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.
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.
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.