This means credit control needs to be monitored regularly and work in progress and billing need consistent review so that the lock up of working capital in the business is reduced as far as possible.
Looking within the firm to ensure the correct balance between staffing needs and meeting project deadlines is key to success and maximising the potential of the business. Review charge out rates and comparing your key figures to those within the sector can help to provide assurance or identify weaknesses that need attention.
With the development of technology and the methods used by Architects there is the prospect of taking advantage of the Research and Development tax incentives offered by the Government.
We can help to understand the amount of cash that is locked up in the business within the work in progress and debtor book. Working on this area can help to unlock some of this capital earlier and turn it into cash for the business. Often Architects do not spend as much time on this area as it needs to ensure good cash flow within the business and the results can make a huge difference to the practice.
Understanding how your business performs compared to other similar size practices can also be very useful in helping to make key decisions and structuring the firm to be competitive within the market place.