Nicole Solly's presentation at SAGE 2016
-
Upload
ruperta-daher -
Category
Marketing
-
view
24 -
download
0
Transcript of Nicole Solly's presentation at SAGE 2016
Mistakes independent agencies make and how to avoid them
Do you have the right finance resource?● Large spectrum between necessity and best practice
● Lack of investment in finance overhead:
- People
- Systems
Do you have the right system?● Using a basic bookkeeping system is one of the major mistakes agencies make
● All companies need an accounting and payroll system but agencies also need one or many additional capabilities including CRM, Traffic, Timesheets, Production, Media
● Without this capability you cannot get accurate and relevant reporting
● Revenue always the focus but what about other measures
Do you get the right reports ?● Detail reporting allows you to make timely business decisions to improve the efficiency and profitability of
the business
● You should be getting a range of reports including:
● Staff Utilisation
● Client profitability
● Job profitability
● Departmental profitability
● Detailed margin analysis
● Job overrun reporting
● Debtor days
● Multipler analysis
Do you budget and forecast?● Do you do monthly revenue forecasting by job?
● Do you do a budget at the start of the financial year?
● Do you know your likely year end profit position?
Are you compliant?● There are so many areas of compliance in the Finance space:
● Payroll Tax
● BAS
● PAYG
● Superannuation
● FBT
● 457 training spend
● The cost of non compliance is massive
Are you getting the right tax advice?● Things to look for when choosing a tax accountant:
1. Do they ask lots of questions about your business?
2. Do they specialise in your industry?
3. Do they offer extra services ?
4. Do you get along with them?
Are you worried about cash flow?● Cash flow is often the biggest worry in a small / medium business
● What should your baseline be?
● Do you know what your upcoming tax liabilites are?
● Even when making a nice profit cash flow often doesn’t reflect this
● Important to stay on top of debtors and have working capital/ cash flow measures and reporting in place
Is your process safe?
● Dual approvals on bank transactions imperative
● Fire drill- dealing with problems as they arise rather than having a process that prevents panic
● Tight billings process vital
Do you have the right Insurances and Broker?
● What questions do they ask to get to know your business?
● What experience do they have in the industry?
● Are they are cultural match for your business?
● Has your service level been established?
● Can they help with Life insurance?
● Are they only worried about finding the cheapest solution?
● Do they ‘roll over’ your policies each year without offering you any alternatives?
● Have they discussed insuring bad debts?
● Do they explain why one quote/insurer is better suited than another?
Are your staff motivated?
● Remuneration structure for staff
● Communication of results with management team / entire agency
Who is managing hr?● HR management fire drill?
● Is there a culture of continual coaching?
● Pay reviews on merit?
● Do you onboard?
● KPI’s set to business goals?
Other Questions
● Do you get HR advice on terminations/redundancies?
● Do you ensure a lawyer reviews all your clients contracts?
● Do you have employee contracts that are up to date with current legislation?
Quick Tips
● Make sure you have an Industry based system and finance team
● Get to know your balance sheet
● Ensure you have safe and efficient processes
Thank you!