Case Study

Start Ups & Small Business

Day to Day Accounting & Support

How Alexander Bright enabled growth, sustainability and cost savings for a small and upcoming business for no additional service fees

Overview

The client was a small but upcoming Event Management company specialising in Media, Corporate, Promotional Parties, Festivals and other Special Events
The client had 5 staff members on their payroll.
The client followed 5’Cs – Concept, Coordination, Control, Culmination and Closeout to plan & manage their events
The business had grown significantly in the recent past, lack of capacity was straining the operations

State of Accounting

Quarterly BAS returns & Yearly Income Tax returns were the only services serviced by an accountant externally. All other administrative part was done internally including cash management and financial planning

Challenges Faced by the Client

Lack of Cash Buffer due to growing business: sometimes bookings from vendors required advance deposits. Any delays in existing or previous events meant late income payment from clients, jeopardising cash availability for upcoming events!
Not using accounting software meant quotations and invoices were separately raised. The process of raising both was very clunky, manually typed and often with errors resulting in loss of valuable time amending them, reputational damage with clients
Limited use of task scheduler or project planning tool. This was an operational risk as dependencies on – overlaps of booking or Covid shutdowns were not identified early on!

Fees & Services by an External Accountant

BASIC BOOKKEEPING SERVICES

$600 per month

Package Included :

All business tax submissions including BAS, Income Tax but No Tax Planning
Payroll Management

Fees & Services by Alexander Bright

TAILORED BOOKKEEPING, ACCOUNTING & BUSINESS ADVISORY SERVICE PACKAGE

$600 per month

Package Included :

All business tax submissions including BAS, Income Tax & tax planning
Payroll & Financial statements
Cashflow Management Support
Monthly Business Health Monitoring
Support of financial performance, Reporting & Processes optimisation

RESULTS

Event Success Rate Improved

20%

Customer Referrels

30%

Greater Cost Control

20%
Operational Cost

Immediate Opportunities We Identified

Client not using depreciation schedule & Asset Write Off for Fixed Assets
Client not fully taking advantage of tax deductions relating to travelling costs.
The client leased or subcontracted majority of assets and services. In-house assets & capability could bring long term savings

Solutions We Implemented

Implemented cloud accounting environment with robust quotation and invoicing systems for use during concept and closeout stages
Implemented a robust Cashflow Management system and encouraged frequent updating of the system at all stages of Event Management
Created a detailed tax plan to benefit from tax savings in the foreseeable future
Provided twice a year investment appraisal on ‘In house facilities vs Leasing/outsourcing’. This improved control & operational costs