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- 1. people Get Cash Flow Confident! Johnny Martin FCA, @numberscoach British Library Business & IP Centre Partner Financial Fitness Coach Quickbooks
- 2. Intuit Proprietary & Confidential
- 3. Intuit Proprietary & Confidential ?
- 4. Intuit Proprietary & Confidential To generate Cash Flow Value to customer x Distribution x People x FINANCIAL SYSTEMS! = £££ in bank
- 5. Intuit Proprietary & Confidential Get Cash Flow Confident – 3 steps ① Understand key financial reports ② Learn about forecasting ③ Know how to manage Cash for Growth!
- 6. Intuit Proprietary & Confidential What do you need to know to run a business? You are chief exec of a business… You are meeting your new FD/CFO… What information do you want to help run the business…
- 7. Intuit Proprietary & Confidential PARTNERS
- 8. Intuit Proprietary & Confidential What do you need to know to run a business? You are new boss of a business… You are meeting the Finance Director What information do you want in order to see how things are going…
- 9. Intuit Proprietary & Confidential P99 or p42
- 10. people
- 11. people
- 12. Intuit Proprietary & Confidential p63
- 13. Intuit Proprietary & Confidential Get Cash Flow Confident – Quiz
- 14. Intuit Proprietary & Confidential p83
- 15. Intuit Proprietary & Confidential Numbers drive your Business Model ① Sales model eg pricing & distribution ② Value to customer ie “Ingredients model” – what’s in the product? ③ Overhead or Operations Model eg admin, rent, marketing ④ Cash Flow model ie when you get paid, stock levels, when you pay your bills (aka working capital) ⑤ Funding Model (loan or equity or grants or product sales)
- 16. Intuit Proprietary & Confidential Get Cash Flow Confident – Forecasting
- 17. Intuit Proprietary & Confidential p46
- 18. Intuit Proprietary & Confidential Forecasting sales - blocks Distribution channel – how you reach your customer Main product categories Quantity – metrics eg visitor traffic x conversion % X Price Always do a sensitivity
- 19. Intuit Proprietary & Confidential Pricing method Step 1 Base Cost - the variable costs + 1 Raw materials/unit + 2 Outside processing/unit + 3 Direct Labour/unit + 4 Other/unit 5 Packaging + 6 Base Cost = 21 +Step 2 To "recover overheads" Add up all overheads for a year £ 100£Overheads Estimate numbers to be sold in a year 10Numbers sold Divide overhead by estimate sales + 10 = Base selling price = 31 + profit…essential at the very least to cover development time in future say + 9 Potential Selling Price = 40
- 20. Intuit Proprietary & Confidential p46
- 21. Intuit Proprietary & Confidential Get Cash Flow Confident – Managing for Growth
- 22. Intuit Proprietary & Confidential Know the score! 22 Try QuickBooks Online for FREE www.quickbooks.co.uk
- 23. Intuit Proprietary & Confidential Tracking Income & Expenses 23 Try QuickBooks Online for FREE www.quickbooks.co.uk
- 24. people
- 25. Intuit Proprietary & Confidential Record keeping Be organised – files! Keep for 6 years Print everything Keep it simple – envelopes for expenses but also apps Consider a Bookkeeper
- 26. Intuit Proprietary & Confidential Boosting Cash Flow Boost profitability • Review pricing regularly • Monitor costs v budget • Track margins carefully Manage Working Capital • Before you send out an invoice • Get invoices out quickly • Aged Debtors Report • Keep eye on stock levels • Review cash flow forecast
- 27. Intuit Proprietary & Confidential Before you invoice • Terms and conditions • Credit checks • Stage Payments • Purchase Orders • Invoices Out
- 28. Intuit Proprietary & Confidential Invoicing – faster than Excel
- 29. Intuit Proprietary & Confidential Cash flow - Aged Debtors Report
- 30. Intuit Proprietary & Confidential Monitoring cash flow - anywhere 30
- 31. Intuit Proprietary & Confidential Never miss a sale 31
- 32. Intuit Proprietary & Confidential Cash flow – bank feeds
- 33. Intuit Proprietary & Confidential Types of funding • Debt eg bank, or relation or Start Up Loans! • Equity eg angel investor, friends & family • Crowd Funding • Grants eg Government • And Corporate Joint Ventures eg P&G • Bootstrapping! • And most overlooked - CUSTOMERS
- 34. Intuit Proprietary & Confidential VAT • What is VAT? • Don’t mess with VAT! • When, how to register • VAT Schemes • Save time with an accounting package
- 35. people
- 36. Intuit Proprietary & Confidential Vat – registration • All formats require registration
- 37. Intuit Proprietary & Confidential Preparing VAT Return
- 38. Intuit Proprietary & Confidential Business Legal Structures • Explanation of structures • Some common issues • Key issues to think about
- 39. Intuit Proprietary & Confidential Sole Trader • Legal status • How to start as a sole trader • Liability • Accounting Issues • Separate bank account • Tax & Taking money out of the business
- 40. Intuit Proprietary & Confidential Partnership • What is a partnership? • Liability • Need for a Partnership Agreement • Tax treatment • Taking money out of the business
- 41. Intuit Proprietary & Confidential Limited Liability Partnership • Legal Status • Liability • Who uses LLP? • Tax treatment • Partnership Agreement
- 42. Intuit Proprietary & Confidential Limited Company • Legal status • Creating a company • Liability • Key features • EIS & SEIS • Taking money out of the business • Taxation
- 43. Intuit Proprietary & Confidential Social Enterprise Formats Some of the Options: • Limited Company by shares or guarantee • Community Interest Company • Industrial Provident Society
- 44. Intuit Proprietary & Confidential CASH & the Power of Routine ① Adopt a “Factory Manager” mindset ② Weekly: “Management meeting” ③ Share your worries!
