Understanding Your Financial Position
Clear insights into liquidity and solvency analysis
Most businesses fail not because they're unprofitable, but because they run out of cash at the wrong time. We help you understand both your immediate financial flexibility and your long-term stability through straightforward analysis methods.
We Start With Your Current Position
The first conversation is about understanding where you are right now. Not where you think you should be, or where you were last quarter. We look at your actual current assets versus what you owe in the short term.
This means reviewing cash reserves, outstanding invoices you can realistically collect, and inventory you can convert quickly. Then we compare that against immediate obligations like supplier payments and upcoming payroll.
What you'll learn: Whether you have enough liquid resources to handle the next 90 days comfortably, or if you need to adjust payment schedules and collection practices.
Moving Beyond Surface Numbers
A lot of business owners tell me they have plenty of assets on paper. And that might be true. But can you turn those assets into cash when you need to pay someone next Tuesday?
We calculate your quick ratio by stripping out anything that takes time to convert. Equipment, long-term investments, slow-moving stock. What remains is what you can actually access when pressure builds.
Real scenario: A client had strong equity but consistently struggled with monthly expenses because too much value was tied up in property. We restructured their asset allocation to maintain better liquidity without sacrificing growth.
The working capital analysis shows whether you're operating with enough breathing room. If your current liabilities keep creeping up on your current assets, you're basically running a race where the finish line keeps moving closer.
Looking at Long-Term Stability
Solvency is different from liquidity. You might have enough cash today but still be heading toward trouble if your total debts outweigh your total assets. We examine your debt-to-equity ratio to see how much of your business is actually owned versus borrowed.
This matters when you want to expand, refinance, or bring in partners. Banks and investors look at solvency ratios carefully because they indicate whether you can survive rough patches without folding completely.
Common pattern: Businesses with strong cash flow sometimes overlook mounting long-term debt. We track both metrics together so you don't optimize one at the expense of the other.
Interest coverage ratios tell us whether your earnings can comfortably handle debt servicing. If you're just barely covering interest payments, there's no buffer for when revenue dips or unexpected costs appear.
Common Questions About the Process
Here's what most clients want to know when they first reach out
What financial information do you actually need from me?
We need your most recent balance sheet and profit and loss statement. If you have cash flow projections, those help too. But honestly, we can work with whatever accounting system you're currently using, even if it's basic.
The key is accuracy, not sophistication. A simple spreadsheet that's correct beats fancy software with garbage data. We'll walk you through what matters and help you gather the right information if your records need organizing.
How long does a typical analysis take?
Initial assessment usually takes about a week once we have your documents. That includes reviewing the numbers, identifying patterns, and preparing a straightforward report with recommendations.
If you need ongoing monitoring, we typically review quarterly. Some clients prefer monthly check-ins during growth phases or when managing through challenging periods. The frequency depends on your situation and what provides genuine value.
What happens if the analysis reveals problems?
Then we know what we're dealing with, which is better than operating blind. Most issues have practical solutions when you catch them early enough. We prioritize recommendations by impact and urgency.
Sometimes it's about renegotiating payment terms with suppliers. Other times you might need to accelerate collections or restructure debt. We've also seen cases where the problem was simply poor categorization making things look worse than they actually were.
Can you help implement the recommendations?
Yes, though it depends on what's needed. We can help you have conversations with lenders, set up better tracking systems, or work through scenario planning for major decisions.
Some clients just want the analysis and prefer to handle implementation internally. Others want ongoing support. We're flexible based on your capacity and preferences.
Working With Someone Who Understands Australian Business
I'm Tobias Lundqvist, and I've been analyzing business finances across New South Wales and the ACT region since 2018. Before that, I spent six years in banking, which taught me how lenders actually assess risk versus what they tell you they're assessing.
What I've noticed is that many business owners don't struggle with making money. They struggle with timing and structure. Revenue comes in one pattern, expenses go out in another, and suddenly there's a gap that creates unnecessary stress.
"The businesses that thrive aren't necessarily the most profitable ones. They're the ones that understand their cash position well enough to make confident decisions without constant worry."
My approach is straightforward because financial analysis doesn't need to be mysterious. We look at your numbers together, identify what's working and what isn't, and create practical improvements you can actually implement. No jargon unless it genuinely helps clarify something.
Ready to Understand Your Position?
Let's review your current liquidity and solvency together. Most initial consultations take about 45 minutes and give you a clear picture of where things stand.
Schedule Your Analysis