What to do when a predictive alert sounds the alarm

We would all like to know if we are going to hit any sticky cash flow moments in the future or if our sales are going to reach a new high. In this blog, we’ve asked one of our in-house Management Accountants to give you some insight into how you can get the best from your KPIs with Predictive Alerts. We’ll run through an example of what to do and show you just how easy it is to have a handle of your business even while you sleep.

If there's one thing that the accounting profession is sure of it's that advisory accounting services are the future. They might even be the present. Small business owners are crying out for increased business advisory services from the accounting professionals that they work with.

Accounting advisory services are a holistic approach to client relationships that spans a lot further than just cash flow forecasting or compliance services. Small business owners are often pulled from pillar to post so an extra pair of eyes over their finances (plus some handy reporting software) from accounting firms can be invaluable. But we also know that as much as you want to help your clients, you probably don't have many spare hours in the day.

That's where cloud computing software for accounting professionals comes in. Futrli Advisor Alerts can help you deliver business advisory services, in the background, with no extra work from you.

Cloud computing software
That's where cloud computing software for accounting professionals comes in. Futrli Advisor Alerts can help you deliver business advisory services, in the background, with no extra work from you.

How to best deliver business advisory services - let’s walk through some examples for alerts in advisory accounting…

Bank balance alert

One handy Alert can focus on future bank balances. It’s fairly basic, but almost always critical. For example, you can set it to send an email should future balances, given current levels and projected activity, go below £5,000. We would advise that you add a threshold limit so you will be warned if you go within 20% of this, but the amount can be anything you choose.

Recruitment of new sales staff alert

This Alert is a little more complex. Imagine you are a company with a Recurring Revenue Model and you have your staff projections loaded into Futrli as non-financial information. You could set a formula-driven predictive alert to tell you when you will need to hire new staff or, equally, when you may have too many.

Alerts will predict future issues so be prepared

In the examples discussed, causes and solutions will be fairly easy to determine but this may not always be the case. Imagine this scenario: you run a growing cash-sensitive business and are concerned that you may end up in a position where cash reserves cannot cover liabilities. This is a pretty standard situation for many SMBs so it’s something you must tackle with your eyes wide open.

A smart move would be to set up an alert that keeps an eye on the cash ratio, and set it to go off should current liabilities outweigh available cash at any point in the future.

An alert has been triggered – what do we do?!

As with most growing businesses, there’s a 99.9% chance that the owner is busy with other things and therefore has minimal time to start digging into financials to work out what the problem is. You’ve already saved time with automated alerts so the next step is to use your dashboard. A board set up which has all the key information to hand will help you visually pinpoint the problem. Where it is coming from, how bad it is, and what it can mean for future cash flows.

A board set up which has all the key information to hand will help you visually pinpoint the problem. Where it is coming from, how bad it is, and what it can mean for future cash flows.

Understand why and make better decisions for your services and clients

In the example used above, it may or may not be the case that a payment plan already exists for this spend. Having an alert to inform you that cash won’t cover future liabilities, and a tool to investigate the cause of this, Futrli enables you to take action straight away and nip any problem in the bud. This lowers your cash flow risk and keeps your time free to focus on running your business.

Watch the Webinar Recording

Start Your Free Trial

Let informed predictions and powerful reporting guide your business. Be ahead of the curve with Futrli.

Get business advice here

Our blog holds tips, how to’s and general business advice.

Futrli News

Futrli's February 2024 Release

This is some text inside of a div block.

Heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.

Futrli News

Futrli's February 2024 Release

Accountants

3 Apps to beat accounting blues and scale your firm

Chris Downing catches up with three accounting app innovators to discuss the apps that they have developed that directly help accountants.

Accountants

Where most prediction software falls short

Tread carefully when looking for prediction software. Find out how to dig deeper into your predictions with the tools that count.

Small Businesses

Cash is King! 4 ways to keep your cash flow healthy.

Cash flow is essential to your business’ survival. Read our top 4 tips for taking control of your cash flow.

Small Businesses

10 Common Cash Flow Forecast Hurdles

If there’s one thing that all small and medium-sized enterprises should prioritise, it’s their cash flow. Read on to find out the top 10 most common issues.

Accountants

Empowering Accountants: How to Embrace Uncertainty with Futrli

The future is far from certain. Find out how Futrli helps accountants wade their way through murky, grey, “This might happen”-type scenarios.

Small Businesses

Inflation affecting your hospitality business? Take back control with these three steps.

Acting quickly is key to ensure you can ride out the incoming storm. Find out more in this article.

Small Businesses

Why cash flow forecasting helps businesses survive downturns in trade

Learn how cash flow forecasting is crucial for surviving slower trading periods.

Accountants

The 7 reasons why SMEs struggle with cash flow management

Find out the 7 major reasons why your clients’ businesses struggle to achieve a positive, healthy, consistent cash flow.

Accountants

Take clients from compliance to scenario planning in five steps

Scenario planning helps your clients imagine different environments or realities in the future, guiding the plans and decisions your clients make.

Accountants

Flash reports and why to build them

This short guide covers what Flash Reports are and how you could use them as a speedy solution for your clients’ reporting needs.

Small Businesses

Head of Accounting and Futrli COO discuss challenges and solutions for small businesses.

Read Dan and Helen’s thoughts on how SMEs can protect themselves during what is set to be a challenging year.