The Problem
We recently worked with a large company that used SAGE for their accounting software. However, due to the legacy nature of the software and the difficulty in accessing detailed reports, we were unable to get a clear understanding of their profit and loss. Despite having a turnover of over £5 million, the company was not able to accurately determine its true profitability.
The Solution
To address this issue, we recommended migrating the entire company over to Xero, which we believed would provide more accurate financial information. We worked closely with the company to ensure that all the data was transferred accurately, which was a significant amount of work. However, the effort paid off, and we were able to gain a new understanding of the company’s finances.
The Outcome
By migrating to Xero, we discovered that the profits the company believed they were making were actually much less than their actual profits. This newfound clarity on the company’s financial situation provided a great opportunity to dive deeper into its operations and analyse its profitability on a more granular level. Our next step is to look at the profit margins for each product and service they sell in order to identify areas where they can make savings and increase their margins.
All in all, the migration to Xero was a major undertaking, but it was well worth it in terms of gaining a more accurate understanding of the company’s finances. By analysing their profitability in more detail, we can help the company make more decisions and increase their profitability.
