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An Accountant’s Journey (cont.): Benefits of automated forward Cashflow projections, including What-If and Sensitivity scenarios, Days of Cash Remaining
On-demand and automated Cashflow projections for MYOB and Xero
26 May 2020
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2 minute read
Alexander Laureti, Partner at LMS Advisory, Parramatta, continues his story from last week about the benefits LMS obtain through Cerebiz automated cash collection system integrated with MYOB’s AE Practice Management system and MYOB ARL.
‘LMS partners and staff continue to be able to work fully productive from home, or anywhere else, as access to the Cerebiz portal is cloud-based. There is no constraint in what we access working remotely during COVID-19 and we are maintaining the same vital security levels.
Since COVID-19, every business we represent and read about in the news has a constant focus on cash flow, and we believe that will continue to be a critical issue for many months to come. Like many other practices, many clients now request advice on cash flow, including working out their ‘days of cash remaining’ and what their options are.
It turns out our Practice’s move to Cerebiz was very timely. Over and above speeding up cash collection as I wrote about last week, Cerebiz’s cash module also offers a fully automated 12 months or 52 weeks (either choice visible at a click) forward cash flow projection to view and share on- demand 24/7.
We use the automated cash flow projection in our Practice. We can also use the Cerebiz cash tools with multiple client’s MYOB Account Right (ARL) or Essentials system (and we are part of the pilot testing with Xero). Cerebiz enables a Practice and its Clients to work with the same tools and database, which makes induction, training, support, and collaboration more productive.
And it opens up new Advisory opportunities for the Practice as Cerebiz makes access to the ‘realtime financial facts of the business’ straight forward and quick. There’s no need us for export ledgers to spreadsheets and create a cashflow. The associated time and costs savings help our team be more productive and we can pass on these benefits to clients without needing to charge significantly for our time.
The Cerebiz cash projection covers Debtors, Creditors, and more. For example, the ‘Promises to Pay’ figures show separately to reflect they are commitments made by clients, not just untested assumptions. Other cash projection programs do Debtor only, or Creditors only. Cerebiz brings our data together all in one place.
Cerebiz also caters for ‘one-off’ forward payments or receipts such as JobKeeper or a significant future bill, not yet reflected in Creditors. There are many more other good features.
Built-in sensitivity analysis makes it possible to test different potential business scenarios. Moving the Cerebiz slider in the Cash Projection section allows us to indicate a reduction in the number of Debtor Days and shows the impact on the cash flow in terms of ‘days of cash remaining’ instantly.
We can run “What-If” scenarios using the cash projection capabilities. This shows my data visually by moving a %-slider which shows the impact of a variation in the rate of cash collection. Business owners can make quick decisions based upon best case or worst case scenarios. The preferred scenario can be adopted to share with others.
These aspects are proving very helpful and time-saving in these uncertain times.
Our entire team save considerable time on cash projections and everything related to understanding a clients cash position. Most importantly, it helps us understand our own position as a business. All of these features and many more enable us to work productively and effectively ON the business of our Practice as well as our client’s businesses.
Cerebiz provides significant value all around, and I highly recommend you contact the team at Cerebiz to see how it can work for your practice as well.’
