Finance in Plain Language

Looking at successful companies that have become key players in the market in 8-10 years and are already setting their own rules, it is hard to believe that they also started out small. Each of them has gone through a difficult individual path of development. But they all have one thing in common: they managed to establish financial management and overcome financial difficulties. 

From a Single Person to an International Company

«Sales Bureau» - is a prime example of a company “that has made it”. Now a successful international consulting company, back in 2016 it started its journey with one employee and three clients. Andrii's experience, knowledge and perseverance allowed him to scale the business. However, gaps in financial management prevented the business from growing fully.

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Big Bills Don't Always Mean Big Profits

The company grew, new types of expenses, accountable persons, departmental budgets, new clients with new requests appeared. Drowning in the bureaucracy that was already at the company's doorstep was not an option. It was necessary to find an easy and effective solution that would allow us to systematise the mess of amounts and numbers.

I realised around the third year of doing business that if I want to earn more, scale the company, raise salaries for people, understand how much I personally earn, and have financial hygiene, I need to understand finance. — Andriy Krupkin, founder of the «Sales Bureau»

The solution seemed obvious - to bring all financial sources into one system and streamline them.

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By connecting Finmap and adding all the accounts, it was finally possible to relax — the funds in the accounts brought a sense of calm and hope. With such amounts, financial crises seem like fleeting concerns that immediately disappear when you look at the full capital.

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However, for some reason, the problems did not disappear, and more and more often cash gaps destroyed the company's plans. 

We thought we had a lot of money because of the big cheques. But as it turned out, this is not yet profit. — Andriy Krupkin, founder of the «Sales Bureau»

How to Tame Chaos and Cash Gaps with Finmap

Simply bringing all financial sources into one system was only the first step on the road to financial order. 

The second step was to manage receipts and write-offs, which were now in the palm of your hand. With Finmap, the cash flow process became transparent and understandable, which in turn allowed us to:

• completely abandon homemade signs;‍
• get rid of the chaos and confusion caused by these signs;
• unify and standardise financial management for all departments;
• control the movement of money in online time.

Andrey Krupkin, founder of the «Sales Bureau», shares his thoughts: 

If you don't use Finmap, you spend a million to a billion hours summing up all your inconvenient signs, where you can't even automate any processes. Finmap solves all these issues.

With each passing day, the situation became clearer and the company realised that without effective planning, the mess would not be completely tamed. Finmap's Payment Calendar came to the rescue, showing at a glance which days payments were expected from customers and when payments were due.

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Thanks to the automatic calculation, the Calendar clearly shows when there may be a shortage of money to pay contractors or employees. 

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So, after adjusting the payment terms and scheduled dates, cash gaps were crossed off the list of financial difficulties.

Key Insights from the Sales Office

Rational planning and the P&L report finally answered the question of where the profit was, which was hidden among a large number of transactions. Thanks to the date of the transaction and the period of the transaction, it was possible to clearly identify the money actually earned not only in terms of the year or month but even the week. 

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Having tamed the turbulent financial flows, the «Sales Bureau» was able to identify the following points with the help of ready-made financial reports:

• expense sources that need reduction and optimization;
• the most popular and profitable services;
• how to optimize accounts receivable;
• which business areas are growing the fastest;
• business areas that require updating and modernization.

How Finmap and the ‘Sales Office’ Are Currently Working Together

The company has now fully established financial management and automated this process using Finmap tools. Now all top managers, the COO and the founder of the company have transparent information that can be accessed from any device.

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Andriy says that Finmap-based financial control has allowed him to formulate a more accurate sales strategy. 

Comparing the experience of accounting at the beginning of our business and now, I am sure that we have managed to reduce the time spent on finance by 50 times! — Andriy Krupkin, founder of the «Sales Bureau»

You can also see for yourself by registering with Finmap. Set up and automate your financial accounting and don't waste time on routine

Launching a new project or taking a business to the next level is always a challenge for an entrepreneur. Not only the success of the launch, but also the long-term stability of the company depends on competent financial planning.

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How to effectively allocate resources at the startup stage? What costs should be taken into account to avoid financial difficulties in the future? How to create a financial model that will become a roadmap for your business?

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These and many other questions will be answered by EMMER's case study, which demonstrates the importance of creating a financial model that becomes the basis for successful market entry.

Meet EMMER, a sliding kitchen for Jeep Wrangler JL

For the modern explorer, the journey is as important as the destination.

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EMMER is an innovative retractable kitchen designed for owners of Jeep Wrangler JL adventure vehicles. The design combines advanced technology with striking aesthetics, while enhancing the enjoyment of impeccable outdoor cooking.

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Challenges and financial calculations: How to successfully launch a business project in the US market

EMMER is a business project that will be launched from scratch in the US market. This is a new experience for the owner, but he has a golden rule:

First, you have to win the calculations.

Before launching any project, an entrepreneur should carefully evaluate all costs and potential revenues. Even if the project seems very attractive, it is important to determine whether it makes sense from a financial point of view. The key is to understand the conditions under which the business will be profitable, or at least not cause losses.

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The task was to clearly define the conditions for the success of the business project, taking into account the required sales volume and the price of the product. To do this, several key parameters had to be taken into account, including launching the project on the Kickstarter platform. This platform allows you to raise pre-funding from potential buyers, spend time making the product, and send it to users. However, the implementation process has many nuances that need to be taken into account to achieve success.

Project features: Why the financial model is key to success on Kickstarter

Launching a company on Kickstarter requires not only a presence on the platform, but also careful preparation. One of the key stages is the pre-launch campaign, which lays the foundation for future success. Preparatory activities include collecting a database of potential customer email addresses and creating an active community around the product. All these actions require significant investments.

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The main costs are worth highlighting:

• Organizing a PR campaign.
• Presentation of the product through influencers, which requires the production of the product, its shipment to the United States, and payment for the services of influencers.
• Hiring an agency to professionally launch a Kickstarter campaign.

In addition, you need to consider the following costs:

• Kickstarter commission.
• Acquiring fees.
• Taxes in the country of production.
• Customs clearance costs in the United States.
• Payment for the work of the team that will implement the project.

