Entrust Accounting & Advisory Services
MANAGEMENT ACCOUNTING
Management Accounting involves identifying, measuring, interpreting, and communicating of financial and non-financial information to management for the purpose of making prudent business decisions.
As a trusted CPA firm in Ontario, we provide comprehensive accounting services tailored specifically for small business owners. Our specialization lies in management accounting and business finance, empowering you to optimize your financial performance and achieve your business goals. Take advantage of our expertise in business coaching and consulting to unlock your business's full potential.
Management Accounting focuses on two areas:
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Analyzing and reporting on operation business metrics, variance analysis, rates of return, and business ratio analysis which is used to assist stakeholders internal to the company in making well-informed business decisions, and
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Forward-thinking planning exercises such as budgeting, make-or-buy decisions, cash flow forecasting to name a few.
BUSINESS PLANNING
Did you know that the survival rate of businesses in Canada drops significantly during pandemics? According to an Innovation Science and Economic Development Canada report (Key Small Business Statistics Nov 2019), while the overall survival rate within the first year is 95.4%, it decreases to 64.9% after five years, 43.7% after ten years, and a mere 31.3% after fifteen years. These statistics are concerning, especially if you're relying on your business to fund your retirement.
To increase your chances of success, it's crucial to avoid common mistakes when starting a new business. According to a BDC article titled "9 common mistakes to avoid when starting a new business," the top three mistakes are: neglecting to make a business plan, inadequate financial preparation and resources, and failing to monitor progress and adjust accordingly.
At Entrust Accounting & Advisory Services, we specialize in Business Planning to address these challenges. Our team is dedicated to guiding business owners and operators through a comprehensive process that confirms the company's overall goals, validates market trends, assesses current results, and creates a measurable plan that serves as a roadmap to success.
Don't let your business become another statistic. Visit our website to learn more about how Entrust Accounting & Advisory Services can help you develop a solid business plan and increase your chances of long-term success.
BUDGETING
Efficient cash management is essential for any company, as it serves as the lifeblood of the business. Without proper management, you may find yourself facing insufficient funds to meet upcoming obligations. Many business owners wonder, "If I'm generating profits, why do I struggle to pay bills?"
Proper budgeting plays a crucial role in planning for revenues, expenses, working capital, investments, and financing. However, there's a common misconception that budgets are restrictive and unchangeable once set. In reality, when implemented effectively, budgets can actually enhance freedom by providing insights into the reasons behind changes and empowering business owners to make informed decisions when needed.
Budgets serve several purposes, including helping owners focus on what truly matters, identifying areas of overspending or underspending, outlining plans to increase earnings, uncovering opportunities for improvement, and ultimately improving business owners' peace of mind.
At Entrust Accounting & Advisory Services, our Budgeting Service is designed to guide business owners and operators through a comprehensive process that includes developing a detailed sales budget, cost of sales budget, expense and profit budget, inventory and supplies budget (if applicable), business assets acquisition/disposal budget, and financing and debt servicing budget.
The deliverables of our service will be a meticulously crafted 12-month budgeted income statement, balance sheet, and statement of cash flows, providing you with a forward-looking financial overview.
Take control of your business's financial future. Contact Entrust Accounting & Advisory Services today to learn more about our Budgeting Service and how it can help you achieve your financial goals.
BUSINESS PLANNING & BUDGETING
PERFORMANCE ANALYSIS
BUSINESS PERFORMANCE ANALYSIS
“What gets measured, gets done” is a statement often attributed to management guru Peter Drucker, and the effect of that is “if you can’t measure it, you can’t manage it”. To measure something, you need to understand what is being measured. In short, if you want to control something, you need to understand it. Measures for measurement's sake is meaningless and wasteful.
Performance analysis studies the company’s overall results and compares its efficiency and effectiveness to achieve those results. The analysis always starts with the company's financial results and available budgets and plans. Company direction, functional processes, and individual contributions are then examined to determine whether the objectives, goals, and measures are in place to organizational goals and objectives.
Beyond accounting and tax preparation services, Entrust Accounting and Advisory Services offer years of executive experience in manufacturing & operations, engineering, marketing, and sales. These groups are measured on more than just a budget; key success factors in key result areas drive business growth and Entrust Accounting and Advisory Services is well-positioned to facilitate the business improvements that matter most to your business.
STRATEGY MAPPING & BALANCED SCORECARD
Do you ever wonder why ‘things’ are not getting done? Have you wondered why employees do not seem to get the sense of priority and urgency that you do? Most likely the problem is not what your business needs to accomplish, it is the communication and monitoring of how the business is getting things done at the level of urgency you require.
Strategy Maps and Balanced Scorecards are the foundation of a business owner's ability to translate vision into reality. Strategy Maps define what needs to get done and answers “if I better prepare my staff, then my staff know more about the product and markets. Increased product and market knowledge will help acquire more customers, which in turn improves financial results”. Balance Scorecard puts measurements to ‘preparing staff’, ‘measuring product and market knowledge’, ‘customer acquisition’, and ‘financial results’.
BALANCED SCORECARD
Balanced Scorecards (BSC) bring life to the Strategy Map by linking ‘leading’ and ‘lagging’ measurements to the Strategy Map ‘initiatives’. Utilizing a variety of metrics, the BSC is used to provide feedback regarding the progress the company is making towards achieving its objectives.
Measures of quality and on-time-delivery can provide early indicators of how well objectives will be met, if at all. Issuing purchase orders for supplies and raw materials too late could impact a company’s ability to deliver manufactured product to customers thereby missing sales and profit expectations
STRATEGY MAPPING
Strategy Maps provide a powerful visual representation that connects and aligns the essential initiatives a company needs to accomplish. By illustrating how employee training enhances productivity, leading to improved customer acquisition and ultimately driving enhanced financial performance, Strategy Maps effectively communicate the path to success. These initiatives are categorized into four perspectives: financial, customer, internal (processes and projects), and learning and growth. Experience the transformative impact of Strategy Maps in guiding your company towards its goals and achieving sustainable growth.
FINANCIAL WELLNESS
FINANCIAL WELLNESS
Are you tired of being perplexed by loan rejections and caught off guard by disappointing financial results? These unexpected setbacks can feel like a sudden financial heart attack, leaving you wondering what went wrong.
Financial wellness is the ultimate goal for any business, where you can confidently meet your financial obligations, withstand unexpected challenges, and consistently grow your bank account balance. Just as doctors assess various indicators like blood pressure, temperature, and blood tests to gauge an individual's health trends, we at Entrust Accounting and Advisory Services conduct a comprehensive diagnostic review of your past financial performance.
Our expert team utilizes a range of financial and operational ratio analyses to detect underlying trends that may be affecting your business. From identifying cash flow leaks and declining productivity to addressing diminishing working capital, weakening sales, and increasing debt servicing, we leave no stone unturned. By paying close attention to these crucial areas, we can guide you toward lasting positive outcomes and help your business thrive.
Don't let financial surprises derail your progress. Take a proactive approach to your business's financial health. Contact Entrust Accounting and Advisory Services today to embark on a journey toward sustainable growth and success.
