MEET HENRY
Henry is a Director of an importing and wholesaling business commencing in 2017, they import equipment/spare parts for the heavy trucking industry and have suppliers in Europe and other part of the world.
THE BIG ISSUE
The business was turning over $500,000 in sales with a couple of staff and using a basic online accounting system, they accounted for stock manually and paid their suppliers overseas according to their agreed payment terms at which point they would purchase foreign currency on the day of transfer.
UNTIL
SHOWED UP
Reconstructed Business
We restructured their business as it was not setup correctly for the long term taking into consideration tax minimisation strategies as well as the ability to access taxation benefits if they sold the business in the future.
Implemented an ERP System
Implemented an ERP system (one database) to include more accurate costings and stock levels over multiple sites, CRM and marketing to monitor staff activity and quote conversion rates and a full accounting suite
Three-way Forecast
Naptix implemented a three-way forecast (P&L. Balance Sheet, Cashflow) in order to make the Directors more Accountable
Monthly Meetings
Naptix currently hold monthly Business Performance meetings to analyse various part of the business monitor staff activity and quote conversion rates and a full accounting suite
Competitive Exchange Rates
Negotiated more competitive exchange rates (including locking in forward contracts)
THE RESULTS
$2 million
17%
14%
Now with more accurate information at hand, they have increased their margins by 10% and employed staff interstate. Locking in foreign exchange rates are saving the business $35,000 per annum.