Success on Kickstarter is determined by how carefully these costs are planned. Only a well-calculated financial model will allow you to not only cover all expenses but also ensure the profitability of the campaign. It's not just about preparing a budget, it's about strategic planning that lays the foundation for scaling your business.
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EMMER needed effective solutions to overcome a number of challenges and to grow successfully:

• Project development: The need to improve the current project to take it to the next level required the development of new approaches and strategies to ensure competitiveness and sustainable growth.
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• International expansion: Expansion into international markets required adaptation to different market conditions.
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• Financial planning: The need to create a financial model that will allow to estimate the profitability of the business, determine the required volume of sales and services. The financial model should help to understand what factors affect profitability and how to optimize them to achieve financial goals.

Financial planning and analysis with Finmap: how to optimize costs and maximize profits

The most effective way to analyze all expenses and profits is to build a financial model with the help of Finmap specialists, as there are many parameters to consider.

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The owner of EMMER knew that Finmap was not just a program for accounting for money, but also a team of professional financiers offering expert services for creating and developing projects.

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It was also known that Finmap helps both new startups and existing businesses reach a new level.

What is a financial model and what role does it play in the decision-making process?

A financial model is a tool used to forecast the financial performance of a business. It is a mathematical representation of the financial aspects of a company, including revenues, expenses, profits, cash flows, investments, and other financial indicators. The model allows you to analyze the current financial situation and forecast future results based on various scenarios, such as changes in costs, pricing, market environment, etc.

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Financial models are widely used for business planning, investment project evaluation, management decision-making, and strategic planning. They can be developed for companies of any size and in any industry, and can be used to assess risks and opportunities.
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The process of creating a financial model begins with an in-depth analysis of your business. Finmap experts collect detailed information about the project, which allows us to accurately calculate financial flows and forecast future income.

What Finmap specialists take into account:

Vitrate structure:
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1. Product costs (cost price and logistics).
2. Operating expenses (salaries, development costs, prototypes).
3. Payment system fees, legal and unforeseen expenses.

Marketing and sales:
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1. The cost of a marketing manager's salary.
2. Marketing budget (typically 30% of the planned Kickstarter collection).
3. Content and PR costs.

These costs form the basis for calculating EBITDA, taxes, and the final net profit. The financial model also takes into account different pricing strategies. For example, Kickstarter often offers significant discounts to attract early adopters, while it is important to maintain margins for subsequent sales through dealers.

The main purpose of the financial model is to help determine and achieve the optimal amount to collect. It's important to set a realistic goal that can be exceeded rather than risking too much. For example, Kickstarter campaigns usually last two months and raise between $100 thousand and $150 thousand, but it is better to set a goal, for example, $80 thousand, which can be exceeded.

The financial model also allows entrepreneurs to experiment with different combinations of prices and sales volumes, such as retail price, dealer price, early bird price. This helps to understand how changes in strategy affect the overall business picture and how much money can be raised on the platform.

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It's important to take into account all expenses, including pre-launch campaign costs, to assess the realism of the goals. For example, if you raised $130k but spent $108k on it, will you be able to sell enough products in a month to be in the black?

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A financial model is a forecasting tool. It helps to plan sales for the whole year so that the company remains profitable. Working with the model, you can assess the impact of various scenarios, such as selling only through dealers or only at retail, and understand how this will affect the business.

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You also need to take into account the tax jurisdiction: in Ukraine, the tax can be 5%, and in Europe, it can be up to 40%. The financial model shows under what conditions the business will be profitable or risk becoming unprofitable.

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A financial model allows an entrepreneur to clearly understand what expenses and income to expect and how different strategies will affect the financial result. It helps to optimize costs, find variables that can be adjusted, and make informed decisions that will ensure business profitability.

Results of cooperation: Financial models for optimization and global growth

Finmap's financial modeling service has been a key factor in EMMER's success.

What has EMMER gained from working with Finmap?

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1. A structured financial model: Professional financiers have developed a customized model for the company, which provided a clear understanding of the possibilities for increasing profits. All data is displayed in clear tables that take into account many parameters, which allows for effective management decisions. This has helped optimize finances and increase the efficiency of management processes, which will allow the company to successfully develop and launch new projects.
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2. Optimization of financial flows: Automated cash flow tracking will reduce costs and increase profitability. In addition, detailed data analysis will allow for better cash flow forecasting and budgeting, which has significantly increased financial stability.
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3. International Expansion: With Finmap's support, the brand will not only be able to successfully expand its operations to new international markets, but also ensure transparency and efficiency of financial processes at all stages of projects. Finmap's support includes detailed cost and revenue analysis, development of financial models that meet the requirements of new markets, and assistance in optimizing financial strategies. This includes budget planning, cash flow management, investment planning, and strategic financial management to achieve sustainable growth and profitability on a global scale.

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Whether you're planning to launch new projects or looking to improve the financial performance of your existing business, creating a financial model is a critical step.

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Use Finmap to successfully implement and realize your projects.

How a small business can overcome a financial crisis and stabilize income in conditions where every hryvnia counts?

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‍How to optimize expenses and increase profit without using complex financial programs?Thehrdwood, a company that managed to turn challenges into opportunities, knows the answer to these questions.

Thehrdwood - Natural Products for Space Harmony

Artem Kornieiev founded Thehrdwood in 2013 in Kyiv, creating a company specializing in producing exquisite wooden products. The company's products, presented on marketplaces like Etsy, Amazon, and its own website, quickly gained popularity in the USA, Canada, the UK, and other countries.

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Before the war, the company focused primarily on customized engraved products. Kitchen boards with family recipes, which became true bestsellers, were particularly popular. The company was the first to offer such unique gifts, earning recognition and popularity.

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From 2020 to 2021, the business grew rapidly, gaining extensive reach and support from marketplaces.

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In 2022, the war significantly impacted the company's activities. Logistical problems made deliveries uncompetitive, and finding alternative routes took about four months.

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This led to a significant increase in delivery times and a threefold drop in sales of customized products. However, instead of halting operations, Thehrdwood shifted its focus to producing home workspace and decor items.

