Bojan Radojicic

Here are the conditions to have perfect financial report in place: 1. Clear SOPs in place 2. Clear accounting polices 3. Setting the automatic internal controls 4. All transactions accurately recorded in timely manner 5. Completeness assurance: all financial transactions and relevant details captured in the books 6. Efficient chart of account 7. Regular monthly / quarterly / annually reconciliation 8. Tax filling deadline system in place 9. Documented audit trail for all financial 10 transactions, including supporting documents 10. Implement (automatically) closing procedure 11. Financial statements comply with the relevant accounting standards 12. Ensure consistency in financial reporting practices

Ke=RFR+BC*ERP+SRP RFR – Risk free rate BC – Beta Coefficient ERP – Equity risk premium SRP – Specific risk premium The beta coefficient represents a measure of the correlation of return on investments in a certain industry in relation to the return on investments in the market portfolio. The product of the beta coefficient and the equity risk premium represent the premium on investment in a certain industry. If the beta coefficient is less than 1, the premium to invest in that industry is lower than the premium on market return, so we can say that investing in that industry is less risky than investing in a market portfolio.

1. Identify at least 30 KPIS for your business 2. Talk with industry financial experts, and cut selected list to 10 KPIs to watch (even I prefer 7 only) 3. Set timing for calculating of KPIs e.g. 3rd in month for previous month 4. Compare KPIs with budgeted and with last period 5. Set a benchmarking rules: compare KPIs with peers

1. Analyze data 2. Define drivers 3. Set the assumptions 4. Make a model 5. Input historical data column in model 6. Input monthly average column 7. Define baseline amounts in pre-forecasting column 8. Input the assumptions (e.g. historical data x expected growth rate, % of revenues or others) 9. Multiply assumption column with baseline and get the forecasts

Improvement of WC directly leads to cash flow increase. For understanding how to improve WC i prefer Cash Conversion Cycle Days. Lower CCC > Lower WC > Higher Cash. Measure the time it takes for a company to convert its investments in inventory and other expenses into cash inflows from sales. CCC = DSO + DIO -DPO Days sales outstanding, or DSO measures of how long it takes for a company to collect its accounts receivable (sales made on credit) from customers. Days inventories outstanding, or DIO evaluates the average number of days it takes for a company to sell its entire inventory. Days payables outstanding, or DPO is a metric used to measure the average number of days it takes a company to pay its accounts payable.

Tracking profitability at the client level is crucial for growing any service business. It is imperative to understand the profit structure for each client. This can be achieved if we allocate direct and overhead costs correctly. Let's begin with the following formulas: Profit = Billed amount - Total costs Total costs = (cost rate x hours spent) for each employee Cost rate = Direct (pay) rate + Overhead rate In the first step, we calculate the pay rate by dividing the employee's monthly salary by the average hours per month. Next, we sum up all overhead costs for a period and divide that amount by the total hours for that period. All we need to do is track time. Based on hours and the total cost rate, we can determine costs per client.