‘ClientSAFE™' Advisors Tool Kit
‘ClientSAFE™' Advisors Tool Kit is a collection of tools that enables a practitioner to not only discuss but also demonstrate profit and cash flow improvement outcomes to their clients based on selected strategies.
Most SME clients do not have a financial background and therefore have difficulty grasping the concepts that improve profit and cash flow in their business.
Using the ‘ClientSAFE™’ Advisors Tool Kit removes a lot of their confusion and this enables clients to understand very simply how their profit and cash flow can be improved.
If you remove the confusion, a client is more likely to respond to the advice being given and therefore realise the gains being demonstrated by their Accountant.
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This comprehensive set of Advisor Tools comes with a detailed User Guide.
The User Guide outlines the philosophy and methods to put each of the concepts diagrams and ready reckoner tools to effective use.
Nothing of course, will replace the face to face consultation experience with your client. The ‘ClientSAFE™’ Advisors Tool Kit is the ‘means to the end’ and not the end in itself, being the consultation discussion.
By using a simple and easily understood tool like the ‘ClientSAFE™’ Advisors Tool Kit you will enhance your reputation, build your confidence and demonstrate leadership in your field with your clients and with your team.
Become pro-active and demonstrate your expertise and therefore you value to your business clients using tools such as the ‘ClientSAFE™’ Advisors Tool Kit. You will become a valued member of their management team.
The Entrepreneurial Cycle™
In his ground breaking book ‘The E-Myth – why most small businesses don’t succeed and what to do about it’ Michael Gerber puts forward the proposition that most if not all small businesses are not started by Entrepreneurs but by ‘Technicians’ having an ‘Entrepreneurial’ seizure.
The Entrepreneurial Cycle™ is a diagrammatical representation of the cycle a business owner travels on their pathway to business success.
By illustrating that pathway to a client and the impact each step in that pathway has on the success of the business, enables an Accountant to position their services in the value-added chain of that pathway.
Once the client understands this, they are much more likely to engage their Accountant to harvest the possibilities their business offers them.
The Power Wheel™
Fundamentally, every business owner knows that if they want to improve their profit they have to increase their sales which is easier said than done unfortunately.
However if they knew what drives their sales they would be in a much better position to take action. Knowing what to do and not so much about how to do it is the first step in getting results.
The Power Wheel™ is a diagram that shows a client very clearly what the drivers of profitability are. This diagram is very useful in engaging a client in the conversation of how an Accountant can add value to their business.
Once you demonstrate your expertise in being able to help them achieve improved profitability your clients will be much more likely to involve you in an ongoing basis in their business and not just at year end.
The Cash Flow Propeller™
Every Accountant has heard the expression ‘even a profitable business can go broke’ and this is simply because the business runs out of cash.
Similarly, Accountants are familiar with the expression ‘profit is an opinion but cash is a fact’ and that is why it is important that every client understands the difference and why they are as the saying goes ‘mutually exclusive’.
The Cash Flow Propeller™ is a simple diagram that illustrates the ‘Operating Cycle’ and allows an Accountant to very simply and very clearly show how cash flow can be not only quantified but also improved.
By demonstrating your expertise in being able to help them quantify and improve cash flow, your clients are once again much more likely to involve you in an ongoing basis in their business and not just at year end.
Simple concepts, simple diagrams that deliver positive outcomes.
“I have been exploring various options/programs over the past few years so that I can work with my clients to deliver, value added, business advice rather than just tax advice.
My biggest concerns were the astronomical cost of the programs, the excessive amount of time it took to learn the system and finally whether it really was going to deliver value to the client.
I know this is an area that my clients would value but trying to introduce it and explain the value has been my biggest stumbling block.
Kerry’s simple to use process is a great way to get started. It is simple, unobtrusive and very Australian (No “Ra Ra” lets dance and praise the Gods) just simple, honest guides.
