3:I[5613,[],""] 5:I[1778,[],""] 4:["slug","startup-equity","d"] 0:["F37xnJYJk2ZrfTSsAxtd4",[[["",{"children":["resources",{"children":["financial-forecast",{"children":[["slug","startup-equity","d"],{"children":["__PAGE__?{\"slug\":\"startup-equity\"}",{}]}]}]}]},"$undefined","$undefined",true],["",{"children":["resources",{"children":["financial-forecast",{"children":[["slug","startup-equity","d"],{"children":["__PAGE__",{},["$L1","$L2",null]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","resources","children","financial-forecast","children","$4","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":[["$","link","0",{"rel":"stylesheet","href":"/_next/static/css/2e6661b0417b461e.css","precedence":"next","crossOrigin":""}]]}]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","resources","children","financial-forecast","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":null}]]},["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children","resources","children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$undefined","notFoundStyles":"$undefined","styles":null}]]},[null,["$","html",null,{"lang":"en","children":[["$","head",null,{"children":[["$","meta",null,{"name":"robots","content":"index, follow, max-image-preview:large, max-snippet:-1, max-video-preview:-1"}],["$","link",null,{"rel":"icon","href":"/images/website-icon.svg"}]]}],["$","body",null,{"itemScope":true,"itemType":"https://schema.org/SoftwareApplication","className":"c455","children":[["$","meta",null,{"itemProp":"applicationCategory","content":"Business Planning Service"}],["$","$L3",null,{"parallelRouterKey":"children","segmentPath":["children"],"loading":"$undefined","loadingStyles":"$undefined","loadingScripts":"$undefined","hasLoading":false,"error":"$undefined","errorStyles":"$undefined","errorScripts":"$undefined","template":["$","$L5",null,{}],"templateStyles":"$undefined","templateScripts":"$undefined","notFound":"$L6","notFoundStyles":[],"styles":null}]]}]]}],null]],[[["$","link","0",{"rel":"stylesheet","href":"/_next/static/css/f5c18260de885e3c.css","precedence":"next","crossOrigin":""}]],"$L7"]]]] 6:E{"digest":"NEXT_REDIRECT;replace;/;307;"} 8:I[4699,["6081","static/chunks/6081-024259f4f6c69551.js?v1757931092728","3842","static/chunks/3842-fc747814cdab0121.js?v1757931092729","6142","static/chunks/6142-fe3b722656e566bf.js?v1757931092729","4181","static/chunks/app/resources/financial-forecast/%5Bslug%5D/page-f7dccd0e5de8435a.js?v1757931092729"],""] 9:T5ff9,{"id":"cG9zdDoyMzI4","title":"Understanding Startup Equity: What You Need to Know","content":"\n

In the dynamic landscape of startup culture, equity not only represents a slice of ownership but also stands as a critical instrument for attracting, retaining, and motivating top talent. Startups, often constrained by limited cash flow, utilize equity as a strategic tool to align the interests of employees, advisors, and investors with the growth and success of the company. This article delves into the various facets of startup equity, from types and distribution strategies to valuation and legal aspects, providing a comprehensive guide for entrepreneurs and early-stage participants to understand and leverage equity effectively. Whether you’re founding a startup or considering joining one, understanding startup equity is pivotal in navigating the exciting yet challenging world of innovative business ventures.

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Introduction to Startup Equity

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Startup equity refers to the ownership stake offered in a startup. It’s a popular form of compensation used by startups to attract and retain talent when they may not have the financial flexibility to offer competitive salaries. Equity in a startup is not just a potential financial benefit, it also aligns team members with the company’s success, as their shares may increase in value as the company grows.

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Equity Types Explained

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A startup may offer several kinds of equity, including common shares, preferred shares, and stock options. Common shares typically grant voting rights and profit shares but carry risks if the company fails. Preferred shares offer financial protection as they are prioritized during payouts, but often lack voting rights. Stock options are commonly offered to employees, allowing them to purchase shares later at a predetermined price, potentially profiting from the company’s growth.

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Who Gets Startup Equity?

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Equity distribution is critical and typically involves founders, employees, advisors, and investors. Founders may split equity based on their contribution and the risks taken. Employees might receive stock options as part of their compensation package to incentivize them to grow with the company. Advisors may receive equity in exchange for strategic guidance, while investors receive equity in exchange for financial investment.

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Valuing Startup Equity

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Valuing startup equity involves complex assessments that experts like financial analysts should guide. A common method for determining the value of startup shares is a 409A valuation, which uses financial analysis to estimate the value of common stock to ensure that stock options are priced correctly.

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Equity Distribution Strategies

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Effective equity management requires a clear strategy. Startups must decide how much equity to reserve for employees, which can range from 10-20% of total shares. This “equity pool” is essential for future compensation plans and should be established early in the startup’s lifecycle. The equity distribution should reflect the recipient’s role, risk, and contribution to the company.

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Vesting Schedules

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A vesting schedule is often applied, serving as an incentive for employees to stay with the company. Typically, equity vests over four years, with a common structure being a one-year cliff followed by monthly vesting. This means that if an employee leaves before a year, they forfeit their equity, but after a year, they gradually earn their shares.