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Challenges on the Path to Success

‍Artem and his team faced a number of challenges that required quick and decisive actions:

• Profitability Analysis: The need to understand the company's actual financial situation and determine which business areas were most profitable, where to focus, and which areas to cut back.
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• Financial Instability: A large number of accounts, channels, and marketplace reports created confusion in financial reporting.
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• Financial Transparency: The need for a convenient and clear financial reporting system to help make the right decisions.

Meeting Finmap

After several attempts to use Western financial systems that did not meet expectations, Artem found Finmap. From the first demo video, he realized that this was exactly what was needed: a simple, convenient, and effective program.

Finmap - A Reliable Strategic Partner

Artem and his team discovered that Finmap was not just a financial program but a true strategic partner. Finmap also helps find financial experts and provides financial consulting and support.

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Results of the Collaboration:

• Revenue Growth: For the first time in three years, the company became profitable by implementing effective business development strategies and continuously analyzing the market. Regular online meetings with a financial expert became an integral part of the work: data analysis, identifying weak points, and finding ways to address them. An annual strategy and three development scenarios were developed.
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• Expense Optimization: The company not only reduced expenses but also ensured positive cash flow, laying the foundation for further growth.
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• Financial Stability: Thehrdwood managed to ensure business stability and growth using a simple and effective management reporting system.
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• Innovative Budgeting: Implementing a budgeting system for different expense items allowed for more efficient resource management.

Every week, Artem, along with a financial expert, checks if the company is on track and calculates the expected income at a certain sales pace. If deviations from the plan are found, they respond promptly and cut unnecessary expenses.

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Financial data is digitized and displayed on clear dashboards, allowing for quick responses to changes. The system made financial management easy and convenient, even from a smartphone.

• ‍Break-even Point: The company knows the stage at which sales cover all expenses. For the rest of the month, Thehrdwood operates at a profit.

Like many small businesses, Thehrdwood faced serious financial challenges. By timely seeking expert assistance, the company not only survived but also thrived, turning the crisis into an opportunity for growth.

Thehrdwood achieved new heights during difficult times, becoming a true example of a successful enterprise ready for future challenges. Artem and his team do not rest on their laurels and continue to collaborate with a financial expert from Finmap to achieve ambitious goals and bold plans.

Do you ever feel like your business is stuck in a cycle of constant financial difficulties? We know how difficult it can be to run a business in an uncertain environment. Especially when cash gaps and recurring losses hinder growth.

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However, there is a way to change the situation for the better. Find out how a publishing house and educational projects managed not only to overcome financial difficulties but also to achieve a 10% monthly profit growth.

Losses and uncertainty: what to do?

Our client, a well-known publishing house with educational projects, faced the following problems:

• Cash gaps
• Constant losses
• Inefficient reinvestment
• Ineffective investments in new projects
• It was difficult to determine which products were profitable and which were unprofitable.

These risks posed the threat of bankruptcy, poor management decisions, and investing resources in unprofitable products.

How Finmap's financiers changed the situation

We started with a detailed analysis of profitability to determine which areas of activity were profitable and which were unprofitable. Then we implemented a systematic control of financial indicators with Finmap, which allowed us to track the financial position in real time.

Impressive results of cooperation

Thanks to the cooperation, the client achieved the following results:

• Complete absence of cash gaps
• Effective financial management
• Financial modelling of new projects
• Competent management of investments and reinvestment of profits
• Profit growth by 10% per month from the second month of cooperation

New financial structure and investment policy

We helped to create a clear financial structure for the business, reduce staff costs and increase efficiency. An effective investment management policy was also implemented, which significantly increased the profitability of the projects.

What kind of entrepreneur do you want to be?

Are you ready to get rid of financial difficulties and reach a new level of business development? At Finmap, we are committed to helping you achieve this. Our team of financial experts is ready to provide the support you need to optimise your business:

• Analysing the profitability and profitability of projects
• Implementation of a financial performance control system
• Effective financial and investment management
• Development of an individual financial strategy

Take the first step towards the stability and growth of your business. Let's get your financial affairs in order together!

Are you familiar with the feeling of fear that comes with the arrival of payday tomorrow, and there are only a few hundred hryvnias left in your bank account? Do you panic when important suppliers demand payment, and you don't have enough funds?

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Every entrepreneur has faced such situations in the course of their activities. Why does a lack of funds occur at crucial, sometimes decisive moments, and how can this be prevented?

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This dreadful scenario is called a cash gap — a situation where there is not enough money to cover the current obligations of the business.

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Such a problem threatens bankruptcy and debts. Cash gaps can lead to unpleasant consequences beyond the company: decreased sales, damage to the company's reputation, conflicts with suppliers, tension within the team, staff changes, penalties from suppliers and banks, and production delays.

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This article aims to help entrepreneurs permanently eliminate cash gaps. We will consider five key tips that will help ensure your business's financial stability, avoid stress related to a lack of funds, and create a solid foundation for sustainable growth.

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By following these recommendations, you will be able to effectively plan cash flows, control expenses, optimize accounts payable, create financial reserves, and increase revenues.

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Being proactive is the most effective way to combat cash gaps.

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Where to start in combating cash gaps?

1. Plan Cash Flows

The Importance of Planning

Regular cash flow planning is critical for anticipating and preventing potential cash gaps. According to data from Minutes.co:

82% of small businesses fail due to cash flow problems.

Forecasting

‍Make forecasts of income and expenses for future periods. This helps you better understand when cash gaps may occur and prepare for them in advance. According to a study by JP Morgan Chase:

The average small business has only 27 days of cash reserves.

2. Control Expenses

Expense Analysis

‍Regular analysis of expenses helps identify areas where savings can be made. Evaluate if expensive supplies can be replaced with cheaper alternatives without losing quality. For example, using more economical materials or optimizing production processes can significantly reduce costs.

Prioritization

Prioritize expenses that directly impact your income. Investing in raw materials, research and development, marketing, and staff training can directly increase sales and improve product quality. Reduce spending on less critical aspects of the business, such as unnecessary administrative fees.

Implement Flexible Budgets

According to Harvard Business Review:

Companies that adopt a flexible budgeting approach in constantly changing business environments are more likely to avoid financial difficulties.

