We already have both project management and accounting software, why should we choose Advantage or Workamajig?
Two words: real time. In all other aspects of your life, the value of accessing information immediately has been proven time and again. Combining project management and accounting software into a single program makes it easy for staff and clients to instantly generate reports and track data in real time. Using one program also eliminates duplication, reduces the likelihood of errors and, most of all, saves on labour costs. Let’s talk to find out how real-time data from Advantage or Workamajig can start working for you.
How can we prepare an accurate annual forecast when all of our clients give us project work?
Consider preparing it backwards first. If you know your fixed costs and salary costs and expect a certain profit level, you’ll be able to determine what your monthly revenue expectations should be. Many agencies only do the reverse—forecast revenues, then determine costs. By doing it both ways, you can essentially double-check your efforts and improve their accuracy. There’s no doubt that forecasting in a project-based industry can be tough, but I can help reduce the guesswork so that you can plan with certainty. Ready to find out more? Give me a call.
Why bother recording unbilled time and costs, and advance billing monthly? Isn’t this something that our external accountants can handle once per year?
Matching costs with revenue is an essential component of financial reporting. Get it wrong and your company will have great difficulty making good decisions. Despite this fact, it’s not unusual for agencies to do things like record their direct costs in one month and the related billings in another, which reduces accuracy and is bound to lead to trouble. By helping you properly record your unbilled time and costs, and monthly billing I can help you make financial decisions based on the right numbers, avoiding costly mistakes—and surprises—down the line.
Aren’t the financial statements prepared by our accountants sufficient to manage our business? What more can you give us?
Balance sheets and income statements are the foundation of your business’ financials…and everyone else’s. To get differentiating value from your books, it’s important to dig deeper. Monthly client profit and loss reports, employee efficiency tracking and regular revenue reports are just a few of the tools I offer to help you boost your business’ efficiency and give you a competitive advantage. Reading deeper into the numbers can be hard to understand but your books really do have a lot to say about maximizing efficiency. Contact me now…I’ll translate.
We’d like some direction in preparing our company to be sold or handed down to some of our senior employees. Can you advise us through this transition?
It is often said that beauty is in the eye of the beholder. Sometimes that leaves owners blind to the truth. As an objective third party, I can give an honest assessment of your company’s attractiveness to outsiders. Once that’s established, I’ll make suggestions to improve efficiency and profitability over time, two key traits that your potential suitors will be attracted to. If you company is courting buyers, I make a heckuva wingman.
Despite strong revenue, we seem to have cash flow issues and don’t know why. Can you help us identify the cause?
Cash is king. Cash will always be king. But often agencies get so busy servicing the kingdom that they lose track of the dollars going to the throne. Timely collection of receivables is essential. The longer one remains uncollected, the more unlikely that it will be collected. This and other issues like insufficient pre-billing and undercapitalization are a few of the common sources of cash-flow problems I see in agencies. If you’re struggling to keep the throne occupied, give me a call. Long live the king.
How can I maximize the return from my human resource investments?
It starts by joining your accounting department and human resources at the hip with a detailed top-to-bottom assessment of the staff in the company. Key performance indicators, financial and non-financial, and interviews with key staff would be reviewed to assess the efficiency of your human resources. This kind of review will allow you to establish benchmarks so that you can track changes in efficiency—an essential ingredient to maximizing profitability—especially after the addition of new staff or turnover in the company. Talk to me to get the accounting-HR power couple working for you.
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