Getting Client Buy-in Presenter: Christian Wielage PGU Class 3 - - PowerPoint PPT Presentation
Class 3: Advanced Forecasting & Getting Client Buy-in Presenter: Christian Wielage PGU Class 3 Class 3 will first cover advanced forecasting technics. After that we will discuss Getting your Clients to buy- in and techniques for
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Class 3 will first cover advanced forecasting technics. After that we will discuss “Getting your Clients to buy-in” and techniques for selling these services.
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graduation by next week. Diploma and Digital Icon will be send out this month
unlimited amount of time to submit the case studies, but we recommend that you get cracking so that we can certify you ASAP.
Most of your clients will only know PlanGuru through “PlanGuru Analytics”, others will need the core PlanGuru Software to facilitate effective collaboration. Client does not need core PlanGuru tool For most of our PlanGuru CPA firms, very few of their clients own the PlanGuru application. Because PlanGuru makes the highly difficult, non-value-add work, of “budget building” much easier, there is common a fear that if the client learns about PlanGuru they will just buy it and cut you out of the picture. To avoid this you want to set the proper mindset upfront. Your value to them is not as a financial modeler, it is as a trusted business partner who: 1) already knows the cleint’s business very well and 2) has gained great insight into the budgeting/ forecasting/ planning by working with a broad spectrum of clients. It is about the process of having an
Client does need core PlanGuru tool For some larger businesses, where there are multiple key decisions makers, you may need enable them with PlanGuru and act as the “Plan Manager”. You will design the process, do the core set-up and leave the downstream users with nothing but “refinement” responsibilities. You will do the ongoing analysis and serve as Part-time CFO. PlanGuru Launch partnerships are available if you are fearful of biting off more than you can chew. http://www.planguru.com/products/launch/
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Organizations construct their budget at the beginning of the year and perform ongoing performance review. Rolling cash forecast process. Performance Review w/ Budget vs. Actual Comparison Rolling Forecast
Many organizations make large investments, acquisitions, or bid on large contracts. These decisions need to be evaluated in an organized and effective way. Quickly build intelligent financial projections
When organizations need to demonstrate their estimated financial future to: Lenders Investors Business Partners Board of Directors
Defines the vision for the future, provides the budget with high level targets. Assess risks and
and contingency plans. Sensitivity/Scenario Analysis Break-even Business Valuation
Situations with multiple departments, locations, subsidiaries, cost centers, etc. Multiple decision makers might be involved in the budget setting
weeks or months on the target setting process. Sometimes having a team member working on a client for a couple days at a time. Each month, taking the time to prepare and review all of the data with all team members might take a couple days, culminating in 1 or more big monthly meetings.
Spend between 1 to 4 days to choose forecasting methods and set assumptions for the budget at the beginning of the year. Spend between 1 to 8 hours on preparing the month review and formulating pre-meeting conclusions and
For your clients that have in-house employees capable of managing this process you may just want to provide implementation and training
Less than one day: creating the analysis, choosing forecasting methods and setting assumptions at the beginning of the year. Spend between 20 mins to 2 hours on preparing the monthly review and formulating pre-meeting conclusions and questions. Meetings are 30 mins to 2 hours. Maybe you simply prepare and upload the data, make a few comments and tell the client their numbers are available for review; you don’t have a meeting.
None of these are cut and dry. For example, a company without cash concerns may only do a rolling forecast every quarter, less maintenance.
Think small: It is your small business clients that serve as the best marketplace for this service.
but the core exercises that a CFO does are still needed. Smaller means easier.
budgeting and performance review The smaller they get, the more that exist.
There is opportunity in the “Large” Small Business area. Get a huge leg up in the client acquisition process.
differentiator when businesses are interviewing multiple CPA firms.
The accounting industry is changing rapidly, firms that do not respond will not succeed.
200,000 400,000 600,000 800,000 1,000,000
US Firms by Rev
2.4 MM
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drives better decisions.
meeting weighting out the pros and cons in a systematic way with real data
At [INSERT FIRM NAME] we are experts in building budgets and plans, let us do the heavy lifting for you.
discussions and thoughts, not complicated model-building.
can deliver this service at a price-point that our competition simply cannot achieve.
We will facilitate and optimize the performance review process to focus on what is most important.
Our experience with a diverse group of clients gives us a unique and insightful perspective that an exclusively in-house team would not have.
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Organizations construct their budget at the beginning of the year and perform ongoing performance review. Rolling cash forecast process. Performance Review w/ Budget vs. Actual Comparison Rolling Forecast
Defines the vision for the future, provides the budget with high level targets. Assess risks and
and contingency plans. Sensitivity/Scenario Analysis Break-even Business Valuation
Many organizations make large investments, acquisitions, or bid on large contracts. These decisions need to be evaluated in an organized and effective way. Quickly build intelligent financial projections
When organizations need to demonstrate their estimated financial future to: Lenders Investors Business Partners Board of Directors
Perfor
ance e Review: w: Continuously reviewing performance generally and against budgeted/ forecasted targets
Strate tegi gic Plann nning ng Proce cess ss: : Typically performed in the middle of the fiscal year. Sets the direction for future.
Budgetin eting Proc
ss: : In accordance with the high level parameters set in the strategic plan Roll llin ing Forecas ast: t: Accurate and tactical view of where the business is headed. Insert Your Company Header
The Magic Report: Everyone is looking for a tool that will instantly produce information that will yield better decisions, unfortunately that is a fantasy. Regular Budget/Performance Review: There is only one place to start for any business that is serious about making better decisions:
Cultivating a Better Decision Making Process: Yes, or course, this will take some time, but as time goes on your business will start making better decisions.
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– Systemically discuss all parts of the business to identify room for improvement, this will spark conversations and ideas that would never be discussed otherwise.
companies and see a wide variety of cost/expense reducing solutions.
– Make targeted adjustments to businesses to reach the goals set in the budget. – Challenging decision makers to “go on the record” stimulates a deeper understanding of the business. – A series of tangible goals/targets give employees something to shoot for. Push the team to go above and beyond with financial incentives that make sense for the business.
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– Comparing “what happened” to “what we thought was going to happen” can enable your team to reshape their understanding of the mechanics of the business. – When key decision makers are forced to “go on the record”, they have a greater sense of personal responsibility to figure out how to make “their number” or figure out what is truly wrong so that improvements can be made. – Team becomes Proactive not Reactive – Making more targeted adjustments to the business to reach the goals set in the budget and consider strategic changes when necessary.
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– Actual results replace the budget for past months and the remaining periods are re-forecasted. – Information cultivated in the performance review will help set targets.
– Provide management team with an accurate rolling cash forecast.
– What is REALLY going to happen? – Centerpiece of the tactical decision making process
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We will act as your “bad cop” and ensure continuous budgeting accountability among your employees.
We will be able to walk into a meeting and be ready to have a discussion on the present and future of your budgeting plans at any time.
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When you budget and use ratio analysis and business drivers decisions can be made using a common language backed up by real numbers and analytics.
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success.