Timely and accurate management information

THE BUSINESS

Our client is an established retailing business with multiple outlets. Each shop was a separate trading entity. Depending on when and how they were opened some were formed as limited companies and some as unincorporated businesses. Consequently the business had outgrown its current accounting and compliance processes. They were no longer efficient and cost effective and the owner was frustrated at not being able to access timely and accurate information regarding the operating costs and financial performance of each unit, or his business as a whole. They were also beginning to experience some HR and payroll problems.

OUR APPROACH

We reviewed the current management information and discussed with the client what information he needed in order to benchmark each unit. We also made some additional suggestions based on our expertise of key performance indicators he should monitor. We then discussed the owners’ future aspirations for the business, and his wealth and retirement aspirations to understand his objectives and timeframes. Based on this thorough understanding we were able to offer proactive advice to the business owner regarding the most appropriate business structure and his tax and financial planning needs.

THE SOLUTION

Using trained professionals in our accounts team and our payroll specialists we created the framework for gathering the management information and prepared a business plan outlining future business strategy. This included creating a new structure for the business under a holding company structure with trading subsidiaries so that each used the same accounting principles. We implemented a HR/payroll solution that helped to streamline recruitment and remuneration processes to protect the business and ensure employees were paid accurately and on time. We then reviewed company and personal tax planning affairs and implemented processes to ensure the tax compliance and planning affairs of the business and of each director made use of any appropriate tax reliefs to ensure they were paying only the right amount of tax.

THE OUTCOME

The business is operating much more cost effectively and efficiently. The owner has just the right amount of management information he needs in a format he can easily interpret and make key business decisions. He also has a plan for his eventual exit and retirement at a level of wealth that means he can also be financially independent from the business. As well as providing accounting, tax and payroll services, we are now his trusted advisor and on hand when he needs a sounding board.