How we helped FF control their cash flow and inventory using Xero and WooCommerce

The Problem

FF’s cash flow was constantly in the red, and they had no money to pay bills or wages. The business was in a dire financial situation.
When we met, they were using a desktop with an old version of MYOB. The system struggled to integrate with the STP payroll system. Duplicate data handling between the Xero payroll and desktop MYOB was a daily chore. On top of that, they had no idea which products were profitable.

IPR Accounting’s Solution

After the first meeting, we began solving their problems. This included:

• Converting accounting data from desktop MYOB to the Xero cloud system
• Combining the accounting and STP payroll in one system, with an online portal for employees to present timesheets and leave applications and set up a Xero employee reimbursement system
• Setting up a weekly customised cash flow forecast with negotiated supplier instalments integrated into the system
• Structuring an authorised payment approval system and a system of monthly inventory reconciliation between internal management and their external third-party logistics company
• Analysing the cost of products, including original product cost, packaging, carton, and distribution, to control profit margins
• Organising a monthly customised management and inventory report, a product and customer sales report, and a profit margin report.

Their ecommerce system for WooCommerce and Paypal Integration is also fully set up and functional.

The Results

FF is now in a much better financial position. The IPR team provides weekly accounting services and deals with sales in Woolworth and Coles. FF’s inventory management system in Xero is running accurately each month with the third-party logistics company. The company maintains excellent relationships with suppliers and always pays on time due to the effective cash flow forecast plan.