Recount: Bringing Businesses and Accountants Together
Using Recount, finance-savvy small businesses are already able to take their business’ pulse over their morning coffee at the push of a button. But I’m really looking forward to introducing Recount to professional Accountants, who’ll be able to serve so many more of their clients with timely and frequent reports and insights using Recount!
The value of Recount starts with key revenue and profitability items, and follows with some essential ratios spelt out in simple but articulate English (that may make boring accountants like me feel linguistically inadequate). I think that by using Recount, business owners will be comforted in the knowledge that they’ll get to understand the complex numbers that paint the picture of the health of their business. Most importantly, the info and insight that Recount gives them will allow them to confidently do what they do best – run the business that they love.
In addition to the “Health Check”, the detailed Sales report gives precision on the money coming in; from whom, for what and the comparisons to previous periods. Additionally, there is a projection calculated using the monthly sales trend from the past 16 months’ data.
The Cash report gives a trend of total cash balance over the past 6 months. It compares bank account balances between the current and prior month and spells out the past month’s cash movement, distinguishing between cash in and out. This is compared with the same activity in the prior month. It also gives a projection for the end of the following month’s cash balance, based on the assumption that 70% of receivable invoices due by the end of the following month are paid on time, and payables follow past twelve month’s trend.
The expenses report beautifully delineates OPEX displaying it graphically and articulating its composition. The biggest movements between months are highlighted, giving users comfort and awareness of what’s happening under-the-bonnet.
The receivables report is a treat, not just as it uses my favourite colour, but it gives us a clear picture of who owes us money, and why! I can graphically, tabularly and linguistically determine who, from when and how much I’m effectively funding of my customers, and the movement of their debts between the current and prior months. I clearly remember producing this as part of quarterly board packs and the oldies on the board of directors would stew over this information the most, whilst grinding their teeth.
Whether you’re a business owner or an Accountant, if you are a Xero user and want to gain a deeper analytical view of the way your business is performing – “Sign up now, for your 30 day free trial.”
Author: Dimitri Cachia, Subject Matter Expert at Arria NLG