Scenario Planning Value Added Services Slides - DTTS by hedongchenchen


									Scenario Management with MYOB ProfitOptimiser
Introducing your trainer…

                    Mark Holton
       Dynamic Taxation & Training Services
               Today’s Aim:

How to implement MYOB ProfitOptimiser in your
 clients’ businesses and develop the concept:
“How would you like to see the financial impact of
  every business decision before you make it?”

A.   Welcome and Introduction

B.   Delivering Value Added Services
     - How to identify and develop key MYOB ProfitOptimiser scenarios
     - How to deliver the “should I or should I not” MYOB ProfitOptimiser
       decision outcomes to clients

C.   Developing Scenario Planning Options

D.   The Ten Key Ways to Use MYOB ProfitOptimiser

E.   Developing Scenario Planning Solutions

           Gaining confidence with scenario management
Expected Outcomes

• Understand and ensure the most efficient use of the
  Customer Dialogue process

• Produce a higher quality, differentiated Customer Value Proposition

• Enhancement of partnership between the Customer and their Bank

• Establish your practice as “a real alternative in our chosen markets”

           Building a better understanding of our clients
Delivering Value
Added Services
Client Service Level Continuum

    Level 1            Level 2           Level 3           Level 4          Level 5

                                                                            Monitor and
                                                                            help client
                                                           Link financial
                                                           goals with
                                         Help client set   activities
                                         strategy and
                                         direction         Measure
                       Analyse and                                          Performance
                                         through           outcomes of
                       educate clients                                      Indicators
                                         goal- setting &   business
                       about critical
                                         goal seeking      activities
    Profit and Loss    ratios

    Balance Sheet      Conduct What
                       If scenarios
    Taxation Returns
Move from Compliance to Reliance

     Level 1       Level 2        Level 3          Level 4       Level 5



    Technical       Thorough           Future     Link to       Improvement
    Foundation      Analysis           Focus      Performance

    Collect Data   Organise & Inform     Analysis & Knowledge   Applied Wisdom
The 5 Star Analysis Technique

The 5 Star Analysis Technique enables accountants
to identify and measure their clients‟ business
performance over five critical aspects of a business:

 Profitability

 Balance Sheet and Working Capital

 Cash Flow

 Return on Assets and Investment

 Funding Requirements
Financial analysis mechanism

Financial analysis is the
mechanism for identifying
issues, and measuring the
success of strategies for all
parts of a business.

Relying on a funnel analogy,
financial analysis is the bottom
of the funnel and the final filter
to distil all elements of your
client‟s business.
Developing Scenario
 Planning Options
Scenario Planning – “should I or should I not”

• Buying or selling a business

• Mergers or takeovers

• Develop a business plan, budget and cashflow

• Expense management

• Capital purchases – to lease, HP, chattel mortgage or buy?

• Optimum sale levels

• Launch new products

• Rent or buy premises
Scenario Planning – “should I or should I not”

• Declare dividends

• Succession planning

• Price increase, matching or reduction

• Discounting price for settlement terms

• Importing

• Exporting

• Micro inventory management

• Working capital management
Scenario Planning – “should I or should I not”

• Government contracts and tenders

• Launch or develop overseas markets

• Funding management

• Tax and wealth management

• Hire a new employee

• Outsourcing

• Lifestyle decisions that impact on return

• Al purchases – to lease, HP, chattel mortgage or buy?

• Optimum sale levels

• Launch new products
The Ten Key Ways to Use
  MYOB ProfitOptimiser
1. Provide a business health check for your clients

• Generate a one page Health Check report and a 14 page
  Financial Diagnostic report.

• This is an easy way to increase the benefits
  you offer your clients, without increasing your workload!
2. Feasibility testing using „what if‟ and „goal seeking‟ functionality

• No need to set up complex Excel worksheets and models! This
  makes it incredibly quick and easy to review new business

• Use the one-page financial scorecard and unique „what if‟ analysis
  and sophisticated client focused goal seeking.
3. Assist in preparing for Bank meetings and reviews

• Manage all the major financial ratios and lending covenants used by
  banks and financial institutions.

• By knowing what banks are looking for, you can prepare your clients
  for successful meetings with their financers.
4. Win new business

• You can manually load data in minutes and WOW prospective clients
  with your knowledge and insight about their business.

• Print diagnostic reports and illustrate your willingness to really add
  value to their business.
5. Focus on cash flow

• Inventory, WIP, receivables and payables management are all
  consuming a businesses cash flow - use flowcharts and analysis
  screens to easily explain this to your clients.

• For example, the Cash Wastage Report explains concepts which all
  business owners should understand.
6. Regular consultations with your clients

• The fixed-framework for analysis means you can standardize the
  way you conduct strategic planning services.

• Clients will appreciate the consistent use to regularly monitor and
  manage business performance.
7. Due diligence and business valuations - sale or acquisition

• The roll forward or projection feature is ideal for testing
  assumptions, preparing financial projections, validating and
  preparing valuations.

• Show your clients what their business will look like in the future.
8. Assessment of likely tax position, financial and
   wealth management

• Creating projections and offering wealth management and tax
  planning advice has never been easier. Start cross-selling your
  services to generate greater revenue.

• Remember, your peak selling time is the period leading
  up to the end of the financial year.
9. Specific scenario planning - price changes, revenue growth
   and discounting

• „What if‟ scenarios need a business model you can trust, as well as
  the need to see how results are calculated.

• Use the Net Change feature to illustrate likely outcomes and
  stress-free scenarios before you actually implement them.
10. Conduct „going concern‟ analysis

• Ideal for auditors who need to establish the basic principle of a
  „going concern‟.

•   All reports can be exported to show critical performance indicators.
Developing Scenario
 Planning Solutions
Scenario management

• The company is a manufacturer and supplier of office equipment and

• Over the past few years the company has been on an expansion
  path driven predominantly by revenue.

• The company has a solid relationship with their existing bankers,
  running an increasing overdraft for many years.

• The performance profitability measures are comparable to industry

• The company requires an additional $1m of funding to purchase
  capital equipment that will facilitate a refocus on manufacturing of
  filing cabinets and office furniture.
Scenario management

• Currently the company purchases finished goods from high profile
  suppliers that rigorously control accounts payable days.

• The Directors believe the capital equipment will permit accounts
  payable days to be increased by one week, as they will be
  purchasing more raw materials. Additionally, direct costs should be
  reduced by 1%.

• Sales will not increase in the next 12 months as production will take
  some time before they can go to market with the new products.
Scenario planning options

• Capital equipment finance

• Employ a debt collector

• Create an inventory management solution

• Create a taxation planning solution

• Develop key performance indicators for scenarios

• Develop benchmarks for client management

• Plan a scenario management solution for a client
Questions and Answers
Thank You

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