Their lack of understanding of general accounting and business principles
What trouble or pain was the client dealing with?
Having to dip into personal funds to keep the business afloat
How did the client feel about the situation?
Scott was very despondent and questioning why he was putting so much effort into the business and it was not being able to fund itself.He was considering folding the enterprise up.
How did you begin working for the client?
We were already doing their compliance work and they approached us to provide some advisory work to help them understand the fluctuations in their business and what performance metrics they should be monitoring.
What assessments and/or tools were used to provide solutions?
Instructions and examples on what reports to be run in MYOB to keep a track of financial performance
How to read a profit and loss report
Helping them understand their cash flow cycle.
Instruction on the difference between taxable income and GST.
We moved them onto MYOB online
What was the client’s initial reaction to the early results?
Scott and Christine attended the first meeting and got a lot out of the basic instructions on accounting principles.
They also began to understand what caused the cashflow shortage in February/March, which was closing down for too long over the Christmas break.
How did the use of the assessment help this client’s business improve operationally and/or financially?
The decision has been made that this Christmas break to only close for 2 weeks and not 5 and also to plan ahead for the cashflow shortage that will still possible happen in Feb/March 2016.
Better understanding of the accounting system has given Christine the confidence to take over the business’s BAS reporting requirements.
What’s next for this client in the turnaround process?
We have had a further meeting where advice was provided on: