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53% of 1,500 surveyed want Budgeting and Cash Flow Forecasting
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A number of your clients don’t know the difference between cash flow and profit. When it comes to the end of financial year they can’t understand why they are showing profits, but there is no cash in the bank. To sit down and explain this can sometimes be lengthy and costly to you as their accountant, but is still very vital to their business.
A quick calculation on your part could be the difference between life and death for some of your business clients. Remember that about 65% of businesses that start this year will no longer be around in 5 years. The main factor in going out of business is not a lack of profitability, but a lack in available cash to fund the activities of their business.
If you were to put into place a simple calculation sheet that was a “must do” every time you produced a profit and loss and balance sheet statement for any purpose e.g. (a) end of year tax reporting, (b) quarterly management reports or (c) monthly reporting – (although I have not come across many of the latter), then you could literally save the business life of a substantial number of your clients AND be rewarded healthily for your support.
Using ReNew Group’s proprietary client intelligent solution, TRUST in a web based assessment conducted by 100 accounting firms across Australia and North America. The assessment of more than 1,500 businesses and personal clients aggregated client responses anonymously and summarised the most commonly requested service areas and the most commonly required actions within these. The top 5 areas of requested support were:
- Strategic business planning (in 68% of cases where the accountant asks questions in this area, the client says they need help)
- Retirement and succession planning
- Financial performance diagnosis
- Budgeting and cash flow forecasting
- Systems and processes
Two of these areas are within budgeting and cash flow and financial performance diagnostics! As their accountant, you already have ...
