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Scope of Work:
Initial Diagnostic Analysis – Financial Systems
SMA will perform a detailed analysis of the client’s financial statements including but not limited to:
- Analysis of account structure (Chart of Accounts and subsidiary ledger accounts).
- Identification of accounts with apparent errors or where there is evidence of incorrect postings and provide the client with suggestions for corrections as needed.
- Ratio analysis of client’s financials along with benchmarking of results to similar size builders.
- Review and analysis of client budget and business plan.
- Other Financial Systems that are reviewed during the IDA evaluation include
- Management accounting benchmarking
- Internal security controls
- Report generation and timing
- Budgeting
- Estimating
- Back office software usage
- And your actual financial results compared against industry benchmarks.
The client is given, at time of contract, a list of materials that are needed by SMA to conduct the IDA analysis and prepare the report. A delivery schedule of said reports and items is mutually agreed upon at that time.
Upon receipt of requested materials, SMA prepares a written report within 10 business days. Then, a conference call is scheduled, so the SMA Account Manager can review the report with the client’s financial and/or management team in a conference call. This 60 to 90 minute conference will review the detailed report, prioritize the report recommendations and conclude with a formal plan of action for the client to implement - often within SMA’s CFO Management Program.
IDA Options:
The SMA Financial IDA can be also be done by having the SMA Account Manager visit the client site for one day and conduct management interviews and data collection. Obviously, this option is priced differently and travel expense apply.
Travel Expenses:
Client site visits, including an IDA visit, are subject to billing of consultant travel and lodging expenses, including meals, airport parking and rental car expenses. |
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