Our clients, a couple who have a great business which was and is growing, were referred to us by a local professional because they needed help. They were very worried about their finances; they were up to their £15,000 overdraft limit and couldn’t pay the VAT and PAYE. Things seemed out of control and the stress this gave them led them to believe that selling the business may be a way out.
Our clients had no accounting system in place to help control the finances; something that we could help them with and the VAT scheme was not the best one for them from a cashflow perspective.
To help them with their cashflow, big changes were made; this included changing the VAT scheme so they weren’t paying VAT on customer invoices that hadn’t been paid. They were shown how to use Xero (the online accounting software) to send out sales invoices quickly, how to minimise the amount of unbilled work in progress and to give them control of the information to show who owed them money.
With intensive support from us over the first three months, they managed to turn the bank account around from a £15,000 overdraft to a positive £31,000, with VAT and PAYE paid up. Work not invoiced and amounts tied up in unpaid customer invoices reduced from 91 days worth of sales to 48.
These changes were big and it was hard work, but the result is now that the business has stable and controlled finances, which means that our clients can focus on growing the business, which they have. Selling the business is still one of their options, but that’s much easier when everything is under control and it won’t be a decision made for the wrong reasons.
If you want to build the business you need to have the life you want then find out how we can help you, by getting in touch with Andrew Price on 01803 296678 or emailing
The facts and figures in this case study are real, our clients have given us permission to tell their story because of what we have helped them achieve, but for confidentiality purposes wish to withhold their identity.