Proving your ongoing business viability through 5 financial reports

Binghay Co • August 23, 2023

Whether you’re applying for government subsidies, taking out a business loan or seeking investor support, you need to be able to demonstrate your ongoing viability as a business.


To prove this viability, it’s important to have the right financial information at your fingertips. This information is also just as important for your own internal planning and decision-making.


So, where do you start and what are the reports that you’ll need?


The numbers that prove you’re a business with a future


Any lender or government body wants to know that your business has a future.


As the owner, you may believe in the destiny of your company, but you also need the numbers to reinforce this argument. Banks, lenders and investors are taking a risk in backing you. Because of this, they want to know that you’re capable of making the agreed repayments, and that the business is in a financial position to deliver profits and payouts for investors.


Before investing in your business, organisations will want to see:


  • Evidence of a healthy sales pipeline and sales revenue
  • Manageable debt that’s not eating into your capital
  • A positive cashflow position that covers your main costs
  • Forecasts that show stability or growth in your revenues
  • A meaningful business strategy for the next two to five years of growth


The data you need to plan your future


You can’t run a business on a wing and a prayer. With so many different ways to track and record your business data, there’s no excuse for not being up to speed with your performance, your targets and your forecasted sales, cashflow, debt and profits.


This information isn’t just useful when approaching investors and lenders. It’s also vital for your own strategic thinking, your business planning and your internal decision-making


Crucial management information to know will include:


  • Your targets and budgets for the upcoming period
  • Your sales and financial performance against these targets
  • Your basic financial position and health
  • Your forecasts for future sales, cashflow and end profits


The 5 key reports that define your company’s growth


Today’s cloud accounting software makes it a breeze to produce detailed and informative financial statements. These are the main statements and reports to focus on:


  1. Business plan – your business plan is a written document that outlines the company's goals, strategies and financial projections for future success. It’s your route map for the business journey that lies ahead, and a crucial document when approaching investors.
  2. Sales reports and forecasts – sales reports give a historic summary of your past sales data, so you can track how you’re performing. Sales forecasts project this data forward in time to show future sales trends and potential sales growth you may achieve.
  3. Revenue forecasts – a revenue forecast is a projection of your expected income or revenue for a specific period. Being able to track and forecast your revenue position is vital information when carrying out financial planning and decision-making.
  4. Cashflow forecast – a cashflow forecast is an estimate of your expected inflows and outflows of cash over a specific period. By forecasting these cash inflows/outflows you can aim to keep the business in a ‘positive cashflow position (more cash coming in than cash going out).
  5. Financial statements – the main financial statements to keep your eye on will be your:
  • Cashflow statement – shows your current cashflow position, so you can make the most informed decisions about spending and cost management.
  • Balance sheet – shows your present assets, liabilities, and equity. It’s a snapshot that reflects the company’s financial position at a specific point in time
  • Profit and loss statement (P&L) – a breakdown of the income coming into the business, and the expenditure going out. Crucial for managing your profitability.
  • Aged debts – categorises and analyses your outstanding customer invoices, based on when they should have been paid. Keeping on top of this helps to speed up payment and improve your cashflow position.


Talk to us about proving your business viability


Having the data and evidence to prove you’re a viable and stable enterprise is crucial. It’s these numbers that will help you plan your growth and access the investment you need to scale.


We’ll help you create a detailed business plan, revise your strategy and produce all the financial and non-financial statements you’ll need to make informed business decisions.


As your adviser, we’re in the best possible position to provide your management information.


Get in touch to talk tabout your financial reporting.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started. 


Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Making your business work for you: making enough to retire

By Binghay Co • April 22, 2025
As a business owner, you may love running your company, but there’s always the underlying thought that, one day, you’ll need to sell and retire. With global markets in flux and an uncertain future, how can you ensure your business is worth enough when the time comes to sell? Let's look at the core ways your business can be structured to deliver on your own personal, family, philanthropic and leisure goals, now and into retirement. Creating a business that will fund your retirement plans Your business should be your retirement nest egg, but how do you ensure it holds its value for a comfortable retirement? Here are five strategies to boost your business’s value, ensuring you get the return on investment (ROI) needed when it’s time to sell. Build a business that can run without you To maintain its value at sale, your business must operate independently of you. Systematise your operations and create scalable processes, so the day-to-day functions are not solely reliant on you. A strong management team that can run the business without you is essential. Autonomy increases the business’s appeal to potential buyers, who want to ensure the company will thrive even after the founder leaves. Focus on recurring revenue streams Recurring revenues provide stability and increase your business’s value. Consider subscription services or other predictable income sources. Recurring revenue models significantly raise business valuation multiples, often by 2-3 times compared to transaction-based models. With a stable income structure, you can sell your business for a premium price, giving you the capital needed for retirement. Invest in intellectual property and licensing Intangible assets like intellectual property (IP) and brand equity can significantly enhance your business’s value. Consider developing products, processes, or technologies that can be patented and licensed. This creates passive income and appeals to buyers looking for businesses with valuable, long-term assets. Keep detailed records and keep finances healthy A business with a solid financial track record is more attractive to buyers. To boost your business’s appeal, maintain strong financial health, a good credit score, and positive cash flow. Rigorous financial tracking and clean books with 3-5 years of profitability will justify higher valuations and greater ROI, making your business a more desirable asset. Create a strategic exit plan well in advance of retirement The key to a successful exit is planning well in advance. Work with your advisors to enhance the business’s value, identify ideal buyers, and structure your exit in a tax-efficient manner. Ideally, start your exit strategy 3-5 years before retirement to ensure you have time to focus on succession planning, boosting business value, and securing enough capital for your retirement needs. Helping you secure your income and lifestyle You’ve worked hard to build your business, and you deserve a fulfilling, comfortable retirement. But to make that a reality, it’s crucial to plan ahead. Start working on your exit strategy now. Come and have a chat about your retirement plans and exit strategy. We can also introduce you to independent financial advisers who can offer personalised wealth management advice.

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What does the Coalition’s Budget Reply mean for your business? We’ve outlined all the proposed changes that could affect your small business. #Budget #BudgetReply #BusinessTips

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