Case 1: Cash Management
The company: A printing company
Issues:
- Operating lines of credit at or close to limits.
- High levels of debt used to purchase expensive equipment.
- New banking relationships and lines of credit were being established.
With these factors, cash was extremely tight.
Solution:
Cash flow forecasts were developed to anticipate cash shortfalls. Lines of communication were established and maintained with all suppliers. Internal communications with line managers were developed to understand material requirements.
With our management expertise, the company did not lose any source of revenue for a two year period due to lack of cash.
Case 2: Financial Reporting
Issue:
The financial statements were so compressed that it was not feasible for senior management to understand the costs of the various components of the operations.
Solution:
The entire ledger system was redesigned firstly to put like items together and to allocate costs into the departments incurring the cost. The revised statements had individual profit and loss statements for each department for the first time.
The line managers described the new reports as
“having had the lights turned on about the costs of their department”.
Case 3: Expense Review
By initiating a review and requesting quotes from several vendors, James Oates reduced the telephone expense by 23% , a savings of $7,000 per year.