financial statement analysis using global financial bridge
DESCRIPTION
Use the GFB One page scorecard to help your Clients toEvaluate clients profitability cash and return on investment in a One page scorecard Where their key financial performance opportunities existInstantly know the impact of various decisions before you make themHow to convert financial statements in a real life management toolProduce effective financial diagnosticsCreate future projected financial statements and cash flowsCreate consulting revenues that is truly saleable Use the GFB One page scorecard to help youEvaluate profitability cash and return on investment in a One page scorecard Educate you people on how decisions impact the income statement, Balance Sheet and Cash flow statementKnow the impact of price and volume decisions Know the difference between good and bad growthUnderstand whether you are making money from other people money (risk profiling)Discover where their key financial performance opportunities existInstantly know the impact of various decisions before you make themHow to convert financial statements in a real life management toolProduce effective financial diagnosticsCreate future projected financial statements and cash flowsCreate consulting revenues that is truly saleableTRANSCRIPT
Using GFB
How to use guide
Getting started
Data access options
1. Load a company from quick books. Make sure QuickBooks is open in the relevant company you want to import.
2. Create a stand alone company. If you want to input data from a set of financial statements
3. Open an exiting GFB data set.
Getting the data – From QuickBooks
Click the load button
Data mapping screen
Classify button = change the default account location
Quick books account
GFB account location
Import - the last step
The year you want
data to start being
imported from
The year you want
data to start being
imported from
Its done
The starting point – called the data capture sheet
The data capture sheet after the
completion of the import process
Data loading functionality
Opening the + sign shows the account details
The data loading screen allows the source data view.
Access the one page scorecard
Choose the period you wish to view in
the One Page Scorecard
Press Scorecard
The one page scorecard
Current period
numbers
Metrics that define business performance
Click on any performance category to expand the details of the performance category
Performance category expandedClick the
performance box to expand the details of the box or to
do the required “what
if”
Performance category expanded
Working Capital
explained(Change
any of the working capital days to see the impact)
Performance category expanded
Cash flow and
structure
Doing what ifsYou can road test any strategy (or multiple strategies by changing any item in
1.The income statement or balance sheet
2. Any editable performance measure
Example change revenue growth to 30%
After doing a what if
The scorecard re calculates based on the change. Showing the picture after the change. Press the net change button to see the difference
Net change view
Press scorecard and undo to return to the original data
What if techniques
Revenue quality what if Increase revenue growth go to the net change
view to determine if additional volume is cash generating or absorbing
Profitability what if Identify the best performance over all review
period. Use these metrics to change the profitability measures. Use the net change to see the impact
What if techniques
Working capital optimization Identify the best performance over all review period. Use
these metrics to change the working capital measures. Use the net change to see the impact.
Combination what if (Improvement opportunity) Combine the best measures in the profitability and working
capital. Do a net change to identify the financial opportunity that can be derived by imputing the best measures the company has already done.
What if techniques
The challenge what if Improve measure that you believe the business
could perform against. Do the net change to determine the stretch goal.
Graphing Click on the performance
measure you want to graph then press the graph it button
Click on the performance
measure you want to graph then press the graph it button
Explain it 1. Click on the ratio you want further information on
2. Click on the explain it button
Cash flow and what ifs
The following performance variables were changed
1.Revenue growth from 23.33 to 30% net change ▲6.67% improvement
2.Variable COGS % from 62.16% to 61% ▲1.16% (improvement)
3.Days inventory from 122 days to 100 days ▲22 day improvement
4. Press reports select cash flow statement
Resulting cash flow statementFirst column (data entry) is the actual data without any changes.
The second column is the cash flow based on all the what if or changes made to the scorecard.
The third column is the difference. This is most helpful in explaining why cash changes when different decisions are made in the business.
Save, print and exit
Save is the big one, if you press save this will CHANGE your ORIGINAL data in the loading screen. Use it only if you want to save a potential strategy for future reference.
If you do so use the save as feature and save as a new name my fast growth strategy.gfb for example
Creating a budget
In Data loading screen Click add a period Enter the start date and
the number of months you want to budget for
Tick the budget box Tick the wizard button
Creating a budget (cont)
1.Enter the key variables that you believe will be performed during the budget year
2. Press save
Selecting the scorecard view
1. Determine the period you want to view in the scorecard
2. Click on the column underneath the period heading
3. Press the scorecard button