Here are some questions we’ve been asked already about the My Own CFO app but you might have others!
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- Is the My Own CFO app available on Android?
Yes, the free My Own CFO app is available on both iOS and Android.
- After I’ve activated the connection to my Xero or QuickBooks Online account, what happens next?
Our servers grab your financial data using very carefully managed links with Xero or QuickBooks Online and we run a bunch of really smart algorithms over the numbers that populate the My Own CFO Dashboard and Key Performance Indicator Drilldown screens.
From there, we provide a commentary to explain each KPI and show you where cash can be improved. An Action List summarises the situation and points you in the right direction to improve cash flow.
- I’m still getting up to speed with financial terms. Can you explain what each of the Key Performance Indicators in the Drilldown screens mean?
- Accounts Receivable/Debtor Days – is a ratio used to work out how many days on average it takes a business to get paid for what it sells.
- Accounts Payable/Creditor Days – is a ratio measuring how long on average a business takes to pay its suppliers for goods and services.
- Inventory Days – measures the average number of days goods remain in inventory before being sold.
- Current Ratio – is an indication of the ability of a business to meet short-term debt obligations; the higher the ratio above 1.0, the more liquid the company is.
- Debt Ratio – is a measure of the total debt of a business to its total assets. A ratio less than 1.0 means that a business has more assets than debt, while a ratio of more than 1.0 means the business has borrowed more than the value of its assets.
- What trading periods can I see in the Dashboard and Drilldown screens?
There are 4 options for trading periods to be analyzed in the Dashboard and Drilldown screens.
Assuming today’s date is 15th June, the data comparisons available are:
- Month to date 15th June v. Month of May
- May v. April
- May this financial year v. May last financial year
- Year to date May this financial year v. Year to date May last financial year
- How are the percentage % calculations on the Dashboard arrived at and what does the thumbs up or thumbs down symbol mean?
If the KPI you’re looking at relates to the Income Statement (Revenue, Gross Profit, Gross Margin %, Operating Expenses and Net Profit) then the percentage % value lets you see how the business is performing compared to the same trading period in the comparative period (for example, 15th June v 15th May).
If the KPI you’re looking at relates to the Balance Sheet (Receivables/Debtors, Payables/Creditors, Inventory, Other Assets and Loans) then the % value compares the latest balance against the end of the comparative period (for example, 15th June v 31st May).
The green thumbs up symbol indicates that the latest trading position has improved against the comparative period. This is particularly useful for the Income Statement KPIs because you can see at a glance that the running rate of Revenue, for example, is ahead of the same time in the comparative period.
By contrast, the red thumbs down symbol indicates that the latest trading position is not as good as the comparative period. If this is the case, take a look at the Drilldown screen for explanations of what’s going on and be sure to go to the Action List for clear steps you can take to improve the situation.
- What does the Heads Up! value on the Drilldown screen mean?
We wanted to draw attention to the important issue of cash flow improvement and came up with the Heads Up! indicator.
If the Heads Up! value is a negative value then the amount shown in brackets indicates the amount of cash that can be generated if the performance can be recovered back to that achieved in the comparative period.
For example, if Accounts Receivable/Debtor Days at the end of May are 38 days compared to 35 days in April and the negative Heads Up! value is ($18,000), then if Accounts Receivable/Debtor Days can be improved by 3 days then an additional cash inflow of $18,000 will be generated.
If the Heads Up! value is a positive value then the value shown indicates the amount of cash that has been generated by the steps you have already taken to improve in performance.
The Heads Up! value was developed as a guide to help you to determine where to focus your time to have the best effect on cash flow.
- How should I use the Action List?
The Action List brings together each of the recommendations from the Drilldown screens and presents them in a format that you can use to work through the individual actions.
If you tick an action as done, the app will strike that through and refresh it 7 days later.
- What Reports are available to me?
Everything that you see in the My Own CFO app can be printed to rich PDF reports.Individual KPI reports or the full CFO Report can be generated for each of the 4 time periods being monitored. You can email this to read separately to the app or send it to your trusted advisor. The Action List can appears as a separate report to use as a working document to follow up seperately.