Case Study: (Connolly Accountants & Business Advisors Ltd) Non-Profit Childcare Facility

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Growing Demand

Non Profits such childcare facilities face increasing challenges in the area of revenue compliance

There is a rapidly growing demand for high quality bookkeepers in Ireland & the UK. The demand is coming mostly from the SME sector. Currently estimated that there are approximately 200,000 SMEs in Ireland, the most recent official CSO figure relates to 2012, when there was over 185,500 active enterprises in Ireland and 99.7% of them were SMEs. (Source www.isme.ie) SMEs are in “Post Recession Mode” and are very aware that cashflow and knowing where their business stands at any given time is paramount! Hence the massive demand. Below is a case study from one our Academy’s graduates, Gerard Connolly on how he, with the help of an Irish Account’s software package (SortMyBooks) recently helped turn a business around..

How we helped

An opportunity became available to me using an Irish software package SortMyBooks to review and improve the Management of a Community based Childcare Facility which was struggling financially, I immediately set about restructuring the administration side of things. The first thing that was very apparent was the poor collection of private fees from parents, the lack of records and the lack of a system to analyse them. The facility were still using paper invoice books to issue a receipt and sometimes pages were missing or the duplicate was used as the official receipt, the adverse effect of this was poor bookkeeping and this lead to the accountancy fees being much too high as the accountant had to literally do everything. This was costing a lot of money to the facility. Poor bookkeeping was also identified in relation to petty cash and expenditure of same. Areas were identified within the facility where money could have been spent more wisely.

Because the facility was relying on government funding records were of paramount importance as quarterly returns had to be made outlining in detail where the money was going and this information was not available. There were substantial food grants available but in order to qualify for these grants accurate records of all food expenditure needed to be available and again this information was not available.

All of those problems were easily and promptly solved with the introduction of an Irish software package called SortMyBooks and as you can see from the graph the problems were almost solved overnight as instantly the fees collected more than doubled, but not just that, at a glance you could see who paid and who still owed.

We were also able to tell exactly how much we had in the till or in the bank at any given time, and how much we owed including PAYE, PRSI etc.

Each parent was able to get an invoice at the end of the week either a hard copy or one emailed directly from the software. This has proven to be of huge benefit to the parents. This benefit was also enhanced with the introduction of a Debit/Credit card machine.

Returns for Pobal, The Dept of Children and Youth Affairs Ireland, Tusla and the HSE were instantly available from the software and also could be printed or emailed to the recipient.

Accountancy fees were immediately slashed as all you needed was a good Bookkeeper, and as the software was cloud based it was accessible from any computer anywhere and anytime.

We now have up to the minute accounts at our fingertips; we have all our parents/customers on the system with weekly invoices and instant access to historic statements, something which will be of immense value if and when childcare fees become tax deductible.

I am also enclosing a graph which illustrates in graphic detail the impact of introducing a software package has had on this type of business.

I would also recommend this type of software for General Practitioners. My next step is to trial it for a busy GP practice.

Sales Before and After

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If you want to explore becoming part of Ireland’s fastest growing bookkeeping communities, and really make a difference in the way people do business, please contact me on any of the methods below for a confidential chat.

Kind Regards

Dan O Donoghue

Professional Bookkeepers Academy
BNI Director Consultant
087 9310444
LinkedIn Profile
http://ie.linkedin.com/in/danodonoghuetrainer
Skype dan.o.donoghue
email: contact@professionalbookkeepersacademy.ie

 

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