The Sage Business Cloud Accounting (SageOne) solution is a great solution for accounting practices that are providing services to their SageOne customers. Generally these accounting practices will setup their own account in SageOne and create a company for each of their customers.
We believe the business of accounting practices are changing especially those servicing the Small Medium/Business Enterprises (SME/SBE) marketplace. It is pretty easy to become an entrepreneur these days and statistically entrepreneurs have a massive impact to the total GDP of a country as they generate revenue, innovate and create innovative products and services, create employment, generate foreign direct/indirect investment and contribute on a massive scale to tax revenues of the state. SME’s by their nature can be any type of enterprise and run by any type of person whether they have a formal education or not and we have seen that they can become enormously successful and grow into large enterprises whether their founders have a formal education or not.
As a formal education and advanced education are not a given, and should an entrepreneur have an advanced education, finance and accounting may not have been a focus area of the education. This is were we believe most SME’s struggle as the fact that good financial management practices are at the base of every successful enterprise.
Good financial management on the basics such as income, expenses, receivables, payables, cashflow and general financial planning is pivotal to any successful venture. Accounting practices that service SME’s are thus pivotal to the financial well-being of the enterprise as the owners might not have the necessary financial education or financial literacy to properly interpret their short and long term financial health and performance.
This creates an urgent need for accounting practices to provide advisory services above their standard accounting services which are pretty much based on data and tax related processing these days. Accounting practices should be in the business of providing data analysis and financial literacy support to their customers and it is highly recommended that SME’s move their business to such accounting practices that do provide these services.
Financial literacy is one thing, but being able to interpret your financial performance in the short and long term based on baselines specific to your business strategic and operational objectives is a completely other issue all together. We believe that it takes a good financially minded person and a good accountant to successfully navigate the waters to success of any organization. We aim to bridge that gap for both business owners looking to interpret their financial performance as well as enable accounting practices to deliver great advisory services to their customers.
This is where we believe SageOne users can really benefit from our solution, both as company owners, managers, analysts and certainly accountants. Our solution provides an in-depth analysis of the various areas of your financial health in the short and long term. Additionally to the excellent detailed analysis for any business owner or person delivering advisory services it is a great auditing tool for accounting practices.
Solution overview in brief:
Our solution provides all the features that enable easy analysis and interpretation of financial performance such as red – poor, amber – average, green – good (RAG) performance trends increase/decrease comparisons, month/month and year/year analysis, variances analysis and historical views going back years to enhance trend analysis.
For accounting practices our solution offers a multi company analysis so you can review the overall performance of a company or a group of companies should you service a franchise or similar type ownership/industry type models.
Our solution provides schedule reports for Income Statement, Balance Sheet and Trial Balance and we are in the process of finalizing our cashflow statement report. These reports can easily be scheduled by week or day with delivery via email.
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Further articles will focus on more information on interpreting financial analysis.