Bert Lopes
Managing Partner
It’s surprising how many clients come to us with their financial affairs in bad shape. Accounts incomplete, accounting delayed, tax affairs unresolved, banking relationships strained or waiting for accurate information, loan extensions declined or waiting for data, cash-flows and business affairs in financial disorder.
Add to that late or missing data which has resulted in bad decision-making. Poor stock control. Insufficient free cash for short term funding. Poor planning, no crisis contingencies.
Sometimes this is because businesses have cut corners and attempted DIY; more often it’s because they just didn’t understand the complex SA regulatory and business environment. Some businesses might be able to muddle through. But a business wanting to expand and grow can’t afford to have any chinks in its financial armour.
Some common problems:
- Basic errors in the accounts. Many businesses don’t have accurate cash flow statements and can’t deliver the accounting basics to meet even simple loan requirements
- Funding related issues:
- Loans withdrawn or extensions refused due to non-compliance
- Failed fundraising/second phase finance
- Insufficient free cash for development or managing through an unforeseen crisis
- Poor stock control with cash tied up and not available as free-cash
- Accounts are behind. Management doesn’t have the latest, accurate accounts to support fast and flexible decision making for rapid reviews or to support stakeholder discussions with banks, insurers, or investors
- Accounts are not properly set-up and structured. The business is wasting money
- Reports aren’t useful to management or used in decision making
- Governance and structure don’t comply – a potential huge future risk is brewing
- Tax affairs are disorganised or delayed – with penalties looming or due
