Charles Wiggin is an entrepreneurial accountant who trained with KPMG and after 10 years in business founded www.accountingservicesonline.net in 2003. A former Olympic Medallist he is passionate about helping clients maximise the performance of their business.
Charles Wiggin - In practice
We have been using two calculations for Debtor days (DSO) for more than 30 years. Coupled with Creditor days (DCO) and stock turn we plot this monthly on a graph to monitor the net working capital movement against changes in activity (principally turnover). We use this for all clients for whom we prepare monthly accounts through our Cloud portal.
I am Charles Wiggin FCA Bsc (Econ). I do a lot of forecasts using spreadsheets and cultivated my own reliable tools over more than 20 years.
In my experience I see finance directors/managers/accountants under immense pressure to produce forecasts without the time available to complete it and produce a reliable answer. I have experienced situations like our colleague "Absolutely" where figures in spreadsheets are overwritten to give the answer that the director(s) wants to support at best a funding shortfall or at worst a targeted dividend. If you don't come in to line they will find someone else who will!
Caritax Anchor House
As per my earlier post obtain counsel's opinion before wasting any more time and to which you have alluded to in your last post>
Extracting the pluses and minuses from the above commentary I would add:
We are often brought in to create a forecast (includes operating, cash flow and linked balance sheets) to a company that is cash stressed. Although the financier wants to know where the business is going in terms of cash flows this has to be built on income and resourcing drivers over time.
I explain that rather being a "one off" exercise each time we produce management accounts (usually monthly) these are overlaid on to the existing forecast so that the effects of changes in the month can be seen within the forecast over the longer term. At this point the forecast may be amended (especially if cash targets are under threat) and in this way the forecasting tool remains live reflecting the current impact of changes to the main operating drivers.
Our cloud based solution means that SMEs can take advantage of a cost effective online accounting service which feeds the updating of the forecast over time.
Caritas Anchor House
HMRC are not concerned with the benefits to humankind they will make their own interpretation using the minutiae of the Vat law. I have experienced this in the past regarding charities and the practical application of their objects clause.
First step is to obtain counsel's opinion (minimum cost) on where you stand to establish whether you have a case. Pulling at heart strings won't work!
Chartered Accountant in practice
Mob 07740 610401