Case Study: Implementing New Accounting Software at Rocket Exhibitions
Introduction
Rocket Exhibitions, a company specializing in organising large-scale exhibitions, faced significant challenges with its financial management due to the lack of a comprehensive accounting system. Previously operating without an accurate general ledger, the company struggled with unclear financial records and unorganized accounts. This case study outlines the journey I took to implementing new accounting software to transform Rocket Exhibitions' financial management system.
Identifying the Problem
The primary issue at Rocket Exhibitions was the absence of an accurate general ledger. This led to a lack of clarity in financial reporting, difficulty in tracking expenditure and income, and challenges in making informed financial decisions. The need for a robust accounting system was evident to enhance transparency, efficiency, and compliance with financial regulations.
Challenges and Overcoming Them
The biggest challenge was the sheer volume of historical data that needed auditing and categorization. The team overcame this by breaking down the process into manageable phases and maintaining constant communication between team members.
Another challenge was the adaptation of staff to the new system. To address this, the team conducted training sessions for relevant staff, ensuring a smooth transition.
Results and Impact
The implementation of the new accounting software brought transformative changes to Rocket Exhibitions:
1. Improved Financial Transparency: The company now enjoys clear visibility of its financial status.
2. Enhanced Decision Making: With accurate financial data, the management can make more informed decisions.
3. Compliance and Accuracy: The system ensures compliance with financial regulations and accuracy in financial reporting.
4. Efficiency in Financial Operations: The streamlined process saves time and reduces errors in financial management.
The Solution: New Accounting Software
To address these challenges, I decided to introduce new accounting software. The objectives were clear:
1. To audit three years of accounts to ensure accuracy and compliance.
2. To categorise all expenditures accurately.
3. To develop a comprehensive accounts receivable (AR) and accounts payable (AP) system.
4. To create a detailed Balance Sheet and Directors Loan account.
I chose XERO due to its cloud-based infrastructure and connectivity with other software I had brought to the company. XERO became another application in a wider ERP that would bring data into a single tool.
Execution: Collaboration and Dedication
The project was led by myself, with Shona Watson, an experienced change consultant (Avilion Strategy)with significant accounting experience, and in collaboration with a 3rd party accountancy firm. The first step was a meticulous audit of the past three years of accounts. This process involved:
Detailed examination of past financial records.
Rectification of discrepancies in the records.
Verification of financial transactions for accuracy and legitimacy.
Following the audit, the team categorised every expenditure, streamlining the financial records into comprehensible categories. This categorisation was crucial for setting up the new accounting system.
The next significant step was building the AR and AP systems from scratch. This required:
Setting up individual customer and supplier accounts.
Recording all pending receivables and payables.
Implementing processes for regular updates and reconciliation.
Finally, the team developed a comprehensive Balance Sheet and Directors Loan account, providing a clear picture of the company’s financial health.
Click the logo to speak with Shona Watson about business consultancy with Avilion Strategy