Keeping HR Simple
In 2016 Keeping HR Simple found their business was rapidly growing but the business was still very manual when it came to finances. Keeping HR Simple had manual spreadsheets and did their own reconciliations, while collating their own paperwork.
While this process worked, it was very time-consuming and was sometimes late as it had to be passed onto the accountants to complete the month-to-month reports. If business was busy at Keeping HR Simple then the paperwork would be completed late, handed out late and this delayed the report being created and viewed to understand where the business was at.
While Jason and Katherine of Keeping HR Simple had a rough idea of where the business was financially, there was no current review and this resulted in wariness when it came to making big decisions such as employing new staff members or taking on larger clients. Operationally it was a very painful process and with the business growing there was no time available to complete the accounts admin work for their accounting firm.
When Keeping HR Simple Met Direct Peak
Jason had met Karl through a previous business. He knew he was experienced in accounts and had set up his own business, Direct Peak. Karl and Jason had an exploratory chat in early 2017 to understand where Keeping HR Simple was, what their pain points were and if there was a solution that Direct Peak could offer.
What Direct Peak Suggested
Karl gave Jason four initial ideas that have worked extremely well for Keeping HR Simple, these ideas were as follows;
How the Suggestions Helped Keeping HR Simple
By moving the accounts to Xero this has meant that Jason, Katherine and their team can view up-to-date and real time accounts for the business, quickly seeing what the business is doing, checking the cash flow, knowing what is coming in and what is due to come out.
Xero means that electronic copies of all their paperwork can be uploaded directly without the need for printing anything, which has freed up lots of, previously wasted admin time. This includes all receipts and invoices, which just go straight into Xero. Overnight moving to Xerohas saved Keeping HR Simple loads of administration time and hugely increased their financial visibility.
Keeping HR Simple used to raise all of their sales invoices for monthly agreements manually in Word, which was a very time consuming process, especially as they were growing. Direct Peak moved all of their monthly customers onto a repeating invoice within Xero. This feature raises the invoice automatically each month and emails it out to the end customer.
This has saved Keeping HR Simple lots of time and means they can better manage payments from their clients. Previously a payment may have been missed and wasn’t spotted for a while, but now the team can easily stay on top of payments to ensure clients are paying on time as the invoices go straight into the debtors list within Xero.
Due to the ease of invoicing and viewing up to date accounts the Keeping HR Simple are now able to clearly see when they have debtors. Previously clients could be going up to 90 days before payments were chased and made by the client, but with the new accounting system, and the implementation of ideas from Karl, Keeping HR Simple are now finding clients pay in under 30 days.
This has made a massive difference to the cash flow for Keeping HR Simple and has saved them, so much time and pain in chasing unpaid invoices because invoices and chasing emails are automatically sent.
Keeping HR Simple admit that this is not something they would have done without the pushing and encouragement of Karl and Direct Peak. However, the team are now thrilled that they have moved their clients to direct debits.
All new customers are now automatically put onto direct a debit, which puts Keeping HR Simple in charge. Previously clients were given the forms to complete and this was heavily reliant on the client, with Keeping HR Simple on the back foot. This has made huge improvements for the business and is an integral part of cash flow.
Why Do Keeping HR Simple Use Direct Peak?
Due to Karl’s knowledge and understanding of business, Keeping HR Simple will often refer to Karl as their Financial Director. Karl will ask Jason and Katherine probing questions and talks about plans of where they want to be, and areas they need to be mindful of by looking at the accounts.
Keeping HR Simple have a monthly face-to-face meeting with Direct Peak, but they can always call in-between with any questions or to get Karl’s thoughts. Jason often turns to Karl for a trusted and valued conversation, to get a balanced view on the business or business ideas.
Karl gives Jason and his team a better understanding of the business and cash flow. Jason will turn to Karl for all his financial decisions because of his vast business driven experience and because Karl is a business person himself, so is aware of how the business world works. Jason feels that Karl’s strong commercial background is certainly a big asset, and helpful to Jason as a business owner.
Over the 18 months that Keeping HR Simple have been using Direct Peak Jason feel that Karl and his team have had a more positive, direct influence into the business than anyone else. The turnaround time on accounts is 2 weeks following the month end which has meant Keeping HR Simple have a much better view of where the business is at, right now.
Karl also encouraged Keeping HR Simple to move bank accounts as their old bank wouldn’t take direct debits. They moved to a new bank where they got better banking terms and a financial cushion in the account too. This would not have been done without Karl’s advice.
How Are Keeping HR Simple Doing Now?
The business is continuing to grow and through using XERO and automated invoicing it previously took around a day and half a month, it now takes 3-4 hours. The team set up a new clients account in minutes which previously took a LOT longer. Keeping HR Simple are in control with the direct debits and they have freed up lots of time that was wasted on the admin for accounts. The fee that Keeping HR Simple, vs the time they saved makes them feel there is no question, and using Direct Peak was the best business decision for them.
Last Words from Keeping HR Simple
“Any business owner that is interested in having a better financial understanding of their business would benefit from speaking to Karl and Direct Peak”
