Enthusiastic, driven and committed to ambitious expansion plans, the co-founder and MD of a new company testing products for the nuclear industry was frustrated that his plans were being held back despite his best efforts. However, with a lack of effective management reporting systems, the company began to face issues.
Much to his surprise, the bottleneck proved to be himself – rushing around trying to resolve too many non-prioritized issues at once. This was compounded by poorly-designed management reporting systems, plus a lack of working capital to invest in new stock.
Performance data and funding
Finton Doyle understood that much more certainty about the firm’s real financial performance, supported by a new approach to debtors and alternative funding sources, would put the company onto a completely new footing.
Time spent on real issues
The first thing we were able to recommend – as accountants concerned about the business’ best interests – was more administrative support to free up the MD’s time. This allowed him to focus positively on real priorities.
Secondly, we identified the need for effective management reporting systems that could generate financial information more quickly and efficiently, enabling more decisive action and much greater management control.
Finally, the availability of up-to-date and reliable information made it much easier to approach potential lenders successfully for short-term financial support.
We played a crucial role because we were able to help identify problem areas within the business. By talking to the MD, we helped him to take a mental step back from minute-by-minute fire-fighting and look at the ‘bigger picture’ issues instead.
We also recommended an out-sourced administration support provider that helped him with the reorganisation of his internal procedures. In addition, we worked collaboratively in the re-designing of much more robust financial reporting systems.
- Identified lack of clear organisational structure was choking business growth
- Resolved issues with management reporting information
- Assisted with preparing reports for financial institutions
- Management able to focus on improving sales performance
- Unprofitable product lines identified and discontinued
- Additional funding secured to help expansion plans
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