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The Impact of Startup Equity

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For employees, accepting startup equity means participating in both potential gains and risks. Equity can significantly increase in value if the company succeeds, providing a substantial return on the initial investment in talent and time. However, it is crucial to understand that if the startup fails, the equity could be worthless.

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Legal and Tax Implications

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Navigating startup equity’s legal and tax implications is complex. Equity compensation is regulated by securities law and has significant tax consequences for both the company and its shareholders. Startups and employees should consult with legal and financial advisors to understand these implications fully.

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The Value of Equity in Startups

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Startup equity is a powerful tool for building a committed and motivated team. While it offers substantial potential rewards, it also requires careful consideration of risks, legalities, and market conditions. For startups, offering equity is a way to share their success with those who contribute to it, fostering a culture of ownership and alignment with the company’s goals.

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Looking for insights into exploring the potential of startup equity for your business? Modeliks offers advanced tools and resources to help you plan and analyze your startup’s equity strategy effectively. Equip your startup with Modeliks to make informed decisions that drive your company’s growth. Start your free trial today!

\n","slug":"startup-equity","date":"2024-06-03T08:21:03","categories":{"nodes":[{"id":"dGVybToxNA==","name":"Financial Forecast"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":null},"tags":{"nodes":[{"name":"small business"}]},"featuredImage":{"node":{"id":"cG9zdDoyMzI5","sourceUrl":"/images/cms/Startup-Equity.jpg","altText":"Modeliks Guide: Understanding startup equity and its benefits for growth."}},"seo":{"metaDesc":"Explore the essentials of startup equity to maximize your business' potential. The article by Modelik is essential reading for entrepreneurs."},"modified":"2024-06-03T08:21:03","related":[{"id":"cG9zdDoxMTU0MQ==","title":"How Accountants Can Offer High-Margin Advisory Services","content":"\n

Why Advisory Services Matter for Accounting Firms

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The accounting profession is shifting. Compliance and bookkeeping remain essential, but today’s clients expect more. They want guidance on how to run their business smarter, manage cash flow, and plan for the future.

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According to a CPA.com survey:

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This means the demand is already there. The opportunity for accounting firms is clear: move beyond bookkeeping into high-margin advisory services.

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The Challenge: Scaling Advisory Without Burning Out

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For most small and mid-sized firms, the hesitation is simple:
❌ Limited staff time
❌ No standardized tools for forecasting & reporting
❌ Concern about overcomplicating workflows

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The good news? Advisory can be delivered at scale, without adding headcount or creating inefficiencies — if you have the right system.

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The Solution: Modeliks for Advisory Services

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Modeliks helps accountants transform their existing relationships into advisory partnerships by automating the heavy lifting.

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Here’s how it works in practice:

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1️⃣ Connect QuickBooks in Minutes
Sync client actuals directly — no messy spreadsheets or manual imports.

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2️⃣ Build Budgets & Automated Financials
Instantly generate a forward-looking P&L, Balance Sheet, and Cash Flow statement, tailored to each client.

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3️⃣ Deliver Dashboards & Variance Analysis
Clients see Actual vs. Plan vs. Previous Periods. You provide insight into why numbers moved — without building reports from scratch each month.

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The Impact for Accounting Firms

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Firms using Modeliks see:
New revenue streams by offering planning & reporting as premium packages
Higher client retention thanks to consistent value beyond compliance
No extra headcount required, since processes are automated
Improved positioning as trusted advisors, not just bookkeepers

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As one accountant put it:

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\n

“Our clients can now make confident decisions. For us it’s a game-changer — we finally sell insight, not just compliance.”

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Why Now Is the Time

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Client expectations are rising. Competitors are moving into advisory. Technology makes it easier than ever to scale.

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If you’re an accountant or firm owner, now is the time to position your practice for the next decade. Advisory services are not just an add-on — they’re the future of accounting.

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Next Steps

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📽️ Watch the full video playbook here: https://www.youtube.com/watch?v=UlQEwnWOdKQ.
🌐 Explore how Modeliks can help you launch advisory services in under an hour -> HERE.

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📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"high-margin-advisory-services-accountants","date":"2025-09-02T08:30:06","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=UlQEwnWOdKQ"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTU0Mg==","sourceUrl":"/images/cms/Screenshot-2025-09-02-at-10.27.59.png","altText":"How to offer Advisory Services at High Margin?"}},"seo":{"metaDesc":"Learn how accounting firms can add high-margin advisory services without extra headcount. Discover how Modeliks helps accountants deliver financial planning, reporting, and dashboards that clients will pay more for."},"modified":"2025-09-02T08:30:10","related":null},{"id":"cG9zdDoxMTQ4Mw==","title":"How to Manage & Grow Your Professional Services Business: A Strategic Playbook","content":"\n

Running a professional services business is demanding. Whether you’re a founder, consultant, accountant, or finance leader, the challenges are similar:

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The truth? Many services firms outgrow spreadsheets faster than they realize. A project-based business requires a planning and reporting framework that adapts as you grow – not one that breaks every time a new client, project, or team member comes onboard.

