Maintaining positive cash flows of an architecture and design agency
We provided a part-time FD to fill the gap at Board level
Creative individuals are extremely intelligent and have excellent ideas. They identified a flexible finance director was required to manage the increasing activity levels and resulting demands on cashflow.
Our first role was to assure the directors of positive cash flows
A key requirement was to provide the business owners with visibility of future cash flows so as to ensure that cash flow remained positive over time. An Excel model combining the management accounts with the forecast data provided this assurance.
This was re-inforced monthly by timely and accurate financial reports. The Board were becoming increasingly frustrated with the management accounts being finished the day before the Board meeting. This gave the directors no time to review the information before the meeting.
At FD Solutions, we automate the creation of an Excel management accounts pack. Once the accounting data is complete, the pack is produced at the click of an Excel button. No manual intervention is required. Far more time can then be spent analysing and interpreting the output.
Further benefits came with project profitability reporting
Management accounts are all very good but it is far more important to know what makes up the gross profit on a project by project basis. Again, using a simple Excel model, project reports from the accounting software were combined with the output from a web based timesheet package to create a powerful profitability report. This identifies which clients are being over-serviced so that improvements can be made.
Costs were contained by improving the effectiveness of the accounts function
Our extensive and detailed knowledge of Sage allowed us to implement many time-saving tasks. This included using the accounts system to generate sales invoices, using Excel to automatically create expense recharge reports, using e-banking to significantly reduce payment processing time
The time saved can be replaced by training the existing accounts staff to perform at a higher level.