As the Acting Chief Financial Officer for a construction company with an annual turnover of $10 million and 26 employees, we were engaged to enhance financial management and operational efficiency. The company faced challenges in cash flow management, tax obligations, and financial transparency, requiring strategic interventions to improve its overall financial health.

Challenge

The company struggled with managing cash flow effectively, maintaining accurate financial data, and ensuring timely tax compliance. Key issues included: • A significant tax liability requiring negotiation with the Australian Taxation Office (ATO). • Inefficient accounts receivable and payable functions leading to data inaccuracies. • Limited financial transparency, preventing real-time assessment of project profitability.

Solution

To address these challenges, I implemented a series of strategic financial reforms, including: • Successfully negotiating a three-year repayment arrangement with the ATO to ease financial strain. • Introducing rolling cash flow forecasts to provide better visibility and control over working capital. • Harmonising the accounts receivable and payable functions through automation, improving efficiency and data accuracy. • Conducting data remediation and process improvements to enhance financial reporting. • Implementing off-the-shelf software solutions to provide real-time project profitability insights for the executive team.

Outcome

The implemented changes delivered significant improvements: • The ATO accepted the negotiated repayment arrangement, ensuring financial stability. • Automation of the accounts receivable and payable functions improved data accuracy and allowed staff to focus on critical organisational tasks. • Enhanced transparency enabled the executive team to assess project profitability in real time, a capability previously unavailable. • Strengthened cash flow management, improving overall financial resilience and decision-making. By driving these strategic financial improvements, I ensured the company achieved greater efficiency, compliance, and long-term sustainability.