B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S HOW TO HELP YOUR CLIENTS IMPROVE THEIR CASHFLOW

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1 B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S HOW TO HELP YOUR CLIENTS IMPROVE THEIR CASHFLOW Rob Nixon Colin Dunn

2 TODAY S AGENDA Three key areas to help clients free up cash How to sell a cash flow forecast How to prepare a cash flow forecast How to make the forecast real time How to wrap a service around a cash flow forecast How to keep your client s bankers happy. Tools you can use to add value to your clients and deliver new services A bunch of free stuff to help you.

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5 Promise

6 OUR BELIEFS AND WHY WE EXIST 1. CPAs are the natural trusted advisers 2. Cloud Accounting is not a fad, it is here to stay and it will fundamentally change everything 3. CPAs can make a massive difference to their clients condition 4. Many business clients need additional services 5. Technology needs content & methodology to really fly.

7 Your new mantra Every client should be buying every service they need that helps them achieve their goals!

8 REDUNDANT OR REAL TIME Redundant Data Accountants Offers advice late or not at all Real Time Accountants Offers advice before it happens Processes work and administration Value added services that help Waits for things to happen On front foot making it happen Majority of revenue in compliance Prices in arrears Majority of revenue in Business Advisory Prices every project upfront Doesn t visit / call me Doesn t follow up Doesn t promote the latest thing Most clients on hard drive accounting Numbers power with the client Visits and calls on systematic basis Follows up on every opportunity Always promoting Most clients on cloud accounting Numbers power with the Accountant

9 428 Business People have spoken! What sort of accountant would you prefer? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 7% A Redundant Data Accountant 93% A Real Time Accountant

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11 428 Business People have spoken! If you had to choose one of the following pieces of advice to assist your accountant, which would you choose? 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 8% Do more marketing 14% Lift your client service levels 17% Be more transparent with your pricing 22% Focus more on the future than the past when working with clients 39% Offer more services to help me improve my business

12 Polling Question Q. What do you believe is the no. 1 reason for business failure? 1. Lack of positive cashflow 2. Poor product / service 3. Location, Location, Location 4. Tax filing not up to date 5. Stupid management.

13 Polling Question Q. To help a business be successful what is the no. 1 thing they should buy from you? 1. Annual compliance 2. Book Keeping 3. Profit improvement program 4. Revenue improvement program 5. Cashflow forecasting & monitoring.

14 Where did the cash go? Opening cash Profit Depreciation Dividends Inventory Accounts receivable Accounts payable Loan Closing cash

15 428 Business People have spoken! If your accountant could offer a cash flow monitoring service, including an annual budget and cash flow forecast, a monthly report, an annual meeting, proactive alerts and advice and ad hoc phone access, assuming this was priced reasonably, how interested would you be in pursuing it? 40% 35% 30% 25% 20% 15% 10% 5% 0% 29% 14% 38% 12% Not at all Quite interested Worth discussing Very interested This is what accountants should be doing 7%

16 Polling Question Q. What percentage of your business clients have a live, working and reliable cashflow forecast? 1. 0% 2. 1% - 5% 3. 6% - 15% 4. 16% - 30% 5. 31% plus.

17 Finding and Keeping Clients Awareness Websites, Sponsors, Alliances, SEO, PR, blogs, Case studies, reports, articles, books, newsletters, YouTube, Facebook, LinkedIn, Twitter Leads , mail, sponsors, alliances, software partner programs, speeches, websites, sponsoring events, Facebook, LinkedIn, Social advertising all leads into automation nurture sequence Experience Websites, Webinars, Reports, Seminars. All experience leads into automation nurture sequence Desire Group webinar or 1:1 face to face meeting run Business Performance Review Buying Websites, seminar or webinar need sales skills Retaining Monitoring cashflow, Value Added Service and help them get results Impact Awesome client experience creating raving fans / referrals / case studies. Helping your clients to change their life.

18 How to sell a cash flow forecast Step 1: There has to be a need discussion with client to identify cash as a problem. Client needs to articulate the problem Step 2: Have the client set some targets (question how much money would you like to have in the bank in 12 months time?) Step 3: Your role is then to put in place a system to monitor the actual vs targets, taking into account seasonality. Outcome: you are matching a solution to a need, rather than selling a product.

