Finance & Accounting

Strategic Analysis of Financial Data to Drive Critical Business Decisions

About The Client

The company is providing rental services through his properties. It aims to make the company grow and reach more customers by providing them the best quality service and setting up a new cash-generating property.

Client Needs

The client wants to improve his wealth through his properties. With this goal, the owner plans to acquire a new property – a boat, for a new business he is planning to have. He asks for recommendation as to how much he should put as a down payment from the money he currently has in the bank. And required us to present a cash flow to have an illustration as to how his cash position would look over time after purchasing the boat.

Challenge

He is undecided whether to sell one of his currently owned properties to acquire the boat or not to sell it and just take a risk of getting a huge loan from the bank as his investment in starting his new business venture. The challenges faced were assessing the Capital Gains Tax he would need to pay if he would consider selling his old property, deciding the best amount he would put as a down payment, and forecasting his future cash position considering his cash flows from his old properties, wages and forecasted income from the boat.

Journey

We carefully assessed each available file he provided to us. Researched the CGT rate applicable in his country to have a basis for our estimate as to how much cash he will receive after selling one of his current properties. Then, we presented two separate illustrations for both scenarios (to sell the current property or not to sell it) for better decision-making. The illustrations contain a one-year cash flow presented monthly to show how much cash he will have after considering all the cash inflows and outflows he noted for us to include and consider—also, reviewed his cash from personal savings accounts including cash in the bank generated from his acquired properties through the years. From there, we thoroughly assessed how much down payment he can afford from the money he has in the bank at the moment.

Solution

Aside from presenting how the monthly cash flow would look like after purchasing the boat, we also prepared an amortization table for his convenience. The amortization table was well formulated so that he can use it as a template whenever he wants to adjust his budget, the table will automatically show the computation for easier use. The cash flow was also connected with this amortization table so whenever he changes the amount he wants to loan, the terms of the loan, or the interest rates, the cash flow automatically computes the cash position he will get every month and in a year. This will help him save time and compare the offers of the different banks in terms of the interest rate and loan terms.

Also, as requested by the client, we provided him a recommendation as to how much would be the best amount he can afford to put as a down payment. The recommendation was based on thorough analysis and consideration of the future emergency needs he might have and ensuring that after purchasing the boat he will still be liquid to pay other maturing payables he have.

Online Digital Service Provider Financial Forecasting in Melbourne, Australia

About The Client

Headquartered in Melbourne, Australia, the client boasts over a decade of expertise in addressing the challenges posed by unfair, unwarranted, or offensive online content.

They specialize in assisting clients whose online reputation has been tarnished, impeding their progress in a fiercely competitive digital economy. Respert, with over a decade of industry experience, has successfully aided thousands of customers in reclaiming control over their online narrative.

Client Needs

The client is seeking a three-month budget expense forecasting to proactively manage their capital expenditure and operational costs. The CEO/Founder is interested in hiring an offshore CFO Accountant to facilitate data entry into their accounting software, XERO. Specifically, they aim to gain insights into their advertising expenses as a portion of their total operating expenses.

Additionally, they require a clear understanding of their current sales income and the sales targets needed to achieve their annual goals.

Journey

Our offshore professional successfully prepared a comprehensive 3-month to 1-year expense budget forecast.

To gather the necessary data for this forecasting, the client granted us access to their XERO accounting software. We leveraged Microsoft Excel to meticulously craft the forecast. This process involved exporting the data from the accounting software and employing various Excel tools, such as PIVOT Tables, Sumifs, and formulas, to meticulously analyze and assemble a profit and loss report.

Throughout this collaboration, the client demonstrated a commendable commitment to ensuring that the desired results were achieved. We maintained open and constant communication, prioritizing it as a key element of our approach. This proactive approach allowed us to meet expectations and facilitated the review and refinement of the drafts and final outputs

Solution

As a company, one of our initial steps is to engage one of our offshore accountants in a meticulous assessment process, which often begins with a discovery call. This call serves to establish clear expectations and carefully analyze our client's requirements. By gaining a deep understanding of their needs and the scope of the work, including the complexity involved, we position ourselves to deliver a tailor-made solution.

Our offshore accountant, drawing upon her extensive experience, readily comprehended the client's needs. Leveraging her proficiency in Excel, she successfully prepared a 12-month financial forecast, complete with assumptions and recommendations. Despite having limited experience with Xero Accounting Software, she collaborated closely with a colleague within our firm to seamlessly input the data from the forecast and integrate it into Xero Accounting Software.