We strongly believe our role is much more than just preparing historical financial statements and tax returns for your business. Essential, as that may be, it’s not going to drive your business forward and help you make the smart, informed decisions that will make it fly. Our role in the success of your business is one we take very seriously and bring more than a little passion to. We ensure you are fully equipped to make better decisions with absolute confidence.
Business Advisory Services Included:
Operating a business is a journey. And like every successful journey, it requires a destination and a map with signposts along the way to ensure we don’t get lost.
A profit and loss budget is the business owner’s map. It sets the destination - your financial performance goals – and like any map, the more detailed the signposts, the less likely you’ll end up somewhere you didn’t expect. A useful budget requires careful consideration of the major factors likely to impact financial performance, ie:
- Current economic and industry conditions.
- Capacity constraints (e.g. competitive employment market, lack of commercial premises, etc.)
- Availability and cost of funding for capital growth.
- Cost benchmarks.
For both, established and growing business, we believe it is important for business owners to have live data that provides a snap shot of the financial health of their company at any given time and to track the financial trends of the business over time. Having clear financial visibility enables you to address opportunities and threats to your business and facilitates better strategic planning.
All business owners want their business to grow, but growth can come at a cost if not managed correctly. To assist you with this, we provide KPIs in the following 9 critical areas:
- Activity (Debtors and Creditor Movements)
- Efficiency (Return on Equity and return on employees)
- Asset Usage
- Cash Flow
Consolidation reporting is the process of combining the financial results of several subsidiary companies into the combined financial results of the parent company. In certain circumstances a parent company may elect to create a consolidate tax group which would mean only one tax return for the combined group of companies would need to be lodged instead of each company needing to lodge a separate return.
We believe it’s important for any business owner to understand the cost benchmarks in their industry and use this as a reference point to set their own cost benchmarks.
Cost benchmarks set out the percentage of turnover allocated to the major cost items for a business. Each industry will have their own benchmarks, which depend on factors such as labour intensity, capital intensity, material input, and location. For example, we would expect an architectural firm to spend a higher percentage of its turnover on labour costs than a building supplies retailer.
At Unity Advisors, we take the time to research the financial trends in your particular business sector, utilising industry reports that provide the average cost benchmarks in your industry.
This gives us instant visibility on any major variations between your outgoings and those of your competitors.
Any variation can then be discussed and investigated. Sometimes business owners will expect a variation from the industry average, for example, where the owner is deliberately lowering profit margins to gain access to a new market. However, where a variation is not expected or unexplained it is important to investigate the cause, and reassess spending levels accordingly.
Bottom line is, whatever you choose to do with the information, the knowledge is empowering.
As any business owner will tell you – Cash is King!
But in reality, many business owners fail to have manage a cash flow budget! Cash flow is the oxygen for every business, and without it your business will stagnate and die. Constrained cash flow creates major stress, which can be a major distraction from dealing with other important aspects of running your business.
We provide you with annual and quarterly cash flow budgets, which can be reviewed monthly or quarterly. We look at strategies to improve the cash position of your business.
This may involve:
- reviewing the way you collect debts,
- instantaneous invoicing,
- setting up merchant facilities with your bank
- Utilising factoring services. Factoring involves selling some of you debts at discount. While there is an upfront cost, it provides an instant injection of cash into your business, that can be used to fund growth
- Reduction of discretionary overheads
- Renegotiating trade terms with suppliers
All business owners want their business to grow. But there can be a temptation to expand too quickly and while you may experience strong short-term revenue growth, it’s easy to overlook the tracking of your growth in profitability, as well as the working capital required to sustain your growth in revenue.
Setting growth KPIs allow us to track your growth in revenue, gross profit, EBIT, assets and equity to guide your business and to ensure its sustainability.
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