CS2: Finance Management – Property Management

Case Study: Finance Management

Image courtesy of ddpavumba / FreeDigitalPhotos.netHelping the Directors sleep at night

WHERE IT STARTED

A Property Management business that I had been helping on occasions with Management Strategy & Staff Training, confessed in a meeting that they were losing sleep over the finances. With several businesses under one umbrella, outsourced accounts to different people, and a variety of new business partnerships, things felt out of control.

During the meeting I found:

  • With a recent take-over of a national business and another newly acquired partner, the overall feeling that things were going ok was not enough, they required clear hard facts
  • Accounts were being done by a variety of outsourced people and in some cases, not locally
  • Requests for needed financial management information were at best slow, at times not forthcoming
  • There was duplication of costs & data as they tried to marry together the disparate businesses into one controlled financial outlook
  • Personal relationships meant some staff were under-performing in roles but this was difficult for the Managers to address

WHAT I DID

The business needed a level of management support, someone to take on finances and someone to pull all this together in order that the foundations and finances gave them confidence again.

  • I decided that the best way of really getting to the bottom of the issues is to roll up sleeves and get involved
  • I gradually took all of the accounts from the external sources, brought them in-house and got on top of them myself
  • I chased old debts, investigated and solved old issues, cleared outstanding monies owed, and provided monthly financial management reports to Directors
  • I discovered cost-savings, implemented new systems and procedures and helped the Directors understand exactly the position they were in

WHAT THE RESULTS WERE

  • The Directors were able to sleep at night!
  • The various accounts were now all in-house and the size and cost of the job to do them on a monthly basis was now clear, thus allowing recruitment to the one financial role
  • There was contact to the business from both Clients and Suppliers complimenting on the efficient way their issues had been dealt with and reporting “renewed confidence” in the business
  • The business accountant breathed a huge sigh of relief at his much easier “End of Year” job

To put it even more simply, when sleep is being sacrificed, action must be taken

“We knew you were good, but you’ve exceeded any expectations! Your attention to detail is incredible & you’ve simplified so many complicated things that we struggled to understand. Please stay!” Business Partners, Property Management Company