Adding Value to your Practice

Article Tools

• October 2006 Issue
• Print This Article
• Email This Article to a Friend
• Save This Article
• Order a Reprint

Every accountant’s practice is different from that of his or her peers. Whether it’s the client base that has driven the practice to offer specialty services or a particular interest and skill on the part of the professional, every firm varies, sometimes more than others, in the services it offers. And just as the expertise in niche fields varies by practitioner, so too do the capabilities of the various programs on the market that are designed to fill the niche voids that the all-in-one accounting suites often miss. There are literally hundreds of specialty applications geared toward professionals who offer these core special services, from in-depth financial analysis, to proactive tax planning and business valuation. This special section identifies several products on the market that are designed to provide professional accountants with the tools to assist their clients in these matters.

Far too many small businesses and individuals lack a solid understanding of their financial condition and how various factors contribute to their short and long-term success or failure. But even when they have accounting programs that develop basic financial statements, these small business owners and managers still often lack the ability to see how the data on these statements really relates to their business. Obviously, the advice of a professional accountant goes a long way, but there is frequently a language compatibility issue: A professional accountant may understand the financials but may not be as adept at communicating their meaning to the small business owner without a financial background.

Many products on the market are geared toward assisting both small business owners and public accountants with overcoming this issue by providing useful data presented in understandable formats. This often includes charts and graphs, as well as narrative discussions about key indicators. These programs also offer budgeting and planning tools, some with sophisticated “what-if” scenario-building capabilities that allow the professional accountant to input variables to show their client the potential effects of taking action X as opposed to action Y. Additionally, benchmarking functions are available that let a business see how their business performance rates against those of their peers in the same industry group and with the same general characteristics.

To adapt an old adage: “Businesses that fail to plan can plan to fail.” But those that recognize the importance of seeing the whole picture and how each component of a business interrelates stand a much better chance at overcoming weaknesses and capitalizing on their strengths. The products in this section offer varying functions, but all are geared toward helping businesses or individuals see the big picture and be better prepared for the future.

-----------------------------------------------------

Financial Statement Analysis Tools

BizBench
BizBench (www.BizBench.com) provides financial professionals with a tool for comparing a client’s business financials with those of similar-sized companies in its industry (by NAICS code) using a simple, automated process for calculating performance ratios. The software provides practitioners with the insight needed to help clients identify and improve on areas of diagnosed weakness, while also building on strong performance areas. This enables the development of strategies that can help the business be continuously more productive and profitable.

BizBench includes scenario “what if” planning capabilities with its Back Calculation feature that calculates improvement targets based on desired percentile rankings of client ratios. The customizable client-ready management report was developed by management consultants to be understandable by most general managers and business owners, and includes strong visual elements such as charts and graphs, and plain-language narrative explanations and diagnostics. The fully editable 45-page client report also contains a section that identifies specific areas for potential improvement and presents good business practices that can assist in improving performance in the diagnosed weaker areas. The system’s goal-setting and scenario functions allow the financial professional to use projected improvement data to calculate new ratios and rankings. The 2007 version will include an Analytical Review section.