Growth services are those services which truly “add value” to your business. Growth services are not simply accounting services, but genuine commercial and financial support which will enable your business to develop and grow.
Too many businesses, accountants and advisors focus on historical performance – FD Analytical will help determine the future of your business, whilst understanding past performance.
Our business growth and incubator services are provided in addition to your statutory obligations such as financial statements and tax returns, as a result we can work alongside your current accountants providing these specialist growth services.
Cashflow Forecasting & Management
CASHFLOW is one of THE most important aspects of running a business – any business.
Growing businesses often have cash tied up in debtors or stock, which can make cashflow tight even though the business is profitable and growing. Equally, a tight cashflow can be a sign of more widespread business issues such as high overheads or a declining profit margin.
Business owners often don’t realise that they have cash flow issues until it is too late or the problem has become a lot bigger than it needed to be, what then follows is a frantic attempt to borrow money to fund the short term future of the business and “keep it afloat”.
One of the biggest pieces of feedback that we receive from bankers and funders is that their clients cashflow is “out of control” or any requests to increase overdraft limits and extend banking facilities are too late or at too short notice.
FD Analytical monitor your current cash position AND forecast you’re expected cashflows, this enables us to offer suberb advice to you, and an advanced warning of periods of cash shortages, so there is plenty of time to prepare and arrange a solution, which may be; extending overdraft facilities, raising bank loans and or finance, opening an invoicing finance facility or changing your customers methods of payments and your cash collection to online systems, which offer immediate cash settlements.
If your business has an abundance of cash, similarly, our analysis and works will enable you to invest your funds in other areas or projects, safe in the knowledge that you will be retaining sufficient cash to fund your day to day operations – without this knowledge how many opportunities to grow, purchase new equipment or invest elsewhere could you be passing up?
Working capital management
Efficiently managing your companies working capital is essential in ensuring that you’re business doesn’t have unnecessary amounts of cash tied up within debtors, creditors and stocks.
In a busy company environment, it is incredibly easy to allow debtors to run out of control, then making it difficult or awkward chasing the customer at a later date for payment, not wanting to risk upsetting them and losing future business orders.
A huge amount of business target SALES and forget about CASH. Allow FD Analytical to manage your debtors position so that you don’t have to.
Creditors or credit limits with suppliers, can be a key and really useful source of funds for a growing SME, and can often be a less expensive source that other funding solutions.
FD Analytical will review key customer credit limits on a quarterly basis to ensure that they reflect the requirements of your business, providing strong financial updates and building strong relationships and trust with your suppliers can be key in extending credit limits and terms.
Stock is notoriously difficult to control and manage with many SME owners, airing on the side of caution and “over stocking” to ensure that you are always able to fulfil customer orders on time.
FD analytical will analyse and “age” your stock holding to understand what stock is “not turning over” or potentially becoming obsolete, this will enable you to liquidate such stock and convert it to cash to retain within your business, or to utilise in buying new, relevant stock that is in demand from your customers.
Virtual Finance Director
Many SME’s do not have sufficient funds or needs to employ a full time finance director, the cost of doing so is often too burdensome and in reality there may not be a requirement for a full time finance director.
But, if you look at most mid-sized and larger companies, almost all of them will have a finance director – Why? Because they are aware of the value that can be added by having a finance director as a part of the team.
FD Analytical offers a virtual FD service which will support your business in the same way an “in house” FD would, but on a basis that your business requires it.
Our FD service will work alongside with your in house finance team, to compliment what you already have and never challenge or undermine your current finance or accounts team.
Bank & investor reporting
Historically, raising and maintaining bank debt was relatively straightforward – it has now become difficult, burdensome AND time consuming. Banks will almost always require your business to abide by and report on, a monthly or quarterly basis against pre-set covenants, where a “breach” can result in the removal of loan facilities.
FD Analytical has huge amounts of experience in dealing with UK banks at the highest level, helping clients to maintain loan facilities from £200k to £67m, our experience and professionalism will add credibility to your business, and assist in the event of a covenant breach or if further funding is required.
It’s amazing how, as entrepreneurs our visions change, when we initially start up our businesses, the key objective may be simply to pay the directors a salary that they can live on, following this, objectives, goals and desires change regularly – one of the keys to making our objectives “tangible” or a reality is by mapping exactly how we are going to achieve them.
