The financial system of any business is based on a financial model and analysis which provide the ground for decision making and planning
Based on analysis and modeling, a company creates financial strategies, budgets, manages risk and manages operating cash and capital. These steps are the ones that allow for a focused movement to achieve financial goals

 

Financial model includes 3 basic financial statements:

P&L statement (profit and loss statement)

The financial basis of any business plan
Shows the financial results of the business for the period of time
Accounts the total revenue, expenses, and profit (or loss) for the period
P&L helps to determine how profitable the business has been in the past and
gives information for making decisions on how to improve financial performance in the future

CashFlow statement

CashFlow - the cash result of your operations
Shows the movement of cash within the business for the period of time
Shows where the money came from (income),
where it was spent (expenses) and how the cash in the business accounts has changed
CashFlow helps you to manage cash flow within your business and
to plan financial resources for the future

Management BALANCE (statement of financial position)

Instant photo of the business
Shows WHERE the money is at any point in time
Helps to evaluate the financial position of the business at the current moment and
to evaluate its financial stability in the long term

 

How does the work happen and what information is needed from you?

  1. Inbound session-call (30-60 min)
  2. What the business does (manufacturing/retail/services)
  3. Price list by sales channel
  4. Cost of sales (COGS/foodcost/cost of service (labor cost)/logistics)
  5. Payment schedules with suppliers and customers (prepayment/payment upon sale/payment deferral with terms) - to build cashflow
  6. Fixed costs (rent, salaries, marketing, communication, etc.)
  7. If a management balance sheet is needed - stock balances, receivables/payables, equity/investments
  8. If there are fixed assets - data on them
  9. Understanding the detail depth you want to get in the financial model