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Case Studies Case Study 1 - Total Outsourced Finance & Accounting Department A small design and marketing business was struggling to move forward because the company was under staffed and suffered a lack of resource. As a result of being under funded the director was tied down with the administration of the business and ended up working long hours to keep up with the day to day project work. This resulted in the business having no time for its own sales and marketing development. In order to ease pressure on the company and maximise time spent on developing customer relationships and delivering projects, Business Control took over the running of the accounts and become the outsourced accounts department for the business. Business Control run all invoicing, credit management, creditor payment management, VAT returns and PAYE. Each month we have a business development and progress meeting with the client where we supply to the company monthly management accounts and go thrrough key issues that need to be addressed in the comming month. By working with the company in this way we have a gained a very good understanding of the business, its strengths and weeknesses. Working together we are continually developing a strategy for slow but sure growth. The company has been trading for 6 years, working with us for the last 5, and has achieved sustained growth year on year since working with us. Case Study 2 - An example of how outsourcing added true value and flexibility to a large business Cost Benefit Analysis
£
Savings on payroll
15,000.00
Employment on costs
1,920.00
Sickness and absence cover
400.00
Redundancy potential on staff saving
250.00
Space saving
1,250.00
Fees from previous accountant
2,500.00
No need for accounting system
333.33
Software Maintenance reduction
1,300.00
22,953.33
Added Value
Increased cash flow through reduced debtor days - specify
£
268,000.00
Total debtor value
90.00
days outstanding
60.00
days target
30.00
Cash flow reduction in days
8.00%
Interest rate pa
1,762.19
Increased productivity in operational processes - specify
20.00
Staff
10.00%
increase in Productivity
15,000.00
total employment cost per staff member
30,000.00
Increased activity in Marketing/Selling - specify
1,000.00
new leads per year
10.00%
conversion rate
80.00
Average Sale value per year per lead
65.00%
margin per sale
5,200.00
59,915.52
What are the costs?
Outsourcing Costs -
£
Processing fee
1,100.00
per month
13,200.00
Access Fee
1,980.00
per year
1,980.00
Payroll per head
20.00
5.00
1,300.00
Financial Consultancy
200.00
per quarter
800.00
17,280.00
Cost Benefit
per year
42,635.52
Case Study 3 - Right Sizing of Company Business Control were tasked with reducing the cost of accounts administration for a large business so that greater investment could be made in the business operations. By taking over the accounts completely for the company we reduced cost of running the finance department by 77% as follows:
£
Reduced employment costs
130,393.00
Associated equipment & space saving costs
7,666.00
138,059.00
Outsourced management fees
26,344.00
On-line access costs
4,800.00
Cost Savings
106,915.00
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