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Company’s financial hardship turnaround

Businesses have their ups and downs, and you have to feel for the managers concerned when major problems arise. So it’s pretty exciting to hear about the use of Xero as part of a turnaround expert’s toolkit. The toolkit has helped the business rework their workflows and processes and turn around their situation of financial hardship.

Justin Ward is a Sydney-based turnaround specialist and Director of Macleay Partners, and a Xero Partner. He develops strategies to help companies facing financial hardship. In his line of work the main goal is always to see a business continue to operate, and he’s an advocate for using Xero as part of that.

A recent case was KG Welding, and let’s give a big shout out to them for allowing us to identify them in this blog post. They are a mining services company and they had a challenging scenario. When Justin was called in, they had lost their most valuable supply contract.

Truck bed

The company had expanded quickly during the mining boom, but now faced a dramatic drop in sales. This triggered a period of instability where a director resigned and creditors grew worried. Also, the company lacked robust internal systems to manage workflow and back office processes. The managing director spent a lot of time fielding questions from the shop floor on what tasks needed to be completed next.

Justin moved quickly to understand the company’s position. But he didn’t want a temporary fix. “My involvement in a business tends to be short-term. So I need a way to improve a business now, and to put in place a high-quality platform that allows accountants and bookkeepers to continue the process of improvement.”

During his work with KG Welding, Justin used the Xero platform and add-ons including invitbox to simplify and automate processes such as payroll and accounts payable. He also used Xero add-on ServiceM8 to make workflow management more efficient, allowing the director to focus on high-level decisions rather than directing staff. Justin logged in each night to make sure the company was making good progress.

Dozer

As a result, the company has streamlined operations and remains in business. Its creditors valued having access to accurate and transparent data through Xero, and they have felt confident enough to lend the business additional funds to help it grow.

Justin worked with Chartered Accounting firm Leenane Templeton and bookkeepers The Business Organiser, both Xero Partners, to achieve the client’s ultimate goal of business continuity. He’s looking forward to using the platform to assist more businesses to survive and thrive.

 

 

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4 comments

Ian Hyman
10 September 2013 #

Justin
It is great to hear a good news story. Full credit to the management at KG Welding for not just recognising that they had fundamental (but very common) business issues but also for taking the requisite action to address the problem while there was still time to do so. I have seen Justin’s input to distressed businesses on several occasions and it is always to the point, constructive and deals directly with structural issues within each of the businesses that he has assisted. This is another impressive performance. Well done!
Ian Hyman CA API FTIA
CEO
Hymans Valuers & Auctioneers

Avery @ Windigo Incorporated
11 September 2013 #

Its great to see an application of Xero in an industrial setting. It works for everyone but those of us with backgrounds in industry tend to be a step or two behind e business types. Thanks for sharing this story and here’s to much more tacking, welding, bending and shearing for KG Welding.

Tristan Hulbert
16 September 2013 #

Great story, really highlights the advantages of implementing new innovative solutions as opposed to holding onto dated systems. If more businesses took the initiate and put in the time an effort to learn new systems they could be much better off.

Michael
23 January 2014 #

Great work in using technology as one of the tools to turn around a struggling business.

Great to see a business being so honest about their situation and getting the help they needed and deserved.

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