MEET LIAM

Liam is a director of a growing trademark attorney firm with approximately 12 staff. The firm acts on behalf of clients to protect their intellectual property. The firm represents clients by securing their intellectual property all over the world by engaging legal firms in those countries.

THE BIG ISSUE

Although the firm is well managed, it was clear from the Naptix sessions that a deeper emphasis was required in assessing growth using a number of financial and non-financial factors.

UNTIL SHOWED UP

Job Profitability System

Naptix refined and introduced a number of procedures to ensure that the accounting system is accurate. The procedures included instigating a job profitability system to ensure disbursement are accounted for correctly, and no tax is paid unnecessarily as a result.

  • One database (operational and accounting)
  • Detailed job reporting system (including budgets)
  • Reports showing cost overruns by each cost centre/expense
  • Analysis of budgets to purchase order to actual supplier invoices for each job
  • Financial analysis against budget

MONITORED

Naptix also created a Management Reporting System, meeting quarterly with the Directors. We specifically monitored a handful of indicators or KPI’s.

  • Fee’s and Gross Margin
  • Operating Profit and Cashflow
  • Average Number of Days Debts are Collected
  • Liquidity of the Business
  • Return on Investment of the business

THE RESULTS

$250,000

40%

$350,000

Liam found inequity in disbursements of $50,000 with job reporting, and shareholders are now in a position to receive $500,000 in dividends without affecting the cashflow of the business.

WANT THESE RESULTS?

It starts with coffee