Data-Driven Forward-Looking FinanceAchieve Financial Vision for Your Business

Eric Weynand, CPA

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Forward-looking questions

Business owners need foresight to make decisions confidently

Business owners rely on their Finance and Accounting support to provide financial insights to make these critical decisions

Backward-looking analysis

Most Finance and Accounting support does not live up to expectations

Business owners are overwhelmed with confusing reports, about the past, that don’t help make decisions about the future

Financial Vision

▪ Financial Vision is the goal…

▪ But can only be achieved with a strong Foundation and professional Oversight

Vision

Oversight

Foundation

• Payroll (Employees)

• Accounts Receivable, A/R (Customers)

• Accounts Payable, A/P (Vendors)

• Bank Account Reconciliations

• Foundation Repair

• Review A/R & A/P

• Cash Management

• Accounting Close

• Financial Statements

• Streamline/Automate

• Project near, medium, & long-term

inflows, outflows and cash balance

• Budget preparation & documentation

• Insights through variance analysis

What does Financial Vision look like?

▪ Forward looking projection of cash, income, and expenses

▪ Seamlessly integrated with actual historical results

What does Financial Vision look like?

▪ Automated analysis to quickly understand results

▪ Dashboards that are easy to understand, yet provide powerful insights

What does Financial Vision look like?

▪ Drill-down to the details to identify drivers of performance

▪ Data-driven approach enables both high-level and ultra-detailed analysis

ContactEric Weynand, CPAecw@ericweynand.com(512) 553-6290

Appendix

Nuts and Bolts of Achieving Financial Vision

• Vision• Budget preparation & documentation – Bottoms up budgeting tied back to the general ledger

• Forecast near, medium, & long-term inflows, outflows and cash balance – projections integrated with user input

budget data and actual historical results, receivables, and payables from the accounting system

• Insights through variance analysis – Automate analysis of variances for rapid cause identification

• Oversight• Correct Basics – On request and spot check, review significant transactions for accuracy

• Review A/R & A/P – Weekly A/R & A/P review for accuracy, completeness; ensure A/R kept current

• Cash Management – Implement daily/weekly cash reconciliation, near-term cash projection

• Accounting Close – Monthly official close, checklist of items to ensure completeness of close activities

• Financial Statements – Monthly Balance Sheet, Income Statement, and Cash Flow Statement, review for accuracy

• Streamline/Automate – Assist in implementation of processes and systems to increase efficiency

• Basics• Payroll (Employees) – Processing through service provider

• Accounts Receivable, A/R (Customers) – Invoice generation, sending, and collection

• Accounts Payable, A/P (Vendors) – Bill processing, payment preparation and approval management, payment

• Bank Account Reconciliations – Monthly bank and credit card account reconciliation

Sample Project

Financial Statement Correction and Accounting System ReviewOBJECTIVE: Create accurate financial statements, correct erroneous accounting entries

▪ Review Financial Statements to identify erroneous accounting entries and opportunities for improvement▪ Profit and Loss

▪ Balance Sheet

▪ Cash Flow Statement

▪ Review transaction detail supporting the financial statements to diagnose and resolve erroneous accounting entries

▪ Review bank account reconciliations to ensure reconciliations completed properly and no incorrect unreconciled items

▪ Review credit card reconciliations to ensure reconciliations completed properly and no incorrect unreconciled items

▪ Review accounts receivable aging summary and detail to resolve any non-current items

▪ Review accounts payable aging summary and detail to resolve any outstanding items

▪ Correct erroneous accounting entries and create accurate financial statements▪ Profit and Loss

▪ Balance Sheet

▪ Cash Flow Statement

Sample Project

Profit and Loss Statement and Chart of Accounts RevisionOBJECTIVE: Create useful financial statements, ones that meet the needs of the business owner

▪ Propose a new Chart of Accounts that results in a new Profit and Loss Statement that meets the reporting needs for the business ▪ This is based on high-level understanding of the business gained in the Financial Statement Correction

and Accounting System Review (above) as well as direct feedback from the business owner regarding reporting needs (i.e. how he/she wants to view the business)

▪ Based on a proprietary Chart of Accounts template that adapts standardized account hierarchies to the specific needs of the business

▪ Create a pro-forma Profit and Loss Statement, i.e. a manual one that is not generated from the accounting system▪ Allows the business owner review/revise/approve the updated Profit and Loss Statement and Chart of

Accounts before any changes are implemented in the accounting system

▪ Based on analysis of transaction detail supporting the Profit and Loss Statement and recategorization of transactions using proprietary template

▪ Implement finalized Chart of Accounts and create revised useful financial statements▪ Profit and Loss

▪ Balance Sheet

▪ Cash Flow Statement

Sample Project

Performance Measurement and Forward-Looking Budget

OBJECTIVE: Measure business performance, using a forward-looking budget

▪ Provide the historical actual financial results to the business owner to help inform the budget creation process

▪ Work with the business owner to finalize the budget based on historical actuals and expectations/targets

▪ Upload the budget to the accounting system

▪ Configure reporting within the accounting system to measure performance against the budget