Author
Chris King

Clear reporting of financial information is a key deliverable for any business’ finance function, regardless of whether for internal or external audiences.

We can assist with:

  • Integrated three-way financial statements
  • Management reports
  • Standardisations for funding applications
  • Historical performance and forecast projections

Case study

A law firm client was going through a period of growth, acquiring new practices and offices. The partners of the firm were concerned however that there would insufficient cash inflows until new matters settled. It was agreed to solve this short term funding issue with a bank overdraft facility, but the firm did not have the ability to accurately quantify how much they needed. If the facility was too small, they would need to go back to the bank again, but if it was too large, the firm would possibly be paying additional, unnecessary fees.

Pilot’s Financial Modelling & Analysis team built a Cash Flow Forecasting Model for the firm which allowed the Finance Manager to forecast cash flows at the divisional level, including the impact of the new acquisitions. The model included the ability to test different timing assumptions by division to determine both the most likely and least favourable cases for repaying the facility.

After reviewing the outputs, the model was provided to the bank as part of the overdraft application. The bank was able to test their own scenarios, building their confidence of financial prudence of lending to law firm.

For more information, contact Chris King from our Financial Modelling Team on (07) 3023 1300.