The client came to us at a time when their company was growing rapidly, but no one was actively managing it financially. The only reporting that existed was a chart in an online application.
Team profitability, cash flow management, or planning? None of these existed. We set up a complete reporting system, overhauled the accounting, introduced data-driven management, and gave team leaders clear goals. The result is a company that finally knows what is happening, why it is happening, and what to do about it next.
Why did the client invite us?
The company was growing very quickly – revenue doubled within a year. However, this also brought stress, as there was no one in the company to manage, monitor, and handle the growth and finances.
Decisions were based on intuition, and reporting consisted of just one chart in an app. This application was good for time tracking and project margins. But a company is not just about the time spent on an order.
The management began to feel that growth without control could easily turn into chaos and that it was necessary to bring in someone who would bring order to the finances.
What was the situation in the company at that time?
There was no financial plan. Cash flow was not monitored. Accounting was only basic and had no strategic value. Teams were without budgets, without goals, and without performance measurement. Overhead costs were poorly distributed. It was unknown how individual teams were performing in terms of profitability. Exchange rates and large prepayments complicated cash flow management.
In summary: financial management was very much up in the air.
How did we solve the problem?
We deployed our team led by external CFO Jan Pulchart and started systematic work:
- In cooperation with our analyst, we audited the accounting. We transformed accounting data into management data.
- After discussions with the project supervisor and the external CFO, we introduced custom reporting for the client, which monitors:
plan vs. actual, margins, team profitability, billability (capacity utilization), cash flow - We set goals for team leaders – what they need to deliver and how to measure it.
What were the results?
- The company can now see the profitability of individual teams for the first time.
- Decisions are made based on facts, not feelings.
- Reporting shows actual performance over time.
- Management knows when it makes sense to hire new people and when it does not.
- Everyone has their goals and responsibilities. The chaos has disappeared.
The cooperation has been ongoing for over a year and a half, and after the initial implementation of our proven system, we evaluate data with the client every month and provide recommendations for current business issues based on them. Whether it concerns investments in new offices, paying bonuses, or recruiting new people.
We are currently focusing on increasing the billability of individual teams, more accurate forecasting, and, newly, the automation of document workflows using modern AI technologies.
What does this mean for you?
Having software for project profitability overview and time tracking that also includes a reporting section does not necessarily mean you have the right data for financial management.
You always need to look at where the data comes from and what it consists of. Once you properly understand its meaning, you can interpret it with high quality. Without proper data, no plan makes sense.
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AUDITED ACCOUNTING
The company uses data for strategic management -
REPORTING
Management now has a clear overview of how the company is performing -
TEAM PERFORMANCE OVERVIEW
Know when it is time to hire new employees
One chart in an app is not reporting. Without clear numbers, you don’t know what is happening in the company or where it is headed. We will set up a custom reporting system that gives you control over cash flow, profitability, and growth.