Use of Technology

‍Modern technologies can help track and optimize expenses. Use financial management software that automates processes and provides accurate expense reports. According to McKinsey:

Implementing digital solutions can reduce costs by up to 30%.

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3. Optimize Accounts Payable

Payment Terms

Negotiate longer payment terms with suppliers, if possible. This approach allows more funds to remain in your accounts to cover current expenses. Regularly review your cooperation terms with suppliers and look for better options.

Process Automation

‍Use financial software to automate the management of accounts payable. This helps avoid errors and ensures timely payments.

Setting Priorities

Prioritize debt repayment based on its importance to your business. Pay off those debts first that could cause the most significant problems if payments are delayed.

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Tracking Debt

Regularly monitor the status of accounts payable. This helps avoid unexpected expenses and allows you to respond promptly to potential issues. Consider using analytical tools to forecast future financial needs and plan payments.

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Experienced entrepreneurs use a payment calendar for this purpose. It acts like a "vaccine against cash gaps."

What is a payment calendar?

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A payment calendar is a tool for financial planning of cash flows in a business. It is usually created for a month with weekly breakdowns or for a longer period suitable for your business.

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It outlines expected income and expenses for a specific period, allowing the business owner to assess the company's ability to meet financial obligations on time.

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A payment calendar can be maintained in homemade Excel spreadsheets, which is quite inconvenient and time-consuming. An alternative option is automated financial programs.

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The convenience lies in the fact that all pre-scheduled payments are automatically included in the calendar, and it is possible to immediately see potential future cash gaps.

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There is no need to manually enter all account balances, income, and expenses every month. Thanks to integration with banks, all data is automatically pulled in.

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Working with the Finmap Calendar is done in just a few clicks:

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1. Enter all planned expenses into the service: rent, salaries, taxes, etc.
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2. Enter planned income: payments from clients, repayment of accounts receivable, etc.

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A short video will help you understand the useful functions of the payment Calendar.

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Now, in the payment calendar, you can clearly see during which periods you might experience a cash gap and preempt it by rescheduling or canceling payments, negotiating with clients for earlier payments, etc. This visibility allows proactive management of your cash flow to avoid financial strain.

4. Use Financial Reserves

Creating Reserves

‍Establish a reserve fund to cover unexpected expenses. This helps prevent cash gaps during sudden financial difficulties. Financial experts recommend having reserves sufficient to cover expenses for three to six months.

Investments

Consider investing a portion of your profits in liquid assets that can be quickly converted to cash if needed.

Diversification of Reserves

‍Spread your reserve funds across different accounts and assets to reduce risks. For example, keep some funds in savings accounts, some in bonds, and some in other liquid investments.

Regular Review of Reserves

Regularly review and update your financial reserves to ensure they meet your business's current needs. This helps you be prepared for any financial challenges and avoid cash gaps.

5. Increase Revenues

Marketing Strategies

Implement effective marketing strategies to attract new customers and increase sales. Utilize SEO, social media, and other channels to enhance brand visibility.

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Investing in quality content marketing can significantly boost website traffic. Additionally, retargeting ads can reclaim up to 26% of visitors who have previously visited your site, increasing conversion chances.

Diversification

Consider diversifying your product or service offerings to reduce risks associated with dependence on a single income source.

Partner Programs

Implement partner programs to acquire new customers through existing partners. This can expand your market significantly without substantial marketing costs. According to Forrester:

Companies using partner programs can generate up to 15% of their total revenue through these channels.

Customer Loyalty

Invest in loyalty programs to retain existing customers. Bain & Company reports that:

Increasing customer retention by 5% can lead to revenue growth of 25-95%.

Consider implementing discounts, bonuses, and special offers for loyal customers to encourage repeat purchases.

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Avoiding cash gaps is a key aspect for sustainable business development.

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Implementing these five strategies will help ensure financial stability and mitigate the stress associated with cash shortages.

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Plan cash flows, control expenses, optimize accounts payable, create financial reserves, and increase revenues.

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By utilizing these strategies, you can minimize financial risks and ensure the prosperity of your business, while Finmap simplifies the process with its user-friendly payment calendar.

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In addition to the payment calendar, Finmap allows you to:

• Monitor income and expenses through bank integrations.
• Aggregate data and operations across various projects, categories, contractors, and counterparties.
• Easily analyze finances and profits through intuitive graphs rather than complex reports.

Forget about the nerve-wracking tension caused by financial management. Discover what organization and transparency in business finances really mean!

Have you ever wondered where the money goes when it seems like your business is booming? Do you ever get lost in the numbers and can't figure out where the profit is?

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A lack of clear financial control can lead to a loss of funds and growth opportunities. That's why a profit and loss statement (P&L) is an indispensable tool for every entrepreneur. It helps you see hidden problems and find ways to solve them, ensuring the sustainable development of your business.

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Why is a profit and loss statement necessary for business?

Assessment of financial performance

A profit and loss statement allows you to assess the financial performance of your company in detail. You can see whether you have achieved your financial goals by comparing income and expenses.

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For example, a restaurant owner can use this report to determine which dishes bring the most profit and which ones should be removed from the menu.

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According to a study by the U.S. Bureau of Labor Statistics:

About 20 percent of small businesses close within the first year, 30 percent within two years, and 50 percent within five years, largely due to a lack of financial control.

Budgeting and strategic planning

With a regular profit and loss statement, you can plan your budget more effectively and develop development strategies.

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For example, a company may find that it spends too much on marketing and redirect these funds to innovation or staff training.

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According to a study by CB Insights:

One of the main reasons startups fail is a lack of proper financial planning and management, accounting for up to 39% of all failures.

Monitoring and controlling expenses

The income statement helps to identify excessive costs and find ways to optimise them. It provides an opportunity to respond to cost increases in a timely manner and take measures to reduce them, which helps maintain the company's financial stability.

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Thanks to cost analysis, Dmytro Sheremeta, owner of Chistota cleaning company, saved $12 500 a year.

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Dmytro's company has always strived to provide high-quality cleaning services, using the necessary equipment, such as vacuum cleaners and ladders, which had to be delivered to the place of service. The cost of this delivery was usually included in the total price of the service. To transport the equipment, the company often used taxis, which resulted in unpredictable logistics costs depending on weather conditions, days of the week, and current taxi demand.

