Case Study - Manufacturing
- Increase effectiveness of processes
within the business.
Key Elements Included:-
- Better financial management information required as business was growing rapidly
- Cashflows to forecast bank funding requirement
- Project profitability reporting (job costing)
- Cashflow system updated - daily and weekly cashflow monitoring of bank transactions to work within bank facilities.
- Purchase ordering system implemented to ensure all areas of business have correct information.
updated to ensure purchase orders are sent to the accounts department
- Project costing implemented. All sales and expenditure relating to individual projects are specifically tracked through the accounts system.
- Purchase order system improvements allow the accounts team to factor expenditure variation accurately in the cashflow forecast.
- Cashflow projections are now more realistic including the purchase orders in the forecast.
- Business owner better able to monitor impact of change on existing bank facilities
- Monthly management accounts reporting updated. Layout of Profit and Loss monthly management accounts updated to clearly define the different project and cost centres in the business and gross margin %.
- Project costing reports show Profit/Loss per contracts and are reviewed in conjunction with the monthly management accounts.