Financing and seeking financing for investments are rarely entrepreneurs' favorite topics, even though information is now available closer than ever. Often the most skilled help would be found in your own accounting firm, many of which now offer CFO and controller services in addition to traditional accounting services. However, few SMEs take advantage of this opportunity. Careful investment and financing planning would greatly benefit both the company and the financier.
1. Support for income and balance sheet budget preparation
Many micro and SMEs carry their budget in the entrepreneur's head, undocumented. Without a structured budget, it's difficult for outsiders to understand the development of the company's financial situation and the effects of different scenarios on the company's cash flows. Fact-based, forward-looking decision-making becomes difficult.
2. Financing structure scenario analysis
When examining financing for a single investment, it's important to weigh which financing instruments and financing structure will be used. Alternative financing instrument and structure calculations help understand which financing structure best suits the company in terms of financing cost.
3. Support for business plan creation and maintenance
Budget preparation is based on a vision of the company's future situation, which should be documented in a business plan, at least when seeking financing. Without a business plan, it's difficult to understand budgeted figures and their cause-and-effect relationships, which makes business management challenging.
4. Support for updating Income/Balance sheet budget and collateral position
When updating the business plan, the budget should also be updated to reflect the vision of the future. Essential questions include whether budgeting accuracy meets the company's operational and strategic financial monitoring and planning needs.
Finadeck for financing negotiations
Finadeck's AI-powered SaaS software is designed to help accounting firms and businesses with consolidation, income statement and balance sheet budgets and forecasts, cash flow forecasting, and BI reporting.