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That’s where having a structured financial planning and reporting system becomes a game-changer.

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Who is This Playbook For?

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This strategic framework is designed for:

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If you run a project-based business, use timesheets, or manage multiple clients, this playbook is for you.

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How to Grow Profitability in Professional Services

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Professional services firms often face profitability challenges because margins are tied to capacity, efficiency, and client mix. Here’s where the right planning approach makes a difference:

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1. Plan by Project (Not Just Company-Level)

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Each project has its own revenue, costs, and resources. Without project-level visibility, it’s impossible to know which work is actually profitable.

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2. Track Actuals vs. Plan

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It’s not enough to create a yearly budget. Monthly actuals vs. plan reporting helps you quickly see where projects are off track and adjust before problems snowball.

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3. Build Scenarios

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What happens if a big client leaves? Or if you add two more consultants next quarter? Scenario planning gives you the confidence to make tough decisions with numbers to back them up.

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4. Monitor Utilization & Capacity

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Employee utilization is the heartbeat of a services firm. By linking financial forecasts to billable hours, staffing, and client demand, you can identify bottlenecks and prevent costly underutilization.

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How Modeliks Helps

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At Modeliks, we’ve built a platform that turns these best practices into a structured, repeatable process.

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With Modeliks, you can:

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Why This Matters Now

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Most firms wait until they have 100+ employees to rethink planning. But the truth is, dimensional planning and reporting matters at 20 employees, as much as at 200.

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The earlier you set up a scalable framework, the faster you can:

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Key Takeaway

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Growing a professional services business isn’t just about winning more clients — it’s about building a system that lets you manage projects, measure performance, and grow profitably.

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That’s what this playbook is about — and why we built Modeliks.

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👉 If you want to see how Modeliks can help you manage and grow your services firm, watch the full video walkthrough here.

\n\n\n\n

📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"financial-planning-for-professional-services","date":"2025-09-01T11:47:08","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=E87pBDPZzPc"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTQ4NA==","sourceUrl":"/images/cms/Screenshot-2025-09-01-at-13.39.02.png","altText":"Financial planning for professional services"}},"seo":{"metaDesc":"Discover how to manage and grow your professional services firm with project-based financial planning, reporting, and forecasting strategies."},"modified":"2025-09-01T11:47:11","related":null},{"id":"cG9zdDoxMDQyMA==","title":"Modeliks 2.0 is Live!","content":"\n

Today we released a massive new update of Modeliks.  A multidimensional Modeliks 2.0. I am both happy and sad to see Modeliks grow up. I liked baby Modeliks. He was cute and a little clumsy. Now, we created a beast.  

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We listened to your feedback and made Modeliks by far the best financial planning and reporting tool for SMEs. Alright, I might be a bit subjective, but here is what’s new:

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    \n
  1. Multi dimensional planning and reporting. This means that you can plan and track performance by organizational unit, whether that is business units, departments, geography, stores, projects. However your company is structured, you can have clear targets and track performance across your whole organization.
  2. \n\n\n\n
  3. Consolidation: if you plan on a business unit level, Modeliks will consolidate your financial plans upwords.
  4. \n\n\n\n
  5. Allocations: allocate costs from the head office down to the operating units. Why? Some costs are incurred in the head office, or regional offices, but should be allocated down to the operating units, in order to get a correct picture of profitability across the organization.
  6. \n\n\n\n
  7. Quickbooks integration. Connect Modeliks to your Quickbooks and have your planning and monthly reporting automated, error free and done in minutes.
  8. \n\n\n\n
  9. Account grouping. Group several accounts into one group account. For example, you can create a Utilities group account and make your Energy, heating, phone, internet, water accounts part of the utilities group. Why? Because when you plan, you don’t want to plan on every single small account that you have in your accounting system. It is too tedious and messy. So, group them logically, plan on groups, and make planning and reporting easy and useful.
  10. \n\n\n\n
  11. Initiative planning and evaluation. You have a new initiative in mind for your business? Create a business case and see how it will impact your business. If the numbers say it’s good, keep it. If not, drop it.  
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  13. Monthly forecasting. Now you can forecast up to 3 years on monthly basis.
  14. \n\n\n\n
  15. Lastly. Speed. Modeliks is now 10 times faster than before.   
  16. \n
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And there is a lot more to come in the next few months. Stay tuned for new features, and in the mean-time, plan, manage and grow your business with Modeliks 2.0.

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Let’s recap. Now you can:

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    \n
  1. Build driver based financial models for any business
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  3. Do it by department, business unit, geography, stores, projects
  4. \n\n\n\n
  5. Run scenarios and evaluate new initiatives
  6. \n\n\n\n
  7. Track actual performance vs budget, on every level in your organization. Especially easy with the Quickbooks integration
  8. \n\n\n\n
  9. Automate monthly investor and management reporting
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  11. And write professional and detailed business plans with the help of our AI assistant.
  12. \n
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Enjoy Modeliks 2.0! We know we are!

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Author:
Modeliks Team

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