Welcome to another episode of Building Your Multi Million Dollar Practice. Last time we discussed why your business clients absolutely need advice. In this session we’re diving deeper into what it Moving to Advisory means for you and your firm., and how you can leverage tools to create value for your clients.

Learn more at www.myprofitsee.com

On this episode of Building Your Multi-Million Dollar Practice we talk about why your clients need advice, what types of information matters most to them, and how you are the right person for the job.  

Learn more about leveraging the cloud to provide advisory services that make a real difference at www.myprofitsee.com

On this episode of Building Your Multi Million Dollar Practice you’ll hear from ProfitSee’s CEO and Founder, Peter M. Vessenes. As we continue to dive into defining Fiscal Management, we will be discussing the three key components and how real-time data makes it easier for you to provide your small and mid-sized business clients with services that will help them reach their objectives.

Learn more at www.myprofitsee.com

In this segment, part three of “What is Fiscal Management” we’re going to look further into what the fundamental objectives of fiscal management are, and why this is important to businesses.

If you have any questions, please don’t hesitate to reach out to us at [email protected] or find us on the web at www.myprofitsee.com

Last time we learned that Fiscal Management is always future driven and the goal is to increase the rate of return for the businesses through leveraging assets, strategic planning, and increasing efficiency. While traditional services tend to look at historical reports, like last month’s P&L and Balance Sheet, now, thanks to advances in the industry, accountants and bookkeepers are now able to build the future for their clients through providing additional services.  

Fiscal management is building the future by effectively planning for change, budgeting for growth, reinvesting capital, and reducing risk.

1. Plan for Change

A change in a company could involve new markets, new products and services, or shifts in existing plans. Planning for change involves thinking outside the box and Fiscal Management is truly planning for change.

1. Budgeting for growth

It takes money to make money! You have to include the capital needed to create the opportunity in your plans, otherwise there is no room to move towards growth.

1. Reinvest Capital

It’s not enough to just have the money; you need to know what is next. You need to know how to spend the money and when to spend the money. Does the business need to create a test market to validate the changes? Do they need to start on a small scale and then roll out to the full market?

1. Reduce Risk

Even for exciting opportunities, you need to make sure you’re avoiding risk. Planning for change and opportunities in a way that mitigates risk means that the money needs to be set aside in such a way that even if the opportunity fails, the company will survive.

Learn more at www.myprofitsee.com

There is an understanding that bookkeeping and accounting firms need to move towards providing and growing the value-added services they offer their business clients. But what are value-added services, really? Businesses will always need tax, audit, and compliance work, but there is much more to be offered.

Fiscal Management is always future driven and the goal is to increase the rate of return for the business through leveraging assets, strategic planning, and increasing efficiency. Traditional services tend to look at historical reports, like last month’s P&L and Balance Sheet. These do give us a good idea of what has been going on, but now with cloud technology we have access to real-time data to understand what is happening now. We can use that information to plan for future growth, risk, and opportunities.

Episode 7 of Building Your Multi Million Dollar Practice is our last session that digs into each KPI specifically. It is split into three parts and covers Debt to Equity, Interest Coverage, and Fixed Asset Turnover ratios.

This ratio looks at the net value of the fixed assets and how many sales can be generated through the fixed assets. This is most valuable for a company like a manufacturing plant that owns the equipment.

When there’s a higher ratio, there tends to be a higher efficiency, but you have to understand how depreciated the fixed assets are and how efficient a sale is that comes from using those assets.

The Formula: Total Assets / Fixed Assets

Episode 7 of Building Your Multi Million Dollar Practice is our last session that digs into each KPI specifically. It is split into three parts and covers Debt to Equity, Interest Coverage, and Fixed Asset Turnover ratios.

This determines how easily a company can pay the interest expenses on outstanding debt. For this calculation, you look at the earnings before interest and taxes divided by the interest expenses.

The lower the ratio, the more the company is burdened by debt expenses. This is important because for certain types of businesses where you have to pay for the raw materials, like a butcher shop or grocery store, there can be a lag between when they have to pay and when they get paid. These businesses can often run into trouble with making payroll during these periods. Knowing the interest coverage ratio for these companies helps you to advise your clients in these situations on creating cash reserves.

The Formula: Ebit / Interest Expense

Episode 7 of Building Your Multi Million Dollar Practice is our last session that digs into each KPI specifically. It is split into three parts and covers Debt to Equity, Interest Coverage, and Fixed Asset Turnover ratios.

The Debt to Equity Ratio is typically used as a way of measuring how much the company is using debt to finance growth or new strategies against the total equity value of the company.

The Formula: Total Liabilities / Shareholders Equity

On this episode of Building Your Multi Million Dollar Practice, our Director of Australian Operations, James Tobin, sat down with Aaron Lane and Kyle Jenkins from Nav CFO in Sydney to talk about the real impact of providing their clients advisory services and how ProfitSee has helped them improve their processes and grow the value they provide.

“What ProfitSee brings is a real time reporting that can look backwards and forwards. A lot of the software solutions we looked at previously basically just looked backwards, and if they look forwards it’s in a really rudimentary way,” explains Aaron Lane.

Don’t just take our word for it; Listen to this episode to learn how Navigate Virtual CFOs are truly succeeding at becoming their clients’ personal CFO, and how cloud accounting and tools like ProfitSee make it easier. 

Learn more about their practice, or contact them at https://www.navcfo.com