Manufacturing Company Accounting Case Study
Introduction to our client
RJW Metalworks Limited specialises in secondary steelwork and associated products. With an expert in-house team, they design and manufacture balustrades, stairs, ladders, platforms, open steel flooring, and other specialist architectural steel products.
Our work with them and services supplied
The Initial Challenge
The client was initially relying on an in-house bookkeeper using QuickBooks, but the directors were not receiving the necessary information to understand the profitability and working capital of the business.
The Solution
The first step was to transition their accounting function to Xero and implement Dext to automate purchase invoice processing. This ensured real-time information availability instead of waiting until mid-next month for manual processing. The bookkeeping was outsourced to Spotlight, allowing the directors to concentrate on business development.
With Xero in place, we began providing monthly management accounts to the directors, offering a clear picture of the business’s working capital. These accounts were accompanied by a Loom video explaining key points and action items.
Impact and Results
Using data from the management accounts and a GAP analysis project, we identified that minor changes in staff ROI and profit margins could generate an additional £142k in profit and £147k in cash for the business.
When the opportunity arose for RJW Metalworks to move into larger premises, we helped the directors understand the cash flow implications and the business requirements needed to leverage this expansion.
We then worked with the client to create a detailed forecast based on the expected growth and shifted to quarterly meetings to compare business performance against the plan. These meetings involve discussing financials, reviewing actions for improvement, and focusing on three key areas from the last meeting and three key goals for the next quarter.
The Outcome
RJW Metalworks now has a clear understanding of their current business position and a forecast outlining their growth trajectory. They know what resources are needed and when, ensuring they can effectively manage and service their growth. Quarterly meetings provide an in-depth analysis of their financial status and actionable insights for continuous improvement.
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The clients opinion on our work
We have gone from a position of flying blind to knowing where the business is, we know the key areas that we need to focus on and can see how small changes can have significant impact.
The clients review
RJW Metalworks cannot express enough how invaluable the services of Spotlight have been to our business. Their guidance has significantly contributed to our financial clarity and strategic growth.
Before partnering with Spotlight we struggled to fully grasp our accounting function, which made planning for the future challenging. Carrie and her team have taken the time to thoroughly analyse our financial position, providing us with clear and concise reports that were easy to understand. This has enabled us to identify key areas for improvement and growth.
Their continuous support and strategic guidance have not only improved our financial health but also boosted our confidence in making informed business decisions.
Spotlight has truly become an indispensable partner in our journey. We highly recommend Spotlight to any business looking to enhance their financial management and achieve sustainable growth.
How we can help your business
If you are a growing business needing support to navigate your growth path, we can assist you. The first step is understanding where you are now and where you want to go. Contact us to learn how we can help you achieve your business goals.