CASE STUDY Financial insight and planning leads to a brighter outlook for Fix Radio
Start-up radio company Fix Radio is the UK’s first radio station for tradespeople. It launched in April 2017 and has enjoyed great success recently as more and more tradespeople have tuned in. The problem for Fix Radio was that they’d grown to a point where their existing finance function was inadequate and ineffectual, but they weren’t yet at a stage where they could invest in a dedicated in-house finance team.
Fix Radio needed help to ensure the everyday accounting was completed, that the business was compliant, and they were in need of some advice for future business planning. The challenge was that, although it was enjoying success it didn’t have the financial systems to cope with the recent growth. There was a part-time bookkeeper and accountant in place so there was some rudimentary record keeping, but this needed much tighter financial controls.
There was no management information being produced, so the CEO and Board had no real insight into how the business was doing financially. In addition, there was no forecasting or budgeting, which limited investment potential and the overall growth and development of the business – the existing financial situation was holding them back from achieving their full potential.
- Rudimentary bookkeeping in place
- No management information
- No forecasting or budgeting
Working closely with Fix Radio, the YRH financial controller was able to gain an understanding of the business, the individuals who worked there, and the industry. Being involved meant that she was able to take a pro-active stance and looked at more than just completing the regular compliance work, but also offered advice and support where it was needed.
“By involving YRH in discussions about all areas of our business they were able to provide a lot more support and advice than I thought possible… My advice to others would be that there is a lot more to finance than fillings/compliance, but that they [YRH] can only provide that support if they are kept abreast of what is going on.” Louis Timpany, Fix Radio
The YRH financial controller checked the bookkeeper’s work, identifying and working through errors to ensure all was present and correct. An accounting calendar was then created to systemise the finance function, giving them reliable management information and advising whenever possible to suggest new ways to improve and progress the business.
The FC created a regular management information pack with accounts to present to the board. She worked with the Sales Director to integrate the sales CRM with Xero to ensure they had joined-up figures. This all ensured that the business was compliant, that the day-to-day running was in hand and they were able to gain a better understanding of and manage their overall finance function. The Financial Controller then created a budget and forecast with the CEO and Sales Director.
“I really enjoyed working with YRH, I felt they understood my business and helped me to expand my finance knowledge.”
YRH carried out a full review to:
Focus on process
- The bookkeeper’s work was checked, and errors corrected
- An accounting calendar was created to systemise the finance function
- A regular management information pack was created and presented
- Integration of the sales CRM with Xero
- A budget was agreed and cashflow forecast produced
- Ability to predict trends and budget for future projects
“By involving YRH in discussions about all areas of our business they were able to provide a lot more support and advice than I thought possible… My advice to others would be that there is a lot more to finance than fillings/compliance, but that they [YRH] can only provide that support if they are kept abreast of what is going on.”
Having YRH as a flexible resource gave the company access to the valuable advice they needed at their particular stage of growth, and at a cost that was manageable. The Board now had access to regular management information so that they could see where the business was headed. Having this control and transparency and the ability to predict trends and budget for future projects meant that they could also benefit from further investment in the company by investors.
It was incredibly important for Fix radio that the financial side was taken care of so that there was time to focus on other important areas of growth. “YRH were able to free up my time and head space to allow me to drive the business and sales forward.” Says Louis Timpany.
- Within 4 weeks, the bookkeeping had been reviewed and re-coded correctly.
- Within 6 weeks, the first Management Information Pack was produced.
- CEO had 100% confidence in the numbers.
- Within the 1sst ear, forecasting and budgeting were in place for the next 3 years.
- Within 3 months, regular financial board reporting was being completed.
Working with YRH allowed Fix radio to ensure they had fully functional and accurate financial management in place. Moreover, it meant that they were able to get a real understanding of the performance of the business and have access to reliable figures. And all of this came without overstretching the finances of the business.