Level up your knowledge skills with Mastery
For the final part of the Capitalise Learn series - Mastery - we explore how Capital Advisory can support the full business lifecycle, teaming up with our Accountant In Residence Kirsty McGregor.
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Go beyond the numbers and get your clients' balance sheet match fit. Raise, recover and monitor capital - all through one platform.
Discover more opportunities for your practice by protecting and growing your clients' capital. Our guide shares tips, facts and checklists on how to build capital advisory in your practice.
Which came first - the business or the balance sheet?
Well, according to David Graeber’s fantastic anthropological journey about the origins of money - it would be the balance sheet. David argues, compellingly, about the origins of money being “debt” - from IOUs - rather than the financial systems originating from money. For those interested, he is (was, sadly) a founding thinker of the Occupy Movement and asks important provocative questions about modern monetary policy - so we highly recommend it as a read.
While we may debate about which financial statement offers the highest value at which time, surely we can all agree that the capital position of a company is crucial to their success?
Capitalise.com is founded on this belief that businesses need advice on this journey and that there is no-one better placed than accountants in their business advisory role.
Capital advisory is about going beyond the numbers and helping your clients get their balance sheet match fit. Build strength and resilience in your clients’ businesses by helping them raise, recover and protect their capital - all through one platform.
With 90% of accounting firms naming business advisory as a top strategic priority [Capitalise, August 2020] yet the majority identifying time as a key challenge in making it a success, we’ve put together a guide to share on shortcuts on getting set-up.
We’ve put together a guide which shares tips, facts and checklists on how to build a capital advisory function in your practice.
It’s free to access and so dive right in:
Bring the future forward. Why Capitalise.com is focused on raising, recovering and protecting capital in businesses.
How great would it be to have a fast forward button to get back to a “normal”? Or would you be looking for the rewind?
Zooming out of the current crisis to look at our lives from a multi-decade view, the picture is clear. Metrics across education, health, freedoms and movements for equality show that we should be looking forward to the future. Both Steven Pinker (Enlightenment Now, 2018) and Colin Mayer (Prosperity, 2012) make strong cases for why the company - and more precisely capital - are instrumental in improving our lot.
Capitalise is built around this notion. The notion that given that, on balance, others will in general seek a better future, coherent with our own personal view. Bad actors, polluting companies and exploitative business models will be pushed out - perhaps not instantly but certainly over the long term.
Since the future is, in aggregate, better than today then why not bring that future forward to now? To get there we need access to capital to invest productively in taking those steps forward. Without capital there is stagnation. Hitting the pause button and ceasing all activity might feel tempting in times of crises but this would disrupt emerging innovations fixing today's challenges, be that a fossil fuel dependency or equality, leaving us unable to cope with generational challenges.
If capital enables change and the future is positive then access to capital is a fundamental need. This is why we’re passionate about providing access to capital to small businesses.
Capital? What capital?
In a fresh-off-the-shelf business it all starts with £0 assets, £0 liabilities (except of course some accountancy fees!) and £0 equity. The only way to get a business off the blocks is most likely to add sweat to the balance sheet. Since neither Jeff Bezos, Satya Nadella nor Sundar Pichai accept IOUs for their cloud services then chances are that some vital liquid capital will be required - cash.
Cash as a concept (diversion: one of our investor’s shows it really is just a concept) is the one form of capital you want in your business. Aside from machinery, buildings, IP, plant and other types of fixed asset which can be used productively, cash on the balance sheet is probably the most popular in our asset-light, knowledge economy.
As a result, the concept of bringing in liquid capital - cash - into a business to invest in people, assets, marketing or whatever offers the best return on investment (ROI) is central to our mission.
Whilst sometimes it may not seem that way, beyond customers there are so many places to go and get cash to open up investment opportunities...
Since all of the above can be converted into cash then each of them could be considered at any point. Any business which has a growth plan and knows where to put cash to work will certainly want more fuel.
But how to know where to turn? In the debt space alone there are 1,000 of grants, 360 lenders, 10,000s of consultants to help with specialist claims. At Capitalise.com we see our role in helping small businesses access all those products. We are working in opening up the capital marketplace.
Accountants. Are you their guide?
Considering the 18 different places to get cash above, which should a business owner choose? At Capitalise we believe passionately that for many businesses, accountants have the best shot at finding the answer.
In a 2020 business survey run by Capitalise, 68% of businesses stated that it was important to seek advice regarding their financing needs, 65% also trust their accountant as this advice provider.
By knowing the numbers and with access to the market is a powerful combination to differentiate how accountants can offer help to their clients.
Pleasantly surprised to see how much extra Capitalise does compared to just funding - Simon Chaplin from Socks up Simon.
Keen to hear more about the ways we can help your clients with more than funding? What about also helping them with recovery? Join our webinar on the 26th August.
Access exclusive online sessions with leaders from outside the accounting sphere plus lender briefings and market updates.
See your clients differently, so you can get ahead in your funding conversations.
So you can get ahead in your capital conversations.
Predicting which clients need your attention starts with understanding their circumstances - and no-one knows their numbers better than you, their accountant. But unless you’re the Rain Man it’s difficult to visualise your entire portfolio without a little help from technology.
Monitor is here to give you a helping hand in seeing the capital position of your clients with a new lens. *
* Available for advisers subscribing to Pro and Partner.
Anticipating your clients’ needs
Recently, we talked about Client Experience and channelling the 5* Hotelier where firms such as Raffingers have invested in training, processes - and their choice of technology partners. This prepares a firm to respond to requests. But how about getting there before the client asks?
In Japan, the “art of anticipation” Kikubari (気配り) is a preemptive customer service which makes a guest or client feel so welcome. This Japanese style of silent and unprompted customer service is all about adding value above and beyond. It’s about strengthening a relationship. Monitor gives you that view. And across all your clients at once.
Analysing your portfolio. Instantly.
Open up the conversation, focus on the solution
In an age of real time feeds, automation and shared accounting dashboard views between your clients and your team, sometimes it’s important to look at things a little differently.
Clients are plugged into their P&L, budgets and forecasts. But they really don’t have any visibility on solutions to help their cash flow.
Our adviser-led funding platform helps create that service line in your firm, improved with the additional layer of our Health Report.
Health reports. With talking points
Our Health Report plays back a summary of how a financial institution would see your client. A business credit score and benchmarks* help give a clear picture and sets expectations around the products available in the market.
p.s this is powered by machine learning (aka A.I.) but we don't think that's too important.
Want to see your clients in a different way?
Book in a consultation with one of the team
Or contact your partnership manager to run through a Portfolio Review.
For the final part of the Capitalise Learn series - Mastery - we explore how Capital Advisory can support the full business lifecycle, teaming up with our Accountant In Residence Kirsty McGregor.
The CBILS 31st March deadline is fast approaching, now is the time to make sure your clients are ready and prepared for what's around the corner.
Access exclusive online sessions with leaders from outside the accounting sphere plus lender briefings and market updates.
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