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After analysing the costs using the profit and loss statement in Finmap, Dmitriy discovered that the company's logistics costs were higher than expected. Together with his team, he started looking for ways to reduce these costs. After careful analysis, it was decided to change the type of delivery and find a partner who transports goods using electric scooters.

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This approach not only reduced delivery times, but also eliminated the dependence on fuel prices, making the cost of transportation more stable.

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Before the cost optimisation, one round trip delivery cost the company $9, while after the implementation of the new logistics strategy, the cost dropped to $2.5. This has significantly reduced logistics costs and increased the company's efficiency.

Reporting to stakeholders

Investors and lenders pay attention to the income statement when assessing a company's financial position. This is especially important if you are planning to attract investments to scale your business. Reliable financial statements increase your attractiveness to investors.

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The income statement is an indispensable tool for every entrepreneur. It provides a clear picture of the company's financial position, helps to identify hidden costs and optimise resources. Using this report allows business owners to plan effective strategies, make informed decisions based on real data, and ensure business stability and growth in the long term.

How to create a high-quality Profit and Loss report?

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A well-crafted income statement is the foundation of your business' financial health. It not only helps you understand the current state of affairs, but also opens up new opportunities for growth. To make your report as useful as possible, follow these key steps:

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1. Select the reporting period. Determine the period for which the report will be prepared. It can be a month, quarter, or year, depending on the specifics of your business and industry standards.
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2. Gathering financial information. Gather all the necessary financial data: revenues, expenses, operating profit (or loss), interest, taxes, and other financial indicators. It is necessary to collect not only the movement of funds on official accounts, but also on cash desks, cards, wallets, etc.
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3. Classification of income and expenses. Carefully classify all income and expenses by their purpose and nature. The main income (from the sale of goods or services) and additional income (from investments, licences, etc.) should be separately identified. Expenses should be divided into categories, such as salaries, materials, marketing, administrative expenses, etc.
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4. Calculate the net profit (or loss). Subtract total expenses from total revenue to calculate net profit or loss. This indicator is critical for assessing the company's financial position.
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5. Comparison with previous periods. Compare the results of the reporting period with previous periods to identify trends and analyse the dynamics of financial indicators.
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6. Prepare an analytical report. After preparing the main income statement, prepare an additional analytical report that contains detailed information on individual components of income and expenses, as well as an explanation of the reasons for changes in financial indicators.
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7. Visualise the results. Use visualisation tools to improve understanding and ease of perception of financial information. Charts and dashboards help you quickly assess the company's financial position.
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Additional tips:

• Retrospective analysis. Compare results with previous periods to identify trends and predict future expenses and income.
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• Market analysis. Take into account changes in the economic environment and market trends that may affect the financial performance of your business.
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• Distribution of money. Separate your own funds from business funds. This will avoid the very common mistake of mixing finances.
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• Professional approach. Take the advice of a professional financier for qualified quick advice on setting up accounting. If you do not have the funds for ongoing support, the first consultation will set the owner on the right track.
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• Technological solutions. Use modern tools to automate financial accounting. For example, Finmap integrates with banks and payment systems, simplifying the process of data collection and analysis.

By following these steps and income statement standards, you will get a clear and objective view of your company's financial position. This will allow you to manage your business more effectively and make strategic decisions that will contribute to its growth and stability.

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For maximum convenience and efficiency, automate your accounting with Finmap and forget about complicated home-made spreadsheets. Finmap integrates with banks and payment systems, providing you with convenient graphs and dashboards that greatly simplify analysis and make informed business decisions.

Lack of control over finances and unforeseen expenses can be a real Achilles' heel for every entrepreneur, undermining financial stability and reducing profitability.

Finance has always been key for me. Excel, while useful, does not always meet modern business requirements. But when we started working with more professional money accounting tools for business, everything changed. — Dmytro Sheremeta, entrepreneur, owner of Сhystota.ua

How to save $12 500 on cost optimisation

Dmytro's company delivers equipment in the form of a vacuum cleaner or a ladder for each cleaning, if necessary, which is included in the service price. They used to use taxi services, which did not provide a consistent price for the transportation of equipment: it varied depending on the weather, days of the week, and the demand for taxis at that particular time.

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After analysing the costs in Finmap, Dmytro saw that they were spending an unpleasantly high price on logistics. Together with the team, they started looking for ways to reduce these costs. Eventually, they decided to completely change the type of delivery. They found a partner who delivers on electric scooters. This improved the logistics time, removed the fuel variable, and made the price stable.

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One round-trip delivery cost $9 for the company, and after cost optimisation, it was $2.5.

Thanks to Finmap, we saved $9 000 on optimising the cost of equipment delivery alone. In total, we optimised costs by more than $12 000 over the year. — Dmytro Sheremeta, entrepreneur, owner of Сhystota.ua

What Finmap features help you save money?

Dmytro uses Cashflow and P&L most often. He needs Cashflow on a monthly basis to analyse the company's expenses, to quickly assess what costs they incur and to make optimisation decisions easier.

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Dmytro reviews the P&L regularly, comparing it to the previous two months to identify changes in different cost categories. If he notices an increase in expenses in a certain category, the team immediately analyses the reasons for this growth and considers optimisation opportunities.

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Save $12 500 or lose money? What will you choose?

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The answer is obvious. But how to do it?

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In the Finmap service, you can allocate all your expenses and income to separate categories, contractors, and projects.

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Let's look at how it works using the example of categories.

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You have fixed costs that recur every month, such as rent, logistics, advertising, etc. In the Analytics section of the Profit report, you can use filters to analyse your expenses for each period and each category.

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This way, you will see which expenses eat up a lot of your money every month. Understanding where exactly this weakness is in your budget, you can look for ways to optimise your expenses: change suppliers, give up a part of the office that is not used, etc. Thus, just by saving on expenses, you will already significantly improve the financial health of your business.

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But uncontrolled expenses are not the only problem in the accounting of money for a modern entrepreneur.

What do entrepreneurs face every day?

