45 Minute Demo Optimist Presentation

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  • 1. Optimising Financial Performance Seminar Welcome to the
  • 2.
    • Richard J. Wood
    • MyCorporateDoctor.com.au
  • 3. An Accounting Joke Three accountants are sitting in a sauna. Suddenly there is a beeping sound. The first accountant presses his forearm and the beeping stops. The others look at him curiously. "That's my pager," he says, "I have a micro-chip under the skin of my arm.“ A few minutes later a phone rings. The second accountant lifts his palm to his ear. When he finishes he explains, "That's my mobile phone. I have a micro-chip in my hand."
  • 4. An Accounting Joke The third accountant, feeling decidedly low- tech, steps out of the sauna. In a few minutes he returns with a piece of toilet paper hanging from the crack of his butt. The others raise their eyebrows. "Oh, excuse me he says. I'm getting a Fax."
  • 5.
    • How would you like to see the financial impact of every business decision before you made it?
    MYOB ProfitOptimiser
  • 6. Stages of Accounting Collection Recording Summarising Analysing
  • 7.
    • MYOB ProfitOptimiser is a financial software package that gives you the ability to:
      • Perform what-if scenarios
      • Undertake goal seeking on a performance measure
      • Produce variance reports
      • Understand financial statements in a graphical format
      • Produce budgets and cash flow reports
    What is MYOB ProfitOptimiser?
  • 8. What is MYOB ProfitOptimiser?
    • Begins where financial statements end
    • Identifies the key drivers of your profit, cash flow and balance sheet
    • Used by major trading banks
    • Great tool for both accounting and non accounting people such as sales & general managers
    • Better communication with staff, your accountant & the bank
  • 9.
    • What is the most effective way to improve cash flow?
    • What is the maximum sales growth your business can realistically sustain in the coming year?
    • What financial performance indicators are required to improve your financial, marketing and operational performance.
    Key Business Questions
  • 10.
    • Which products and customers are profitable?
    • What is the impact on price and volume changes?
    • What is the effect of discounts, terms and stock levels on your business?
    • How do you combine multiple business units into one operating entity?
    Key Business Questions
  • 11. “ The shift to new technology is the single most important factor behind businesses accelerating productivity and growth.” Merril Lynch R eport
  • 12. Mind Stimulation Exercise
  • 13.  
  • 14.  
  • 15.  
  • 16. Let’s Take A Closer Look………….
  • 17.
    • Scenario 1
    • The Demo Company is a manufacturing company based in Sydney. The company has experienced cash flow and profitability problems in the past few years. The Directors wish to improve its cash flow and profitability.
    • The company’s current cash flow is negative $365,073 with a profitability rate of 11.64%.
    • How can the cash flow and profitability position be improved?
  • 18. The MYOB ProfitOptimiser Reporting System
  • 19.
    • Scenario 2
    • The Directors of The Demo Company wish to monitor the change in revenue and profit from the financial years 2002 to 2003.
    • Which report is used to track comparisons in performance between financial years in MYOB ProfitOptimiser?
    • Can the business sustain its growth over the next financial year?
    • Which report can indicate if a business requires additional cash flow injection .
  • 20.
    • Scenario 3
    • The Demo Company’s short and long term debt position is currently $1,484,073 with a cash after operations amount of $90,954 . The company is very concerned with this level of debt and wishes to decrease borrowed funds to $1,000,000.
    • How can the decrease in borrowed funds be achieved and what will the decrease impact upon?
  • 21. To get a R eturn O n C apital E mployed Or ROCE Why go into business?
  • 22. X Components of ROCE Measures Balance Sheet Management Revenue Net Operating Assets EBIT Revenue Measures Profit and Loss Management
  • 23.
    • Scenario 4
    • The Demo Company needs to establish what its return on capital employed (ROCE) is for the financial year 2001.
    • Having established the current position of 17.30% the company wishes to increase ROCE to 30%.
    • How can the increase be achieved?
  • 24.
    • Scenario 5
    • The Demo Company wishes to implement a budget based on drivers of 70% in cost of goods sold, 100 days in receivables, 95 days in inventory with an increase of 10% revenue growth and a 5% price increase for the next financial year. The impact of this change must be reflected the the profit and loss statement and balance sheet.
    • How can this be achieved in MYOB ProfitOptimiser?
  • 25. How Do We Use MYOB ProfitOptimiser
  • 26. How Do We Use MYOB ProfitOptimiser In Our Business?
    • As a Bureau Service for our clients to improve financial performance and assist with finance applications.
    • We annualise and project financial data to the end of a specific reporting period (3,6 or 12 months).
    • The the 3 key financial drivers are then interpreted and analysed:
        • Profitability
        • Cash Flow
        • Financial Growth
  • 27. How Do We Use MYOB ProfitOptimiser In Our Business?
    • Working with our clients we devise what if scenarios to improve financial performance.
    • Goal Seeking is then performed to visualise future improvements.
    • Anticipated taxation position is then assessed and tax planning initiatives are implemented.
    • The agreed performance measures are documented for the client.
    • A follow up consultation is then arranged.
  • 28. Loan Financing
  • 29. A Practical Loan Scenario Bank Reports Provided Numerous interpretive phone calls Paper based application submitted Client calls Bank to arrange loan Conditional Loan approved Accountant provides financial documentation
  • 30.
    • MYOB ProfitOptimiser is a simple to use, time saving tool that provides strategic analysis of your business performance.
    • MYOB ProfitOptimiser provides a total financial scorecard on one screen including what drives your business and the numbers behind them
  • 31. A Final Accounting Joke What’s the definition of an accountant? Someone who solves a problem you didn’t know you had in a way you didn’t understand at a fee you didn’t expect.
  • 32. Questions & Answers
  • 33. Thank You