Examples of Corporate Financial Consulting

Financial Advisory Examples - Financial Reporting
Excel Spreadsheets

O cash flow It is the main financial tool of any company. Using it in a financial consultancy is a basic point of project success, whatever the purpose: solving short-term problems or projections of viability. Learn more below.

Types of Financial Consulting

When it comes to business financial consulting there are a number of services that can be offered and requested. Usually the ones that stand out most are:

  • Valuation
  • Financial Control (Cash Flow)
  • Financial planning
  • Economic and Financial Assessment (Balance Sheet)
  • Economic Feasibility Study
  • M & A (Mergers and Acquisitions)
  • Fund-raising
  • Among others

Today I will speak specifically about how to implement a financial control well done in a financial consultancy. If you want to understand more (and see practical examples) of any of the other services provided by consultants in this area just tell me the comments (at the end of the article).

1 Corporate Financial Advisory Examples

Does Every Business Need Financial Advice?

To begin with, we will end the myth that every company will need financial advice. At times it may be that this area is already sufficiently organized and that the best step is to understand if there is any other area more deficient or steps more advanced than the financial control only.

To find out if financial control consulting is important to your client, an essential first step is to understand how your company's finance area is structured and what practices are performed on a day-to-day basis for the organization of entries and exits.

Financial Area Diagnosis

A first care that any consultant should have is not to think that their solution, method or process is right and ideal in any case. Often it may be necessary to make adaptations according to the reality of your client.

Therefore, an essential first step is to carry out a diagnosis of the financial area of ​​the client's company. In this sense it may be important to get the answer to some questions like:

  • Are members' personal accounts mingled with company accounts?
  • Do you have any tools for controlling cash flow?
  • Is the tool filled out correctly and helps with analysis?
  • What are the financial indicators used and controlled by the company?
  • Do you have financial / budget planning for future months?

Other questions that may help you understand the business reality:

  • What are the main processes in the area?
  • Do you have debts (loans)?
  • Controls working capital?
  • Do you have a reserve fund for months at a loss?

If you want to dig deeper into financial control, I strongly recommend you check out our post on how to make a cash flow.

1 Corporate Financial Advisory Examples

Cash Flow is mandatory in a Financial Consulting

Yes, regardless of company size and number of people in the financial area. It doesn't matter if you are consulting for a self-employed entrepreneur or a CFO of a company with more than 100 employees. Controlling cash flow is mandatory for any business.

So at this point you need to understand if your client already has some financial control or not.

If the customer does not do any cash flow control

In this case, you will need to implement some automated financial control system (it can be a spreadsheet or software). I am well in favor of implementing steps, starting with the simplest possible control (revenue and expenses of the month) and then going up the steps according to the client's reality. Some steps that I separate are:

  • Control of monthly revenues and expenses
  • Separation of revenue and expenditure into groups (simplified chart of accounts)
  • Control of daily income and expenses
  • Control of accounts payable and receivable (DRE analysis)
  • Financial and budgetary planning
  • Separation of important areas into cost centers

Obviously, all of these items need to be automated by generating reports and graphs, more or less like this:

Know the importance of building a basic cash flow for your business

Remember that as a consultant you have a duty to indicate some option for him. Here in LUZ we had a lot of success with our spreadsheet cash flow and we have received excellent feedback from consultants and users.

If the customer already has a cash flow system running

First understand the type of control that is done. Although not very common, there are still several entrepreneurs who do not use an automated system (cash book, notes or notes of the day). I do not even need to say that this is not the ideal and that you will have to work on the implementation of a spreadsheet or software that I did not even explain up there, right ?!

If it already uses a cash flow or software spreadsheet, it is worth identifying if the system meets all the basic prerequisites of smart financial control. If the system is good and provides all the necessary data and reports, understand its operation and use it.

