A medium sized architectural practice had grown rapidly increasing staff from 6 to 16 staff over a 12-month period.
Projects appeared to be running well but the practice was struggling with cashflow. Both the external bookkeeper and accountant had reassured the owners that the business was running profitably and that the cashflow problems were due to the rapid expansion growth and expenses incurred and that the problem would rectify itself over coming months.
Red Arrow undertook a detailed review of the companies accounts and processes. This review unveiled a complete breakdown in the administrative process resulting in significant costs not being recorded in the business accounts
Having identified that the company was not:
Red Arrow recommended and assisted with the implementation of:
More accurate reporting focused the business owners on the need to cut cost and reduce project overruns
The introduction of WorkflowMax, a Financial Project Management application, quickly identified that the majority of projects were running profitably and that a small number of larger projects had significant cost over runs.