Strategic Financial Analysis

We at McAdam Siemon believe that for a business to operate effectively it is important that Management have a tool that allows them to look beyond the historical Profit and Loss report and Balance Sheet. It must deal with both financial and non-financial data, be presented in a format that is easy to understand, analyse what the figures mean and more importantly allows meaningful and timely decisions to be made.

To achieve this we use the EIS reporting software that allows for a consistent measurement of key data, against targets set by yourself as the business owner. It allows you to focus on areas that are not performing.

This report looks at relevant ratios and, if available, benchmarks and will cover the following:

1.         Profitability / Trading

2.         Cashflow / Working capital

3.         Liquidity / Solvency

4.         Efficiency Measurements

The EIS one report will also measure the business against key areas that the banks will consider when applying for finance. This allows management to quickly identify key areas that will need to be reviewed or clearly explained when approaching the banks. Also demonstrates that management monitors the business closely and can make effective decisions based on relevant and timely information.

The team at McAdam Siemon can discuss what is required to get the this reporting underway, together with a fixed price quote and guide you through the process that will provide reports similar to those below.

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Strategic Planning

What is Strategic Planning?

This is the ‘document’ in which a business or enterprise details what its goals are and the roadmap as to how it will achieve those goals.

Why have a strategic plan?

It is important for a business manager to be able to have a stated position to which reference can be made regardless of the current economic circumstances. This facilitates a consistent approach to how business decisions are made. Even a sole proprietor/ director will benefit from this tool.

A strategic/ business plan is like a roadmap or an architect’s plan: it should provide reference points and benchmarks by which its stages of achievement can be gauged and at the same time detailing the conceptual basis on which decisions will be made.

What detail does it contain?

Typically, a strategic/ business plan will contain statements and ‘policies’ about items including –

Vision Business Description Resources Marketing Succession

Mission Statement Management Finance Business Relationships Reporting and Reviews

Don’t business circumstances change too rapidly for this to work?

A sound strategic/ business plan will be reviewed regularly, but be set for a pre-determined period. Depending on the industry involved and the particular business, this would typically be for either a five- or three-year period, reviewed either annually or more frequently (as considered desirable in the particular circumstances).

Experience shows that businesses working to a strategic plan are far more consistent in the achievement of overall sound results, than those that don’t. The old adage “if you fail to plan, you plan to fail” seems valid from our observations.

Who prepares the Strategic Plan?

Experience shows that the more effective plans are those prepared by the people with the highest level of responsibility. Usually, this means that the proprietor and the ‘senior’ staff of the business should be most heavily involved.

McAdam Siemon partners and staff are able to provide valuable input to all the relevant processes involved: development of the Plan; implementation of the projects that form part of the overall strategies; development of appropriate reporting processes; and ultimate revision of the Plan.