Fiscal Focus Analysis
Most mid-market CEOs rely on their historical financial statements to evaluate how well their company is performing. These statements are built to follow GAAP accounting standards based on traditional accounting systems developed over 400 years. However, these traditional methods were never designed to help you manage your business.
The Fortune 500 use more sophisticated metrics to evaluate their financial performance and guide key future business decisions. Our proprietary financial modeling software repurposes traditional accounting data into plain English to provide you with six vital value-based and numerical cash flow metrics.
The standard P&L and balance sheet are not designed to give you true insight into your real time financial performance.
Sophisticated Metrics
Measuring True Financial Performance
How well has your company truly performed over the past 12 months? Over the past 5 years? Our analysis will quantify how well you’ve performed in the following critical business metrics:
- Return on operations percentage
- Operational cash flow percentage
- Leverage rating
- Profitability rating
- Salary multiple
- Raw material multiple
Interpretation and Learnings
After our experts use the software to produce your analysis, we provide you with a 20+ page report delivered during an hour-long presentation to explain the results, in plain English (not financial speak). This gives you a complete understanding of the results.
Once you’re able to break free of the constraints of GAAP accounting, your executive team is able to develop conversations that result in progressive actions. Having quantified how much is invested in your business allows your team to develop a narrative by asking some challenging questions:
- How many dollars of revenue can I leverage from each dollar of investment?
- How profitable is my revenue?
This leads to the two most critical questions every entrepreneur should ask (and be able to answer) are:
- Is the return you are earning on you investment commensurate with the risks you are taking?
- Have you generated enough cash flow to survive, thrive and make future strategic investments?
Fiscal Focus Performance
“What a tremendous experience to go through the Next Level Leadership work! From day one I was blown away with the amount of knowledge Ken and Shad brought to us from their experience in the CEO world. They taught how to identify and maintain critical values for your company and how to create a competitive advantage as a leader. I am so grateful to have been a part of this year-long experience.”
