An accounting tool for those who find accounting difficult. Entrepreneurs who see new solutions, and are willing to take on risks, are right-brain dominant. Accounting (and numbers) are very left-brain. Profit Guard is a date visualization and communication tool, for financial management.

1. Accounting for the
Right-Brained Business Owner
Elizabeth Pearce
ProfitGuard4.Biz
415-595-4784
EPearceFSB@comcast.net

2. Left vs. Right Brain Functions
Analysis
Logic
Numbers
Science
Accounting
Linear Thought
Accountant/Bookkeeper
Creative Solutions
Innovation
Intuition
Risk Taking
Images
Holistic Thought
Most Business Owners
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3. Profit Guard – 12 Page Monthly Report
• Every new client has found $50K or more
• Supplements Traditional Financial Statements
– In Plain English
– Financial Roadmap “The Plumbing”
– Key Ratios and Benchmarks
– Graphs Trends for Each Ratio
– Sensitivity Analysis
– Cash Needs with Growth
• Cash Conversion Cycle
3

4. Profit Guard Report Generation
4

5. THE PROFIT ROAD MAP
Period Ending
Hello Telephone Co.
7/31/12
$359,028 (1)
High Current
Liabilities
Too Much
Inventory
High
Borrowing
$5,000 (6)
Not Enough
Customer Credit
Poor
Inventory
Control
No Cash Discounts
on Payables
Low
Productivity
High
Interest
High
Liabilities
Too Much
Customer Credit
Not Enough
Inventory
LOW
CASH
Payable
Aging
$161,806 (2)
High A/R
$196,528 (3)
Low A/R
Bookkeeper
Errors
Shrinkage
Poor Buying
Poor Pricing
$107,500 (4)
LOW GROSS
MARGIN
Low Sales
High Hidden
Costs
Poor Expense
Control
$57,547 (5)
Areas to review as a result of Scorecard
Low Retained
Earnings
LOW NET
PROFIT
Distance From Goal
Footnotes
(1) $359,028 Cash Impact because of too much Inventory.
(2) $161,806 Cash Impact because of too much Customer Credit.
(3) $196,528 Cash Impact that could be saved with longer payment terms.
(4) $107,500 Profit Impact over the time period if the goal was met.
(5) $57,547 Profit Impact over the time period if the goal was met.
(6) $5,000 Profit Impact on 2% Payable Discounts.
© 2013 Business Resources Services, Inc.
Impact
<25%
Cash
25% to <50%
Profit
≥50%
http://www.brsseattle.com/ProfitGuard/
RoadMap.pdf
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6. Trend
5/31/12
6/30/12
7/31/12
2.6
2.6
2.6
▼
1.7
1.5
1.4
▼
Your
Goal
Actual Annualized
Period Ending 07/31/2012
Current
Month
Hello Telephone Co.
Last Month
Two (2)
Months Ago
THE SCORECARD
Industry Standard
Calculations
Top
10%
Top
25%
50%
AVG
For Current
Month
BALANCE SHEET RATIOS: Stability (Staying Power)
1
Current
2
Quick
3
Debt-to-Worth
Current Assets
Current Liabilities
Cash + Accts. Rcv.
Current Liabilities
Total Liabilities
Net Worth
1.2
1.1
1.2
▲
1,543,042
2.9
2.5
2.9
1.5
0.8
2.0
1.6
2.0
1.2
0.9
604,320
863,777
604,320
1,219,538
0.8
1.3
0.8
1.0
1.5
1,032,595
INCOME STATEMENT RATIOS: Profitability (Earning Power)
4
Gross Margin
5
Net Margin
Gross Profit
Sales
Net Profit Before Tax
Sales
35.0% 26.7% 14.3%
8.8%
1.4% -9.9%
▼
▼
45% 29.9% 45.0% 35.0% 28.0%
50,000
350,000
2.7% 6.5% 5.0% 3.0%
350,000
-34,797
7%
ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios
6
Sales to Assets
7
Return on Assets
8
Return on Investment
9
Inventory Turnover
10
Inventory Turn-Days
11
12
13
14
Accounts Receivable
Turnover
Accounts Receivable
Turn-Days
Accounts Payable
Turnover
Average Payment
Period-Days
Note: NA designates the Metric is
not of value in this company
http://www.brsseattle.com/ProfitGuard/In
conclusiveData.pdf
© 2013 Business Resources Services, Inc.
Sales
Total Assets
Net Profit Before Tax
Total Assets
Net Profit Before Tax
Net Worth
2.0
1.9
18.0% 2.7%
1.9
▼
-18.5%
39.2% 5.8% -40.4%
Cost of Goods Sold
Inventory
365
Inventory Turnover
Sales
Accounts Receivable
365
Accts. Rec. Turnover
Cost of Goods Sold
Accounts Payable
365
Accts. Payable Turnover
▼
▼
▲
350,000 X 12
2.0
1.9
10%
5%
2.4
1.2
0.8
10.4% 6.5% 3.4%
2,369,396
-34,797 X 12
2,369,396
15%
12% 14.2% 11.2% 8.3%
-34,797 X 12
1,036,462
12.2
5.4
12.2
7.9
5.9
300,000 X 12
650,000
5.6
5.2
5.5
65
71
66
▼
30
68
30
46
62
4.6
5.0
4.9
▼
5.5
350,000 X 12
6.1
4.5
15.9
7.9
5.9
79
73
74
▲
850,000
365
60
81
23
46
62
11.3
12.7
14.4
▲
8.1
12.2
8.1
12.2
24.3
4.9
300,000 X 12
250,000
32
29
25
45
30
45
30
15
14.4
Better than Goal
≤ 25% away from Goal
Greater than 25% from Goal
Greater than 50% from Goal
▼
365
365
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7. Historic Information
Cash vs. Earnings
Trends
Asset Management
& Cash Conversion
7

