Covid-19 Stress Test Templates
We're all faced with a less than ideal situation, where we need to rely on those around us for support. This includes the support of Silverfin.
We are all in this together. That is why we created this package for you - to help you help your clients in this difficult time.
What are they?
The templates will look at a number of key indicators and give you the tools to help you quickly identify which of your clients are at risk and need your help. You will also be able to then track specific client's performance on individual metrics.
The COVID-19 workflow provides you as an accountant with a set of templates combined with Insights queries to help you:
- Identify clients who are under pressure from Covid-19, and
- Enable you to advise them more efficiently and effectively.
How do I add them?
Add this workflow on the Silverfin marketplace (Note: you must be an Admin user to do this):
The Nitty Gritty:
This package contains:
- 3 insights queries, and
- 2 templates
Insight queries to segment your clients at risk
1) UK COVID-19: Quick ratio < 1
Is the company able to meet all current obligations in the short term (without taking stock into account)? A quick ratio above 1 is generally considered safe, this means that it must be possible to fulfil short-term obligation that may arise.
Call up all files with a quick ratio < 1. This then indicates how likely an organisation is to run into financial difficulties.
2) UK COVID-19: Turnover loss of 2 months
It is likely that certain companies won’t earn any revenue in the coming period. Let us forecast a loss of revenue for 2 months, based upon the value of previous financial year.
On the assumption that all are costs of the previous financial year (at end year) stay at the same level, we want to get an overview of all companies that don’t have enough cash to cover such loss of revenue. Also, if the costs are higher than the forecasted revenue, we should actively look at the cost structure of this company.
We have an insight query which allows you to filter out and follow up clients who’s cash position is not sufficient to cover a period of 2 months revenue loss, where the result is below 0.
Now that they've been identified, it's up to you challenge the cost structure of these companies.
3) UK COVID-19: Negative Cash Balances
Highlight companies with negative cash balances which may run into financial difficulties.
UK COVID-19: Stress Test Cashflow
This template provides every you with a tool to calculate and simulate the client's cashflow over a period of 8 coming weeks. This will enable you to effectively discuss the impact of COVID-19 on their business and/or challenge clients in how to survive the coming two month period.
Why not communicate with your client about the data on this template using Pulse and Silverfin Interact, where this template can be shared with clients to collaborate.
As mentioned above, insights will be added to this template to track company progress.
UK COVID-19: Measures
This template will list, for each area, every possible measurement you can take to help your clients. It serves as a complete checklist of all governmental initiatives, and it facilitates a way to follow-up requested governmental support by reconciling accounts.
As with the cashflow template, some insights will be added to keep track on a company level of all requested support for each client.
Visit our COVID-19 portal to find out what Silverfin has more to offer.
Why not join the 'Connected Accountants' community to share thoughts and ideas with fellow accountants:
For a masterclass on this, please click here: