Earlier this year, we began working with a new client who had been facing a number of challenges related to their bookkeeping and accounting processes. Our initial Process Mapping and Xero Health Check quickly revealed significant deficiencies in their Xero bookkeeping system, with incomplete and outdated records that limited their ability to rely on real-time financial insights. The year-end accounts exercise further highlighted these issues, slowing down the process due to the substantial number of bookkeeping gaps.
The client needed a structured, efficient approach to resolve these issues and strengthen their financial foundation.
Solution
To address these bookkeeping and accounting deficiencies, we presented a comprehensive plan, including:
- Implementing Dext Prepare to streamline the storage of invoices and receipts directly within Xero, allowing all users to view and manage financial documents with ease. This upgrade also enabled accounting based on invoice dates rather than payment dates, improving accuracy.
- Prioritising efforts to bring the client’s outdated bookkeeping fully up to date, ensuring their records were complete and reliable.
- Accelerating the year-end accounts process, addressing any remaining bookkeeping issues as a matter of priority to help set a stronger foundation for future accounting cycles.
Through these strategic changes, we focused on building a financial system that the client could confidently rely on for both day-to-day decisions and long-term planning.
Value Impact
As a result, all the identified bookkeeping issues have been resolved. With up-to-date records and complete documentation, the client has already seen measurable improvements:
- Enhanced VAT Compliance: By securing all supplier invoices and receipts, the client was able to claim additional VAT, effectively reducing their payments to HMRC.
- Improved Cash Flow Management: With more reliable data in Xero, the client can confidently chase customers for overdue payments and pay suppliers on time, supporting smoother cash flow.
- Process-Aligned Accounting: Based on our insights from Process Mapping, we modified the way income is recorded—ensuring that it’s accounted for when it is earned rather than when cash is received. This aligns the client’s revenue recognition practices with their business processes.
With these improvements, our client is now positioned to make far more informed business decisions based on sound, up-to-date financial information. This strategic shift has laid the groundwork for ongoing financial clarity and stability, empowering the client to plan for growth with confidence.
If you have any finance or bookkeeping issues that you need support with, get in touch with our team today.