HOSPITALITY CASE STUDY
How we helped a business with 150 employees and a turnover of over £10m within the Hospitality sector by utilising our FFO service.
We’re delighted to have been able to help our client from the Hospitality sector improve the performance of their Finance Function by utilising our Finance Function Outsourcing service.
We’re going to breakdown how we were able to help into 5, easy-to-digest sections below using bullet points. If you have any questions about what we did, how this approach could benefit your business or would just like to understand FFO in more detail please feel free to get in touch using the form at the bottom of this page.
To start of with, we’re just going to cover off some initial background information on the client.
- A restaurant within the Hospitality sector
- Turnover of £10m+
- 150 Employees
- Based in London, UK
Next we’re looking at what the client was trying to achieve by utilising our services.
- Review and advise of operational processes
- Maintain supplier payment system
- Monthly reporting and analysis for sound financial decision for management
- Set margin for management and budget for forecast
We then have the current challenges that the client was encountering.
- Stock, purchase orders and receipts were not properly managed
- Supplier reconciliation – there was no suitable control over suppliers i.e. bookkeeping was not accurate, reconciliations were not done properly with supplier statements and some cases, not done at all
- Due to poor bookkeeping, supplier invoices were not paid on time and some suppliers were paid twice, leaving the business in a poor position
- Management was not able to set accurate margin and labour costs, meaning they did not have any budget or forecast and BEP either
The most important part. What were we able to achieve?
- Software implemented for stock counts, purchase orders, receipts etc.
- Mail ID setup for invoices and statements from suppliers, with our access allowing us to record them on a daily basis and have them reconciled by the 1st week of the following month
- Aged creditors are now being sent on the 1st week of the following month, so that suppliers can be paid timely, helping the business to run smoothly
- We have analysed the whole business and prepared Budget and BEP. The same was discussed with the Managers and Head Chefs for the key performance indicators (KPIs) by their UK SKS Manager
- Management accounts/period accounts are prepared on a regular basis to help the management to make decisions on costs and budget from their sales
And how did we achieve all of this? The solution we integrated is below.
- Petty cash template i.e. file is setup with formula and cross-checked
- Period accounts template i.e. new template with balance sheet is being set up
- Theoretical margin in weekly management accounts
- Budget forecast for CBIL Loan – resulting in a loan for the client of more than £1m for growth
- Reconciliation templates, market man, supplier, cash etc.
- At time of inception there was only one site which has now grown to four sites, with plans to open a few more sites in the near future
- 50% cost-savings by using SKS compared to in-house costs
- Provided consistent and timely reporting to the client for over 7 years
Ready To Get Started?
If you would like to understand more about FFO and how it can help your business, or you would like to speak to one of our team about starting the process of implementing FFO into your business, please complete the form below and we will get back to you as soon as possible.