How many small business owners and entrepreneurs use their financial reports to adequately analyse their business performance so that they can identify issues to address?
“Practical considerations in conducting financial analysis of small business client performance”The two panellists, who are both Chartered Accountants with decades of experience in working with small businesses and entrepreneurs, are Precious Mvulane, owner of GAD Consulting Services, and Tumelo Tsotetsi, Chairperson of the IBASA Board.
Thursday 15 October 2020 from 11h30 to 12h45<< CLICK HERE >> to book your place
Mvulane is the owner of GAD Consulting Services and publisher of several books covering how entrepreneurs can improve their accounting systems, is the second panellist on the webinar. She agrees that business advisors have a key role to play in helping their clients to create accurate accounts.
“All sizes of businesses have challenges,” she says, “and business advisors must simplify the financial reports and try to help them to focus on what matters the most.
- Income: Up-to-date reports allow for comparisons to understand why sales may have fluctuated and how the focus on high-yielding products or clients.
- Expenditure: Good practice is to understand the top five expenditure items and to keep working at reducing costs through for instance tweaking suppliers.
- Assets: Assets must create revenue, but often equipment is standing still, not producing income, which is to be prevented by helping clients to understand the impact of idle assets on their business.
- Debt: Accurate financial accounts will enable a business to leverage debt for growth, which may help accelerated god results, that would otherwise not have been possible if the business owners were trying to finance expansion themselves.
- Cashflow: Businesses often suffer from leaks in cashflow, such as when buying stock with cash but selling on credit, or buying too much stock so that cash sits on the shelves, which may be prevented by reducing slow-moving stock for better cash flow management.
- To join the CPD webinar, you can << REGISTER HERE >>.
- Christoff Oosthuysen is the webinar host and Founding CEO of the Entrepreneurial Planning Institute (EPI).