In this corona time we learn not to look too far ahead. Although the necessary relaxation has been introduced as of July 1, uncertain times remain. The economic forecasts are not rosy, but economists disagree about how big the impact will be.
It is now more difficult than ever for entrepreneurs to look ahead. Many sectors are completely dependent on the measures taken by the government. A possible second intelligent lockdown could turn everything upside down. How relevant is it then to look ahead? And how are you going to help them as an accountant?
Marijke Stokvis is an ICT consultant at Full Finance Consultants. Full Finance advises accountancy and administration firms in various fields. As an ICT consultant, Marijke specializes in the smart design of work processes at accountancy firms with Caseware. In this blog she shares how accountants can help their clients by looking ahead with the help of Fyndoo Advise.
Looking ahead helps
Looking ahead is difficult. It already was, but the uncertainty that corona brings makes it almost impossible for entrepreneurs in some industries. Nevertheless, it is important that they are included by their accountant in a realistic view of the future. Because no matter how complicated the situation is, there are aspects in every company that they still have influence on or it is time to make decisions and not push it too far ahead. By properly mapping out the situation, entrepreneurs know where they stand and they get a careful grip on the situation.
First of all, it is necessary to have good financial data. The 2019 annual accounts offer a first starting point, but we all know that a lot has happened in the meantime. Supplementing with current data is therefore essential. Entrepreneurs who do not have their administration in order now experience a lot of hindrance from this. Take that as an 'ideal' reason to make that automation move after all.
Fast forecasting with Fyndoo Advise
If you have the data, many accountants are faced with a dilemma: how do you deal with those hard-hit catering customers, theaters or retail? You want to help them, but you don't want to put an unnecessary amount of time and energy into a bottomless pit. Fortunately, Fyndoo Advise offers a 5 minute forecast.
By importing figures from Caseware Working Papers to Fyndoo Advise, you can easily import the financial data. After the import, you go through six steps (including turnover, personnel costs, operating costs) which creates a first impression of the liquidity position of your customer. You can then zoom in on the monthly, quarterly, half-yearly and annual level. If the results of the 5-minute forecast give rise to further steps, you can work out the figures further. Of course you can compare different scenarios and submit a report (from the platform) to the financier.
Fyndoo Advise gives an entrepreneur insight into the fixed costs and liquidity development and that provides insight. Which knobs can still be turned and what is the effect? What liquidity space does a payment arrangement with creditors offer and must the financier be informed? Which tax debts are still outstanding and when will there be scope to repay them? Of course, any (new) NOW payments can be taken into account, so that a realistic picture is obtained of the liquidity position.
Continue to monitor
Drawing up a forecast in these times is not a one-off action. Helping an entrepreneur through these months is the starting point, but also keep a finger on the pulse afterwards. The deferred taxes must eventually be paid and a final settlement for the NOW scheme follows. There is no point in looking too far ahead, but taking into account the future is necessary.