A large number of business owners face the following problems:

• They do not see the real state of the business.
• They do not understand how much money is currently on each account and in the company as a whole, the data is available, but in a bunch of home-made tables that are difficult to analyse and almost impossible to bring together.
• They do not understand how much dividends they can withdraw without harming their business.
• Whether there will be enough money at the end of the month to pay salaries, rent and contractors.

How to solve it?

Thanks to Finmap, you can easily put your business's money in order and keep your finger on the pulse, because from now on:

• All your invoices are on one screen, clearly.
• All data gets into the service automatically, thanks to integration with banks and payment systems.
• Easy to analyse money (Cashflow), profit (P&L), projects, bills, debts: not in complex chaotic reports, but in visual charts.
• Thanks to the payment calendar, you can easily plan cash flow and prevent cash gaps.
• Delegate routines to employees, deciding who can see what and who can edit what.
• Also, you no longer need to search for invoice templates on the Internet: from now on, issue branded invoices directly in Finmap.

Don't wait until you start losing money. Try Finmap for free right now!

User case card

Serious Development Agency IT company — development of mobile applications and sites for startups.

Web site: https://sda.company

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Alex Shubin — the founder of Serious Development Agency IT company.
Has 12 years of programming experience.
He started his cash flow management with Finmap 1,5 years ago.

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How can an owner of an IT company keep money in order in business if he works 17-19 hours per day and has literally no free time? And what if the company is located in Ukraine and, like most entrepreneurs today, he needs to take care of the team’s safety and continue to develop the business in conditions of total instability?

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You could postpone the task until better times. Or you could lay the foundations for systematic accounting now by understanding the numbers, seeing the current state of affairs clearly, and making confident decisions about the future based on the data. Alex, the owner of the IT company Serious Development Agency, chose this way.

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In this case, we will tell you how he managed to find the time and what results he achieved.

Given

The IT company, Serious Development Agency, has been developing mobile applications and websites since 2019. There are 16 people in the team, and they continue to grow. The number of projects and tasks from clients is also increasing.

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If you don’t keep organized cash flow management, it is easy to drown in the chaos of incomes, outgoings, regular payments and debts. That’s why Alex, the founder of the company, decided that it was necessary to implement systematic cash flow management.

I decided to get my business in order after all. Because I realized that I don’t understand what’s going on, how much money I could get out and so on. — Alex Shubin, founder of Serious Development Agency

Task

We always say, keeping track of the cash flow for the sake of keeping track is a mistake. Therefore, before you systematically put your money in order, you need to determine why you need to keep track of it and how cash flow management will help you grow your business. Alex has set himself these objectives:

• Get rid of the financial mess.

Clearly understand how much the company earns, how much dividends you can collect, and what is going on in your business.

• Monitor your account balances and planned incomes.

It is to see how much money is there right now and how much you can expect in the future.

• To save time.

Alex works 17-19 hours a day now. He doesn’t have enough time to focus on managing the cash flow.

In general, there is more work now, because we are constantly hiring more employees and have to pay attention to them. Plus, we must devote more time to customer service in order to reassure our clients that even in spite of the war we are able to meet their needs. — Alex Shubin, founder of Serious Development Agency

• To keep track of your cash flow in a systematic yet simple way

When I was entering everything into Google spreadsheets, I realized that there were some things I might overlook and not take into account. You need to spend some time setting it up, the same reports and so on. And since I understand that time is money, it’s easier for me to keep all the documentation in one place and have multiple options to run different reports, integrations… — Alex Shubin, founder of Serious Development Agency

Alex decided to implement Finmap to solve his business matters.

Solution

Alex first tried Finmap a year and a half ago. However, he did not manage to fully apply the features of the service to his business then and switched to another product. But Alex found many bugs that made his work more difficult. So he decided to go back to Finmap again

Why Finmap — because I was already a user. I had taken courses from both Ivan and Oleksandr*. — Alex Shubin, founder of Serious Development Agency

‍* Ivan Kaunov and Oleksandr Solovey are both co-founders of Finmap. Ivan led the course «Finance in plain language». Over time we expanded and supplemented the information, which resulted in Oleksandr Solovei’s «Business Money» course on how entrepreneurs can get from chaotic finances to a system in just 5 steps.

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With the service, Alex decided to use the help of a Finmap financial expert* straight away to save time on set-up and to see the focus points in cash flow management for his company.

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* Our users can request the help they need from Finmap’s financial experts and choose an assistant, manager or mentor. You can book free consultation and find out more about this service.

The first thing Alex did was to connect and add all the company’s accounts to Finmap, so he could see all the balances he have at the moment on one screen.

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The next step is to synchronize with Privatbank and the Wise money transfer system. So that all incomes and expenses are automatically uploaded to Finmap and displayed in the financial reports.

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The synchronization:

• saves time on manual data entry;
• makes keeping track of accounts easier;
• eliminates the risk of losing a particular payment.

Even small expenses that are often overlooked (such as transfer fees or payments for app and service subscriptions) will be taken into account automatically. As a result, users get a more accurate picture of the company’s financial situation.

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As one of Alex’s tasks was to understand how much the company earns, he paid particular attention to the Profit and Loss statement ( P&L)*.

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* The P&L statement shows a company’s profits and losses for a specific period, e.g. a month. It is generated automatically in Finmap based on the data entered by the user and fed into the service through integrations with banks and other services.

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Alex also plans to introduce regular maintenance of the payment Calendar* to control future income and to track upcoming expenses in advance.

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* By adding future expenses and incomes to Finmap, the user will see them in the Calendar and will be reminded to make the planned payment or collect client debt in a timely manner.

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Plus, the Calendar will show whether there is enough money to cover all expenses for a particular date or if there is a risk of a cash gap (a temporary situation where a business does not have enough money to cover all necessary expenses).

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However, the founder of Serious Development Agency also informed us of a feature of particular concern for his business.

I have this issue. I receive one payment, but this payment is allocated for several people at once. I have to split it up manually every time and calculate how much of this payment relates to one specific project and how much to another? It would be cool if we had a large payment coming in, and we could specify that a certain amount of money from that payment applies to a specific project. — Alex Shubin, founder of Serious Development Agency

Our development team is now actively working on implementing the functionality that Alex is missing. This feedback is vital to us as it helps us develop Finmap tools that our users can use to manage their specific financial needs more efficiently.

