Cash
What can the business safely support?
Understand customer collections, supplier payments, stock and commitments. Identify what is tying up cash and whether spending plans fit the cash available.
ProfitIQ™ — management accounts and profitability
Management accounts that help you understand your profit
Your business is trading. Sales are coming in. Expenses are being paid. But can you see what is driving your profit—and why cash sometimes tells a different story?
Coach Accountant helps established business owners turn financial records into useful management accounts, profitability analysis and clearer priorities.
Discuss your business
When the numbers leave you with more questions
You may recognise these concerns:
- Turnover is growing but profit is not keeping pace.
- Your accounts arrive too late to guide decisions.
- You cannot clearly see which products, services or activities earn their keep.
- The business reports a profit but cash remains tight.
- You have financial reports but need help understanding what to do next.
ProfitIQ™ brings the relevant information together so you can understand performance and identify where attention will make a difference.
Four bearings for your business decisions
Your management accounts bring Cash, Profit, Control and Business Value into view. Each answers a different question about the same business.
Profit
Where is value created or lost?
Examine revenue, direct costs, margins and overheads. Where the records support it, compare profitability by product, service, customer or activity to see what earns its keep.
Control
Can the numbers be trusted?
Check that records are complete, balances are reconciled and reports arrive in time to be useful. Compare results with prior periods and agreed budgets, then investigate material differences.
Business Value
What is the business becoming?
Use the findings to prioritise improvements in margins, cash discipline and dependable performance. Follow a focused set of Bearings Indicators to see whether those actions are making a difference.
Reliable insight starts with reliable records
Management accounts are only useful when the records behind them are sufficiently complete and accurate.
We first assess the condition of your accounting records. If bookkeeping is behind or balances need reconciliation, we identify the work required and agree the scope before proceeding.
Any catch-up work is scoped separately so you know what needs to be resolved before regular reporting begins.
If your records have fallen behind, our bookkeeping backlog and catch-up service can help establish a reliable starting point. If a SARS notice or dispute needs separate attention, explore SARS ResolutionIQ.
An illustrative example
Profitable on paper. Short of cash.
A service business earns R100,000 in revenue and incurs R70,000 in expenses. Its accounts show R30,000 profit. But customers have paid only R60,000 and the business has paid all R70,000 of those expenses.
Profit: R30,000. Cash movement: −R10,000. Customers still owe R40,000.
Cash: collections have not kept up with payments. Profit: the work earned R30,000. Control: confirm that the R40,000 customer balance is accurate and review overdue invoices. Business Value: improve billing and collection discipline so profitable work supports a more dependable business.
Simplified example excluding VAT, tax and other cash movements. Your own reports would reflect the circumstances of your business.
What your reporting can include
- Management accounts showing income, expenses, profit and financial position.
- Commentary on material changes, concerns and questions to investigate.
- Profitability analysis at the level supported by your records.
- A focused set of five to seven Bearings Indicators relevant to your business.
- A review discussion to identify priorities and agree practical next actions.
We agree the reporting frequency, level of analysis and deliverables before the engagement starts.
How we get started
- Discuss the problem. Tell us which decisions you need to make and what your current reports are missing.
- Assess the records. We review the information available and identify gaps or reconciliation work.
- Agree the scope. You receive a clear proposal covering any preparation work and the ongoing reporting service.
- Review and act. Once the agreed work begins, we explain the results and help you identify the actions that deserve attention.
Frequently asked questions
How are management accounts different from annual financial statements?
Management accounts provide regular information to help you manage the business during the year. Annual financial statements report on a completed financial year. Both are valuable, with different purposes.
Can you help if my bookkeeping is behind?
Yes. We assess the backlog and evidence available, then agree the catch-up and reconciliation work needed before relying on the reports.
Why does my business show a profit but have little cash?
Profit and cash measure different things. Unpaid customer invoices, stock purchases, loan repayments and other movements can affect cash differently from accounting profit. We examine the factors relevant to your business.
Does every business receive the same reports?
No. We agree the reporting and analysis around your business, its priorities and the quality of information available.
What decision do you need to make with confidence?
Tell us what is getting in the way. We will review your enquiry and contact you to discuss the most sensible next step.
Discuss your business