why successful business owners no longer rely on historical financial reports

•Welcome and introductions by

• Jim Henderson

Today’s programme

• Jane Grant• Why Successful Business Owners no Longer Rely

on Historical Financial Reports

• With Alasdair Meldrum• Managing Director• Albion Environmental

Today’s programme

www.albion-environmental.co.uk417th November 2016

Introduction


Why Successful Business Owners no longer rely on Historical Financial Reports

17th November 2016Accelerate Ayrshire

Alasdair Meldrum (Albion Environmental Ltd)


What Do We Do?


The Journey

Dec. 2001£40k per

annum plus car

ToJan. 2002

Self Employed!


The Journey

• Worked back from salary

• Based on 3 chargeable days per week

• Daily Rate

• Worked for me – charging time and experience


The Journey

• Got busier

• Do I need to do the invoicing?

• More profitable for me to do fee paying work

• Annual compliance accounts and review (retrospective)


The Journey

Using Sage but still using “untrained accounts” staff

Using Sage but getting limited value out of it

Annual compliance accounts and review easier!


Albion Projects

• Largely selling time and experience

• A number of different product streams (Training, Consultancy etc.)

• Limited number of large contracts

• Large amount of repeat work which would appear!

• All leading to erratic work flow


Albion Growth

What did we track?

• Monthly invoice totals

• Cash (or lack of) in bank

• Year on year we made profit (and grew!)


Albion Growth

What did we not know?

• Which jobs were profitable

• Which staff were profitable

• Were we charging the correct price?

• What investment (either equipment, staff etc.) could we sustain


2016 - Transformation

• Wages in-house• Pension set-up• Job costing set-up• Meeting AMAS

deadlines

Compulearn to set up sage fully


2016 Budget

• A budget with 20% growth was set for 2016

• End of month cut off dates!

• Monthly review of actual versus budget

• Now working on budget 2017


Advantages

• Work in Progress (Risk)

• Clarity on Staff Responsibilities

• Dependency on major client (and how to address!)

• Focus on Aged Debtors (Cash Flow Improvement)

• Funding Opportunities

• Certainty over employment / investment decisions


Advantages


More Still to be Done!

• Streamlining of processes regarding tracking jobs

• Focus on chargeable time

• Focus on un chargeable time (What is it?)

• Ratio of staff to sub contractors

• R&D Tax Credits

• Developing tax strategy which looks at personal and business taxation as a whole!


Any Questions


Thank You!


Summary

•Question and answer session

• Jim Henderson

Today’s programme