This specialist building and maintenance company based in Manchester was unhappy with the arms-length approach of its incumbent accountancy firm. It chose to switch to Prevail to gain the real-time financial insights and build the strong foundations necessary to fuel its ambitious growth plans.
RPMG is expert at working at height and providing specialist building fabric services, including maintenance, safety systems, cleaning and access. Founder Chris Cummins has big ambitions for the business – aiming to achieve £7m turnover by year seven.
For the first two years of the business, Chris used a big accountancy firm for RPMG’s company finances. When filing the first-year accounts, it became clear the firm was not providing the personal service needed to support RPMG’s ambitious growth plans.
“They were vague on our tax liabilities and it felt like we were being passed from pillar to post,” recalls Chris. “I knew that to grow the business the way I want to, I needed to be closer to the money.”
Choosing to work with Prevail Accountancy
Through a personal recommendation, Chris found Prevail Accountancy. He was initially attracted to Prevail’s specialism in the construction sector – the industry in which RPMG also operates.
“It quickly became apparent that Prevail has a much better understanding of business and financial management than just looking at the numbers,” he explains. “Prevail could offer the level of engagement and close relationship that a growing business like ours needs.”
In particular, the regular communication with a dedicated account team, with day-to-day collaboration, would enable Chris to gain the control over cash that he desired.
Chris confirms, “When you are a young, hungry and ambitious business, you need more financial support – and that’s what our relationship with Prevail delivers.”
An immediate win cements the partnership
The engagement began with a thorough discovery process, with Prevail looking through the business accounts since the company’s foundation.
“I was already unhappy with the existing poor accounting practices but Prevail found some serious holes which enabled us to save money from the get-go,” recalls Chris. “This really cemented our working relationship.”
Notably, the incumbent firm had not deducted Construction Industry Scheme (CIS) payments at source – leaving RPMG unaware of the accrued costs. CIS requires contractors to deduct the tax amount from payments made to subcontractors and remit this directly to HMRC.
Chris adds, “Remedying these previous poor accounting practices helped us to offset some of our liabilities. It really drove home the difference in working with Prevail. We’re in a much better place now.”
Gaining real-time insights into financial performance
Prevail worked with Chris and the RPMG team to optimise the company’s use of its Xero accounting software. Prevail integrated Dext for bookkeeping automation, ensuring the accuracy of all records.
The most important Xero integration has been the addition of Fathom management reporting and financial analysis software. This cloud-based solution is used to deliver regular management reports for Chris and other members of the board and senior leadership team.
The team is very happy with the easily digestible reports and visualisations. The information is presented in a “slick and professional” way.
“I’ve now got monthly management reports at a really high standard,” enthuses Chris. “I have enterprise-quality reporting – and that gives me a lot of confidence. I know we are putting the right financial and process foundations in place to support the growth ambitions I have for the business.”
Recognition of good practice brings further rewards
High-quality record keeping has delivered another advantage for RPMG. The company has achieved Gross Status under the CIS, meeting HMRC criteria. This includes having a history of timely tax and national insurance payments, clean records and good financial health.
Chris confirms, “Within six months we’d achieved Gross Status with HMRC. It’s confirmation of the good work we’re doing and indicative of the good financial control we now have over the business. It means we can improve cash flow and simplify transactions.”
Perhaps the greatest reward for Chris is the confidence he has in both RPMG’s accounting practices and his ability to make informed decisions.
Chris says. “I am always busy but at least now I am not sapping my energies getting involved in finance operations. Working with Prevail, I feel confident the business is always on point for month end. And I can access real-time financial information in Xero at any time.”
Financial freedom opens new opportunities – and feeds the right culture
“It’s vital to know your liabilities. Your business will fail if you don’t,” emphasises Chris. “Our improved ability to manage cash flow means I can take on new opportunities. Because I have accurate, complete, real-time information, I can be certain of the liquidity in the business. That puts me in a better position to tender for work.”
This is a huge step forward from the previous situation, which Chris described as like being “blindfolded”. Decision making is now much less stressful.
“I now walk into a contract knowing I can meet all liabilities,” Chris explains. “It gives me the freedom to create the right culture for my business. I am not going to be squeezing contractors – I can pay quickly and on point. Plus, I can be selective about the contractors with whom I work.”
The improved financial reporting and certainty in the financial performance of the business has given Chris the confidence to make another important change.
He explains, “I work with some great customers and I can see that they pay me on time. As a result, I no longer need to use a factoring service. By cancelling that service, I saved £15k last year. Those costs would have continued to rise. Instead, that money can now be used to grow the business.”
One of the best decisions we’ve made
Two years on, Chris remains delighted by his decision to switch to Prevail Accountancy.
“We’re in a really good place,” he says. “We’ve created great foundations for our business. Our financial reporting is ready for the future – and for investors or even sale. I think that’s rare for a three-year-old business. I’m confident we’ve laid the right foundation for our future growth.”
RPMG has already recommended Prevail to other start-up firms which want to grow quickly and to other larger firms which are struggling.
Chris concludes, “I’m very happy with Prevail. I think they are one of the best around – especially for a hungry business like ours. When I look back to where we were two years ago, it’s like chalk and cheese. Switching to Prevail was one of the best decisions we’ve made.”