Project FLASH

Management Accounting and a complete turnaround  at a company in the field of services

The client, a mid-sized Bulgarian company in services sector, is managed by three owners who have been developing the business for 8 years. The owners manage the company on the basis of good operational knowledge of the sector, intuition and entrepreneurial  spirit.

Knowing that they could achieve much better financial performance, MOOD contacted xFigureFinance to structure adequate management reporting, to plan and to take a financially sound decisions.

This project is complex and multi-component so we developed our full service range at this field, so here is what we did and what we achieved:

Month 1-5:

Analysis and structuring

After initial analysis and knowing the business, we structured a system for collecting and reporting information based on the needs of the management. Until this moment the business had been served by an external accounting company focused only on tax and accounting reports. First we started with the most important thing: revenues and clients.

We split the present clients into several main groups based on their customer behavior and generated profit margins. Thus, the managers already knew which clients generate volume and which – a value. As a result of this initial analysis we built up a strategy for increase of the number of the purchases based on a client group and allocated responsible members of the team for each group of clients.

As a result of long lasting meetings and releasing discussions we reviewed and split the operating expenses by cost centers based on business logic. We formed a budget for every cost center and built a system for monitoring  the expenses based on efficiency and contributing to the company’s goals.

“We have always worked with our senses and for the first time we see the whole view so clearly.”

Month 1-5:

Analysis and structuring

After initial analysis and knowing the business, we structured a system for collecting and reporting information based on the needs of the management. Until this moment the business had been served by an external accounting company focused only on tax and accounting reports. First we started with the most important thing: revenues and clients.

We split the present clients into several main groups based on their customer behavior and generated profit margins. Thus, the managers already knew which clients generate volume and which – a value. As a result of this initial analysis we built up a strategy for increase of the number of the purchases based on a client group and allocated responsible members of the team for each group of clients.

As a result of long lasting meetings and releasing discussions we reviewed and split the operating expenses by cost centers based on business logic. We formed a budget for every cost center and built a system for monitoring  the expenses based on efficiency and contributing to the company’s goals.

“We have always worked with our senses and for the first time we see the whole view so clearly.”

Month 6:

An interesting twist

The covid pandemic came almost at the final and several of the key partners of the company demanded a renegotiation of the present conditions, as a result of which MOOD lost a significant guaranteed income. And although the project was near to stage to be complete, we had to go back from the very beginning and reform the strategy.

“The only place where the Success comes before Work is the dictionary.”

Vidal Sassoon, entrepreneur

The covid pandemic came almost at the final and several of the key partners of the company demanded a renegotiation of the present conditions, as a result of which MOOD lost a significant guaranteed income. And although the project was near to stage to be complete, we had to go back from the very beginning and reform the strategy.

“The only place where the Success comes before Work is the dictionary.”

Vidal Sassoon, entrepreneur

So we rolled up our sleeves and based on the analyzes and reports, together with the management we built a strategy how to reposition the Company between the different groups of clients, as well as a plan where the management should focus on the expenditure part.

Thanks to the quick reaction of the owners, the favorable change of the market in the specific location and the clear and accurate  financial plan, the Company managed to fill the missing income from the key partners with an increase in the other client groups and even to achieve a small revenue and profit growth for 2020.

Month 6:

An interesting twist

The covid pandemic came almost at the final and several of the key partners of the company demanded a renegotiation of the present conditions, as a result of which MOOD lost a significant guaranteed income. And although the project was near to stage to be complete, we had to go back from the very beginning and reform the strategy.

“The only place where the Success comes before Work is the dictionary.”

Vidal Sassoon, entrepreneur

The covid pandemic came almost at the final and several of the key partners of the company demanded a renegotiation of the present conditions, as a result of which MOOD lost a significant guaranteed income. And although the project was near to stage to be complete, we had to go back from the very beginning and reform the strategy.

“The only place where the Success comes before Work is the dictionary.”

Vidal Sassoon, entrepreneur

So we rolled up our sleeves and based on the analyzes and reports, together with the management we built a strategy how to reposition the Company between the different groups of clients, as well as a plan where the management should focus on the expenditure part.

Thanks to the quick reaction of the owners, the favorable change of the market in the specific location and the clear and accurate  financial plan, the Company managed to fill the missing income from the key partners with an increase in the other client groups and even to achieve a small revenue and profit growth for 2020.

In this project we have clearly shown how a well -functioning  function can stimulate business both operationally and strategically.

What we have achieved

It is a great pleasure for the xFigureFinance team to enjoy the trust of the owners and to participate in interesting and dynamic development of their business.

In this project, we have clearly shown how a well-functioning financial function can stimulate business both operationally and strategically.

The work of xFigureFinance gave a complete and clear financial view, an independent perspective and helped to the Company to define, measure and achieve its goals.

Now that the current business is transparent and well-structured, the owners can focus on growth and new strategic projects. We are already working together on a financial plan for a new key object of the Company, see more here.

It is a great pleasure for the xFigureFinance team to enjoy the trust of the owners and to participate in interesting and dynamic development of their business.

In this project, we have clearly shown how a well-functioning financial function can stimulate business both operationally and strategically.

The work of xFigureFinance gave a complete and clear financial view, an independent perspective and helped to the Company to define, measure and achieve its goals.

Now that the current business is transparent and well-structured, the owners can focus on growth and new strategic projects. We are already working together on a financial plan for a new key object of the Company, see more here.

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