Simply aspiring to having a business that generates annual profits of, say, £500,000 is fantastic, BUT, how are you going to achieve this and what does it mean? For example, to generate your desired level of profit, what;
- Amount of customers do you require and how much do you need them to spend each?
- Size of premise do you required to service your customers and hold the necessary amount of stock?
- How many employees do you require to manage and operate the business?
- What prices should you charge for your products and services (and what are your competitors charging?)
Far too many businesses “hit a ceiling” when growing and it is often because the business owner has not truly planned for hitting their objectives.
FD Analytical will spend time with you to “map out” your business plan, whether this is short term to fund the directors salaries and lifestyles , medium term to grow and invest in your business or long term to plan for a sale of your business and “exit strategy”
To begin planning your business growth and success, or to find out more, contact us for a relaxed, no obligations discussion.
Raising finance for growth
Funding can be difficult for SME’s particularly if they are new or “start-ups” many banks will require a certain number of years trading accounts or possibly even directors personal guarantees. As a result of the “shake out” in the funding market due to the recession and recovery years, funding options have changed hugely, and there are now a large number of options and sources of finance in addition to traditional bank funding,
FD Analytical can help assess the business requirement and suitability for; factoring (invoice discounting), over draft facilities, bank debt and mezzanine finance.
We will review the availability, suitable and cost of each method of funding so that you can make an informed, clear decision.
Management Accounts & reporting
Too many businesses receive annual financial statements or business accounts from their accountants once each year, never really understand them, sign them and…….file them away never to be reviewed again! – What value does this process really add to your business?
The real value comes from reviewing your accounts in detail and regularly. Monthly management accounts help tell the story of your business. They help identify whether your business is growing and how and in what areas.
FD Analytical will create beautiful and inciteful management accounts and reporting packs for you, which will review and dissect your business performance and analyse the key areas of your business such as; who your customers were during the period, what products or services were sold, what costs are increasing and could be reduced or better controlled, what customers owe the business money and who we owe money to, whether stock has increased or decreased.
Regular management accounts will help to identify opportunities and threats to your business.
Imagine how much more effectively your business would operate with access to such information – take the dashboard of a car – this tells you in one small area how your car is performing and if there are any issues, clear and regular management accounts can be the dashboard to your business.
FD analytical will produce a pack bespoke to your business, not a standard report generated from a system AND we take the time to review and discuss this information with you.
Would you like a better understand of what are management accounts are or “look like”? Contact us for a sample management reporting pack and consider how this would help your business.
Budgeting & forecasting
Budgeting is used to set annual targets for your business, usually financial targets although it is also wise to target other elements such as customer service, operational performance, staff attendance and punctuality.
The forecasting process then allows you to review your budget on a monthly basis and review the actual performance of your business against your targets – this process helps to make your business significantly more proactive – imagine how quickly you can react to changes in your performance and the “market” whilst reviewing your performance monthly, against your competitor who only reviews their performance annually – this gives your business an “edge”.
Installation of accounting & finance systems
Accounting and finance systems have changed hugely with cloud technology, historically leading products such as Sage and Quickbooks are being challenged by Xero, Kashflow and many others.
FD Analytical are SageOne and Xero certified advisors with a huge amount of experience in Quickbooks, and Sage Accounts – we are not affiliated to a single brand of software as we believe that “one size does not fit all”, as a result we can offer genuine independent advice on the most appropriate system for your business. Clearly identifying the benefits and improvements a new system would give your business over and above the current set up and system.
Why not contact us for a relaxed, informal chat around possible finance systems for your business
Preparing your business for sale
Depending on your specific circumstances the sale of your business could be one of the biggest moments of your life – entrepreneurs often describe their businesses as their “babies” so preparing such a business for sale can be huge.
FD Analytical can help plan the sale process and timescale for your business and help to plan when the “best” time for a sale may be. We can also advise on how the market is currently performing in terms of buying businesses within your sector and what multiple the market is currently paying.
FD Analytical has been involved in the sale of businesses within the UK up to individual values of £17m+
If you would like to understand more, about what you should consider if you are planning to sell your business contact us today