A London based PR agency established in 2009 had seen year-on-year success since launch, winning lots of new clients and awards for their work. They developed a reputation for their ‘disruptive’ PR techniques and have enjoyed working with innovative and ground-breaking start-up companies that wanted to arrive and shake up the market. Today the agency has a very enviable list of well-known clients within both the technology and food & drinks industries.


The agency knew their strengths were in PR, not accounting, so they were already working with an accounting professional. However, this resource worked from a remote location, wasn’t connected into the business in any way and had rudimentary record keeping in place with a focus on just making sure they filed their VAT returns.


A billing system was in place to produce their invoices but they had no accounting system and they just handed paperwork over to their bookkeeper who simply processed the information. This meant no insight into how the business was doing, who owed them money and who they owed money too.


There was no credit control whatsoever and owed money was not chased up. Cash flow was suffering and with very little money in the bank, they didn’t have enough to even pay their tax bills so needed to set up payment schemes with the HMRC and the business owner often had to delay paying himself. They had a significant amount of debt where clients weren’t paying them – approx. £190,000 was considered “bad debt” and turnover was £600,000.


  • Invoices not being paid, high bad debt
  • No cash in the bank and owner not paying himself much or on time
  • Unhappy suppliers who weren’t getting paid
  • No visibility of profit or cash flow forecasts
  • Growth was being constrained
  • Unaware of the risks of their current accounting solution
  • No visibility of underlying successes or issues.


The agency were working with a business coach who recognised that, despite being very successful at winning new business, their cash flow and their accounting practices were holding them back from achieving their full potential and growing as a company. This coach had previously worked with YRH so recommended them as a resource to overcome these finance related challenges.


Collected Within 6


Find out how we can help you to improve efficiency, profit and cash, while also reducing costs and business risk, by professionalising your finance function.

YRH carried out a full review to:

Focus On Cash

  • Advised them to change to the industry standard of billing a month in advance instead of in arrears, which accelerated a whole month’s worth of revenue.
  • Took on responsibility for their credit control/cash collection and retrieved £124k of very old debt from 3 clients.
  • Gave them the confidence to ask a client who cancelled a commission contract worth £250,000 to secure payment for work done to date.
  • Ran informal training for account managers on asking clients to pay and agreeing terms at the start.
  • Helped them implement client contracts which they’d never done before.

Increase visibility

  • All current year transactions were put on a cloud accounting system with access for the team so that they could also raise all their bills and track payments in one place.
  • Implemented a simple PO system so the team could get purchases for clients, and the office approved quickly. Those o/s PO’s were then used in accounting and cash forecasting.
  • Prepared their first set of management accounts and worked with the Directors so they could start to engage with the numbers.
  • A dashboard was created so all financial information was available in real time.
  • Worked together with them on a 3 and 6 month forecast every month.

“They provide the part of the picture which was missing – insight into what the numbers actually mean for our business.”


Due to the implementation of a robust and proactive credit control process in the first 6 weeks of working with YRH, an additional £104,000 was collected and the average amount collected monthly improved from 32% to 56%.
Cashflow was accelerated with 75% of clients agreeing to being billed in advance rather than arrears. This had a massive impact on the agency’s bank balance, ensuring they always had money in the bank.

After the first 12 months we prepared 2 cashflow forecasts. The first based on what they could achieve in the future if they followed advice based on our knowledge and expertise of how a PR company of their size should perform = £120K in the bank. The second on what was achievable based on current practices = £35K in the bank. We are proud to say we managed to get very close to this figure.

The implementation of simple P&L accounts showed their cost base and how it changed over the months. They knew they were understaffed and this proved it – the difference was they now had the cash to employ more people.
We helped them see their client retention was poor, and through some client evaluation they changed their strategy for targeting new business, seeing average retained client values triple resulting in a much more stable business which is cash positive, going from £600k to £1.8m in 3 years.


  • Credit control process sees monies collected monthly rise from 32% to 56%
  • Cashflow accelerated with 75% of clients moving to billing in advance
  • Cashflow forecasts implements after 12 months
  • Client evaluation resulted in new business strategy implementation
  • Vat inspection received gold stars
  • New offices opened and increase in staff numbers
  • Profitable business with much higher turnover
  • Owner doubled income and gained the freedom to make informed choices


These results were achieved because it’s not just about the numbers. It is also about understanding the client, the individual, the business and their industry and how it works. Our knowledge and experience was relevant to their unique circumstances and we got to know them and not just crunch numbers at the end of each year. It also required a true and honest understanding of the reality of where they were at that time and why! Without that knowledge and openness to change they couldn’t start to move forward and see the great results they have to date.