Our client is a privately held business operating in the construction industry. They specialise in demolition work involving both residential and commercial properties. Their main customers include independent builders who may be developing their own properties or engaging in development projects, as well as commercial builders completing larger development or refurbishment projects.

How we helped

Due to the ongoing growth of the business, we were engaged to establish an internal finance function.

This includes:

  • Maintain the accounting system for all entities in their group.
  • Cashflow management and managing supplier payments.
  • Prepare and manage all compliance lodgements with the ATO and various other regulatory bodies.
  • Prepare management reports and year end accounts for their external accountants.
  • Management reports and forecasts for finance companies to secure finance to support growth strategies.
  • Complete payroll outsource solution.
  • Provide a scale up/scale down finance resource to support finance workflow requirements during both the busy and quiet periods throughout the year.

After commencing the engagement and reviewing the finance process we were able to identify a number of improvements to their existing finance processes.

Accounts Payable Automation

Prior to our involvement, the business had been using a traditional paper trail accounts payable process, which involved the invoices going through several hands for approval before eventually being filed. This involved multiple touchpoints requiring key staff members involvement on a weekly basis and was a very time intensive process.

Due to the high volume of supplier invoices issued to various entities within the client’s group and the resource intensive approvals process, we sought to implement an electronic accounts payable automation solution to supplement our human resources.

The goal was to allow the business to automate its entire accounts payable process, reducing the finance resources required to run the accounts payable department and streamlining workflow for key non-finance staff members.

We determined that the most appropriate accounts payable automation solution for our client to implement was Lightyear. The solution provided for automatic extraction of data, allowing electronic invoices to pass through the software directly from the supplier into the accounting system, instantly notified any relevant non-finance approvers to electronically approve, before being electronically archived. The ongoing advantages to our client of automating their accounts payable process in conjunction with leveraging our outsourced finance resources include:

  • Significant saving in employee costs.
  • Ability to locate invoices more efficiently.
  • Improved ability to job cost and report job profitability.
  • Electronic storage of invoices in accordance with ATO legislation.

Flexibility to operate offsite if required.

Cloud Accounting

Prior to our involvement, the business was using a traditional desktop accounting software to maintain their accounting records. Due to the growing nature of the business and associated reporting requirements to various stakeholders including financiers, the existing desktop software was proving a roadblock to timely issuance of management reports to these stakeholders.

Following an evaluation of various cloud and desktop accounting solutions, we recommended that MYOB Online would be the preferred solution. This provided the client with the required balance between being able to maintain a similar accounting workflow and use data retained in their legacy desktop solution, while also providing for the benefits of cloud software including automatic bank feeds, integration with automation tools such as Lightyear and ease of access by relevant stakeholders.

By transitioning to MYOB online, the client as achieved the following:

  • Integration with accounts payable system and various other industry specific software.
  • Access to comprehensive finance support without the need for onsite team.
  • Ability to issue customer invoices, remittance advice, employee payslips and various other information electronically from the accounting system.
  • Improved cashflow management due to live bank data and accounts payable and receivable data available for access by the owners.
  • Reduction in staff resources in the finance department due to the cloud solution and various software integrations.
  • Ability to provide timely management reporting to various stakeholders and external accountants to support growth.
  • Overall cost saving in the finance area of the business.

Result

By leveraging a combination of technology and human resources, we devised and implemented a cost effective, compliant and scalable solution for our client to completely outsource their finance function.

Key outcomes:

  • Realised significant efficiencies in the finance function, resulting in a reduction in employee headcount in finance department and cost savings.
  • Provided a scalable solution with the flexibility to handle variable workflow during the busy and quiet times of the year.
  • Ability to provide efficient reporting to stakeholders to support growth.
  • Improved business performance reporting and access to timely finance information.
  • Leveraged technology to transition obsolete finance processes.