Examples of a Business Check Up & proposed High Performance Business Solutions
1. Check up and improvements of Financial Management
2. Check up – Proposal – Implementation and control (BUDGETING)
3. Evaluation and analysis of cash flow
4. Design of internal information and reporting systems
7. Evaluation and reengineering of accounting department practices
9. Reduction Of Operational Cost
10. Human Resource Assessement & Development
1. Check up and improvements of Financial Management
- Economic analysis of the current situation creating a snap shot of the company’s financial status
- All relevant indexes are calculated
- Evaluation of current accounting processes
- Evaluation of Financial Management tools
- Preparation of proposed corrective measures in order to improve financial indexes.
2. Check up – Proposal – Implementation and control (BUDGETING)
- Account / description of the current financial functions within the company.
- Forecasting model for future sales on a monthly and yearly basis
- Forecasting model for cash inflows and outflows based on sales forecast
- Reporting system focused on discrepancies between budgeted and actual
- Definitive corrective actions to realign discrepancies
By the monthly checking of the budget’s implementation the organization has an important tool which will support the attainment of its business objectives.
The yearly budget is a “geographical map”, forming a basis on which management can rely on to move the company into the future, ever changing and never fully visible.
Problems such as low profitability, inconsistencies between production and sales, high interest payments, low operational profits, high cost of sales, high inventory levels and others problems could be avoided if the system of forecasting – controlling – corrective measures works efficiently
Our consultants have many years of experience and a deep knowledge in placing and utilizing budgeting tools to increase profitability.
3. Evaluation and analysis of cash flow
- Evaluation of existing company policies for payments and collections
- Based on the above and the forecasted income, costs and investments the cash inflow and outflow is planned.
- A monthly budget is prepared defining the need working capitol.
- Financial resources are examined and if needed, methods of raising capitol are reviewed.
- The most productive solution is adopted for funds management.
A healthy cash flow is probably the most important characteristic of a productive, well managed organization. Although, many times businesses that excel in their markets and realize above average financial performance lose their profitability due to a lack of control or knowledge on how to manage cash flow.
With our knowledge and experience we can help businesses implement the proper tools needed to forecast cash flow in order to minimize costs and transform accounting profitability into actual money in the bank.
4. Design of internal information and reporting systems
Based on the accounting and finance practices of the company a reporting system is designed to provide management with all the needed information, in a timely manner, to identify problems in planned actions whose purpose was to improve productivity of the company on all levels.
It is common in companies to see the lack, in respect to their size and complexity, of internal information. Of course this could be caused to a large, unexpected growth of the company or a lack of understanding and experience in creating such reporting systems.
We have all the technical know how on the latest methods applied in designing internal reporting systems which are effective, quick, efficient and adapted to the needs and purposes of the company. We are more than willing to support companies in internalizing these systems into their everyday functions.
- Assessment of company investment plans
- Comparison and assessment of alternative investment plans
- Utilization of all assessment models (Net Present Value, Return On Investment, Pay Back Period, Internal Rate Of Return)
The objective of each of these models is to maximise the return on company capital, Owner’s equity and total liabilities.
Usually the cost of most company investment plans is larger than the amount of capitol the company has. When this happens the company is forced to choose which investments will proceed, which will be postponed or cancelled all together. The decision on which investment to choose, due to limited access to funding is critical to the future profitability of the company and it’s capitol return. Wrong choices in the long term can have an affect on the company’s survivability.
To organize the process of assessment and prioritization of investment opportunities which arise is one of the most important functions of management and our consultants are fully capable in implementing such processes.
- Technical support during negotiations with banks in order to achieve improved loan terms
- Proposal preparation to take advantage of the Incentives Investment Law.
- Proposal preparation to participate in funding programs of the European Union
- Formulation, comparison and assessment of alternative investment plans
- Utilization of all forms of funding (Leasing, Reverse Factoring, New loans, etc)
With the above services financial costs are minimized and funding programs are fully exploited.
In recent years the opening of markets has created a plethora of financial products and services to be taken advantage of by anyone who understands the global financial market. By implementing the proper techniques a company can reduce its financial costs and increase its access to various financial resources. We are ready to provide support and aid you in investigating these resources and any other funding opportunities as mentioned above (Incentives Investment Law, European Union funding programs).
7. Evaluation and reengineering of accounting department practices
- All the processes of the accounting department are recorded
- All information technologies, systems and software, are assessed
- Critical points are identified and areas of improvement
- An implementation plan of the proposed improvements is formulated
- All functions of the accounting department are monitored in order to ensure accuracy of all data and the best interests of the company
- Safeguards are placed to ensure that all monthly accounting statements and reports are accurate and completed in time
- Critical points are identified which could create problems during a review by tax authorities.
Through this evaluation compliance with all tax laws and standardized accounting practices is guaranteed while all efforts are made to minimize taxes levied on the company
In most companies the accounting department and the support functions it offers to management and other departments is the “oxygen” which allows the company to function properly. Paradoxically, it is usually the department that is left unmonitored by management, who most of time does not have a full understanding of what is needed for this department to function properly.
With our consultants vast experience in financial management practices we can review all processes and propose changes that will improve overall understanding of the accounting departments purpose while increasing transparency, efficiency, and it’s support in achieving business objectives.
- Current cost accounting processes are evaluated
- Demands for cost accounting systems which will support correct business decisions are identified (e,g. Activity based Costing)
- Profitability per account is calculated
- Income statements of competitors are analyzed
- Previous analysis is utilized to propose changes to increase company competitiveness
- Processes and tools (software) are implemented for cost accounting purposes
- The functionality of the cost accounting system is evaluated in order to propose improvements or corrective actions
By managing problems in cost accounting the company can make correct business decisions on current functionalities and the needed changes in pricing policies, new investments, etc.
In most companies the processes and results of cost accounting practices are considered a typical compliance to tax laws. In reality correct cost accounting is an invaluable tool for management to use in order to bring added value to the company. We believe in this misplaced added value and offer all the technical support so the company can internalize this added value.
9. Reduction Of Operational Cost
- Areas of increased company spending are identified
- Improvement opportunities in production are described
- New tools and methodologies are utilized such as Reverse Factoring, Value Analysis, Total Cost Method in order to reduce cost of raw materials
- Productivity standards are formulated to monitor productivity levels of all resources (Human, Financial and Technological)
- If needed proposals of total restructuring are formulated in order to further reduce all operational costs.
Through the use of the above services an organization can reduce cost and improve competitiveness. After the implementation of the proper budgeting and cost accounting tools continuous monitoring and minimization of operational costs can become an everyday functionality for any company. In order to achieve this it is imperative that new work methods and ideals be internalized into the daily processes of the company. This new mentality seeks to formalize cost reduction as a comprehensive and complete system which runs through every function of the company. The result of these actions will be an increase in profitability and competitiveness in a short time.
10. Human Resource Assessement & Development
- HR Assessement
- Personnel training
No system or methodology in itself can enact change. Change management is an anthropocentric effort. The implementation of the new systems and processes is complete only when combined with HR’s assessement, development and training. Through this procedure a permanent change will be enacted towards a philosophy of continuous improvement and High Performance.
