Cash & Profitability Growth Strategies

According to 2024 data from the US Bureau of Labor Statistics, 20% of businesses fail in their first year, and a whopping 49% fail by their 5th birthday. The #1 reason for these failures is an inability to generate positive cashflows on a regular basis. The old adage, Cash is King is true. If organizations are unable to generate consistent positive cashflows, vendor invoices may not be paid timely, loans could be defaulted on, there are limited opportunities for business growth, possible reputational damage to the organization and unfortunately, in many cases business failure. Our firm partners with business owners and leaders to proactively guide their organizations towards the generation of consistent, positive cashflows and profitability. In other words, we provide strategic guidance to facilitate growing and successful businesses.

We utilize a 3-step approach to guide client organizations to achievement of their big vision, financial success and stability.

1. An initial assessment of the business’s financial health is performed. This provides the business owners/leaders with a clear understanding of their organization’s current fiscal conditions. We focus on the key drivers of cashflow, revenues and profitability.

2. We then gain an understanding from the business owners/leaders of what their vision of success looks like. What drives them? Why did they get into business? What are their organization’s short term (current year) and long term( next 5 years) financial goals or targets? We assist organization leaders with translating their broad/ high level goals into specific, measurable targets. We help them set targets for each of the key drivers of cashflow, revenues and profitability, against which actual financial performance will be compared on a monthly basis.

3. Each month we meet with business owners to review their organization’s clear, insightful color-coded scorecard of actual cashflow, revenues and profitability performance against the established goals. Green color-coded financial results means established goals have been met and/or exceeded, yellow color-coded financial results means there is a risk established goals may not be met in the near future. Red color-coded results means established goals have not been met. We partner with management to implement strategies to turn red and yellow-coded financial results to green.

Strategic Planning, Budgeting & Forecasting

Given the complex and ever-changing landscape in which businesses operate, those organizations that implement effective financial planning, budgeting and forecasting methodologies will have a distinct competitive advantage.

Our firm will provide your organization with a full framework for creating a strategic plan, typically a 5-year outlook. We perform integrated three-statement (Balance Sheet, Income Statement and Cashflow statement) financial modeling, to forecast future financial performance. The relationship between all three statements is automated, which means changes in one statement, automatically update the relevant numbers in the others. This provides a more accurate and dynamic representation of the organization’s financial results. In a rapidly changing economic environment, business leaders will benefit from having an integrated financial model to facilitate better cash management and assess investment and expansion opportunities.

We also assist your organization with developing an accurate 13-week cash flow forecast that predicts cash inflows and outflows over a 13-week period. This short term cash planning tool is vital to effective cash management. It helps businesses proactively identify cash shortfalls and surpluses, so that they can plan accordingly. The cash flow forecast also help businesses monitor debt covenants, debt capacity and the cash conversion cycle.

We have the expertise to assist with the development of budgets that align with your company’s strategic goals. We analyze financial data, industry trends and market conditions to help with the creation of realistic and effective budgets.

Audit Readiness & Support

Whether your organization is undergoing its first audit or you have been subject to an audit for several years, the keys to your audit success are to ensure that audit deliverables are properly completed with adequate support, timely delivered to the auditors and maintaining and open and excellent line of communication with the auditors. Many times the accounting and finance staff are so overwhelmed trying to juggle their day to day responsibilities with the audit , that the keys to success get lost along the way. With our extensive background of managing and performing external audit engagements, we are uniquely positioned to ensure your audit engagement is a success. We will assume full responsibility for all stages of the audit process and ensure its efficient completion within budget. Our audit readiness services typically include:

• Advise management on the selection of the audit firm

• Participation in the planning phase of the audit with the audit firm

• Review and clean up of the general ledger and subsidiary ledgers

• Documentation of Internal Control Procedures

• Complete Internal Control Questionnaire from the audit firm

• Preparation of audit schedules and analyses

• Research and documentation of technical accounting positions

• Preparation of Financial Disclosure Checklist

• Preparation of Financial Statements (including disclosure notes) in accordance with Generally Accepted Accounting Principles

• Assist management with the remediation of internal control deficiencies identified during the audit.

  Our solutions are tailored to fit each organization’s budget and needs. We can provide all of the services outlined or the ones needed by your organization

Risk Management

The development of an effective risk management strategy is key to every organization’s success, regardless of size and industry. The most common reason for organization failure today is poor risk management. Proactive organizations that think and plan ahead can limit their exposure to a variety of risks. W.A. Anderson CPA has the knowledge and expertise to assist your company with identifying, evaluating and managing those external vulnerabilities that will hinder achievement of your organizations strategic goals and objectives.

Accounting & Financial Reporting

With our extensive Financial Controllership background, we have the skills, knowledge and experience to efficiently perform your monthly or quarterly financial close process. We will ensure that all necessary journal entries are recorded in the accounting system, and that the Balance Sheet reconciliations of the sub-ledgers to the general ledger are completed. We will prepare the financial statements in accordance with generally accepted accounting principles along with any other required financial analyses. We will ensure that any internal and/or external reporting deadlines are met.

Internal Controls Assessment and Implementation

Internal controls are policies & procedures that organizations develop and implement in order to minimize or eliminate the risk of (1) misappropriation or misuse of assets through fraud (2) material errors or misstatements in accounting records and financial statements (3) non-compliance with the regulatory authorities. A robust system of internal controls is particularly important to growing businesses, to ensure that better cashflows and profitability are realized.

We have more than 2 decades of experience helping smaller businesses develop and implement strong systems of internal control. we have the skills, knowledge and expertise to help with your internal controls project.

Tax Planning & Preparation

With our everchanging tax laws, tax planning and preparation can become verytime consuming and complicated for Business Owners and Leaders, who need to focus on building a thriving business. We are here to clarify tax and financial planning opportunities and assist in implementing strategies to reduce your organization’s income tax burden.

For our Nonprofit clients, we prepare accurate Form 990 returns in accordance with the requirements of the IRS. We also utilize the return to tell the nonprofit’s story of how they are fulfilling their mission, to educate donors and market their organizations and programs.

Certification of AHCA’s Proof of Financial Ability to Operate

The Florida Agency for Health Care Administration (AHCA) requires a Proof of Financial Ability to Operate (PFOA) for certain healthcare providers applying for a new or changing ownership license. These organizations include:

• Assisted Living Facilities

• Adult Day Care Centers

• Hospice

• Intermediate Care Facilities for the Developmentally Disabled

• Prescribed Pediatric Extended Care Centers

• Health Care Clinics

• Home Health Agencies

• Home Medical Equipment Providers

• Nurse Registries & Skilled Nursing Facilities

AHCA requires that a CPA must compile, examine, or apply agreed-upon procedures to prospective financial statements, including summaries of significant assumptions and accounting policies that form a part of the PFOA. We are experts at preparing and or reviewing the financial statements and supporting documents that must be included in the PFOA. Our expertise helps with ensuring prompt approval of your licensing application to commence your health care business.