Case Study 1 – Sorting out an accounts mess – and boosting profits

A local company, with several branches, were receiving monthly management accounts which they couldn’t understand. At the same time, their in-house accountant had decided to leave, adding to their problems.

Milne Craig steered them through this difficult spot – and helped pinpoint why profits were not as high as they should be.

We designed and introduced a simple but highly effective project costing system. Soon it became apparent what profit was made on each job and how that looked on a monthly total, by branch. Once that was sorted out, we looked at:-

  • number of non chargeable hours.
  • share of overheads recharged to projects.

By receiving accurate monthly management accounts and profit reports, any niggles can now be identified and resolved quickly.

And the fees for our services were less than the salary saved for the internal accountant.