Coverage of ACCPAC  Partnership 2002 By Geni Whitehouse, CPA

ACCPAC CFO - Comprehensive Financial Optimizer

This is a tool that every CPA, whether in industry or public practice, wishes he had.  Most CPA's are well versed in the accumulation of historical data, in statistical analysis, even in following the rules set by standards-setting bodies. (Okay there have been a few failures in these areas of late, but you get my meaning.)  In my opinion, where we are less comfortable is in the area of business planning, growth strategies, and helping companies address identified problems.  These are areas that are not well defined and are more art than science.

ACCPAC CFO takes basic financial information and converts it into a series of metrics that can be manipulated for performing what-if analysis.  What's unique about this tool is the myriad ways that it allows you to slice and dice the data, to make changes, and to view the impact on other elements of the financial statements.  While some of the information provided could be calculated in a spreadsheet tool, it is the ability to visually display key concepts that makes this product work. 

Imagine sitting across the desk from a client who is certain that the answer to his current cash flow issues is to sell more.  (This is often the first solution a business owner chooses.)  In this case, the company has revenue growth of 11% (top left corner of the window) and negative cash flow of $325,000. 

ACCPAC CFO Strategy Tab

Using this tool, you can demonstrate that increasing sales at existing profit margins would in fact decrease the cash available to run this business. 

ACCPAC CFO Strategy Tab - after increasing revenue growth

In the example, revenue growth was increased from 11% to 20% with the result that cash flow decreased by an additional $90,000.  It would be hard for a business owner to argue with this information. 

Of course, other factors would have to be taken into account to provide full business advice. We are not advocating this tool as an alternative to detailed analysis.  This tool gives accountants a great way to start a discussion and to illustrate key concepts to clients or co-workers. 

-END-