What to analyze in cash flow

These are the items I consider most essential to analyze from any financial:

  • Recipes
  • Expenses
  • Profit prejudice
  • Bills to pay
  • Bills to receive
  • Cash Need
  • Accumulated balance (reserve fund)

Manual Report - Cash Flow Report

See that in a simplified report in our cash flow worksheet you can analyze the revenues and expenses month to month and the profit or loss of the period, as well as the profitability, accumulated balance and accounts receivable and payable.

This is the first step for you to understand financially minimally. If you do not have this vision as a consultant, you are already a little blind and probably your suggestions and directions will not be of equal value.

If the system does not have this capability, a cash flow worksheet can be an excellent companion tool. I say this because we have already done sales of cash flow spreadsheets for customers using SAP or Alterdata and did not think they would be able to have all the types of visualization they wanted. This will vary from case to case.

1 Corporate Financial Advisory Examples

But it is not only this, it is worth to delve into some other indicators:

  • Profitability
  • Working capital

Depending on the type of business, this may be a very difficult indicator to find. Once doing a consulting for a company that sells hospital supplies was almost impossible to come up with at an exact amount. That's because she worked with future receipts of materials that had been used by health insurance.

Since this control was complicated and there is still a gloss rate on the branch, the solution was to simplify it to understand in general how much she needed to have cash every month so as not to go red and ask for loans or advances with high rates.

Periodicity of Analysis

Another important aspect is the periodicity of analysis. In some types of businesses such as retail and trading in general it is essential to have a daily cash flow analysis. If your system is minimally good, it already generates this report for you:

Know the importance of building a basic cash flow for your business

For cases of companies with higher sales cycles the analysis can be done weekly or even fortnightly without problems. Regardless of these data, it is quite legal to conduct a thorough monthly analysis with your client.

Financial Consulting - Analysis Meetings

Even before the meeting, discuss some factors:

  • Is there room for cost cutting?

Make a percentage analysis of the categories of expenses and see which has the largest participation, within them, some item is being

  • Has there been a spike in revenue?

Analyze revenue from sales of products and services throughout the month. Is there a group or item that has a bigger sale? Was this because of some marketing action? Is it worth repeating?

  • Is there a high default rate?

It pays to analyze the amount of unpaid revenue by customers to understand if this is undermining the company's monthly cash requirement. Present the business default rate and set goals to reduce the number.

  • Does the parceling policy match the company's working capital?

Sometimes the client can set up installment policies up to 24 months based on market practices. The problem is that this can impact the company's short-term cash and cause it to have no money to pay suppliers.

The idea of ​​business financial consulting is precisely to arrive at these answers (and many others). To be able to answer each of these items you will need to implement (if not implemented) or organize your client's financial control structure.

How to implement cash flow in financial consulting?

  • Step 1 - Defining the Simplified Chart of Accounts

The chart of accounts is an accounting record and can often be very complicated. In cases of financial control I strongly recommend the simplified Chart of Accounts. It has some main items:

  1. Direct Recipes
    • with products
    • with services
  2. View Forum Posts
    • non-operational
  3. Direct Expenses
    • with products
    • with services
  4. Indirect Expenses
    • operational
    • with human resources
    • with marketing
    • non-operational
    • taxes
    • investments

Basically you will identify how the company spends and earn money to sort on these items. Here's an (quite simple) example of what the chart of accounts would look like for a consulting firm that does only one type of service and also sells books and handouts:

What is Projected Cash Flow

  • Step 2 - Release Posting

This is perhaps one of the most critical parts of the process, because as a consultant you will not do this filling. This is a task for the entrepreneur / entrepreneur or for someone in his / her financial team. In this case, I have some suggestions:

  1. Identify the person who will be responsible
  2. Present the cash flow sheet for her
  3. Conduct a training explaining exactly how to record the expenses and receipts
  4. Track the use of the spreadsheet daily in the first week to make sure the work is being done
  5. After this week see the need to redo the training

excel financial database

See that it will usually be quite easy to do this fill. It is a matter of marking the day, the classification of the item, in which chart of accounts it belongs, the value and whether the status is paid or not paid. Note that in an automated worksheet, this data will already generate cash flow reports (revenues and expenses), DRE (account plan), and accounts payable and receivable (paid and unpaid)