What’s the result

• Alex sorted out the mess in his finances and set up systematic cash flow management.

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With Finmap financial expert Karina, Alex was able to sort out what was going on in the company in January-February, including when the war in Ukraine began.

We set everything up, looked at what was happening between January and February and now there is an understanding of the numbers. — Alex Shubin, founder of Serious Development Agency

• Thanks to the connected integrations, the transfer of transaction data is automated; Alex doesn’t have to transfer it manually and spend time on it.

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• It is possible to see financial reports in a couple of clicks and understand what’s going on in the business. Reports are generated automatically in the form of easy to understand graphs and charts. There is no need to waste time putting tables together and then trying to make sense of dozens of columns of numbers.

Graphs are quite useful. You can even present the data in percentages in them. — Alex Shubin, founder of Serious Development Agency

The P&L report is also important to Alex because it allows him to easily track the company’s profits.

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• Alex plans to use a payment Сalendar within Finmap to monitor future incomes and expenses (e.g. to plan tax or loan payments).

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Most importantly, with his finances under control, he can now monitor the growth of his business. After all, as Alex says:

If we work in times of war, even from basements, what else can stop us?

Are you the owner of an IT company? Understand the finances of your business, clearly, see the profitability of each product/project, and accurately calculate your investments in new product development with Finmap.

User case card

Storypoint — IT recruitment company
🌐 Website: https://storypoint.team/

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Andrii Oleksiienko — Co-founder & CEO of Storypoint
Knows how to build cool teams in IT companies.
His goal is to improve the recruitment process in Ukraine.
Does not like to manually enter data into spreadsheets.
📱 Insragram: @alex__andrew

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Most entrepreneurs agree that scaling a business is always a challenge, accompanied by the possibility of chaos and failure. Yet, the hero of our today’s case study, Andrii Oleksiienko, the founder of Storypoint, does not agree at all. 😉

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He managed to scale his business in one year and increase his income almost tenfold while avoiding financial losses and mistakes. He did it with systematic cash flow management, of course (otherwise why would we be here, right?). In this case study, we tell you how cash flow management helped Storypoint and how you can adopt their experience for your business.

Given

Storypoint was created by Andrii and his partner Diana in 2021. It helps to recruit and hire talented people for technology companies, as well as facilitates outsourcing and outstaffing in Ukraine and abroad.

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Prior to launching his business, Andrii worked in IT-companies and built teams from within. Therefore, he knows well what problems both business leaders and employees face.

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For the first 2-3 months of work, the company used spreadsheets to manage finances. However, as the business grew, so did the expenses. They had to dedicate extra effort to enter each transaction into the spreadsheet, and eventually the task became too time consuming. Andrii started looking for ways to automate the processes.

The problem was that all transactions had to be entered manually into our Spreadsheet, where the entire budget was stored. It took a lot of time, so we decided to automate the process and that’s why we chose Finmap. — Andrii Oleksiienko, Co-founder & CEO of Storypoint

Task

When choosing a solution for automation of cash flow management, the following was important to Andrii:

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1. Financial management should not be time consuming. Business owners and finance managers have enough operational tasks every day. He didn’t want to spend more hours on entering all the transactions manually.
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2. It must be possible to connect bank accounts into the cash flow management tool, in order to save time on entering transactions, as well as to avoid losing costs. It was especially important for Andrii to be able to connect the tool with Monobank, because the company’s account was with this bank.
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3. Clear analytics for systematic understanding of the company’s expenses and incomes.

Finmap solution

Andrii learned about Finmap from friends. At that time the tool was still in beta testing, but the businessman was not intimidated and decided to give it a try. The crucial factor for Andrii was the possibility to link Finmap with the bank so he would not have to enter all the transactions manually.

One of the reasons was that we have Monobank, and Finmap works with Monobank. It was perfect. Because such an integration between a bank account and Finmap is exactly what we use it for, it’s a major feature for us. — Andrii Oleksiienko, Co-founder & CEO of Storypoint

Implementing Finmap: Was it difficult?

It was not difficult at all. The implementation of the service did not take long. All that was needed was to register, create a company and connect the bank accounts*.

Finmap has the coolest onboarding. I signed up for the service, linked the company’s Monobank account, and imported all our transactions. — Andrii Oleksiienko, Co-founder & CEO of Storypoint

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* This is what the features of connecting integrations with banks and services inside Finmap look like. Integrations with 2000+ banks around the world are now available in Finmap.

Setting up finance management: Maybe this was difficult?

At the time Storypoint connected to Finmap, the service was still in beta. That’s why Andrii did face some difficulties with the currency conversion*. Payments in USD and EUR that came to the company were not always displayed at the correct exchange rate.

There was only a few cents difference, but because of that discrepancy the debit and credit didn’t add up. — Andrii Oleksiienko, Co-founder & CEO of Storypoint

* Now, Finmap pulls current exchange rates from national banks of different countries. For example, for Ukraine from the National Bank of Ukraine, for the Czech Republic from Czech National Bank, as well as from Mastercard.

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This means that for users who have transactions in different currencies, information about exchange rates is always accurate. In addition, it is possible to set your own exchange rate if needed. This, for example, is how the exchange rate is displayed when you enter Income in USD into a UAH account.

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To solve it, Finmap offered Andrii the advice of our financial expert*.

The finance expert showed our accountant how to properly structure income and expenses in Finmap. After that, all the statements added up perfectly. Plus, they helped us correctly organize everything, add categories, subcategories, tags. Since then, we are able to analyze our expenses and income in different categories: per employee, per project. That, in turn, helped optimize costs and drop unprofitable projects. — Andrii Oleksiienko, Co-founder & CEO of Storypoint

* If you prefer, our users can get help from Finmap’s financial experts and choose an assistant, manager or mentor for themselves. You can book free consultation and find out more about this service.

User case card

Company «AIRT» — Turkish Association of Independent Realtors, sells and rents property in Turkey.
Website: https://airt1.com

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Ilgiz Yusupov — founder of the company «AIRT»
Instagram: @ilgizyusupov
For 7 years he has been involved in real estate in Turkey.

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Has been using Finmap in his business for about a year.