8. Cash Conversion Cycle
PROFIT MASTERY
ASSESSMENT
Hello Telephone Co.
Period ending 07-31-2012
Cash and Profit Impact
Issue
Cash Lost
Receivables
Inventory
Payables
Cash Required
Profit
$161,806
$359,028
$196,528
Payable Discounts
$5,000
$107,500
$57,547
Gross Margin
Net Margin
Total
$717,361
$170,047
Sensitivity Analysis
Metric
Impact
Cash Conversion Metrics
1-Day Sensitivity*
Inventory Turn-Days
=
$9,278 per day
Accounts Receivable Turn-Days
=
$12,500 per day
Average Payable Payment Period
=
$9,278 per day
Margin Metrics (Month)
Margin (Gross or Net)
1% Margin Sensitivity**
=
$3,750 per 1%

9. Planning Tools
Changes in Fixed Costs
Variable Cost Shifts
Borrowing Needs
With Anticipated Growth
Efficiency Adjustments
9

10. Fixed Cost Example
BREAK-EVEN
ANALYSIS
Hello Telephone Co
Sales Required
Thousands
Sales Required to Support Fixed Costs Changes
-$400K
$800
$600
$400
$195K
$200
$0
-$200
-$400
-$600
-125K
$60K
-$800
Fixed Costs (FC) Change
Current FC = $1,213,025
Thousands
Current Break-Even Sales = $1,757,494
For every $1 FC increase, $3.23 sales increase is needed for same Net Profit.
This chart reflects the amount of sales increase that will be needed for various changes in the fixed cost
levels in your company.

11. Business Coaches, Bookkeepers,
Consulting CFOs, Accountants
• Another tool for consultative
relationships
– Additional billable time each month
– A Balance Sheet management tool
– Educational tool for accounting-phobic
• Profit Guard as Referral Source
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12. Working with Lenders
1. Better informed and organized borrowers
2. Basic bookkeeping errors discovered & fixed
3. Owners with an understanding of cash use by
their business are lower risk
4. Can be tied to financial education from Profit
Mastery (live classes, DVD)
5. Rebranding/marketing opportunity
Financial Education-based Marketing
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13. THANK YOU!
Profit Guard retails for $199.99/month
Use promotion code EP-dcgejxn for a price
of $184.99, for a 30-day trial
13

14. Benchmark Data
Industry data, NAICS code based
Approximately 1,200 Industries
Over 900,000 private companies in
Fintel database
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15. Financial Education Marketing
More Loyal Customers
Differentiation in the Community
Clients with Better Cash Flow
More Profitable Clients
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