  • Step 3 - Implementing a Financial Control Analysis Framework

I think your role as a consultant should be to suggest the best financial structure possible, so when your project runs out, your client will continue to understand the key financial data. So make sure your customer can review some reports and graphs like:

  1. Month-to-month cash flow report
  2. Daily Cash Flow Report (depending on the customer's reality may not be important)
  3. DRE Report (Statement of Income for the Year)
  4. Revenue Graphs by Categories
  5. Expense Charts by Categories
  6. General Cash Flow and DRE Charts

12 - graphics

To do this, structure the cash flow system, train the people responsible, organize the analysis structure (weekly, biweekly or monthly meetings). After all, at the end of the project you will no longer be there to follow up and help in the day to day.

1 Corporate Financial Advisory Examples

  • Step 4 - Making Sure Your Financial Advice Is Working

Although not simple, there are some clues that can tell if your work is generating results for your client. If you have the ability to run 2 or 3 months in a row, you can see if you are reaching any of these indicators:

  1. Gradual cost reduction over months
  2. Increase in revenue based on actions indicated by you
  3. Growth of the reserve fund (accumulated balance)
  4. Renegotiation of long-term debt
  5. Decrease in installments
  6. Higher profitability
  7. Among other items

How to develop a cash flow

Remember that these are some indicators of financial control. If you also carry out a budget planning would have indicators like planned x performed and so on.

Practical example:

When LUZ was still consulting, one of the projects I took (along with another consultant) was for a businesswoman who had 3 Cafés in the South Zone of Rio de Janeiro. Despite being able to control the inflows and outflows and make a very good cash closure, one of the biggest problems was in analyzing its indicators and structuring what to analyze.

South Rj Coffee Shop

Therefore, we follow the following steps:

  • Step 1 - Chart of Accounts

We are talking about a coffee, and for financial control at a macro level, whether it sold a salty ham or cheese. Thus, we made the following division of the chart of accounts:

  1. Direct Recipes
    • with products
      • Bar Bites
      • Dessert
      • Drinks
  2. Direct Expenses
    • with products
      • Forncedores
      • Feedstock
  3. Indirect Expenses
    • operational
      • Vacation Rentals
      • Counter
      • Juridic services
      • Cleaning materials
      • Uniform
      • Stainless Steel
    • with human resources
      • Employee Salary
      • To work
    • with marketing
      • offline
      • online
    • non-operational
      • Interest

I left it even simpler just so you understand where each item should go, but at this early consulting process it is well worth understanding how all the financial processes (payment, receipt and cashiering are done).

  • 2 Step - Registration

Since the financial was already cleared daily by business partners, there was no reason to implement any kind of change in the process that they did in an organized way. The only problem is that this conference process was very labor-intensive and sometimes generated rework.

Thus the use of spreadsheet cash flow was done taking advantage of their reality. We would pick up the day's totals and play on the spreadsheet. Remember I mentioned the importance of having daily follow-up and simplifying whenever possible? That's what we did right now. That way, at the end of each day it was possible to know if that day was a good or a bad day.

We had already organized a good part of the processes and the financial control structure, lacking only the most important part of the consultancy.

  • Step 3 - Data Analysis

With the worksheet being filled in correctly, we ended up getting a better look at items such as seasonality of revenue throughout the month, expenses by category. Allied to this, we also noticed (even from the information that the client had in the past) problems with some suppliers and with payment of employees.

Since everything is not perfect, the simplification of daily filling in of entries has cost us a more detailed analysis of which categories of revenue were most relevant. Still, we had customer information that sweets (mostly cakes) had a big way out.

