Financial Management
Financial management keeps service businesses on track for success. It provides valuable insights regarding funding of service strategies, developing new services, and understanding the profitability of existing services, as well as the overall financial health of the organization. It ensures the business has the funds needed to meet cash obligations and that the business complies with state and federal regulations. Financial management also aids in areas such as planning, budgeting, managing risk, and communicating with interested parties. Muir & Company works with our clients to ensure their financial management positions the business for success.
Example Client Projects
Example 1: Financial Management Provides Insights
Services Provided:
Financial Management, Document Abstracting, Professional Oversight
Issue:
A successful entrepreneur with a net worth estimated at $70 million wanted a financial management system to evaluate changes in financial position.
Solution:
Muir & Company met with the entrepreneur to gain an understanding of the magnitude of the problem. The financial management system needed to include several different service businesses, extensive personal assets, brokerage investments, and both business and personal liabilities. The system had to be flexible to allow for the addition of ad hoc notes and other non-financial information. Muir & Company reviewed and abstracted existing legal documents, set up routine pc-based accounting for real estate assets, and consolidated brokerage accounts in the process of establishing the overall financial management system. Additionally, Muir & Company routinely handled tax, legal, banking, lending, and investment matters for the individual.
Muir & Company created a dynamic financial management system grounded in a personal financial statement for the entrepreneur. The financial management system covered every financial aspect of the entrepreneur’s life – both business and personal.
Outcome:
The financial management system provided comprehensive critical information and analysis the entrepreneur needed to sustain financial success. While abstracting legal documents, Muir & Company discovered uncollected contractual revenues which then fell directly to the bottom-line. Oversight of outside professionals and advisors helped the entrepreneur stay focused on business matters.
Example 2: Financial Management Aids Communications
Services Provided:
Financial Management
Issue:
A start-up real estate investment and management firm needed to communicate key information to its fund investors regarding the status of the fund and their investments. The firm’s accounting & financial management information system could not perform complicated yield calculations or provide valuable detailed analysis necessary for proper reporting.
Solution:
The solution was development of a robust financial management system to capture critical data and support external communications with investors by leveraging software generated financial statements and excel based calculations and projections.
Outcome:
The financial management system enabled reporting of calculations, analysis, and management insights important to the firm’s investors. The investors were impressed with the forthcoming, complete, and vigorous nature of the communications from the firm. The financial management system Muir & Company created for the firm became a template for additional funds the firm established. The system enhanced the early investors’ perception of quality, leading them to make greater investments and recruit friends as additional investors.