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For him, cash flow management with Finmap is an opportunity to reflect on his company’s financial health and plan for the future, while quietly enjoying a cup of coffee.

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Best price, caring service, high quality… What other advantages can a business use to get ahead of the competition?

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One Finmap user, the founder of a real estate company in Turkey, realized that orderly business finances could also help him get ahead. Why and how? We tell you in this user case study.

Given

AIRT deals with real estate in 4 cities in Turkey (Istanbul, Antalya, Alanya, Ankara). AIRT’s core business is the sale of flats in new buildings. However, they also deal with rentals, commercial properties and secondary housing.

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There are now 12 employees in the team. But as Ilgiz, the company’s founder, says:

All of our brokers are independent individuals with their own life stories. They are not employees, but partners. — Ilgiz Yusupov, founder of the AIRT

The company has a turnover of about $1 million a month. Ilgiz has ambitious plans for the business:

• To develop the company in other cities in Turkey and around the world.
• To make the property market more professional and reduce the level of fraud.

Among other things, the Association of Independent Realtors was set up for this purpose.

Our aim is for the Association to be at a national level. We hold broker conventions and create workable rules in the market, so people can understand what is effective and what is not. — Ilgiz Yusupov, founder of the AIRT

In order to work systematically towards these goals, Ilgiz, as the founder and manager of the company, needs to understand exactly what is happening in the business and make informed decisions. So, he decided to introduce financial management.

Task

Ilgiz was immediately looking specifically for a financial management tool. He already knew that just accounting was not enough.

I was purposefully looking for a financial tool. Because in Turkey an accountant deals with many things,  but not with finances. He does some invoicing, some tax calculations, but he doesn’t keep the finances. As a result,  there is no way to understand where there are  expenses and where there is  income, even by using Excel. — Ilgiz Yusupov, founder of the AIRT

It was important for him to:

• Clearly understand what the company’s expenses are and how much revenue the business generates.
• Keep track of this data regularly and, preferably, have it all in one place.

I needed one programme where I could go in and clearly see the main indicators I needed in dashboard form, especially income and expenses. In general, any entrepreneur needs to understand income and expenses at least once a week. This helps to make decisions in terms of saving or, hopefully, expanding. — Ilgiz Yusupov, founder of the AIRT

He found out about Finmap by chance: I came across an advertisement, looked at the information about the service and immediately began to implement it.

Finmap solution

Ilgiz manages cash flow in his business on Finmap by himself, without delegating to the staff.

Finmap is an enjoyable activity for me. I try to set aside an hour or two a week, brew some fresh coffee, sit down and enjoy doing it. — Ilgiz Yusupov, founder of the AIRT

So far, all the data is entered manually, including the company’s expenses and income. There are only 3 buttons in the service for entering transaction data: Income, Expense and Transfer. It is therefore easy to understand at a glance.

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To make the analytics clearer and more accurate, user can specify not only the amount, when entering transactions, but also:

• Category — the type of income and expenditure, e.g. targeted advertising expenditure, income from renting commercial real estate.
• Counterparty, i.e. from whom income is received or to whom the company has made the payment — expense.
• Tags — further option to specify the data on the transaction. For example, you can add tags with brokers’ names so that Finmap can then filter out all revenues that came from a particular broker in its reports.
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Since Ilgiz started using Finmap, we have added integration with Turkish banks, including Akbank Direkt, DenizBank, Garanti, Ziraat Bank and Yapi ve Kredi to Finmap.

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This will help our users from Turkey and those with Turkish bank accounts save time. Thanks to the integration, all bank account transactions (receipts and expenses) will go into the service automatically and manual entry of transactions will not be necessary.

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The most important report for Ilgiz now is Money (Cash Flow)*. It shows cash flow and allows us to systematize what amounts are received and what amounts are spent by the company.

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Ilgiz can now clearly see on one screen all revenues and expenditures of the business comprehensively or by specific parameters. For example, he can filter income by Category, «Sales in new buildings».

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It’s so convenient and easy to read. Before I would get dizzy trying to understand endless columns on spreadsheets.  When deals go through and you start increasing your staff or buying some additional software without checking your financial records, there are consequences. In this respect Finmap is a wakeup call, alerting me to my business’ finances. — Ilgiz Yusupov, founder of the AIRT

Ilgiz is still exploring how Finmap’s other reports can help his company (Profit (P&L), Projects, Accounts Receivable, Accounts Payable).

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His plan for the future is to get additional training in order to gain a deeper understanding of finance to make the most of financial management.

What is the result

Finmap is absolutely the right thing to do. — Ilgiz Yusupov, founder of the AIRT

• All company income and expenses are now organized. They can be analyzed at any time without wasting a lot of time and without waiting for reports from the accountant/finance director.

It literally takes  five minutes. I go into Finmap, look at my expenses and my income. That’s it. It really helps. — Ilgiz Yusupov, founder of the AIRT

• It has become easy to make decisions based on numbers, not to inflate costs where they are unnecessary, but also not to save too much.

It’s just the kind of time when I can reflect a little bit on the numbers, see what’s going on. Because in the hustle and bustle of everyday life, you don’t see what’s going on. But when you sit down and look at the numbers, and they are in a convenient format, everything is clear. — Ilgiz Yusupov, founder of the AIRT

• Ilgiz realized that he could increase his advertising budget without falling into a cash gap (a situation where a business temporarily lacks money to cover expenses).

• ‍Systematic cash flow management has become a competitive advantage for the company.

Of course, this is a competitive advantage. Because if 50% of the market does not use cash flow management, they will get into financial holes, recruiting a large number of employees or increasing money for advertising when they can’t afford it.  In the meantime, I can  pull ahead by making sound financial decisions. — Ilgiz Yusupov, founder of the AIRT

It is now much easier for the Association of Independent Realtors to move towards the goal.

The plans for the future are for the Association to become a place where every foreigner can come, not just to buy a property, but to find one specifically tailored to their needs and objectives. — Ilgiz Yusupov, founder of the AIRT

We are sure that with such a systematic money order everything will surely work out.

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If you too are setting ambitious goals for your business, you need a well-thought-out plan and a clear picture of your company’s financial situation.