I am excited to learn more from Kerry so that I can start being a truly valuable adviser to my clients.”Richard Hinz FCPA Presidential Accounting, Maudsland, Qld.
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In the same way that diagrams ‘paint the picture’ the Financial Ready Reckoner Tables complete the picture by enabling an Accountant to quickly and easily quantify the financial outcome of any chosen profit or cash flow improvement strategy being discussed.
A simple show and tell exercise using clear Financial Ready Reckoner Tables enables an Accountant to show a client what any chosen strategy will yield in terms of its financial outcome to the business.
The less confusion there is, the more likely a client is to say ‘yes’ to any offer of additional services.
The Cash Flow Discussion
Most businesses will focus on profit before cash flow and yet it is cash flow or the lack thereof that causes them the most angst.
Without looking at both simultaneously a business owner is only getting half the picture and can very easily send what could for all intents and purposes a profitable business broke.
Being able to show cause and effect in this situation is a very valuable exercise and absolutely necessary if balance is to be maintained.
Table 5 – Debtors Ready Reckoner™
As a general rule, business owners are happy to make the sale and then worry about getting paid later. This kind of thinking in many cases becomes a fatal flaw of management.
Many would say that a sale is not a sale until the customer has paid, in other words ‘money talks and everything else walks’.
Being in a position to see what effect improved or ignored debtor management practices will have on cash flow is just as important as a price increase or decrease will have on the business.
Putting an extra $10,000 into a business owner's bank account can have just as powerful (probably more so) effect on the business as an extra $10,000 in profit.
This is a clear value adding exercise any Accountant should be in a position to demonstrate to a client, simply and clearly.
Table 6 – Inventory Ready Reckoner™
Sometimes referred to as the ‘hidden sleeper’ the inventory of a business can be a two edged sword. This is because it can make or break any business and this is why it must be managed very carefully. Too much inventory can drain cash flow and too little can impede sales.
Most business owners will see inventory as ‘money in the bank’ but in reality it could just as easily be money that could ‘break’ the bank.
For the most part and with the exception of labour it is one of the least managed parts of a business and conversely can be a source of ready cash both in the form of sales and also in the form of re-allocation.
Measuring and managing the inventory of a business needs to be just as important an item for business owners as profit itself and this is where the Accountant can add some real value.
Using the Inventory Ready Reckoner™ table an Accountant can quickly and simply show a client how much money can be unlocked with some simple techniques.
Once an Accountant shows a client how to unlock cash from this asset class it will convince the client that there is real value in using their Accountant across all aspects of their business and not just the usual ones.
It is the Accountant’s job to make their client aware of the possibilities to harvest more value from the professional relationship. Anything less is doing your client a disservice.
Table 7 - Creditors Ready Reckoner™
There is a term that many financially literate people do not know and in most circumstances is completely known. This is the expression of ‘creditor strain’.
Just because a supplier is not sending out statements or making a regular follow up on their unpaid invoices does not mean that a business owner is in danger of having what might be a critical supply being stopped.
What a business owner needs to be aware of is the ‘level of strain’ they are placing on supplier relations at any point in time and how the ‘strain’ can be managed.
With the ‘Creditors Ready Reckoner™’ you can simply and quickly demonstrate what the ‘level of strain’ is and how much cash it will take to bring the ‘level of strain’ back to a manageable position.
Being ‘forewarned’ is being ‘forearmed’ and Accountants must be able to have that conversation with their clients at a moment’s notice and be able to clearly demonstrate the effect on the business of any change in circumstances.
“Thanks for the training on the Client Safe Program. It is awesome! So simple yet powerful.
What an excellent way to introduce important concepts to clients, in a visual way that they will understand, and to empower them to make real and effective changes in their businesses.
I can’t wait to use this with my clients.”Kerri Dickman FIPA Kerri Dickman & Associates, Greenway, ACT.
This is a PayPal purchase and credit/debit cards are OK.
Just choose 'Check Out' and then 'Pay with a credit or debit card' when you connect.