on twitter
on facebook
on Linkedin
Finance Business Bulletins:
Latest Strategy Blogs:
Four European countries are blocking a proposal that could save Britain’s 1.6m smallest ...
Labour’s 3,000 ‘crimes’ to trap businesses (08/30/2010, 01:00 AM)
Labour established more than 3,000 new crimes to trap business people who should never have been ...
Suleman drops out for online 99p store (08/30/2010, 01:00 AM)
Suleman, 21, abandoned his chemistry degree at Leicester University, to launch discount food ...
Financial Health Checks
What is a financial health check?
Control of the finances of a business is critical to a company's survival, growth and profitability. Key factors are setting out trading and cash flow budgets for the business over the twelve month cycle and regular monitoring of performance and updating of budgets. However, many businesses are too busy with day-to-day activities and administration to do this thoroughly, if at all.
In order to take good management decisions, the Directors of a company need to have accurate, up to date and realistic forecasts of their sales, purchases, overheads, gross margins, net margins and cash flow. Critical decisions about the future of the company, such as levels of employment, investment, salaries, sales, stock levels, debtors and creditors, overdraft requirements etc. should be made with up to date financial information, not just based mainly on gut feel and instinct. Without enough cash in the system, poor performing companies can go under while businesses performing profitably can see their growth restricted.
Trading forecasts should be updated and reassessed continually in line with actual performance so that the company knows where it is heading as the year goes by, not getting a shock several months afterwards when the auditor or accountant puts the figures together. Ideally, budget monitoring should be on a monthly or quarterly basis, but companies unable to commit to this should consider having their financial forecasting externally and objectively updated and analysed AT THE VERY MINIMUM once a year in order to retain a degree of control on the business.
Financial Health-Check Stages Include:
- Analysis of Sales Levels
- Gross Margin Analysis
- Cost of Sales Analysis
- Review of Individual Overheads
- Depreciation Analysis
- Net Margin Analysis
- Stock Level Analysis
- Overdraft Levels
- Additional Funding Requirements
- VAT and Dividend Timing
PLUS - Profit & Loss and Cash Flow Budgeting complete with independent recommendations.
PLUS - Fax and e-mail support for 12 months for independent budgeting advice.
If you would like to know more about our range of corporate finance services, contact us today on 0845 838 0936 or drop us an email.
Having dealt with several banks and other financial institutions, I found Strategy to be a most proactive company in looking at financial options for my company.
Their MD, John Courtney, discussed several different financing routes with me including the Small Firms Loan Guarantee Scheme, Business Angels, Asset Financing and Factoring.
Thereafter their General Manager introduced a number of companies to me who specialise in these areas. The result was a clear and comprehensive picture of my options moving forwards.
I am
now considering all the options before me and I am confident
that we will find a funding route as a result. Strategy
are friendly, very helpful and I thoroughly recommend them
to any SME who is looking for funding.
Regards,
Rupert
Rupert
ERSKINE CRUM
If you would like to know more about our range of corporate finance services, contact us today on 0845 838 0936 or drop us an email.
