small business financial advisor
Case Study

Medium Sized Businesses

OUTSOURCING END TO END ACCOUNTING FUNCTION

How Alexander Bright enabled accessibility to wider accounting expertise at 50% of the cost

Overview

  • The client was an IT consultancy company comprising of 65 staff with an agile working culture
  • Their values included the use of technological advanced tools & automation.
  • Their Marketing was oriented towards High Turnover/Growth at Competitive Price
  • Their key operational assets were their 50 consultants who serviced the contracts
  • Used Salesforce as their CRM tool

Key Operational Facts

  • Clients Operations included monthly transactions of volume & high value
  • Majority of the costs related to payroll and casual contractors hence why Employee Utilisation was critical to performance

Challenges Faced by the Client

  1. A poor retention rate of 18 months for the internal bookkeeper. Resulting in +$7k each time to recruit & onboard a new employee
  2. Taxation, financial statements & business advisory was given externally, increasing the risk of error
  3. Outdated Project Accounting with no costing methods in place
  4. Late submissions to ATO had resulting penalties on multiple occasions
  5. Lack of system integration
  6. General lack of insights or value-added reports

Cost Incurred With an Internal Bookkeeper P.a

BOOKKEEPERS SALARY $78k
SUPER & OTHER RELATED COSTS $12k
ACCOUNTANTS YEARLY FEES $5k
BUSINESS ADVISORY AD-HOC FEES $5k
TOTAL COST
$100k

Cost of Outsourcing to Alexander Bright P.a

TAILORED BOOKEEPING & ACCOUNTING SERVICE PACKAGE $45k
BUSINESS ADVISORY AD-HOC FEES $5k
TOTAL COST
$50k
Cost Reduction $50k / 50%

OUR BENEFITS

Improved Engagement Margins

Improved performance management & strategy alignement

20% to 30%

Eliminated ATO Penalties

Greater insights & control over desired sales price & pipeline

100%
Compliance

Greater Cost Control

Greater insights & control over desired sales price & pipelineE

20%
Employee Costs

Our Solutions

  • We transformed their accounting infrastructure to cloud accounting
  • Provided End to End accounting expertise & support including:
    1. Invoicing & Billing
    2. Provided financial modelling to build Target Pricing Quotation Tool
    3. Financial Statements & all Tax Affairs including ASIC submissions
  • We built a forecasting model that extracted data out of their SalesForce CRM, applied probabilities to pipelines and projected Income & Gross Margins
  • Created an environment for a monthly detailed review of the performance
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