Size (Number of employees): Team of 18
Business Issue: No management information to enable business critical decision-making
Background: The frustrated owners of a technology business had no reliable management information on which to base key business decisions. Turnover had trebled in twelve months, but revenues were volatile and dependent on third parties. The owners were considering a subscription/membership-based income model to de-risk and achieve financial stability, but there were no financials on which to base this new strategy. Plus, the owners were worried that their tax advice was out-of-date.
Challenge: It was apparent that the client required up-to-date, comprehensive on-line management accounts, and specialist tax advice on multiple global income streams. The owners wanted financial security and needed advice on how to achieve this.
Solutions: In the absence of a finance function, I delivered hands-on support to bring bookkeeping and the accounts up-to-date and on-line.
This enabled delivery of monthly management accounts, to which I added commentary, providing ongoing advice to the client. I selected and appointed a specialist global tax adviser on a fixed fee basis. This delivered a 50% saving on their fees, given I prepared the case for review and was able to provide an accurate brief, something the client could not have done unaided.
Following agreement on their financial goals and the means to achieve them, the business owners are now mortgage free, with an investment portfolio including pensions, foreign exchange and property.
Our approach: I held regular meetings with the business owners in person and over the phone, seeking to understand their business and personal financial ambitions. This enabled me to draw up a step-by-step plan to achieve those goals that was realistic and presented in layman’s terms. Integrated tax planning was a key component.
Benefits: The client now has peace of mind. They have tight control over their business’s finances and can make informed business decisions. They have achieved personal financial security.
I was able to translate their goals into service level agreements with the tax adviser, and their ongoing accountancy provider and new administrator so their position is protected.
What did we achieve? I delivered the roadmap to financial security within nine months. This was a challenge given the initial status of the accounts.
What was the impact in the business (same KPIs)? The client was able to embark on its de-risk strategy with confidence, and has grown its direct customer base by 52% in nine months. The consequence of this is that the owners are mortgage free and able to maximise their pension contributions.
The business has a clear roadmap to future goals and the owners continue to make key business decisions with up-to-date financial information.
The business owners are relieved, happy, and confident. And delighted they engaged me to help.
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