Contrary to popular belief, accounting isn’t just about records and returns, and being an accountant (or at least an RfM accountant) definitely isn’t boring. In fact, we regularly use our expertise to make a real difference to the fortunes of our clients’ businesses.

In February 2014, we were called on by a banking consultant to look into the true financial position of a large and established manufacturing business. A red flag had been raised when their incumbent accountant reported profits for 2013 but the bank could not see the evidence of how the profits had turned into cash.

We quickly found that the incumbent accountant had got things very wrong, and the profits reported in the draft accounts should have actually been a substantial loss.

Armed with a clear understanding of the numbers, we set about formulating an action plan to identify the causes of the problem and turn the business around. Peter Armer, of our Morecambe office, was appointed interim Finance Director and Mark Ellis, also of RfM Morecambe, stepped in as interim Financial Controller. Peter and Mark worked with the company’s management team to make improvements in a number of key areas including pricing, sales strategy and organisational structure.

RfM’s timely intervention ensured the business was soon operating efficiently and, most importantly, profitably again. At the end of the next trading year, with new robust procedures and controls in place, the company increased turnover by £1.5m and turned the £130k loss from 2013 into £800k profit before tax in 2014.

We also put new banking relationships in place and, with a renewed confidence in the future of the business, our clients are now looking to expand by acquisition, with RfM playing a key role in the search for the right business to buy.

Having become acquainted with the business under trying circumstances, this happy ending also signifies the beginning of an exciting new chapter in our relationship. As a trusted partner, we have been engaged as their accountant and will also be responsible for all financial activity, including management and operation of the main ledgers.

If you would like to know more about our Business Management and Business Growth services, please get in touch.