Introduction
LPS Steel Fabrications Ltd is a well-respected manufacturer in the Hull area of anti-vandal containers, portable and modular buildings, and structural steel. They are committed to providing the best service for their clients with quality and innovation being crucial to their ongoing success.
The Challenge
This rapidly growing steel fabrication business relied upon a sole Director who was spending a significant amount of time delivering the work and managing the business’s finances at the same time. The company had an internal finance team that would oversee the day-to-day bookkeeping and customer relationships but needed further technical and financial expertise.
As a growing business, the company was undergoing significant changes meaning the in-house team would require a higher level of assistance with their financial operations to provide the necessary key numbers and insights to make informed decisions. Without knowing these crucial numbers the business was finding it difficult to manage upcoming liabilities and to manage the cash flow efficiently with additional support needed to ensure the continued success and growth of the company.
Our Expert Says
Understanding Numbers
“Due to the growth of the business, it was becoming ever more important for the director to understand the numbers as stock and work-in-progress levels were tying cash up at a significant level, so providing timely information and understanding this was very important.”
Ricky Field – Hull Director
The Solution
The first area addressed by Northern Accountants was to support the in-house finance team with advice around best practices and provide Xero support to ensure they were getting the best out of their accounting software. The result is accurate and timely information creating a strong accounting foundation enabling real-time financial insights and meaningful reporting.
After a comprehensive review of the strategic plans for the business and a detailed analysis of the financial information that would support the business achieve its ambitious growth plans, the teams at Northern Accountants and LPS Steel agreed that the business would benefit significantly from an Advisory service. This service would include regular Management Information, tax planning, and agenda-driven meetings with their Client Manager where they would be able to interrogate their numbers, set goals, and ensure the business is financially sound.
A Detailed Overview
Working directly with a dedicated Management Accountant provided the owner of the company with a detailed overview and explanation of their important financial numbers such as their profit and loss statement, balance sheet, and current tax positions.
These insights meant they were also able to identify the areas of the business that required attention such as profit variations, budget issues, unexpected costs, and cash flow positions. The director can now make confident, well-informed decisions to support strategic business planning because he feels confident in his numbers.
With detailed tax positions and accurate information, the team at Northern Accountants was able to provide the business owner with comprehensive tax planning. This ensures that the client is operating as tax efficiently as possible (both personal and corporate), but they also have full visibility of tax liabilities preventing any last-minute surprises as tax deadlines approach.
The Benefits
When you enlist the advisory services of an accountant, it is a commitment to invest in your business to ensure that it can perform at its highest level. At Northern Accountants, your management information will be delivered and supported by a senior team member who is assisted by a specialist team. Working with LPS Steel was a great example of how this investment can create significant, and tangible benefits, with some of the key highlights being as follows:
Accurate Information Delivered on Time
The client was able to make important decisions based on live data that were accurate and tailored to their business. Having confidence in their decisions was crucial to the Director who took the stewardship of the business seriously. All deadlines were agreed in advance of the meeting, meaning they were well prepared for and pro-active.
Improved Decision-Making
With accurate financial data comes better decision-making. Knowing their numbers meant the client was able to project the impact of business decisions and budget accordingly. Seeing where the business is underperforming against pre-agreed targets allows the business owner to identify issues and put in corrective actions.
Less stress
By embracing Xero’s real-time reporting capabilities, Spacemaker gained immediate insights into key financial metrics and transactions. This enhanced visibility empowers the company to make informed financial decisions promptly, so they can respond to changing market dynamics.
Financial Direction and Advisory
Signing up for Management Information is more than a comprehensive set of numbers. Working with a Senior Client Manager, the client had a trusted partner who was able to explain the impact of their numbers, challenge the performance of the business, and guide the Business owner in their decision-making.
Personalised Service
Each business is different therefore your management accounts have to be tailored to your needs. LPS Steel was able to get a reporting format and frequency of delivery that suited their business. A structured agenda that was aligned with the long-term goals of the business meant highly effective meetings.
The Client’s Thoughts
Concentrate on the Business
“When running a small operation where customers pay on time and you pay your suppliers on time, it’s easy to do your own bank balance in your head, which is a dangerous game. Having timely accurate numbers allows me to concentrate on the business safe in the knowledge that the decisions have been made on the back of supportive evidence of how the business has been trading rather than a gut feeling”
Lee Stead
LPS Steel Managing Director
Conclusion
The collaboration between LPS and Northern Accountants has proven instrumental in overcoming operational challenges and propelling the company toward increased efficiency, financial insight, and ultimately better decision-making. Tailored Management Information means the client now gets the financial information they need when they need it, supported by trusted and expert partners.
As a result, the Hull-based business is now more confident, streamlined and in a strong position to expand and see further success in a competitive industry. The integration of Northern Accountants’ recommendations highlights how crucial it is to understand the company’s financial situation and how taking charge with outside assistance helps accelerate growth. Building a solid partnership between Northern Accountants and LPS has enabled a focus on new areas of the business while maintaining efficient and productive operations.
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