Scope of the project:
The client has been using the services of another accounting firm. Our company was inquired about the possible reasons of low profitability and was asked to propose costs cuts
Our mission:
Analysis of revenues and expenses in cooperation with the accountant firm
Definition of possible ways to increase profitability and areas of savings
Ongoing monitoring of the income statement and providing monthly reports
Result:
Respective geographical areas showed different profitability. In fact, the more efficient areas subsidized the others which were incurring losses. Bonus system for sales structures based on real income generated by the region, taking into account all costs, including headquarters overheads and warehouse expenses was implemented.