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[CASE STUDY] From long-term deficit to profit in just a year

“I wish my accountant was more proactive.”

It’s one of the most frequent wishes expressed by business owners.

If you feel the same way, you might know in your gut that something in your current relationship with your accountant is missing. Still, it might be hard to picture what a really close relationship with a proactive accountant might look and feel like.

So today I’d like to show you – by sharing the story of one of our clients, “Shelley”, the CEO of a national charity.

When she took on her role in 2020, we had already been working with her organisation for several years. But back then, our remit was limited to managing the day-to-day accounting, bookkeeping and payroll. We didn’t help them with the interpretation of financial information, projecting forward or making better financial decisions, as we do with almost all our clients.

The organisation Shelley inherited had a financial deficit. So she needed to understand how to turn around its financial situation quickly – particularly as her early tenure coincided with the first lockdown.

“As CEO, I have responsibility for the financial aspects of the charity, but I’m not a financial expert. Those first few weeks were very concerning,” she told me recently. “We don’t have an in-house finance person, and in early conversations with the Insight team, I could see they had the expertise. So why not use it more effectively? I decided to draw on their skills.”

We started to take on more strategic financial work. For example, Shelley produced her five-year strategy, which involved changing the charity’s business model. We helped her understand the financial implications, and advised her on the best way to present this to her board.

We also flagged aged debtors, and helped her work out budgets and manage cash flow with weekly reports. Most importantly, we worked to give her a deeper understanding of the charity’s financial workings, so she could make the most effective decisions.

As we went through this process, our relationship shifted.

“At first, Insight were seen as an external service,” she says. “But now they’re just an extension of our team – they’re my finance department! I email them freely with all my questions, no different to any other member of my team. I feel much more confident and calm knowing that their financial acumen is behind me.”

Her in-house team has also been “on a financial journey,” says Shelley. Initially they were not very involved in financial matters, but now they are expected to own their own budgets.

Together, we helped them gain a deeper understanding of the organisation’s finances. For example, Shelley shares the financial results and forecasts we prepare in staff meetings, while we delivered training on how to use iplicit, our cutting-edge accounting platform.

“I’ve really noticed a difference in their relationship with Insight, which has become so positive. They draw on Insight very freely and finance has become a shared language.”

Take a look at this message, which one of her staff members wrote in January about Simon Hammond, our client services director:

“I have just met with Simon to go through a few things around the INS budget and I wanted to share what a brilliant chap he is – he is kind, thoughtful, knowledgeable, patient and never makes me feel like I am asking a stupid question. He is such an asset.”

Insight Associates client

I think that says it all!

And the impact of all this work on their financial picture?

I’m delighted to report that for the past two years, they have moved from deficit to profit.

“That has a lot do with Insight for managing our finances so smoothly,” says Shelley. “Their expertise, readiness, responsiveness and sound advice has enabled me to stop worrying about our day-to-day finances, and focus on managing our staff, strategy and stakeholder relations. They are so good at what they do and so close to us that I sometimes forget this is an outsourced service. For me that’s the sign of a great supplier.”

If that’s the kind of relationship you’d like with your finance people, get in touch with me today.

Simply hit ‘reply’ to this email or call us on 01279 647 447 for a no-obligation chat about how we can help you.

Warmly,

Garry

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