Three Step Process designed to provide an organization with input regarding their finances and provide the customer with an opportunity to choose the outputs they need for their business. The assessment is a two-week engagement with one week on-site. The outputs are priced based on projected hours to develop.
Step 1 – P&L Assessment
• Cost of Goods Sold Review -> Industry Margin Comparison
• Sales, General and Administrative -> Industry Comparison
• Fixed versus Variable Overhead Assessment
Step 2 – Balance Sheet
• Leverage Ratios
Step 3 – Cash Flow
• Terms and Accounts Payable
• Terms and Receivables
• Contribution Margin Model – Variable P&L, very useful when quoting manufacturing business
• Fixed Cost Burden Assessment – Goes with the Contribution Model; TTL Fixed cost as % of sales and units
• Quoting Tool – Using the Contribution P&L + the Fixed Cost Burden assessment create a tool to quote all items
• 13 Week Cash Flow model – Forward looking view on cash available for the business and planned spending
• Cash to Cash Cycle Time – From Cash “Out” to Cash “In” cash turnover model.
• Supplier Spending Cube – To whom do you spend your money with and when.
• Cost Savings Opportunities – Further assessment of labor inputs and other expenses; both OCOGS and SG&A