Financial Management Services
What is Financial Accounting?
Financial Accounting is used to provide the financial position of a business to its external stakeholders. This can include your Board of Directors, stockholders, investors, or financial and lending institutions who need to use this data in order to better understand the health of your business. Your financial reports represent the result of your business over a specific period and are used to compare your current results to the past in order to see how well your business is performing. For private owner operated businesses , compiled financial statements (Notice to Reader) is usually sufficient for most purposes except where an investor or lender may have attached conditions to receiving financing which could require an audit or review for business purposes. The Canadian Income Tax Act uses accrual accounting, so using compiled financial statements for the basis of calculating your income tax is a start.
We do not provide compilation, income tax, or assurance financial accounting services. We will work with your current financial accountant as needed. If you do not have a financial accountant, we can recommend one, as it is very important that you obtain a financial accountant in the early stages of your business to perform these functions.
Management Accounting Services
Management Accounting is used by business owners and other management within the business to help in making decisions about the day-to-day operations of that business. It is based on current and forward looking trends versus looking at your past performance. There are times that you have to make operational decisions in a short time period due to a fluctuating environment.
I offer management accounting services only and will work in collaboration with your current financial accountant to ensure and improve your business financial health. I have been recommended on several occasions by the client's financial accountant to work in concert with them to troubleshoot certain aspects of their business.
Strategy and Planning
We provide the following services under strategy and planning. These are full blown consulting engagements where you will be involved and are not just a writing exercise.
- Feasibility Study : A study which will help determine whether your business idea has the potential for profitability before you invest both your time and your money. If it is, we will make recommendations on how to increase the chances of success and profitability.
- Business / Strategic Plan: This engagement is for businesses who need help creating and validating their business strategy and developing all areas of their business for investment or financing and to help direct them in their business. This includes 5 years of projected financials.
- Business Case Development: This engagement is for a businesses who need help in the creation and the development of the justification needed for entering into various business initiatives. Example: A new product or expansion of your business.
- Financial Model Development: Development of a mathematics based financial model of your business that allows the owner / operator determine possible outcomes.
running Your Business
It is important when you are starting a business to get it set up the business properly from the very beginning. We provide the following business consulting and coaching engagements to help you getting started.
- Chart of Accounts Set-up: Based on your industry and what you are doing within your business, you need to have your chart of accounts set up properly for your business in your accounting system.
- Budgeting and Forecasting: Development of forward looking plans based on realistic goals and objectives. Setting key financial targets based on key activities, and costs that need to be incurred to deliver the desired results. This can also include capital budgeting and planning.
- Cash Flow Management: Planning your cash flow requirements based on your sales, collection cycle, purchase, payment cycle, and capital needs.
- Product and Service Costing: Determining your short and long term fixed, step, and variable costs for any of your products and services. Identify direct and allocate appropriate indirect cost for pricing purposes.
- Pricing and Packaging: Determining the pricing and packaging for your products and services based on the market, costs of goods sold,competition, value-add, and sales channels involved.
- Business Restructuring: An engagement to help you structure your business so that it is more attractive for financing or investment.
Measurement and performance
It is important to measure and determine how your business is performing. In order to improve your business you must be able to control it. In order to control your business you must understand it and in order to understand it you must be able to measure it.
- Business Assessment : An engagement which is a deep dive into every part of your business in order to understand how you are performing and where are your performance bottlenecks.The engagement will include recommendations for change in order to meet the business goals and objectives you have set for your business.
- Productivity Analysis and Review: This engagement will help you maximize your profits based on your current resources which include people, services, materials, asset usage, and anything else that affects your profit generating processes in your business.
- Margin Analysis: Understanding you business profits from sales and the variations that may occur based on volume and/or product mix increases, decreases or changes.
- Risk and Sensitivity Analysis: Assessing the outcome of your financial plan based on changing assumptions and market conditions.
- Profitability Analysis: Takes your margin analysis to the next level by considering all operating and sales and administrating expenses.
- Management Reporting: Development of reporting tailoredfor management in order to run the business more efficiently and effectively.
Executive Management and Coaching
We can either help coach a business owner or come in as a part-time CFO and act as a member of your senior management team.
- Business Coaching: Acts as an advisor, counselor, and guide to the business owner to bounce ideas or gain advice for financial matters and if needed can act as a member of their team if needed.
- Executive Management: Acts as a senior member of the management team (CFO) on a part-time basis.
We are located in Durham Region, but are able to provide business coaching and business consulting services across Ontario. Our local service area includes Oshawa, Whitby, Ajax, Pickering, Clarington, Bowmanville,Peterborough, Lindsay, Port Perry, Uxbridge, Toronto, Markham,Richmond Hill, Newmarket, Vaughn, Aurora, Mississauga and Brampton. Outside our local area, travel and living expenses will be applied as required
Rudy Fischer, CPA, CMA| (289)279-1970 ext 102