@M – yes, I am harsh and for a reason. If you or I did something like this, ICAEW would have every justification to string us up and hang us out to dry. Software companies have been failing to take responsibility for too many years.

I would be interested to hear where the calculations and weightings come from, too, and would encourage Kashflow to provide this alongside the report.

I also agree with the comment that the reader needs to know sales value per customer. If the one-off customers are buying high-value products and the repeat customers aren't paying much – the equation changes.

But I would also ask Dennis whether this post isn't worded a bit strongly. Yes there is room for improvement, but I would dispute that the report is "dangerously inappropriate".

At the moment, if I were Duane, I'd be thinking, "Infamy! Infamy! Dennis has got it in for me!"

M

Your looking at the report from a GRC standpoint and then comparing it with software applications that perform a different function or are of a different magnitude.

You cannot compare the Kashflow 'health check' report with something like Validis.

The fact that Future Route have written an application to provide Instant in-depth financial insight is to be applauded but as you pointed out "Validis have spent fortunes on understanding what current asset data means". They identified a need in the marketplace and have created a sophisticated tool to analyze accounting data based upon bioinformatics and inductive logic.

For the most part Kashflow, Sage, MYOB, Quickbooks, TAS, Mamut etc are not in the business of data analysis they're providing solutions to people like me who want accounting software that is easy to use, easy to understand and designed for non-accountants to use.

To say "those who are commenting clearly don't see the value in managing their business in a professional manner" is nonsense. What people are saying is that you should use the information in the right context and understand the types of people who it is directed at.

If I was using SAP, had a multi-national company a governance, risk and compliance dept then I'd agree with you, but at the moment there's just me, Kashflow and £15 per month.

1. It's lucky you are thick -skinned like me; and

2. Why do so few value a chartered accountant's comment about what should be a report based on accounts?

If there is no intention to replace then what's the point?

To the point you're all making and using the same logic, I might as well put any figures on the base numbers, stick a finger in the air and say the same. It won't do. It's unprofessional and dangerous.

According to Kashflow – the balance had fallen to £3K but the graph shows considerably less. That means the numbers are plain wrong. What sort of decisions do you want to make? One based on meaning or ones that are wrong? Your choice.

These are highly precarious times – understanding the numbers and RISK is more important than it has been in my lifetime.

The advice is generic but doesn't relate to anything. Goodness knows what they're hiding.

Surely part of the point here is that the report is a quick snapshot, and by performing whatever calculations it does at a given point in time helps the business owner to build a metric around it – and if they desire (and if it seems accurate and appropriate to them), to incorporate that into their own system of checks and balances?

Doesn't seem as if this sort of forecast or snapshot is intended to replace professional financial analysis – and anyone who expects it to is in for a (deserved) shock..

Even professionals get it wrong. Credit crunch?

The 3 sections:

Money in the bank – I think we all know this one and why not use 3 months as a benchmark
Reliance on a single customer – don’t put put all your eggs in one basket
Making the most from your existing customers – isn’t it true that your existing customers are your “Goldmine”

are self explanitory and provide a *simple* overview as to how my business is performing.

I don’t think Kashflow are suggesting you run your business based on this, what they’re trying to do is provide simple indicators based upon common sense and reasonable calculations.