Case Study

Jules

Julianne is the dynamic owner of a successful Interior Design company of 13 years.  After many years of success and growth in revenue, the profit did not align due to high wages and credit interest expenses. When a loan was needed to cover an ATO payment a strategic planning meeting was arranged with QiBalance Bookkeeping to gain clarity about current finances.

On review of the business finances, the following issues were identified:
·         An increase in wages had reduced profit
·         A high interest short-term loan was secured to cover ATO debt and expenses
·         Cost of loan interest reduced profit further
·         COVID-19 restrictions reduced revenue by over 30%

To solve these issues Julianne and Susan came up with the following plan:
·         Closely monitor cash flow on a weekly basis, sometimes daily when needed
·         Create a cash flow forecast to navigate uncertain times during COVID-19
·         Monitor employee hours to reduce wages
·         Review time sheet layout so staff can track hours and eliminate costly overtime
·         Ensure all approved employees receive JobKeeper
·         Secure Cash Flow Boost from ATO
·         Apply for low interest government grant to consolidate debt into a low interest loan

By reviewing No Shrinking Violet finances regularly we achieved the below results:
·         At 30 June 2020 revenue is down from 2019 by 34% yet profit is up by 24%
·         Cost of wages is now decreased by 14%
·         Company continued to operate through COVID-19 restrictions
·         Employees stayed engaged throughout with nil overtime
·         “No surprises” as financial obligations are set aside in a separate bank account

“It is okay that the Government Grant loan was not approved because I know that with regular monitoring I can keep wages in check and reduce costly debt.  QiBalance Bookkeeping helps me keep a close watch on my finances, so I can improve company profits” — J.B

Julianne is across how much money is in the company and steering the organisation toward higher profits and a sustainable future.  Julianne now has a trusted business confidante in QiBalance Bookkeeping.