Unexpected Tax Burden
In 2011, this case study business was a growing, profitable company, providing paralegal services.
However, when HMRC carried out an inspection, they discovered that their VAT accounting had been fundamentally wrong, due to poor advice. They owed the taxman hundreds of thousands of pounds.
The company was placed into administration, but rather than entering liquidation, they entered an agreement to repay HMRC, on the proviso that Insight Associates took over its financial management.
We immediately started turning the company around, putting in financial processes, controls and approvals processes that would strengthen its finances. Controlling cash flow was a priority.
We moved the client onto our leading accountancy platform, Exchequer, and took responsibility for all financial aspects of the business from VAT, Tax and Payroll, through to monthly management accounts.
The result? The client paid its debt to HMRC a full year early, and the delighted directors are now paying themselves dividends from the profits.
We continue to work with them to ensure their figures are accurate, to ensure that the directors understand their numbers and to plan their strategic development.