Transforming Financial Management for Enhanced Project Visibility

Transforming Financial Management for Enhanced Project Visibility

In this case study, we explore the journey of a company that faced significant challenges related to project visibility and financial management. The business had encountered financial hardship as a result of lack of transparency into individual projects and under-utilised accounting software. Accounting processes were time-consuming, resulting in the absence of management accounts and overlooked job costing reports. 

The Challenge

The challenges faced by the previous company included:

  1. Lack of Project Visibility: Inefficient project tracking hindered their ability to gain insight into the performance of individual projects.
  2. Under-utilised Software: Although the company previously used SAGE with job costing features, these capabilities were not fully harnessed to their potential.
  3. Accounting Time-Consumption: Preparing accounts consumed extensive time, preventing the timely creation of overall management accounts and the analysis of individual job costing reports.

The Solution

To overcome these challenges, at Ascentis we helped create 5 main strategic steps toward a more efficient financial management system:

  1. Transition to Xero: The company adopted the Xero platform, providing a more streamlined and agile financial framework.
  2. Integration with Key Tools: Integration with essential tools, including bank feeds, Dext prepare, Futrli, and Xero projects, formed the foundation for improved financial management.
  3. Automation and Efficiency: Bank feeds and Dext prepare integration eliminated the need for extensive data processing, automating many repetitive functions in the accounting process.
  4. Project Profitability Analysis: Xero Projects was instrumental in providing real-time profitability insights for each individual project, empowering project managers to make informed decisions.
  5. Single Source of Data: Futrli served as a platform for the directors to access a single source of data, enhancing overall data management and accessibility.

Value Impact

The implementation of these solutions brought about significant positive changes for the company, resulting in:

  1. Timely Management Accounts: The ability to produce management accounts within a week of month-end improved decision-making and financial oversight.
  2. Enhanced Revenue: The company’s newfound ability to quickly identify opportunities and issues with projects led to increased revenue.
  3. Efficient Accounts Team: By leveraging technology, the accounts team gained more time to focus on strategic tasks.
  4. Reduced Stress: Directors experienced reduced stress levels due to improved visibility into financials and streamlined processes.

We help businesses implement effective financial management and process optimisation and this case is no different. By addressing deficiencies and introducing efficient systems and tools, the business experienced a remarkable turnaround in their financial health and operational efficiency. This case illustrates the value of proactive financial management in achieving business success.

If you need help managing your financial systems or making your processes more efficient, speak to our Leeds Accounting Team today.