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Why Funancial SMART?

Managing a small to medium sized business is challenging, demanding and rarely fun. Sifting through accounting data is even less fun (unless you are an accountant of course).

Funancial SMART takes a daily copy of your accounting data, unlocks the financial intelligence and presents the end result to you in a way that is:

  • easy to understand,
  • easy to use to make meaningful business decisions.
  • helpful to you when answering the following fundamental questions:

 

Questions that Funancial SMART answers

 

The problem

Financial management is a fundamental part of running a business. If you don’t keep an eye on the finances, things can go horribly wrong. It is common knowledge that most businesses fail within the first 3 years due to a lack of cash – in other words, inadequate financial management.

Waiting for 30 days to receive complex financial reports using your existing accounting system and bookkeeping process puts your business at risk!

The problem is that it is often difficult to see how standard financial reports are even vaguely useful when it comes to making business decisions. We are presented with a retrospective view of what happened over the past month or twelve and expected to understand how this historical information is going to affect our business now. To make matters worse, these figures don’t actually represent reality.

The following example explains the reality problem…

  • You are running a business that uses the accrual basis for accounting and, before starting your business, you managed to save $1,000 as start-up capital. You use this to buy a computer, printer and desk
  • You make only 1 sale of $1,000 during the year and have no expenses
  • At the end of the year, your Profit & Loss (or Income Statement) shows that you have made a profit of $1,000 and – assuming that your Corporation Tax is 20% – you now owe the government $200.
  • The problem is, you don’t actually have any cash in your bank account to pay your corporation tax. In this scenario, the company that you sold your products / services to hasn’t paid the invoice and your bank balance is $0.

Business owners and managers need tools that can process financial accounting data and present the information in a way that allows them to make informed business decisions.  This information needs to be updated on a daily or weekly basis.

The solution

Having tools that alert you of potential issues on a daily or weekly basis reduces risk and allows you to make business decisions when they matter most. This is where Funancial SMART comes into play.

Funancial SMART reduces risk and helps you to make rapid, informed and relevant decisions by providing:

Really Relevant Profitability Analysis

Funancial SMART shows gross Profit on a revenue line basis. Instantly showing which products / services are soaring and highlighting those that need attention.

Group your income and cost of sales accounts in a way that is relevant to business – not accountants.

Actionable Decision Guidance

Combining your accounting data with our SMART algorithms to give you context-driven guidance that you can use to make informed decisions – fast!

Visual Insights

  • Red = Danger
  • Amber = Warning
  • Green = Success

Every screen is designed to give you valuable insights into the operational finance aspects of your business. Our AI analyses every piece of information to give you suggestions on where you should focus your attention and aspects that are doing well.

Root Cause Analysis

Easily analyse the root causes of your financial results.

  • Who are my top customers?
  • Who are my most costly suppliers?
  • Is my OPEX getting out of hand?
  • and many more!

Sensible Debtor and Creditor Management

No more accounting speak like 30 days, 90 days…

Use “After Due Date” tolerances that make sense to your business and let Funancial SMART alert you when invoices need to be chased or when bills need to be paid.

Simulate what-if Scenarios

Use Funancial SMART’s Income and Expense adjustments functionality to assess the impact on your current and projected cash flow if you are planning on making new a purchase or increasing operational expenses.

Key Performance Indicators and Reports

24/7/365 – Funancial SMART produces useful summaries (updated every 24 hours) for Sales, Cash Flow, Profit, Accounts Receivable, Accounts Payable and many more! Drill down and analyse the detail with a single click.

Conclusion

We have taken what we have learned over the years and created something that provides you with the necessary information you need to answer fundamental questions about the financial health of your business.  We do this by providing you with the most important financial data you need in a format that is easy to read and helps you answer some basic, FUNdamental questions (pun intended).

*Funancial SMART interpretation of the data in the accounting package depends on the accuracy, and update frequency of information within the same package. If your bookkeeper does not update Xero on a daily or weekly basis, the usefulness of Funancial SMART will be severely limited! If you need us to, we can help with bookkeeping so reach out to us via our Help Centre.
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