19 Cashflow improvement Profit improvement 1.Reduce some costs 2.Be more efficient and do more with less 3.Increase gross profit reduce COGS 4.Increase customer count 5.Increase no. of transactions per customer per year new products 6.Increase average transaction value per transaction.- upsell & pricing. Inventory management 1. Review inventory system 2. Min/max inventory levels 3. Clean out/reorganize warehouse 4. Reduce obsolete inventory 5. Review your workflow management processes 6. Improve efficiencies with better systems 7. Just in time inventory management 8. Improve order processing system 9. Fire sale 10.Promotion pair a slow moving line with a fast mover. 3 C Inventory Profit 1 B A 2 Receivabl es Receivables management 1. Get tough you are not a bank or a charity! 2. Terms of trade clearly explained up front 3. Have multiple payment options 4. Eliminate columns on statements 5. Alter the wording on your invoices 6. Use a direct debit authority 7. Ask for payment in advance 8. Have a receivables system and a receivables champion 9. Give a fixed price when you start the job 10.Improve customer service.

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21 BUSINESS ADVISORY SOFTWARE FOR ACCOUNTANTS

22 1. Consolidate client data daily, weekly or monthly

23 2. DAILY, WEEKLY OR MONTHLY ALERTS

24 2. DAILY, WEEKLY OR MONTHLY ALERTS

25 3. ANALYSE THE DATA

26 3. ANALYSE THE DATA

27 3. ANALYSE THE DATA

28 4. DELIVER BUSINESS ADVISORY SERVICES Business Performance Review Planning sessions Profit improvement Monitoring program Growth Equations Financial modeling Real time 3 way rolling cashflow!

29 4. DELIVER BUSINESS ADVISORY SERVICES

30 4. DELIVER BUSINESS ADVISORY SERVICES

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34 I ran a BPR and Growth Equation which lead to a quarterly monitoring service for client. Saw increase in fee from client from $2,000 PA to $12,000 PA. Troy Hale, HTA Advisory I've been looking for one easy to use system where I can present key client data, perform what if & forecasting. Now I have it! Paul Martin - Paul Martin CA Each morning I get to see how my best clients are travelling - how - simply by using PANALITIX - I go to the Client Dashboard and in one page, I can gauge exactly how they are tracking in comparison to their budget It is an effortless tool that delivers great rewards. Mark Said, MKS Harris We love PANALITIX because we get loads of inspirational advice, help and ideas. This makes us believe we are valuable to make a difference with our clients Neville Hughes, GTC Financial I love that PANALITIX gives the ability to show clients numbers in a simple form & reflect small changes to their numbers can result in a big change Duncan Barber - Grange Business Partners PANALITIX is a cool tool, but I also love the resources that are available to help deliver advisory services. The tools, resources and videos available through the community are awesome." Ty Triffitt, Unicorn Business Solutions

35 POLLING QUESTION Q. How will PANALITIX benefit you the most? 1. Spot opportunities for additional services 2. Keep an eye on clients 3. Deliver new advisory services 4. Grow revenue of the firm 5. Need to see it in action.

36 HOW TO MAKE REAL TIME Client onto cloud accounting system Connect client s cloud accounting solution to PANALITIX Create a cash flow forecast Monitor against actual results, synced daily.

37 HOW TO WRAP A SERVICE AROUND A CASHFLOW FORECAST Service: Cash Flow Monitoring Service Deliverables: Three way rolling cash flow forecast Rollover every three months Weekly monitoring and alerts Monthly report and commentary Quarterly meeting Ad hoc access Meet with client and banker if required.

38 HOW TO KEEP THE BANKER HAPPY Meet with the banker and the client periodically Provide monthly report to the banker with commentary Keep banker abreast of developments so no surprises Offer to provide a similar service to other customers of the banker.

39 POLLING QUESTION Q. How much will you sell the preparation of the cashflow forecast for? 1. <$500 upfront 2. $501 - $2,000 upfront 3. $2,001 - $4,000 upfront 4. $4,001 - $7,000 upfront 5. >$7,000 plus upfront.

40 POLLING QUESTION Q. How much will you sell the monthly monitoring service for? 1. <$150 per month 2. $151 - $300 per month 3. $301 - $500 per month 4. $501 - $750 per month 5. >$750 per month.

41 Polling Question Q. How many cashflow forecast / monitoring services do you plan to sell? 1. None in next 12 months in next 12 months in next 12 months 5. >50 in next 12 months

42 YOUR TARGETS 1. Average upfront price for preparation = $X 2. Average monthly fee for monitoring = $X x 12 = annual fee = $X = first year fee of $X 4. Number of sales of cashflow forecasting / monitoring in year 1 = X 5. 3 x 4 = total sales opportunity. Add to chat!

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44 BUSINESS ADVISORY SOFTWARE FOR ACCOUNTANTS Free strategy map, report & demonstration

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