For every new client we take on, we undergo a Process Mapping and Health Check Assessment which evaluates in minute detail every accounting process and structure in the business. It is common for us to find a few areas where the business can become more efficient and streamlined.
For this particular client, there were many problems highlighted by the Process Mapping and Health Check Assessment. In addition to this, the year-end accounts showed more issues with the bookkeeping.
The Challenge
The client’s financial operations were fraught with deficiencies, affecting their ability to make informed decisions and maintain operational efficiency. Key challenges included:
- Deficient Bookkeeping: Process mapping and Health Check revealed substantial deficiencies in the client’s bookkeeping practices, leading to inaccuracies and inefficiencies.
- Year-End Slowdown: The deficiencies in bookkeeping significantly hampered the year-end accounts exercise, prolonging the process and impacting the client’s ability to close their financial year promptly.
- Lack of Accounts Team: The absence of a dedicated accounts team further compounded the challenges, leaving the client without the necessary expertise to rectify the situation.
The Solution
To address these issues, we created a comprehensive solution, involving both short-term and long-term strategies. The proposed solutions included:
- Recruitment Assistance: The client was aided in finding a new employee for their accounts team, helping to rebuild their internal financial capacity.
- Efficient Payroll Management: The introduction of Telleroo streamlined payroll payments, ensuring accuracy and efficiency.
- Bank Reconciliation Enhancement: The implementation of American Express bank feeds facilitated accurate, timely, and efficient bank reconciliations.
- Credit Card Records Update: Efforts were made to obtain login details for the credit card to rectify and maintain up-to-date records, which involved reconciling a substantial number of transactions.
- Mileage Claims Optimization: The introduction of Tripcatcher improved the efficiency of mileage claims.
- Streamlined Purchases Approval: ApprovalMax was introduced to establish an efficient and robust purchase approval process.
- Efficient Invoice Processing: DEXT was implemented to enhance the processing of purchase invoices and receipts.
In the short term, while the new accounts team was being recruited, additional efforts were undertaken, including:
- Balance Sheet Correction: Significant errors in the opening balance sheet were corrected to ensure data accuracy.
- Supplier Payments: Handling supplier payments to maintain financial stability.
- Management Accounts Creation: Monthly management accounts, including a backlog that had not been created, were generated.
- Bank Communication: Submission of necessary information to the bank to ensure financial operations continued smoothly.
- Cut-off Adjustments: Working on cut-off adjustments to ensure the monthly financial results were meaningful and helpful for decision-making.
Value Impact
The implemented solutions brought about substantial positive changes for the client, resulting in:
- Enhanced Financial Information: Significant improvements in the quality of financial information, empowering the client to make informed decisions.
- Operational Efficiencies: Streamlined processes and new systems resulted in significant efficiency gains, reducing manual efforts and saving time.
- System Robustness: The introduction of robust systems and processes fortified the client’s financial operations, reducing the risk of errors and inaccuracies.
This case study underscores the transformative power of effective financial management and process optimisation, all highlighted by the Ascentis Process Mapping and Health Check assessments. By addressing deficiencies and introducing efficient systems and tools, the client experienced a remarkable turnaround in their financial health and operational efficiency. This case illustrates the value of proactive financial management in achieving business success.