Automation of processes

Client Overview

Our client was an investment management entity with turnover over £2.1m reported at the last financial year end of 31 December 2022 and a reported turnover of £1.3m as at 30 September 2023.

With no dedicated financial department/employee in the business, they relied on an employee with a mixed role to assist our Accounts team with the management accounts i.e., providing bank statements quarterly, assisting the director with expenses and releasing for payment alongside company secretarial and administrative duties. In late 2022 that employee left the business and the role was not replaced.

How we supported the client

A member of our accounts team therefore met with the Director of the business for a day to introduce the functions within cloud-based software that can streamline processes allowing the directors to focus on their business.

The company were already utilising cloud accounting software but were not maximising the benefits nor streamlining processes to help with day-to-day tasks and improve efficiencies. We therefore helped them to implement the following changes;

• We integrated the company bank accounts with Xero software, this automated the bank feeds daily which allowed the bank reconciliations to be carried out efficiently.
• Sales are generated through the system which enables faster payments. The cloud accounting software also allowed them to set up automatic payment reminders for overdue invoices, helping to improve cash flow and reduce the director’s time of chasing up outstanding debts.
• Third party applications were introduced to assist with purchase invoices and the use of extracting data brings in efficiencies for bookkeeping.
• The improvement of the employee expenses process through Xero rather than a manual entry of receipts.
• The introduction of bespoke management reporting tools for the company that are prepared directly from the system.

The results

The above improved processes ensured smooth and efficient running of the finances for the company and relieved the day to day stress of bookkeeping and employee expenses.

As their accounting support, we can now access and analyse quarterly figures produced in the management and meet with the director to review and plan actions to assist them and their business growth.

With the use of the processes working effectively we can properly execute the management reports and assist with tax planning both personally and corporate tax. In addition to the above with reporting functions, LB Group assist the client with FCA submissions again taking away the quarter end reporting stresses allowing them to focus on their business and day to day activities.