Cash Focus




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Strategic Focus
Strategic Focus
Benefits and features.

 

Strategic Focus

 

Strategic Focus.
Benefits and features

 

 

Strategic Focus Benefits         

 
 


1. Gives a real understanding of a set of financials - yours or your competitor's.

  Strategic Focus shows where the profits and cash flows are, and calculates if the profits and cash were produced efficiently. It tracks profit and cash flows through the income statement (profit and loss) and balance sheet.


2. Ability to obtain a business valuation
  Strategic Focus has the ability to quickly and effectively calculate the value of a business. There is a link between financial performance and the implementation of the strategic plan.

A plan that has not been effectively analyzed will have unknown impact on the business valuation. A well chosen strategic plan can be expected to favourably affect the business valuation or, if a listed company, the stock market performance.


3. Goal-seeking capability helps the user to modify strategies with a view to achieving favourable outcomes
  Example: Strategic Focus has assessed that the strategy of selling our products into Canada is not going to add value to the business. The goal-seeking capability is then used to suggest changes to this strategy to achieve the desired outcome. It ranks these by sensitivity.

Management evaluates the software suggestions to see which are achievable in the real world, and the appropriate ones implemented. The strategy is then modified so that the company’s objectives are achieved.

The strategy can then be implemented knowing that the financial consequences have been properly assessed.


4. Performance monitoring provides a lead business indicator
  Cost of capital calculator is included.

The cost of capital is used to perform the financial analysis required by management.


5. Understand the valuation gap.
  The owners want their business to be worth $15m, but using Strategic Focus they calculate that the business is worth only $10m.

The software helps them understand the magnitude of the valuation gap and the goal-seeking features can be used to test alternative strategies to close the gap.


6. Easy to prepare regular financial health assessment reports.
  Most businesses produce financial monitoring reports on a regular basis. They are time consuming to prepare regularly. In Strategic Focus it is easy. These provide the benefit of reporting those areas of financial performance that require monitoring.


7. Works out the financial implications of the strategic plan.
  Most businesses regularly review current strategies with a view to answering the question: “How are we going to change the business we are in to increase its value?”

The list of strategies that the company is working on or considering is known as the company’s strategic plan. The benefit of using Strategic Focus to review and help formulate the strategic plan is that it articulates the financial consequences. It helps management to select the most promising financial investments.

Example: next year we are going to sell some of our products into Canada or add a new product to our range. Is this strategy going to add value or not? Strategic Focus can help assess the financial implications of the new strategy, as well as assess the likely effectiveness of the current strategies.


8. Monitor variances from budget.
  Assists you to be pro-active in controlling the financial outcomes for the entity. Be alerted to variances from the budget so that timely corrective action can be taken. Cater for changing business conditions. Strategic Focus monitors performance and helps you to know in advance if corrective actions are required.


9. Be productive immediately.
  Avoid the agony and cost of a lengthy implementation and training schedule. Easily installed and operated with comprehensive accompanying documentation. Install the software and start analyzing and understanding the financials.
 

 

 

Strategic Focus Features         

These features are in all versions:-  (click link for a "screen shot")
 


1. Financial analysis
  Strategic Focus provides a standard platform for financial analysis and business valuations. Flow charts facilitate understanding of key performance measures and indicators. Interprets current results.


2. Business valuations
  Valuations are performed quickly and easily. Valuations are based on free cash flow and economic value added.


3. Goal-seeking and “What if”

  Goal-seeking demonstrates the changes required to achieve the desired results.

"What if” shows activity driver sensitivities in a flowchart format.


4. Cost of capital
  Cost of capital calculator is included.

The cost of capital is used to perform the financial analysis required by management.


5. Fixed assets form
  Fixed asset form does all the asset calculations for you. Enter asset classes, depreciation percentage and method, Capex additions and disposals.

Strategic Focus uses the fixed asset form to automatically adjusts the profit and loss, balance sheet, cash flow and all results.


6. Forecasting of cash flow statements, profits, balance sheets, valuations and breakeven analysis
  Automatic accrual.

It calculates future cash flows by reviewing when cash is collected or disbursed (inputs and outputs). Amounts can be accrued until cash is received or paid.

To cater for seasonality and changing trade terms, each account line can have a different cash flow profile for each forecast period.


7. Value based adjustments
  Strategic Focus includes built-in value based adjustments. This makes it easy to include them in a financial analysis where appropriate.


8. Short term and long term plans
  Both short term and long term plans are fully incorporated into Strategic Focus software.

Financial plans can be created yearly, monthly, quarterly and / or year-to-date.


9. Actual versus budget
  Monthly actual vs. budget comparisons with full reporting ability. Monthly cash flows, flowcharts and graphs for monthly analysis.


10. Net cash flow, marginal cash, operational cash and free cash flow
  Analysis and flowcharts of cash flows.

Shows relationship of net cash flow, marginal cash, operational cash and free cash flow.


11. Economic value added, economic profit forecasting
  Financial analysis uses economic value added as a performance measure. Business valuations are calculated using both economic value added and free cash flow.

Economic profit forecasting enables management to consider their business from an investor’s viewpoint.


12. Graphics, user-ratios, zip and unzip
  Define your own ratios: the software allows financial and non-financial ratios. You can have ratios like $ of sales per person, $ of costs per m² etc.

Zip and unzip functions are built in for archives, backups and emailing models between users.

Includes flowcharts and graphs for analysis.


13. Supporting schedules
  Create unlimited supporting schedules for the financial analysis.


14. Very flexible, very fast
  Very fast. Strategic Focus will give you a real understanding of the financials and give you a very useful assessment of future strategies.

Financial analysis is easier, quicker and more accurate. It will help you create a more valuable business.
 
These advanced features are in the Gold version:-
 


15. Consolidation is automatic
  In the Gold edition consolidation is included. Consolidates any number of sets of financials. Stores favourite or frequent consolidation lists for regular use.


16. Gap analysis
  The Gold edition includes Gap analysis - comparison of strategic, book and market valuations. GAP Analysis compares the market capitalisation of a business to its book and strategic value. See what management needs to do to achieve a required value. Model the markets perception in advance.


17. Compare
  Compare financial data.
 

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