Advisory insight and services in Woodhaven, MI.
Insight and interpretation behind the numbers to grow your business.
Services
- Analytics – Cause and effect analysis
- Cash and expense budgeting
- Financial impact reports for improved decision-making
- Key Performance Indicators – KPI’s – Reports & recommendations
- New entity (Business) creation – Corporations, LLC’s, Partnerships, Sole-Proprietorships
- Profitability analysis – Portfolio and segments
- Reasonable compensation recommendations
- Sales/Demand forecasting
- Start-up’s – Cash burn analysis
“Advisor” Titles vs. Expertise
With the proliferation of self-professed experts (Advisors, Coaches, Thought Leaders, and other titles) claiming the mantle as business advisors, here’s my short take on Accountants, Tax Pros (or others) that call themselves “Advisors.”
- When an Accountant tells you how unique they are versus their competitors, ask, what makes them unique?
- How does their background or experience give them a unique insight into the complexity and specifics of your business if they’ve never worked in operations, sales, marketing or any other discipline outside of finance or accounting?
In many cases, they are not unique and more often than not, they’re focused on compliance (a necessary but basic entry point to call oneself an Accountant). This is not meant to disparage Accountants, just the opposite. However, since compliance is the centerpiece of the bulk of the training that Accountants undergo, it calls into question their relevance.
How can they label themselves as advisors (from the clients’ perspective) if they lack broader functional expertise outside of traditional financial accounting and reporting?
We have the experience and expertise to advise you (and your business) and help you solve specific problems involving a variety of activities and issues that you’re faced with. Don’t believe us? Great – We like skeptics. Please read our bio and testimonials that demonstrate our expertise/experience and commitment to you – Founder/Owner’s Bio, Client Testimonials.
Advisory Insight to Help Owner’s Make Better, More Informed Decisions
Are your jobs profitable? Which segments of your business are profitable or most profitable? What methods do you currently use to come to these conclusions? Compliance is necessary, but Decision Makers and Owners also need data to understand what parts of their business offer the biggest return on their money, time, and sweat equity. More importantly, they also need to understand those parts of their business that are having difficulty or may be in decline.
What Services Do You Value?
- Cash Management?
- Demand/Sales Forecasting?
- Profitability – ROE, ROI, and Return on Sales?
- Static and Flexible Budgeting?
- Activity-based Costing – Tie Overhead Costs to Products and Services based on activities required to produce and deliver products and services
- Product and Service Costing Based on Data, Not Guesses
What Are Key Performance Indicators – KPI’s and why are they Important?
- These are metrics based on financial data that highlight how the Business is performing.
- Some examples – Average revenue per vehicle completed (by Month) for a vehicle detail shop. Average dollar amount of revenue per mile driven for a transport and logistics provider. Seasonal changes in Gross Profit for a construction company.
- Methods need to be consistent so comparisons can be made over time.
- KPI’s are part of the Decision-Maker’s Dashboard.
- Traditional accounting methods and systems (geared toward compliance) are the wrong techniques to use when trying to measure economic impacts to the business to create KPI’s.
Do You Have the Right Business Advisor/Strategic Partner?
- Business formation – Structures (C-Corps, LLC’s, Partnerships, Sole Proprietorships, S-Corps), each has it’s own unique financial and tax implications – What should you choose?
- Every established business has financial and operational challenges to some degree and opportunities. Has your accountant ever made any suggestions for improvements based on their knowledge of your operating model?
- Flattening and simplifying processes and procedures. Again, your accountant is in the best position to recommend/suggest changes to your business model to help you serve YOUR customers and clients, better.