- 45. Intuit Proprietary & Confidential
- 46. johnny@johnnymartin.co.uk @numberscoach Workbooks Business plan Template Forecasting Template “Talk Money” Video Get Cash Flow Confident Workshop 1:1 and in-house courses Venture consulting Business reporting www.johnnymartin.co.uk
Editor's Notes
- Intuit is a leading provider of business and financial management solutions for consumers and small businesses: financial institutions, including banks and credit unions; and accounting professionals.We started small in 1983 with Quicken personal finance software, simplifying a common household dilemma: balancing the family checkbook. This was the days before online banking.Our mission: is to be a premier innovative growth company that improves our customers’ financial lives so profoundly they can’t imagine going back to the old way of doing things.We help more than 4M small business manage their business better with QuickBooksMore than 300,000 accounting professionals to be more productive and help them grow their practicesIn the cloud, we have more than 360,000 customers paying subscribers for QuickBooks Online including thousands of business and accounting practices in the UK.Intuit has been in the UK for almost two decades, but in the past 3 years we’ve seen a dramatic increase in our role in the lives of small businesses. We do this in two ways:1. With easy to use, time saving software:QuickBooks is now the top-selling software in retail (including on Amazon) in the UK.+50% market share and driving category growthWith ground-breaking mobile and cloud-based servicesMore than 362,000 QuickBooks Online subscribers worldwide with thousands of businesses in the UK using the service to take control of their business finances.Our free MyBizTracker app, launched with HMRC, helps businesses keep better records on the go and get guidance about compliance requirements... All backed by world class customer support. In fact this is an area where we are making some of our biggest investments in the UK. This month we will be opening our first dedicated on-shore care team providing support for Accountant Edition customers and ProAdvisors!2) Withpractical advice and assistance:Intuit is a founding sponsor of StartUp Britain, a national campaign backed by the Prime Minister to celebrate, inspire and accelerate enterprise in the UK. We are also a patron of the Peter Jones Enterprise Academy, the U.K's first ever full-time education programme in enterprise and entrepreneurship.Our free Financial Fitness Workshops have helped over 1,400 businesses from across the country understand the basics of how to get paid, track income and expenses and manage cash flow.Today: Intuit has 8,000 employeesWe improve the lives of 60 million people. In +130 countries around the worldWe are a listed company with revenue in excess of $4bn.
- When it comes to getting paid assume No one pays you! Getting paid starts before you send out the invoice:Terms & Conditions - Use standard T&Cs as negotiating tool.In Price negotiations use settlement terms as bargaining tool – include earlier payment, stage payments or even upfront payments. Consider use of credit checks – use informal check..Need a systems that get out invoices quickly & easily and helps you keep on top of what is owed eg aged debtors report. This is something your excel/word system cant do – also sending out reminders and statements – automatically..Sending out invoices – not only marketing document, full description, but also PO and contact details. Ring up and check they are happy – if you wait 30 days and then call….I recommend getting someone to do this for you – makes you look biggerInclude Getting Paid as item in your weekly management meeting – to review aged debtors and debtor balances- you need to allocate resource to chase chase chase.One of first parts of report looks at keeping track of I&E - do NOT try & do this with a spreadsheet and word document – it will end in tears – plus little useful information – you need accounting systemA proper computerised accounting package pays dividends – allows you to track and scrutinise your I&E. It’s the dashboard to really review how you are doing v budget and if your business model is working and what needs to change.80:20 rule – lara morgan storyUse an online system – backed up, accountant location independent, link to other web management tools.On expenseswe need to go thru two bits of theory: - Fixed v variable costs & Importance of understanding breakeven – understanding your b/e point crucial. Sandwich shop analogy. Do b/e calculation
- So you have nailed your business model, invoices flying out, managing your cash and then you get a brown envelope through the door…….One of the first taxes you will come up against is VAT – brief explanation:What is VAT and why it doesn’t belong to you…Don’t mess with VAT man – When do you need to registerDoing the return – this is where a a computerised system makes your life so much easier! Saves you time the crucial resource
- Year end in any endeavour good time to take stock make resolutionsMost y/e are march/april - looking at y/e now to prepareAlso y/e accounts go to tax, bank and investors and if you sell – so more important than just monthlyThis is only a guide – not detailed operational If you use qb detailed system instructions can be found xxxxxAlso if you do regular management accounts this shouldn’t be scaryQB would recommend that the y/e is a time to get help from a qb pro advisor for at least first couple of year ends
- Year end in any endeavour good time to take stock make resolutionsMost y/e are march/april - looking at y/e now to prepareAlso y/e accounts go to tax, bank and investors and if you sell – so more important than just monthlyThis is only a guide – not detailed operational If you use qb detailed system instructions can be found xxxxxAlso if you do regular management accounts this shouldn’t be scaryQB would recommend that the y/e is a time to get help from a qb pro advisor for at least first couple of year ends
- Year end in any endeavour good time to take stock make resolutionsMost y/e are march/april - looking at y/e now to prepareAlso y/e accounts go to tax, bank and investors and if you sell – so more important than just monthlyThis is only a guide – not detailed operational If you use qb detailed system instructions can be found xxxxxAlso if you do regular management accounts this shouldn’t be scaryQB would recommend that the y/e is a time to get help from a qb pro advisor for at least first couple of year ends
- Year end in any endeavour good time to take stock make resolutionsMost y/e are march/april - looking at y/e now to prepareAlso y/e accounts go to tax, bank and investors and if you sell – so more important than just monthlyThis is only a guide – not detailed operational If you use qb detailed system instructions can be found xxxxxAlso if you do regular management accounts this shouldn’t be scaryQB would recommend that the y/e is a time to get help from a qb pro advisor for at least first couple of year ends