Pauline helps a finance department step up to the next level in a fast growing company.
This nationwide logistics group is experiencing rapid growth and the business needs some additional short term support for their existing finance team.
Basically the company’s rapid growth has left some departments behind – among them the finance department. There are a lot of things that the company doesn’t know and has no way of finding out by itself. Are they charging their customers enough to make a profit? Are they collecting their money fast enough?
I went in to support and review their current cash flow issues. I found that growth and outflow of cash was greater than receipt collection. The company needed improved data to make more informed decisions.
Their debtor management was failing, only invoicing weekly and managing accounts monthly. We implemented efficient processes to ensure invoicing was automatically issued with deliveries with weekly debtor management reviews to provide timely cash receipts.
Their supplier base had not been visited for over a year I led a review bench-marking their largest suppliers which lead to negotiations with existing partners to obtain best prices and terms without reducing quality or sourcing of new partners.
There is also a question about whether they should buy, rent or lease options for new fleet. Should they commit now on purchasing assets or hire to provide flexibility but potentially at a greater cost?
These questions will be answered when the data has been collected from the new management reporting pack I have put in place for their financial department. The pack includes key performance metrics so that they can identify opportunity against efficiencies and work out which options provide the best results.
I have created a new three year business forecast providing flexibility around various market demands. This will enable the business to work out various market scenarios with relating financial output for each. In addition the business forecast contained a detailed thirteen week / monthly cash flow template for the business so that they can continue collecting data by themselves.
I have trained the finance team to update and manage the new management reporting pack and forecasts going forward, although they will have my continued CFO support as I check in each month end on an on-going retainer basis.
Together we will be able to discuss the next steps for this business.
About Pauline
Pauline Healey is the founder of Logical BI, an outsourced CFO and financial advisory practice supporting manufacturing and service businesses. A CIMA-qualified accountant with an MBA and over 25 years’ senior leadership experience, Pauline provides strategic financial guidance without the fixed overhead of a full-time Finance Director.
