to run on autopilot as some businesses have done in the past.

If you have struggled through the Global Financial Crisis and you are still struggling to understand where your business is at, then this review is a simple yet critical step for you to undertake.

HOW DOES IT BENEFIT MY BUSINESS?

Some of the many benefits you receive are:

• Uncovering the possible causes of current financial difficulties.
• Plotting future directions through goal seeking analysis.
• Creating projections, discovering solutions and averting potential disasters with graphical “what if scenarios” such as – What if sales improve by 10%? What is the financial impact on cash flow if I increase my volume? How can I improve my cash flow from negative $325,500 to breakeven?
• Find out if your next dollar of sales will have a positive or negative cash flow impact?

Some of the favourable comments we have received following these reviews:

• “now we have a much clearer picture of where we are heading”
• “great, now we know what we need to focus on to turn our business around”
• “can we book a follow up review next quarter to review our progress”

WHAT DO I NEED TO PROVIDE?

Mead Partners will require you to supply a detailed Balance Sheet and Profit & Loss Statement for the last financial year and for the current year to date, up to the last fully finalised month. These figures must be as accurate and complete as you can make them. Inaccurate accounts will mean that our analysis can only be a best estimate, based on your figures.

This service does not include a full review and adjustment of your accounts. Should we deem your accounts insufficient to proceed we will immediately advise you of such and provide recommendations with a view of rescheduling your appointment.

So why not see how your business checks out today? There’s a good chance Mead Partners has the remedy.

If you believe that this would be a valuable service that would help you manage your business going forward then call Mead Partners on 03 9523 2277 to discuss all your options.

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