Our clients, a medical products manufacturing business with a turnover of £650,000, were referred to us by their bank manager, because they needed help. They were concerned about their finances, and they weren’t getting the support they needed from their accountants at the time.
At our initial meeting we found out their concerns, which included cashflow and profitability. There wasn’t an accounting system so they didn’t know how much profit they were making and so didn‘t know what they needed to make improvements.
After setting up a new accounting system, to help them with the profitability concerns, we gave them quarterly management accounts. Recent management accounts highlighted higher than expected materials usage compared to sales for the quarter. Because of the highly valuable nature of their raw materials an investigation was launched which resulted in finding £6,000 of scrap gold, about 5 ounces, that should have been melted down and reused, in the work area of a technician.
The reasons for not following the production process was established followed up with training and amendments to processes that will minimise the risk of re occurrence.
Our clients feel more in control of what's happening in their business by having management accounts - would you like this too?
If you want to get better cashflow find out how we can help you by getting in touch with us at Andrew Price & Co on 01803 296678 or emailing firstname.lastname@example.org. Acountants in Torquay, supporting business owners to have better cashflow and improve profit.