The challenge
This particular government agency came to us in dire straits. They were making losses each year, and they had no clear administrative or financial planning systems in place. Confusion spread across the board, and the agency received complaints from a major shareholder who was unhappy that the institution was not making any money. As a local government agency with huge responsibilities to the public, they could no longer allow their business finances to deteriorate.
Our solution
Following our analysis, it became apparent that their finance department was not fit for purpose. We migrated their outdated system to online accounting software systems Xero and ApprovalMax, enabling the government agency to digitise their accounts and bookkeeping. Then, we encouraged the management team to schedule monthly meetings with significant shareholders to discuss the budget and strategic decisions for the month ahead. To resolve the budget issues, we conducted a rigorous HR process to restructure a large department.
The results
The new accounting software platforms allow the team to compare their internal management accounts with the budget. Remember those major shareholders who were unhappy with the agency’s financial decline? Well, following our service, those shareholders told us that we had completely turned the institution around. Where this agency was once unable to pay suppliers for six months, they are now making a surplus. A few staff members left the business following the department restructuring. However, the process saved the agency £60,000 year after year.
