Group B Wholesale are a long established electrical wholesaler having traded for over 40 years. They operate from two locations in West London; Shepherd’s Bush and Fulham, serving a wide range of clients from property developers and electrical contractors through to hotel chains and government bodies.
Visionary Accountants have been working with Group B Wholesale for over 9 years and during this time have built a strong working relationship with them; from Managing Director level down through the entire business. From our initial meetings, Visionary Accountants were able to gain a detailed understanding of the existing financial systems and processes and therefore identify potential problems. This would provide the basis for implementing the changes required to create a robust finance function.
Following the initial discussions, it became clear that there were some areas of the business that needed addressing quickly. There were no formal financial management or control processes in place, so the Board of Directors were unable to make truly informed decisions. It became clear that some divisions of the business were making a profit whilst others were making a loss; couple this with additional high debt levels, and it was clear that the business needed to establish a more sustainable financial strategy.
In addition to the financial controls, there was work to be done to ensure that the staff resources were in a position to effectively carry out the financial tasks needed. This entailed having the right skill sets deployed in the right jobs to deliver the systems and procedures needed to be an effective finance team.
Although the previous Accountant was adequately fulfilling the work for year-end accounts, it was clear that much more was needed in the way of technical support to create a sustainable financial model for the future.
Having analysed the existing processes, controls and structures it became clear that radical changes were needed to help Group B Wholesale not just survive but thrive. The first steps were to formalise and co-ordinate the internal and external systems and processes. This involved introducing task-based procedures that not only gave management financial control over cash and stock but also worked together towards providing timely management accounts each month. This stage also included the complete restructuring of the sales and purchase processes to bring them in line with industry best practice.
In order to help Group B Wholesale understand its financial status on an ongoing basis, new monthly reporting was introduced to provide bespoke Profit & Loss, Balance Sheet and Cashflow reports. The business was then further supported by the introduction of variance analysis measures against budgets and prior year comparatives in detailed management information reports to identify trends and manage performance. The scheduling of monthly management meetings to oversee the results ensured improvement action was quickly taken where necessary.
To help address the issues identified with skills gaps and staff resourcing, Visionary Accountants made recommendations for the effective deployment of existing staff and their skillsets to best benefit the business. This was combined with recommendations to outsource more technical tasks and responsibilities to our specialist team where appropriate to save both time and money. Naturally, this is a sensitive subject, so Visionary Accountants approached it with professional discretion.
It is understandable that changes of this scale, particularly those that involve job roles, can be met with some resistance. This case was no different, however with honest and open discussions about the need for change, these changes were smoothly implemented by the Board of Directors.
Within the first six months, the financial reporting process was able to start producing the monthly management information pack and provide the financial control statistics to help support the key decision making of the business and implement Visionary Accountants’ recommendations. Within twelve months, the company’s financial position was radically changing with the closing of the loss-making division and the buyout of a significant shareholder.
Several years on and the business is thriving; with no debt, a restructured property portfolio, profitability improved by 400% and closely aligned to cash generation, an effective finance function, the opening of a second branch and a co-ordinated team supporting management.
Ultimately this means a lot less stress for the owners and staff, more cash generated, more options for the future of the business and in the end a more valuable and saleable business.
Visionary Accountants USP
By engaging with Visionary Accountants, clients will be provided with a truly “hands-on” approach that will see all their financial systems organised by our team for them. All the right skill sets in the right places can be organised by Visionary Accountants, thus taking the pressure and difficulties away from the client. Visionary Accountants are not just your everyday accountants, we are your partners, mentors and support team. It is our wealth of experience in industry, guiding a uniquely tailored approach to each clients’ circumstances that delivers the right results.
“The deal is done! We couldn’t have done it without your dedication and belief in us. The future is so much more reassuring knowing we have you on board.” David and Jackie Bevan – Group B Wholesale.
Why Visionary Accountants
Group B Wholesale chose Visionary Accountants to be their financial partners and trusted them to address the systems, processes and procedural issues in order to deliver the management information they needed to transform their business. If you think your efforts should be better rewarded and would like this to be your story one day, then please get in touch today.