Running your Business by the Numbers in 30 Mins/moA few basics and a few things you probably didn’t know

Financial statements are just the start…

Accounting vs. finance

Accounting cycle

Management cycle

Performance analysis

Financial management

Suppose it’s the end of the month. Books are closed. NOW what do you do?

Accounting vs. Finance

Accounting

• Looks back• Tax driven• Transactions• Internal data• Cycles – mo/qtr/yr

Finance

• Looks forward• Plan driven• Models / scenarios• Internal plus external data• Management cycles

Finance is about combining accounting information with business intelligence

HOW did you REALLY do?

Hunt for the 3 big things each month:

1. Margins shrinking?

2. Revenues erratic?

3. Expenses growing?

Your Turn

What is your best guess as to your revenue growth % ?

Revenue

Growth

Rate:

__________

Trends to Watch

Revenue

Industry Benchmark

Unhealthy

Time

$

Healthy

Revenue

Time

$Industry Benchmark

Trends to Watch

Revenue

Unhealthy

Time

$

Healthy

Revenue

Time

$

Your Turn

What is your best guess as to your Receivables ?

Receiv-

ables:

__________

Trends to Watch

Revenue

Cash

Unhealthy

Time

$

Revenue

Cash

Time

$

Healthy

Revenue

Cash

Time

$

Revenue

Cash

Time

$

Your Turn

What is your best guess as to your COGs % or Margin %?

Margin

growth:

__________

Trends to Watch

RevenueCOGS

Unhealthy

Time

$

Healthy

$

Overheads

RevenueCOGS

Time

$

Overheads

Revenue

COGS

Time

$

Overheads

Your Turn

Revenue to expense trends?

Revenues/

Expenses:

__________

Trends to Watch

Revenue

Expense

Unhealthy

Time

$

Revenue

Expense

Time

$

Revenue

Expense

Time

$

Healthy

Revenue

Expense

Time

$

Revenue

Expense

Time

$

What to do w/ what you know

• Change a goal• Solve the problem• Change the business

offerings• Change investments• Get an Advisor who

knows your numbers• Most importantly…

Share with your Team!

What’s measured can be addressed.Get them on the same page and they will help

Team, we need to be looking more carefully at our margins… Add our subscription service to 3 more customers a month and we’ll grow this 20% next year

The Corelytics Financial Dashboard

Monthly Management Process: 30 Minute Action Plan

Result

• You’ll know if you are off track• You can take advantage of opportunities • As market fluctuates, you are able to ride

the wave• You won’t push the gas pedal on Sales if

you’re not prepared to grow• Your team is on the same page

Long Term Goals

• Sustainability• Long-term growth• Market position• Owner’s return on investment (ROI)• Equity value• Liquidity event (sell, acquire, investment)• A good night’s sleep

Free Financial Health Check

Your Company, Inc.

https://healthcheck.corelytics.com/pub/sign_up.aspx

THANK YOU