  • 4 Step - Some Results

So, to summarize the project a bit, we ended up making some suggestions of what could be done like:

  • Exchange of suppliers (delays and high prices)
  • Definition of payment dates (cash flow organization)
  • Focus on sweets (empirically we knew that they sold more than the savory ones)
  • Organization of payments of employees (received salary anticipations with little control)

Over the course of a few months of the project we have seen some interesting results:

  • Overall cost reduction (new suppliers, less marketing expenses)
  • Knowledge of business indicators (use of spreadsheet for financial reporting)
  • Organization of cash flow throughout the month (few payments on specific dates)
  • Higher turnover with sweets (mainly cakes)
  • Fewer anticipations for employees (removing the risk of future labor suits)

If you have any questions about what was done, how it was done and what it generated, just send me a message in the comments.

Summary of a Financial Consulting

In the end, as a financial advisor, you need to make sure that:

  • He was able to diagnose the main errors and financial control problems that exist
  • Developed a plan of action focused on the analysis of information
  • Implemented a cash flow control structure that will be lasting even after you leave

1 Corporate Financial Advisory Examples

Did you miss any items or have any suggestions? Are you conducting a financial consultancy and want to ask a question? Just comment below that it will be a pleasure to answer you.

Excel Spreadsheets


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  2. I use a system to control cash flow, and other features. The system is ON LINE, one of the "best" on the market today and with strong marketing. In fact, the system is good and helps small businesses in issuing nf, and in some controls. I think for cash flow analysis, still needs some improvements.

    This system allows importing into my accounting system, which is the domain systems. I import the TXT from the bank statement, and then import from that online accounting system. There I have all the launches generated, debits and credits.

    however, the spreadsheet reports are excellent in terms of cash needs analysis, future forecasts and so on.

    if the spreadsheet generated this import for the accounting system, great! then we would analyze the other reports from the spreadsheet itself.

  3. Hi Gleison, how are you?

    Which system do you use for cash flow? And which accounting system do you use? How do you import data into it?

    When you respond, it will help me understand a little more and help you in the process. As for writing the article, you can let me set aside some time here to do.

  4. Great article. As a suggestion, I would like to read an article that reports the difference in cash flow analysis between worksheets and systems. I, I acquired the spreadsheet a year ago and started using a system for the benefit of importing into the accounting system. However, I see that the system falls short of the worksheet. The analysis is much more complete, it would be excellent also if there is the possibility to import from excel to our accounting system.

  5. Hi Chris, thanks for the compliment, I'm glad you liked the article.

    I liked the suggestion and I'm sure I'll leave it down here for a while. In the meantime, is there any topic related to consulting that interests you the most? In this I talked about cash flow in financial consulting.

    What else would you like to see?

  6. Rafael, very cool his didactics. I would like you to write a book with your chronicles (experiences) in consulting ... I'm sure it would be a success! That's the tip, okay !?

  7. Hi, Cleonice, is everything okay?

    Thanks for the compliments and for accompanying us here. If you can, please answer me here which other topics I would like to go into. It will be a pleasure to write about them further on.

    In regards to becoming a consultant, I have 2 tips that I consider very important:

    1 - only study does not work, you have to practice. Enter the companies, talk to customers and apply the knowledge you have. In this process, you have to measure the results of the actions that you have implemented, see what works and what is not so useful, and get better

    2 - in this process, keeping up to date is essential. Know the most used methodologies, how to apply, your financial concept, etc. To follow blogs (like ours), publications and do some readings can help you

    Anyway, as you asked of the training course of consultants, I recommend that you seek the IBCO - http://ibco.org.br/ (there they have a course area) or ABRACEM - http://www.abracem.com.br/, which I believe are the two main organizations for consultants in Brazil.

    You'll also find lots of not-so-good courses out there, worth seeing if you're interested in programmatic content and stuff like that.

    If you have more questions, just ask around here. It will be a pleasure to help.

  8. Good morning, Rafael! Rafael, I have an accounting office and would like to work in consulting services, especially the financial services. Are there courses aimed at this purpose? Training of business consultants, etc.? How to learn all these methodologies and how to know when to apply them? Your articles are very rich, here you gave a great explanation, setting the step by step for this service, however, I would like to go deeper into the subject to expand our range of services. Could you tell us which directions to take?


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